MPLX to acquire Northwind Midstream for $2.375B in cash

MPLX (MPLX) LP “announced it has entered into a definitive agreement to acquire Northwind Delaware Holdings LLC 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.”