Midstream infrastructure operator MPLX LP has completed the acquisition of Northwind Midstream, also known as Northwind Delaware Holdings LLC, for $2.375 billion. The transaction strengthens the company’s network of assets in the natural gas segment within the Permian Basin, particularly in Lea County, New Mexico.
Acquisition of Northwind Midstream and its infrastructure
Northwind Midstream brings more than 200 miles of gathering pipelines, 200,000 acres with production commitments and a sour gas processing infrastructure that includes two operating wells and a third with approved permits. This network integrates directly with existing MPLX systems, generating logistical synergies and operational efficiencies in gas processing and transportation.
As reported by MPLX, the acquisition will have an immediate impact on its distributable cash flow. The estimated unlevered return reaches 15%, with a 7x multiple on EBITDA projected for 2027. In addition, an additional capital investment of $500 million is planned to expand installed capacity to 440 million cubic feet per day (MMcf/d) of sour gas treatment by 2026.
The transaction was financed with part of the proceeds from the US$4.5 billion senior notes issued by MPLX in August 2025. These funds will also support expansion projects currently under development. This structured financing approach allows the company to maintain its financial discipline as it scales its operation in one of the largest gas-producing regions in the United States.
The system acquired by MPLX is backed by minimum volume contracts signed with producers in the region, which ensures stable and predictable use of the infrastructure. This condition reinforces the commercial viability of the investment and its potential for generating value in the medium term.
Source and photo: MPLX
