#United States #MPLX #Findlay #Delaware Basin #Northwind Midstream

MPLX LP Completes Acquisition of Northwind Midstream

MPLX LP, a prominent player in the midstream energy sector, has recently announced the successful closure of its acquisition of Northwind Delaware Holdings LLC (commonly known as Northwind Midstream) for an impressive $2.375 billion. This acquisition is not just a strategic move; it represents a significant expansion of MPLX’s operations into the natural gas industry, particularly within the Delaware Basin.

The Significance of the Acquisition

This deal is expected to yield immediate benefits, enhancing MPLX's distributable cash flow right from the outset. With the integration of Northwind Midstream, MPLX aims to fortify its existing value chains in the Permian Basin, particularly in natural gas and natural gas liquids (NGL). The acquisition is along with an estimated additional $500 million in capital expenditure, which, coupled with a seven-times multiple on anticipated 2027 EBITDA, paints a positive financial forecast for the investors.

Key Features of Northwind Midstream

What makes Northwind particularly appealing to MPLX is its established infrastructure and substantial dedicated acreage. The acquired business features over 200,000 acres and more than 200 miles of gathering pipelines which are crucial for efficient resource transport and processing. Furthermore, Northwind hosts two operational acid gas injection wells with a capacity of 20 million cubic feet per day (MMcf/d), and a third already permitted well anticipated to bring total capacity up to 37 MMcf/d. Currently, the system is performing at a sour gas treating capacity of 150 MMcf/d, with ongoing expansion projects expected to augment this to a remarkable 440 MMcf/d by late 2026.

The strategic advantages are bolstered by minimum volume commitments from leading producers in the region, which enhances the operational reliability and profitability of the integrated system. This integrated pipeline and treatment infrastructure will not only enable MPLX to maximize its processing capabilities but also cement its competitive stance within the natural gas market.

Financing the Acquisition

The acquisition's funding was strategically planned, being supported through MPLX’s recent issuance of $4.5 billion in senior notes in August 2025. This financial maneuver not only underpins the acquisition itself but is also designated to support further capital projects, essential to maintaining the growth trajectory as well as accommodating in-process expansions.

This clever financing structure is anticipated to ensure seamless cash flow while simultaneously accommodating further capital requirements for the ongoing developments in what promises to be a pivotal asset for MPLX.

About MPLX LP

MPLX LP is recognized as a leading, diversified master limited partnership that exercises control over midstream energy infrastructure, as well as logistics. The company operates an extensive network encompassing crude oil and refined product pipelines and also provides logistics services that span across markets. MPLX’s portfolio includes not only pipeline networks but also storage caverns, terminal operations, and processing facilities. Their strategic positioning allows for effective resource distribution among various supply basins throughout the United States.

Given the increasing demands in the energy sector, this acquisition aligns MPLX with industry trends while delivering substantial returns. By enhancing its operational footprint in New Mexico, MPLX is poised to take advantage of the growing natural gas sector, which is prized for its relatively lower emissions compared to alternative fossil fuels.

This acquisition reflects MPLX's commitment to contribute to a more sustainable energy future while delivering value to their shareholders and being a stalwart in advancing midstream capabilities. For more detailed information regarding MPLX and its operations, interested parties can visit their official website at www.MPLX.com.