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MPLX LP to Acquire Northwind Midstream, Enhancing Permian Natural Gas and NGL Value Chains

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MPLX LP (NYSE: MPLX) has announced a strategic acquisition of Northwind Midstream for $2.375 billion in cash. The transaction, expected to close in Q3 2025, will be financed through debt and represents a 7x multiple on forecast 2027 EBITDA.

Northwind's assets in Lea County, New Mexico include 200,000+ dedicated acres, 200+ miles of gathering pipelines, and sour gas treating facilities. Current capacity of 150 MMcf/d will expand to 440 MMcf/d by H2 2026. The acquisition will provide access to up to 400 MMcf/d of incremental gas and 70,000 barrels per day of new NGL volumes.

MPLX LP (NYSE: MPLX) ha annunciato un'acquisizione strategica di Northwind Midstream per 2,375 miliardi di dollari in contanti. L'operazione, che si prevede si concluda nel terzo trimestre del 2025, sarà finanziata tramite debito e rappresenta un multiplo di 7x sull'EBITDA previsto per il 2027.

Gli asset di Northwind nella contea di Lea, New Mexico, includono oltre 200.000 acri dedicati, più di 200 miglia di oleodotti di raccolta e impianti di trattamento del gas acido. La capacità attuale di 150 MMcf/g sarà ampliata a 440 MMcf/g entro la seconda metà del 2026. L'acquisizione garantirà accesso a fino a 400 MMcf/g di gas incrementale e a 70.000 barili al giorno di nuovi volumi di NGL.

MPLX LP (NYSE: MPLX) ha anunciado la adquisición estratégica de Northwind Midstream por 2.375 millones de dólares en efectivo. La transacción, que se espera cierre en el tercer trimestre de 2025, se financiará mediante deuda y representa un múltiplo de 7x sobre el EBITDA proyectado para 2027.

Los activos de Northwind en el condado de Lea, Nuevo México, incluyen más de 200,000 acres dedicados, más de 200 millas de tuberías de recolección y plantas de tratamiento de gas ácido. La capacidad actual de 150 MMcf/d se ampliará a 440 MMcf/d para la segunda mitad de 2026. La adquisición proporcionará acceso a hasta 400 MMcf/d de gas incremental y 70,000 barriles por día de nuevos volúmenes de NGL.

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MPLX LP (NYSE : MPLX) a annoncé l'acquisition stratégique de Northwind Midstream pour 2,375 milliards de dollars en espèces. La transaction, dont la clôture est prévue au troisième trimestre 2025, sera financée par endettement et représente un multiple de 7x sur l'EBITDA prévisionnel 2027.

Les actifs de Northwind dans le comté de Lea, Nouveau-Mexique, comprennent plus de 200 000 acres dédiés, plus de 200 miles de pipelines de collecte et des installations de traitement de gaz acide. La capacité actuelle de 150 MMcf/j sera portée à 440 MMcf/j d'ici le second semestre 2026. Cette acquisition offrira un accès à jusqu'à 400 MMcf/j de gaz supplémentaire et 70 000 barils par jour de nouveaux volumes de NGL.

MPLX LP (NYSE: MPLX) hat die strategische Übernahme von Northwind Midstream für 2,375 Milliarden US-Dollar in bar angekündigt. Die Transaktion, die voraussichtlich im dritten Quartal 2025 abgeschlossen wird, wird durch Fremdkapital finanziert und entspricht einem 7-fachen Vielfachen des prognostizierten EBITDA für 2027.

Die Vermögenswerte von Northwind im Lea County, New Mexico, umfassen über 200.000 dedizierte Acres, mehr als 200 Meilen Sammelleitungen sowie Anlagen zur Behandlung von schwefelhaltigem Gas. Die derzeitige Kapazität von 150 MMcf/d wird bis zur zweiten Hälfte 2026 auf 440 MMcf/d erweitert. Die Übernahme ermöglicht den Zugang zu bis zu 400 MMcf/d zusätzlichem Gas und 70.000 Barrel pro Tag neuer NGL-Volumina.

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  • Significant debt financing required for $2.375 billion purchase
  • Additional capital expenditure needed for in-process expansion activity
  • Subject to regulatory approval under Hart-Scott-Rodino Act

Insights

MPLX's $2.375B Northwind acquisition strengthens Permian position with strategic sour gas assets that unlock high-quality production in capacity-constrained areas.

MPLX's $2.375 billion acquisition of Northwind Midstream represents a significant strategic expansion of its Permian Basin capabilities, specifically addressing a critical infrastructure bottleneck in the Delaware Basin. The deal targets specialized sour gas treating assets in Lea County, New Mexico - an area with exceptional production potential that has been constrained by limited sour gas handling capacity.

The transaction metrics indicate disciplined capital deployment with a 7x multiple on 2027 EBITDA and mid-teen unlevered returns, despite additional capital requirements for ongoing expansion projects. The immediate accretion to distributable cash flow is particularly notable, suggesting strong confidence in near-term operational integration.

What makes this acquisition especially valuable is the 200,000+ dedicated acres backed by minimum volume commitments from top producers. The infrastructure solves a specific technical challenge - handling hydrogen sulfide-rich natural gas that requires specialized treating and disposal capabilities. With two existing acid gas injection wells and a third permitted well, MPLX is acquiring hard-to-replicate infrastructure with significant regulatory moats given the lengthy permitting process for AGI wells.

The system's expansion from 150 MMcf/d to 440 MMcf/d of sour gas treating capacity by late 2026 creates substantial growth runway. More importantly, this unlocks potential for up to 400 MMcf/d of incremental gas processing and 70,000 bpd of new NGL volumes through MPLX's integrated midstream system, creating valuable downstream synergies across their value chain.

This transaction strengthens MPLX's competitive position by offering producers a comprehensive solution in areas previously limited by infrastructure constraints, potentially accelerating drilling activity in highly productive acreage while capturing incremental volumes through their expanded gathering and processing network.

FINDLAY, Ohio, July 31, 2025 /PRNewswire/ -- MPLX LP (NYSE: MPLX) today announced it has entered into a definitive agreement to acquire Northwind Delaware Holdings LLC (Northwind Midstream) for $2.375 billion in cash consideration, subject to customary purchase price adjustments. MPLX intends to finance the acquisition with debt. The transaction is expected to be immediately accretive to distributable cash flow and represents a 7x multiple on forecast 2027 EBITDA. The anticipated mid-teen unlevered return is inclusive of incremental capital spend associated with in-process expansion activity.

Northwind provides sour gas gathering, treating, and processing services in Lea County, New Mexico. The portfolio includes over 200,000 dedicated acres, 200+ miles of gathering pipelines, two in-service acid gas injection (AGI) 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 activity will increase capacity to 440 MMcf/d in the second half of 2026. The system is supported by minimum volume commitments by top regional producers.

Producers continue to demonstrate a desire to target multiple benches within the Delaware Basin for crude production. Limited sour natural gas treating and AGI well capacity, as well as the lengthy permitting process for AGI wells, has generally limited drilling activity in this area. To the extent the producers are able to address the related sour gas volumes, these areas are highly productive and profitable.

MPLX's expansion into sour gas gathering, treating, and processing in southeast New Mexico will enable prompt solutions for its existing and new producer customers. The dedicated acreage and volumes associated with this system provide access to up to 400 MMcf/d of incremental gas available for processing and up to 70 thousand barrels per day of new NGL volumes, accelerating growth opportunities for MPLX.

"The integration of these assets with our existing Delaware basin natural gas system will expand MPLX's treating and blending operations," said Maryann Mannen, MPLX president and chief executive officer. "The addition of 200,000 dedicated acres will increase MPLX's access to natural gas and NGL volumes. The optionality to direct these new volumes through our integrated system will accelerate our growth opportunities in the Permian."

The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

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 .

Northwind Delaware Holdings LLC is backed by Five Point Infrastructure.

About Five Point Infrastructure
Five Point Infrastructure LLC (formerly known as Five Point Energy LLC) is a private equity and infrastructure investor focused on investments within the North American powered land, surface management, water management, and sustainable infrastructure sectors. The firm was founded by industry veterans with demonstrated records of success investing in, building, and running infrastructure companies. Based in Houston, Texas, Five Point has approximately $8 billion of assets under management across multiple investment funds. For further information, please visit .

Investor Relations Contact: (419) 421-2071
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Evan Heminger, Analyst, Investor Relations

Media Contact: (419) 421-3577
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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 consummate the announced acquisition within the expected timeframe, if at all, including as a result of not obtaining required regulatory approvals or satisfying the other conditions to the closing; the occurrence of any event, change or other circumstances that could give rise to the termination of the definitive agreement relating to the announced acquisition; MPLX's ability to fully realize the expected benefits of the announced acquisition; the risk of any unexpected costs or expenses associated with the business to be acquired or incurred as a result of the announced acquisition; the adequacy of capital resources and liquidity, including the availability of capital resources to execute on its strategic priorities; the ability to access debt markets on commercially reasonable terms or at all; changes to the expected construction costs and in service dates of planned and ongoing capital projects and investments 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  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

How much is MPLX paying for Northwind Midstream?

MPLX is acquiring Northwind Midstream for $2.375 billion in cash, subject to customary purchase price adjustments.

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

The acquisition includes 200,000+ dedicated acres, 200+ miles of gathering pipelines, two in-service acid gas injection wells (20 MMcf/d capacity), and a third permitted well that will increase total capacity to 37 MMcf/d.

When will MPLX's acquisition of Northwind Midstream close?

The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions and regulatory approval.

What is the expected EBITDA multiple for MPLX's Northwind acquisition?

The acquisition represents a 7x multiple on forecast 2027 EBITDA with mid-teen unlevered returns expected.

How will MPLX finance the Northwind Midstream acquisition?

MPLX intends to finance the $2.375 billion acquisition through debt.

What is the treating capacity expansion plan for the Northwind assets?

The system's current capacity of 150 MMcf/d will be expanded to 440 MMcf/d in the second half of 2026.
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