MPLX, a midstream energy infrastructure and logistics assets operator, has announced the completion of its $2.38bn acquisition of Northwind Delaware, known as Northwind Midstream.
The move is set to enhance MPLX's natural gas and natural gas liquids (NGL) value chains in the Permian Basin.
The definitive agreement, signed in July 2025, is expected to contribute positively to MPLX's distributable cash flow from the outset.
MPLX said that, including an estimated additional capital investment of $500m, the transaction signifies a seven-times multiple on projected 2027 earnings before interest, taxes, depreciation and amortisation (EBITDA) and an anticipated mid-teen unlevered return.
MPLX financed the acquisition through net proceeds from its $4.5bn senior notes issued last month.
The company plans to fund the incremental capital expenditures for ongoing expansion projects associated with the acquisition.
The newly acquired assets are a natural fit with MPLX's current operations in the Delaware Basin.
The assets include more than 200,000 dedicated acres, over 200 miles of gathering pipelines and two operational acid gas injection wells with a capacity of 20 million cubic feet per day (mcf/d). A third permitted well will increase the total capacity to 37mcf/d.
At present, the system can treat 150mcf/d of sour gas, with expansion projects under way to boost this capacity to 440mcf/d by the second half of 2026.
These projects are underpinned by minimum volume commitments from producers in the region.
MPLX's assets include a network of crude oil and refined product pipelines, an inland marine business, light-product terminals, storage caverns and refinery tanks.
The company also owns crude oil and natural gas-gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key US supply basins.
Earlier this year, MPLX and ONEOK agreed to establish joint ventures for the construction of a new 400,000 barrel per day liquefied petroleum gas export terminal in Texas City and an associated pipeline.
