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FINDLAY, Ohio - MPLX LP (NYSE:MPLX), a midstream energy company with a market capitalization of $53.13 billion and impressive 46.59% one-year return, has entered into a definitive agreement to purchase the remaining 55% stake in BANGL, LLC from affiliates of WhiteWater and Diamondback (NASDAQ:FANG) Energy for $715 million. This acquisition is set to enhance MPLX’s growth platform by integrating growing natural gas liquids (NGL) production from the Permian basin with its forthcoming Gulf Coast fractionation complex. According to InvestingPro data, MPLX maintains strong profitability with a healthy 56.84% gross margin.
The transaction, which is expected to close in July 2025, is subject to standard closing conditions and regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Once finalized, the BANGL Pipeline will become a fully owned asset of MPLX, and its financial results will be consolidated into MPLX’s reports. The company’s strong financial position is evidenced by its consistent dividend payments, which InvestingPro analysis shows have been maintained for 13 consecutive years, currently yielding an attractive 7.32%.
The BANGL pipeline system currently has the capacity to transport up to 250,000 barrels per day of NGL from the Permian basin to fractionation markets along the Gulf Coast. Plans are underway to expand this capacity to 300,000 barrels per day, with the enhancement expected to be operational in the second half of 2026. This expansion is anticipated to align with the service commencement of MPLX’s Gulf Coast fractionation complex in 2028. For deeper insights into MPLX’s growth potential and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
MPLX, a large-cap master limited partnership, manages a diverse portfolio of midstream energy infrastructure and logistics assets, in addition to providing fuel distribution services. Its assets encompass a variety of pipelines, marine businesses, terminals, storage facilities, and processing plants across key U.S. supply basins.
The company’s president and CEO, Maryann Mannen, stated that the full ownership of BANGL, along with its expansion opportunities, bolsters MPLX’s long-term growth platform by connecting increasing NGL production from the Permian basin to the Gulf Coast.
WhiteWater, which had invested in BANGL through an affiliate, was advised by legal counsel Simpson Thacher & Bartlett LLP and financial advisor Barclays (LON:BARC) during the transaction.
This press release contains forward-looking statements regarding MPLX’s business operations and strategic priorities, including its NGL wellhead to water strategy and the construction of its Gulf Coast fractionation complex. These statements are subject to risks and uncertainties that could cause actual outcomes to differ materially from those projected. The information in this article is based on a press release statement.
In other recent news, MPLX LP reported fourth-quarter earnings and revenue that exceeded analyst expectations. The company posted adjusted earnings per share of $1.07, surpassing the estimated $1.03, while revenue reached $3.06 billion, slightly above the consensus estimate of $3 billion. MPLX also filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, with the SEC, providing a detailed account of its financial performance. Stifel analysts raised their price target for MPLX shares to $58 from $49, maintaining a Buy rating following the strong quarterly results. Stifel highlighted MPLX’s planned $2.5 billion investment in downstream projects, which includes new fractionation facilities and an LPG export terminal. The firm noted MPLX’s focus on distribution growth as a method of returning capital to shareholders, projecting at least 10% annual growth over the next few years. Additionally, MPLX outlined its 2025 capital spending outlook, projecting total expenditures of $2.0 billion, with a significant portion allocated to Natural Gas and NGL Services growth capital. These developments underscore MPLX’s commitment to growth and enhancing cash flow stability.
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