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MIAMI - I Squared Capital, a global infrastructure investment manager, has partnered with MPLX LP (NYSE: MPLX) and Enbridge Inc. (NYSE: ENB) to purchase a substantial stake in the Matterhorn Express Pipeline, a key conduit for natural gas from the Permian Basin to various Texas destinations and Gulf Coast export facilities. The deal involves acquiring approximately 37% of Matterhorn InvestCo, LLC, the entity behind the pipeline. Enbridge, with its $97 billion market capitalization and robust financial profile according to InvestingPro data, brings significant strategic value to this partnership.
The Matterhorn Express Pipeline (MXP), which began operating in November 2024, boasts a capacity of 2.5 billion cubic feet per day and is fully contracted. It transports natural gas from the Waha area in the Permian Basin to the greater Houston region. This strategic infrastructure investment aligns with I Squared’s focus on assets that underpin significant re-industrialization trends in the U.S. economy, including burgeoning demand from LNG terminals, industrial centers, and data hubs in Texas. For Enbridge, which maintains an impressive 6.1% dividend yield and has raised dividends for 22 consecutive years, this investment further strengthens its infrastructure portfolio.
Post-acquisition, the ownership of MXP will be distributed with 65% held by MXP HoldCo, 15% by ONEOK (NYSE: OKE), 10% by MPLX, and 10% by Enbridge. WhiteWater Midstream will continue operating the pipeline through MXP HoldCo.
The transaction is anticipated to conclude in mid-2025, pending regulatory approvals and standard closing conditions. Legal counsel for I Squared in this transaction was provided by Kirkland & Ellis LLP.
I Squared Capital manages $45 billion in assets and has a portfolio that includes more than 90 companies across various sectors, operating in over 70 countries. The firm, headquartered in Miami, employs over 300 professionals worldwide. Enbridge, currently trading near its 52-week high with a P/E ratio of 22.9x and maintaining a FAIR financial health score according to InvestingPro, represents a strong partner in this venture. Investors seeking deeper insights into Enbridge’s financial metrics and growth potential can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
This investment is expected to enhance I Squared’s portfolio by adding a significant asset that caters to growing energy needs in North America. It should be noted that the information provided is based on a press release statement and is intended for informational purposes only, not as investment advice.
In other recent news, Enbridge Inc. reported a strong financial performance for the first quarter of 2025, exceeding both earnings and revenue forecasts. The company announced an earnings per share of $1.03, surpassing the projected $0.94, while revenue reached $10.46 billion, outstripping the expected $9.77 billion. Following these results, RBC Capital Markets reiterated an Outperform rating for Enbridge, with a price target of Cdn$67, citing the company’s consistent financial results and strategic positioning. BMO Capital Markets also raised its price target for Enbridge from Cdn$60 to Cdn$63, maintaining a Market Perform rating and highlighting the company’s robust operational performance and favorable currency exchange impacts. Enbridge’s Mainline system achieved record quarterly levels, and high utilization rates in gas pipeline infrastructure were noted as contributors to the strong quarterly results. The company’s focus on organic growth activities and strategic acquisitions has been recognized as key to its momentum and resilience. These developments underscore Enbridge’s commitment to advancing investments that balance risk and reward, positioning it favorably for future growth.
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