MPLX LP Strengthens Midstream Position with New Acquisition

Author: Evelyn Baker Updated: 09-02-2025 06:55 AM

MPLX LP Finalizes Acquisition of Northwind Midstream

MPLX LP (NYSE: MPLX) has successfully concluded the acquisition of Northwind Delaware Holdings LLC, a strategic move valued at $2.375 billion. This acquisition aims to enhance MPLX's operational capabilities in sour gas gathering and processing, particularly in its natural gas and NGL value chains.

Benefits of the Acquisition

The integration of Northwind Midstream is projected to generate immediate benefits for MPLX's distributable cash flow. Moreover, the acquisition includes a planned investment of approximately $500 million, which translates to a robust 7x multiple based on anticipated 2027 EBITDA numbers. This investment is expected to yield a promising mid-teen unlevered return, supporting the company's growth strategy.

Expansion and Capacity Enhancements

As part of this acquisition, MPLX gains access to a comprehensive natural gas system that currently encompasses over 200,000 dedicated acres and 200-plus miles of gathering pipelines. Northwind operates two acid gas injection wells with a capacity of 20 million cubic feet per day (MMcf/d), along with a third permitted well that would bolster its operational capacity to a total of 37 MMcf/d.

Upcoming Infrastructure Upgrades

Northwind's existing operational structure is robust, featuring 150 MMcf/d of sour gas treating capacity. Ongoing expansion projects are anticipated to elevate this capacity to an impressive 440 MMcf/d, with the completion of these upgrades expected in the latter half of 2026. This growth is further supported by commitments from leading regional producers ensuring a steady volume of operations.

About MPLX LP

MPLX LP is a diversified, large-cap master limited partnership actively engaged in the ownership and operation of midstream energy infrastructure. The company specializes in logistics assets that contribute significantly to fuel distribution across the United States. Its assets include an extensive network of both crude oil and refined products pipelines, alongside marine business operations, terminal facilities, storage caverns, and other critical midstream facilities. MPLX also develops crude oil and natural gas gathering systems and processing facilities across key U.S. supply basins.

Investor Relations and Media Contact

For further inquiries regarding MPLX, please reach out to the Investor Relations team at (419) 421-2071. Key contacts include Kristina Kazarian, Vice President of Finance and Investor Relations, Brian Worthington, Senior Director of Investor Relations, Isaac Feeney, Director of Investor Relations, and Evan Heminger, Analyst for Investor Relations. For media-related inquiries, please contact Jamal Kheiry, the Communications Manager, at (419) 421-3577.

Frequently Asked Questions

1. What is the value of the acquisition by MPLX LP?

The acquisition of Northwind Midstream is valued at $2.375 billion.

2. How will the acquisition impact MPLX's financial performance?

The acquisition is expected to be immediately accretive to MPLX's distributable cash flow and enhance operational efficiency.

3. What are the key features of the Northwind Midstream operations?

Northwind Midstream operates over 200,000 acres and has a significant pipeline network along with multiple gas treating capacities.

4. When is the completion date for the planned expansion?

The expansion projects are expected to be completed in the second half of 2026.

5. Who can be contacted for investor relations inquiries at MPLX?

The investor relations team can be reached at (419) 421-2071, with multiple contacts available for specific inquiries.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

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