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AUSTIN, Texas - WhiteWater, MPLX LP (NYSE: MPLX), and Enbridge Inc. (NYSE: ENB), as part of the WPC joint venture, alongside an affiliate of Targa Resources Corp. (NYSE: TRGP), have confirmed their final investment decision to proceed with the Traverse Pipeline. This decision follows the successful acquisition of firm transportation agreements with investment-grade shippers. Enbridge, currently valued at $99.1 billion by market capitalization, has demonstrated strong financial performance with a 22.5% revenue growth in the last twelve months. According to InvestingPro analysis, the company is currently trading near its Fair Value.
The Traverse Pipeline, a bi-directional conduit spanning approximately 160 miles, is engineered to transport up to 1.75 billion cubic feet of natural gas daily between Agua Dulce in South Texas and the Katy area along the Gulf Coast. The supply will be sourced from multiple connections, including the Whistler, Blackcomb, and Matterhorn Express Pipelines, providing shippers with increased market access options. This expansion aligns with Enbridge’s position as a prominent player in the Oil, Gas & Consumable Fuels industry, with InvestingPro data showing the company has maintained dividend payments for an impressive 53 consecutive years, currently offering a 5.9% dividend yield.
Ownership of the Traverse Pipeline will be divided among the Blackcomb Pipeline joint venture with WPC holding a 70% share, Targa at 17.5%, and MPLX at 12.5%. This is in addition to MPLX’s pre-existing stake in WPC. WhiteWater will oversee the construction and operation of the pipeline, which is anticipated to be operational in 2027, pending standard regulatory and other approvals.
The WPC joint venture, which owns a portfolio of long-haul natural gas pipelines and storage assets, is a collaboration between WhiteWater (50.6%), MPLX (30.4%), and Enbridge (19.0%). These assets play a crucial role in channeling natural gas from the Permian Basin to South Texas and directly to LNG export markets. WPC’s assets include a majority stake in the Whistler, Blackcomb, and Traverse Pipelines, as well as the ADCC Pipeline and a shared interest in the Waha Gas Storage facility.
WhiteWater is an Austin-based infrastructure firm involved in the operation of several gas transmission assets, including the Whistler and Blackcomb Pipelines. The company is backed by various private equity funds, prominently I Squared Capital. MPLX and Enbridge are well-established entities in the midstream energy infrastructure and logistics sector, and Targa Resources Corp. is recognized as a leading provider of midstream services in North America. Enbridge’s strong market position is reflected in its financial metrics, with $37.2 billion in revenue and $4.1 billion in free cash flow over the last twelve months. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
The announcement is based on a press release statement and provides an insight into the ongoing expansion and collaboration within the energy infrastructure industry.
In other recent news, Enbridge Inc. has filed its Notice of 2025 Annual Meeting of Shareholders with Canadian and U.S. regulatory authorities, detailing the agenda and matters for shareholder voting. The company has also announced the appointment of Steven W. Williams as the new Chair of the Board, succeeding Pamela L. Carter after the upcoming annual meeting. BMO Capital Markets has maintained its Market Perform rating on Enbridge, citing the company’s solid growth prospects and a robust business model with a Cdn$60.00 price target. RBC Capital Markets has increased its price target for Enbridge to C$67.00, highlighting the company’s potential for leveraging growing energy demand in North America. Enbridge CEO Greg Ebel has stated that Canadian oil tariffs will not immediately impact U.S. imports, emphasizing the integration of the two countries’ energy systems.
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