MPLX LP Closes Northwind Midstream Acquisition

Rhea-AI Summary

MPLX LP (NYSE: MPLX) has completed the acquisition of Northwind Midstream for $2.375 billion. The acquisition enhances MPLX's Permian natural gas and NGL value chains by adding sour gas gathering, treating, and processing services in Lea County, New Mexico.

The transaction, expected to be immediately accretive to distributable cash flow, represents a 7x multiple on forecast 2027 EBITDA with mid-teen unlevered returns. The acquisition and expansion projects will be funded through $4.5 billion in senior notes issued in August 2025.

The acquired assets include 200,000+ dedicated acres, 200+ miles of gathering pipelines, and sour gas treating capacity expanding from 150 MMcf/d to 440 MMcf/d by second half of 2026, supported by minimum volume commitments.

Positive

• Immediately accretive to distributable cash flow
• Attractive 7x multiple on forecast 2027 EBITDA with mid-teen unlevered returns
• Expands capacity from 150 MMcf/d to 440 MMcf/d by 2026
• Assets supported by minimum volume commitments from top regional producers
• Complementary to existing Delaware basin operations
• Significant scale with 200,000+ dedicated acres and 200+ miles of gathering pipelines

Negative

• Substantial debt financing required with $4.5 billion senior notes issuance
• Additional $500 million in incremental capital expenditure needed
• Integration risks with existing operations

FINDLAY, Ohio, Sept. 2, 2025 /PRNewswire/ -- MPLX LP (NYSE: MPLX) has completed the $2.375 billion acquisition of Northwind Delaware Holdings LLC (Northwind Midstream), which provides sour gas gathering, treating, and processing services in Lea County, New Mexico, enhancing its Permian natural gas and NGL value chains. 

The acquisition is expected to be immediately accretive to distributable cash flow, and inclusive of estimated incremental capital of $500 million, represents a 7x multiple on forecast 2027 EBITDA and an estimated mid-teen unlevered return.

The acquisition was financed and the incremental capital expenditures associated with in-process expansion projects will be funded by net proceeds from MPLX's $4.5 billion senior notes issued in August 2025.

The acquired business is complementary and adjacent to MPLX's existing Delaware basin natural gas system. It consists of over 200,000 dedicated acres, 200+ miles of gathering pipelines, two in-service acid gas injection wells at 20 million cubic feet per day (MMcf/d), and a third permitted well that will bring its total capacity to 37 MMcf/d. The system currently has 150 MMcf/d of sour gas treating capacity and in-process expansion projects will increase capacity to 440 MMcf/d, expected to be completed in the second half of 2026. The system is supported by minimum volume commitments by top regional producers.

About MPLX LP

MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins. More information is available at www.MPLX.com.

Investor Relations Contact: (419) 421-2071
Kristina Kazarian, Vice President Finance and Investor Relations
Brian Worthington, Senior Director, Investor Relations
Isaac Feeney, Director, Investor Relations
Evan Heminger, Analyst, Investor Relations

Media Contact: (419) 421-3577
Jamal Kheiry, Communications Manager

This press release contains forward-looking statements regarding MPLX LP (MPLX). These forward-looking statements may relate to, among other things, MPLX's expectations, estimates and projections concerning its business and operations and financial and strategic priorities. You can identify forward-looking statements by words such as "anticipate," "believe," "commitment," "could," "design," "endeavor," "estimate," "expect," "focus," "forecast," "goal," "guidance," "intend," "may," "objective," "opportunity," "outlook," "plan," "policy," "position," "potential," "predict," "priority," "progress," "project," "prospective," "pursue," "seek," "should," "strategy," "strive," "target," "trends," "will," "would" or other similar expressions that convey the uncertainty of future events or outcomes. MPLX cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of MPLX, that could cause actual results and events to differ materially from the statements made herein. Factors that could cause MPLX's actual results to differ materially from those implied in the forward-looking statements include but are not limited to: MPLX's ability to fully realize the expected benefits of the acquisition; the risk of any unexpected costs or expenses associated with the acquired business or incurred as a result of the acquisition; the adequacy of capital resources and liquidity, including the availability of capital resources to execute on its strategic priorities; changes to the expected construction costs and in service dates of planned and ongoing capital projects and investments, including the expansion projects announced herein, and the ability to obtain regulatory and other required approvals with respect thereto within the expected timeframes, if at all; and the other factors set forth under the heading "Risk Factors" and "Disclosures Regarding Forward-Looking Statements" in MPLX's Annual Report on Form 10-K for the year ended Dec. 31, 2024, and in other filings with the SEC.

Any forward-looking statement speaks only as of the date of the applicable communication and we undertake no obligation to update any forward-looking statement except to the extent required by applicable law.

Copies of MPLX's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings are available on the SEC's website, MPLX's website at http://ir.mplx.com or by contacting MPLX's Investor Relations office.

Use of Non-GAAP Financial Information -- This press release makes reference to forecasted earnings before interest, income taxes, depreciation and amortization (EBITDA). This is a non-GAAP financial measure. Forecasted EBITDA is based on MPLX's projections for the business to be acquired. Forecasted EBITDA is not presented as an alternative to the nearest GAAP financial measure, net income, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We are unable to present the most directly comparable GAAP measure or a reconciliation of forecasted EBITDA to net income because certain elements of net income, including interest, depreciation and taxes, are not available without unreasonable effort.

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SOURCE MPLX LP

FAQ

What is the value of MPLX's acquisition of Northwind Midstream?

MPLX acquired Northwind Midstream for $2.375 billion, with an additional $500 million in estimated incremental capital expenditure.

How will MPLX finance the Northwind Midstream acquisition?

The acquisition and expansion projects will be funded through $4.5 billion in senior notes that MPLX issued in August 2025.

What assets are included in MPLX's Northwind Midstream acquisition?

The acquisition includes 200,000+ dedicated acres, 200+ miles of gathering pipelines, sour gas treating capacity, and acid gas injection wells in Lea County, New Mexico.

What is the expected capacity expansion of the Northwind Midstream system?

The system will expand from 150 MMcf/d of sour gas treating capacity to 440 MMcf/d by the second half of 2026.

What is the expected return on MPLX's Northwind acquisition?

The acquisition represents a 7x multiple on forecast 2027 EBITDA and is expected to generate mid-teen unlevered returns, while being immediately accretive to distributable cash flow.