MPLX completed its $2.375 billion acquisition of Northwind Delaware Holdings, a Permian Basin midstream operator providing sour gas gathering, treating and processing services in Lea County, New Mexico.
The company said the completed deal, announced Sept. 2, will be immediately accretive to distributable cash flow. The transaction strengthens MPLX’s natural gas and NGL value chains in the Delaware sub-basin.
The system includes more than 200 miles of gathering pipelines, 200,000 dedicated acres and two active acid gas injection wells. The network is backed by minimum volume commitments from leading regional producers.
The New Mexico government has permitted a third acid gas injection well. When complete, total capacity will reach about 37 MMcf/d.
MPLX financed the acquisition with proceeds from its $4.5 billion senior notes issuance in August. Expansion projects underway will increase sour gas treating capacity from 150 MMcf/d to 440 MMcf/d by late 2026.