MPLX LP to Acquire Northwind Midstream in $2.38 Billion Deal

MPLX LP, a US-based pipeline firm, has agreed to acquire Northwind Midstream in a $2.38 billion deal. The acquisition is expected to enhance MPLX's operations in the Permian Basin. Additionally, MPLX has reported Q1 2025 earnings, with revenue increasing to $3.12 billion, exceeding estimates. The company has also announced the completion of its acquisition of Gathering Businesses of Whiptail Midstream and a partnership with Enbridge to acquire stakes in the Matterhorn Express Pipeline.

MPLX LP, a diversified large-cap master limited partnership, has agreed to acquire Northwind Midstream in a deal valued at $2.38 billion. The acquisition is expected to close in the third quarter of 2025 and will be financed through debt. The transaction represents a 7x multiple on forecast 2027 EBITDA, with an anticipated mid-teen unlevered return [1].

Northwind Delaware Holdings LLC, which provides sour gas gathering, treating, and processing services in Lea County, New Mexico, will be acquired by MPLX. The portfolio includes over 200,000 dedicated acres, 200+ miles of gathering pipelines, and two in-service acid gas injection (AGI) wells with a total capacity of 37 MMcf/d. The system currently has 150 MMcf/d of sour gas treating capacity, which will expand to 440 MMcf/d by the second half of 2026 [1].

The acquisition will provide MPLX with access to up to 400 MMcf/d of incremental gas and 70,000 barrels per day of new NGL volumes. This expansion will accelerate growth opportunities for MPLX in the Permian Basin. "The integration of these assets with our existing Delaware basin natural gas system will expand MPLX's treating and blending operations," said Maryann Mannen, MPLX president and chief executive officer [1].

MPLX has also reported Q1 2025 earnings, with revenue increasing to $3.12 billion, exceeding estimates. Additionally, the company has completed its acquisition of the Gathering Businesses of Whiptail Midstream and has partnered with Enbridge to acquire stakes in the Matterhorn Express Pipeline [2].

References:
[1] https://www.prnewswire.com/news-releases/mplx-lp-to-acquire-northwind-midstream-enhancing-permian-natural-gas-and-ngl-value-chains-302518468.html
[2] https://www.stocktitan.net/news/MPLX/mplx-lp-to-acquire-northwind-midstream-enhancing-permian-natural-gas-by8h4td38ek9.html