MPLX LP Bolsters Permian Presence with $2.375 Billion Acquisition of Northwind Midstream

MPLX LP announced on July 31, a definitive agreement to acquire Northwind Delaware Holdings LLC in a cash transaction valued at $2.375 billion, subject to customary purchase price adjustments. The acquisition, expected to be financed through debt, is anticipated to be immediately accretive to distributable cash flow for MPLX and represents a 7x multiple on forecast 2027 EBITDA.

Northwind Midstream, a key player in Lea County, New Mexico, specializes in sour gas gathering, treating, and processing services. Its robust portfolio includes over 200,000 dedicated acres and more than 200 miles of gathering pipelines. A critical component of Northwind's infrastructure is its acid gas injection (AGI) well capacity, with two in-service wells currently capable of handling 20 million cubic feet per day (MMcf/d), and a third permitted well set to increase total capacity to 37 MMcf/d. The system currently processes 150 MMcf/d of sour gas, with an impressive expansion underway to boost capacity to 440 MMcf/d in the latter half of 2026.

The acquisition addresses a significant bottleneck in the Delaware Basin: the scarcity of sour natural gas treating and AGI well capacity. Producers in the region have long sought to tap into multiple benches for crude production, but the challenges associated with managing sour gas volumes and the lengthy permitting process for AGI wells have historically limited drilling activities. Areas rich in sour gas are known to be highly productive and profitable once these challenges are overcome.

"The integration of these assets with our existing Delaware basin natural gas system will expand MPLX's treating and blending operations," stated Maryann Mannen, MPLX president and chief executive officer. "The addition of 200,000 dedicated acres will increase MPLX's access to natural gas and NGL volumes. The optionality to direct these new volumes through our integrated system will accelerate our growth opportunities in the Permian."

The dedicated acreage and associated volumes acquired from Northwind are expected to provide MPLX with access to an additional 400 MMcf/d of incremental gas available for processing and up to 70 thousand barrels per day of new natural gas liquid (NGL) volumes. This substantial increase in accessible volumes is poised to significantly accelerate MPLX's growth trajectory within the Permian Basin, solidifying its position as a dominant midstream operator.