MPLX LP Acquires Northwind Midstream Partners LLC for $2.4 Billion

MPLX LP has agreed to acquire Northwind Midstream Partners LLC from Five Point Energy LLC for $2.4 billion. The acquisition is subject to customary closing conditions and is expected to close in Q3 2025. MPLX plans to finance the deal with debt.

MPLX LP, a diversified midstream energy infrastructure and logistics company, has agreed to acquire Northwind Midstream Partners LLC (Northwind Midstream) from Five Point Infrastructure for $2.4 billion. The acquisition, subject to customary closing conditions, is expected to close in the third quarter of 2025. MPLX plans to finance the deal with debt [1].

Northwind Midstream, backed by Five Point Infrastructure, operates sour gas gathering, treating, and processing services in Lea County, New Mexico. The portfolio includes over 200,000 dedicated acres, 200+ miles of gathering pipelines, and two in-service acid gas injection (AGI) wells at 20 million cubic feet per day (MMcf/d), with a third permitted well increasing its total capacity to 37 MMcf/d. The system currently has 150 MMcf/d of sour gas treating capacity and is expected to expand to 440 MMcf/d by the end of 2026 [1].

The acquisition will enable MPLX to promptly address sour gas volumes for its existing and new producer customers in the Permian Basin. The dedicated acreage and volumes associated with this system provide access to up to 400 MMcf/d of incremental gas available for processing and up to 70 thousand barrels per day of new NGL volumes, accelerating growth opportunities for MPLX [1].

"This integration will expand MPLX's treating and blending operations," said Maryann Mannen, MPLX president and chief executive officer. "The addition of 200,000 dedicated acres will increase our access to natural gas and NGL volumes, accelerating our growth opportunities in the Permian" [1].

The deal is expected to be immediately accretive to MPLX's distributable cash flow and represents a 7x multiple on forecast 2027 EBITDA. The anticipated mid-teen unlevered return is inclusive of incremental capital spend associated with in-process expansion activity [1].

MPLX LP's acquisition of Northwind Midstream Partners LLC is part of its strategy to expand its footprint in the Permian Basin and capitalize on the growing demand for natural gas and NGL volumes. The deal is expected to strengthen MPLX's position in the midstream sector and enhance its growth prospects [1].

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.reuters.com/business/energy/mplx-lp-buy-northwind-midstream-238-billion-deal-expand-permian-basin-footprint-2025-07-31/
[3] https://www.reuters.com/business/energy/five-point-talks-sell-northwind-midstream-mplx-23-billion-bloomberg-news-reports-2025-07-30/