MPLX Secures Full Control of BANGL Pipeline in $715 Million Deal

MPLX LP (NYSE: MPLX) has announced a definitive agreement to acquire the remaining 55% interest in BANGL, LLC from affiliates of WhiteWater and Diamondback Energy for $715 million. The acquisition, expected to close in July 2025, is immediately accretive and is projected to generate mid-teen returns for the partnership. Upon completion, the BANGL Pipeline will become a wholly owned asset of MPLX and will be consolidated in its financial results.

The BANGL pipeline system transports up to 250 thousand barrels per day (bpd) of natural gas liquids (NGLs) from the Permian basin of Texas to fractionation markets along the Gulf Coast. BANGL is being expanded to 300 thousand bpd, which is anticipated to come online in the second half of 2026. The BANGL pipeline system will enable liquids to reach MPLX's Gulf Coast fractionation complex, which is expected in service in 2028.

"With full ownership of BANGL and its expansion opportunities, our growth platform is further improved for the long term as we connect growing NGL production from the Permian basin to our recently announced Gulf Coast fractionation complex," said Maryann Mannen, MPLX president and chief executive officer.

If the pipeline achieves certain performance metrics, MPLX would make earnout payments up to a specified cap as part of the deal. The acquisition remains subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The acquisition of the remaining 55% interest in BANGL, LLC by MPLX is a strategic move that enhances the company's long-term growth platform by connecting growing NGL production from the Permian basin to its recently announced Gulf Coast fractionation complex. This acquisition allows MPLX to have full ownership of the BANGL pipeline, which is capable of transporting up to 250,000 bbl/d of NGL from the Permian Basin to the Gulf Coast. The BANGL pipeline is currently being expanded to 300,000 bbl/d, which is expected to come online in the second half of 2026. This expansion will enable liquids to reach MPLX's Gulf Coast fractionation complex, which is expected to be in service in 2028. By acquiring full ownership of the BANGL pipeline, MPLX can better control and optimize the transportation of NGLs from the Permian basin to the Gulf Coast, supporting the company's long-term growth strategy.

The earnout payments up to a specified cap could have potential financial implications for MPLX, as they represent additional costs that could impact the overall returns on the acquisition. If the BANGL pipeline achieves the specific financial performance metrics, MPLX would make additional payments to the sellers, which could reduce the net income and cash flow generated by the acquisition. However, the exact impact on MPLX's projected mid-teen returns would depend on the specific terms of the earnout agreement, such as the cap amount and the performance metrics required to trigger the payments. If the earnout payments are relatively small compared to the overall acquisition cost and the pipeline's performance, they may not significantly affect the projected mid-teen returns. On the other hand, if the earnout payments are substantial and the pipeline's performance falls short of the required metrics, the projected returns could be lower than expected.

The expansion of the BANGL pipeline system to 300 thousand barrels per day (bpd) is expected to come online in the second half of 2026, which will significantly contribute to MPLX's overall growth and market position. This expansion will enable the pipeline to transport an additional 50,000 bpd of natural gas liquids (NGLs) from the Permian basin to the Gulf Coast, where MPLX is building a fractionation complex expected to be in service in 2028. This strategic move will help MPLX connect growing NGL production from the Permian basin to its Gulf Coast fractionation complex, further improving its growth platform for the long term (Mannen, 2025).

Moreover, the expansion of the BANGL pipeline system will allow MPLX to increase its market share in the NGL transportation sector. With the additional capacity, MPLX will be able to serve more customers and potentially attract new ones, further solidifying its market position. This increased market share can lead to higher revenue and improved profitability for MPLX.

In addition, the expansion of the BANGL pipeline system is expected to generate mid-teen returns for the partnership, which will contribute to MPLX's overall financial performance. These returns can be reinvested in the business to support annual distribution increases and fund other growth projects, further enhancing MPLX's market position and competitiveness.

In summary, the acquisition of the remaining 55% interest in BANGL, LLC by MPLX is a strategic move that enhances the company's long-term growth platform by connecting growing NGL production from the Permian basin to its recently announced Gulf Coast fractionation complex. The earnout payments up to a specified cap could have potential financial implications for MPLX, depending on the specific terms of the agreement. The expansion of the BANGL pipeline system to 300 thousand barrels per day is expected to come online in the second half of 2026, which will significantly contribute to MPLX's overall growth and market position by connecting growing NGL production from the Permian basin to its Gulf Coast fractionation complex, increasing market share, and generating mid-teen returns for the partnership.