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NEW YORK - MPLX LP (NYSE:MPLX), a $53.15 billion market cap energy infrastructure company with strong financial health and a 7.35% dividend yield, announced Thursday it has entered into a definitive agreement to acquire Northwind Delaware Holdings LLC for $2.375 billion in cash, expanding its operations in the Delaware Basin. According to InvestingPro data, MPLX has maintained dividend payments for 13 consecutive years and currently trades near its 52-week high.
The transaction, expected to close in the third quarter of 2025, will add sour gas gathering, treating, and processing services in Lea County, New Mexico to MPLX’s portfolio. The acquisition includes over 200,000 dedicated acres, more than 200 miles of gathering pipelines, and acid gas injection wells. With an impressive EBITDA of $5.86 billion in the last twelve months and a solid financial health score rated as "GOOD" by InvestingPro, MPLX appears well-positioned to execute this strategic expansion.
The Northwind Midstream system currently has 150 million cubic feet per day (MMcf/d) of sour gas treating capacity, with planned expansion to increase capacity to 440 MMcf/d in the second half of 2026.
MPLX plans to finance the acquisition with debt and expects it to be immediately accretive to distributable cash flow. The company stated the transaction represents a 7x multiple on forecast 2027 EBITDA.
"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, according to the press release. "The addition of 200,000 dedicated acres will increase MPLX’s access to natural gas and NGL volumes."
The acquisition will provide MPLX 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.
The transaction remains subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Northwind Delaware Holdings LLC is backed by Five Point Infrastructure, a private equity and infrastructure investor with approximately $8 billion of assets under management.
In other recent news, MPLX LP reported strong financial results for the first quarter of 2025, with earnings per share of $1.10, surpassing analyst expectations of $1.08. The company’s revenue also exceeded projections, reaching $3.12 billion compared to the anticipated $3.01 billion. RBC Capital has reiterated its Outperform rating for MPLX, maintaining a price target of $58.00 ahead of the company’s upcoming second-quarter earnings report. Meanwhile, Stifel analysts adjusted their price target for MPLX to $57.00 from $58.00, while maintaining a Buy rating. Stifel highlighted MPLX’s resilience in market volatility, crediting its fee-based business model and relationship with Marathon Petroleum Corporation. The company remains committed to sustaining double-digit distribution growth, despite challenges in reducing capital expenditures in a lower commodity price environment. MPLX has indicated that most of its capital spending is focused on large-scale projects that are under contract and expected to accelerate quickly.
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