MPLX LP Strengthens Midstream Operations with $2.375 Billion Northwind Acquisition
- MPLX LP acquires Northwind Delaware Holdings for $2.375 billion, enhancing natural gas operations in New Mexico's Lea County.
- The acquisition is expected to positively impact MPLX's cash flow and includes over 200 miles of gathering pipelines.
- MPLX plans to expand sour gas capacity from 150 MMcf/d to 440 MMcf/d by mid-2026, strengthening its market position.
MPLX LP Expands Midstream Capabilities with Northwind Acquisition
MPLX LP successfully completes its acquisition of Northwind Delaware Holdings LLC, a significant move that bolsters the company's operations in the natural gas sector. The $2.375 billion deal, finalized on September 2, 2025, allows MPLX to enhance its sour gas gathering, treating, and processing services in the critical Lea County region of New Mexico. This acquisition is strategically aligned with MPLX's focus on optimizing its natural gas and natural gas liquids (NGL) value chains within the prolific Permian Basin, a region known for its extensive hydrocarbon resources.
The Northwind acquisition is projected to have an immediate and positive impact on MPLX's distributable cash flow, demonstrating the financial prudence of the investment. The deal, which includes an estimated $500 million in incremental capital expenditures, reflects a 7x multiple on forecasted 2027 EBITDA, indicating a robust mid-teen unlevered return. The newly acquired assets encompass over 200,000 dedicated acres and more than 200 miles of gathering pipelines, significantly enhancing MPLX's infrastructure in the area. With current sour gas treating capacity at 150 MMcf/d and ongoing expansion projects aimed at increasing capacity to 440 MMcf/d by the second half of 2026, MPLX is positioning itself as a key player in the regional gas market.
Financing for this acquisition comes through the net proceeds from MPLX's $4.5 billion senior notes issued in August 2025, underscoring the company's strategic financial planning. The integration of Northwind's assets, which includes operational acid gas injection wells and a third permitted well to further enhance capacity, is expected to provide MPLX with a competitive edge. This acquisition not only strengthens MPLX's market position but also aligns with its commitment to expanding its midstream energy infrastructure and logistics, reflecting the company's long-term vision in the energy sector.
In addition to this acquisition, MPLX continues to emphasize its growth strategy by investing in infrastructure that supports efficient energy distribution. The company operates extensive midstream assets, including pipelines and terminals, across major U.S. supply basins. By enhancing its operational capabilities, MPLX aims to meet the increasing demand for energy and strengthen its footprint in the midstream sector.
Overall, the acquisition of Northwind Delaware Holdings LLC marks a significant milestone for MPLX, reinforcing its commitment to growth and efficiency in the midstream energy landscape. As the company integrates these new assets into its operations, it is well-positioned to capitalize on the opportunities present in the booming Permian Basin. More information about MPLX's operations can be found at www.MPLX.com.