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$2.4B Deal Gives MPLX Sour Gas Edge in Permian

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   |    Thursday,July 31,2025

Transaction Overview

• Acquirer: MPLX LP

• Target: Northwind Delaware Holdings LLC

• Purchase Price: $2.375 billion in cash

• Financing: Entirely funded by debt

• Expected Close: Q3 2025,

• Valuation Metrics:

  • 7x forecasted 2027 EBITDA

  • Mid-teen unlevered return, inclusive of in-process expansion capital

  • Immediately accretive to distributable cash flow

Strategic Fit & Asset Overview

Northwind’s Assets

• Location: Lea County, New Mexico (Delaware Basin)

• Dedicated Acreage: Over 200,000 acres

• Infrastructure:

  • 200+ miles of gathering pipelines

  • Two AGI (acid gas injection) wells, 20 MMcf/d each (40 MMcf/d total)

  • Third permitted AGI well, to raise total to 37 MMcf/d

  • Current treating capacity: 150 MMcf/d

  • Future capacity (by 2H 2026): 440 MMcf/d (through expansion)

Key Features

• Supported by minimum volume commitments from top-tier producers

• Unlocks highly productive yet constrained sour gas areas of the Delaware Basin

• Provides critical AGI capacity, which is a permitting bottleneck for many producers

 Strategic Rationale for MPLX

Enhancing Delaware Basin Integration

• Complements MPLX’s existing natural gas and NGL system in the basin

• Adds critical sour gas treating and AGI capacity in a region with constrained infrastructure

• Strengthens optional flow paths for gas and NGLs within MPLX’s integrated network

Volume Growth Potential

• Unlocks 400 MMcf/d of incremental gas volumes

• Adds up to 70 MBbl/d of new NGL throughput

• Drives future growth in a supply-constrained, high-margin area

Executive Quote

“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.”
— Maryann Mannen, President & CEO, MPLX

Counterparty & Seller Background

Northwind Midstream

• Specialized in sour gas gathering, treating, and AGI solutions

• Operates a critical system in southeast New Mexico

• Provides services to leading Delaware Basin producers

Backed by Five Point Infrastructure

• Formerly known as Five Point Energy

• Focus: powered land, water & surface infrastructure

• ~$8 billion AUM, based in Houston, TX