MPLX has agreed to purchase Northwind Delaware Holdings from Five Point Infrastructure for $2.37bn. The deal is expected to enhance MPLX’s cash flow and provide a sevenfold EBITDA multiple for 2027. The acquisition will be funded through debt and includes a mid-teen unlevered return.

Northwind Delaware addresses sour gas challenges in the Northern Delaware Basin, which have hindered development in the region. The company supports customer sustainability goals by capturing CO₂ from the natural gas stream. Its infrastructure spans 200,000 acres, 200 miles of pipelines, and two carbon sequestration wells.

With a third well planned for completion in 2026, Northwind’s total capacity will increase to 37mcf/d. Sour gas treating capacity is expected to rise to 440mcf/d by the second half of 2026. The acquisition will allow MPLX to offer sour gas solutions in south-east New Mexico, boosting growth opportunities in the region.

The transaction is set to close in the third quarter, subject to customary closing conditions. Piper Sandler & Co and Latham & Watkins advised Five Point Infrastructure on financial and legal matters. Five Point Infrastructure previously considered selling Northwind Midstream in the Permian Basin.

Five Point Infrastructure CEO David Capobianco views the transaction as validation for critical infrastructure development in productive energy basins. The acquisition aligns with MPLX’s growth strategy, offering access to additional gas processing capacity and natural gas liquids volumes. The deal is anticipated to accelerate MPLX’s expansion in the region.

Read more at Yahoo Finance: MPLX signs agreement to acquire Northwind Delaware for $2.37bn