MPLX to Sell Rockies Assets for $1 Billion, Harvesting Midstream Unit

MPLX LP is selling its Rockies gathering and processing assets to Harvest Midstream for $1 billion. MPLX is a diversified master limited partnership with midstream energy infrastructure and logistics assets, including gathering, processing, storage, and distribution of crude oil, refined products, and renewables. The sale will be part of its Logistics and Storage segment.

MPLX LP (NYSE: MPLX) has entered into a definitive agreement to divest its Rockies gathering and processing assets to a subsidiary of Harvest Midstream for $1.0 billion in cash consideration. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions [1].

The assets included in the transaction are natural gas gathering and transportation pipelines and 1.2 billion cubic feet per day of processing capacity, which operated at 52% in 2024. Harvest Midstream has agreed to dedicate approximately 12 thousand barrels per day of NGLs from these assets to MPLX for a period of seven years commencing in 2028 [1].

Maryann Mannen, MPLX president and chief executive officer, stated that "Evaluating the competitive positioning of our portfolio is a strategic commitment. The divestiture of these assets better positions our portfolio for growth, anchored in the Marcellus and Permian basins" [1].

The sale is part of MPLX's Logistics and Storage segment. This move allows MPLX to focus more on the Permian Basin, where it has been expanding its operations. The company recently announced a final investment decision on the Eiger Express Pipeline, a new natural gas pipeline linking the Permian with export facilities on the U.S. Gulf coast [2].

Harvest Midstream, owned by Hilcorp Energy founder Jeff Hildebrand, will expand its operations beyond Alaska and North Dakota into the Uinta and Green River shale basins, which collectively stretch across Utah, Colorado, and Wyoming [2].

The transaction is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. MPLX cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties [1].

References:
[1] https://www.prnewswire.com/news-releases/mplx-lp-to-divest-rockies-gathering-and-processing-assets-302539535.html
[2] https://seekingalpha.com/news/4489526-mplx-lp-to-sell-rockies-gathering-and-processing-assets-for-1b