Cash is King; MPLX (NYSE: MPLX) to acquire Northwind Midstream for $2.375 billion in cash

MPLX LP (NYSE: MPLX) announced it has entered into a definitive agreement to acquire Northwind Delaware Holdings LLC for $2.375 billion in cash, subject to customary purchase price adjustments. The company plans to finance the acquisition with debt.

The transaction represents a 7x multiple on forecast 2027 EBITDA and is expected to close in the third quarter of 2025, pending customary closing conditions including Hart-Scott-Rodino antitrust clearance.

Northwind provides sour gas gathering, treating, and processing services in Lea County, New Mexico. The portfolio includes over 200,000 dedicated acres, more than 200 miles of gathering pipelines, and two in-service acid gas injection wells with 20 million cubic feet per day capacity. A third permitted well will bring total capacity to 37 million cubic feet per day.

The system currently has 150 million cubic feet per day of sour gas treating capacity. In-process expansion activity will increase capacity to 440 million cubic feet per day in the second half of 2026. The system is supported by minimum volume commitments from regional producers.

“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. “The addition of 200,000 dedicated acres will increase MPLX’s access to natural gas and NGL volumes.”

The dedicated acreage and volumes provide access to up to 400 million cubic feet per day of incremental gas available for processing and up to 70 thousand barrels per day of new natural gas liquids volumes.

Northwind is backed by Five Point Infrastructure, a private equity firm with approximately $8 billion of assets under management. MPLX operates midstream energy infrastructure and logistics assets including pipelines, terminals, and processing facilities in key U.S. supply basins.