MPLX LP said on Thursday it will acquire Northwind Midstream for $2.38 billion in cash to expand its sour gas gathering and processing footprint in the Permian Basin, as producers ramp up drilling in New Mexico.
Northwind, backed by Five Point Infrastructure, operates in Lea County, New Mexico, and has more than 200,000 dedicated acres and over 200 miles of gathering pipelines.
“The addition of 200,000 dedicated acres will increase MPLX’s access to natural gas and NGL volumes,” MPLX CEO Maryann Mannen said in a statement.
The deal, financed with debt and expected to close in the third quarter, is expected to be immediately accretive to MPLX’s distributable cash flow.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Savio D’Souza and Pooja Desai)