Latest news with #FivePointInfrastructure
Yahoo
5 days ago
- Business
- Yahoo
MPLX signs agreement to acquire Northwind Delaware for $2.37bn
MPLX has entered into a definitive agreement to acquire Northwind Delaware Holdings from Five Point Infrastructure for a cash consideration of $2.37bn. The acquisition is poised to be immediately accretive to MPLX's distributable cash flow and represents a sevenfold multiple based on the anticipated earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2027. The deal, which MPLX plans to fund through debt, also includes a mid-teen unlevered return, inclusive of the capital spend for ongoing expansion activities. Northwind Delaware, established by Five Point in 2022, addresses a critical challenge in the Northern Delaware Basin by providing essential sour gas services. The lack of capacity for treating sour natural gas, acid-gas injection and sequestration has historically restricted upstream development in the region. Northwind's operations also align with customer sustainability goals by sequestering and capturing CO₂ from the natural gas stream. Currently, Northwind's infrastructure encompasses more than 200,000 dedicated acres, over 200 miles of pipelines, and two carbon sequestration and acid gas injection wells with 20 million cubic feet per day (mcf/d) of combined capacity. A third permitted well, set to be completed in 2026, will increase total capacity to 37mcf/d. The system's sour gas treating capacity is expected to rise from 150mcf/d to 440mcf/d by the second half of 2026, backed by minimum volume commitments from leading regional producers. The acquisition will enable MPLX to provide prompt sour gas solutions in south-east New Mexico, US, offering access to up to 400mcf/d of incremental gas for processing and up to 70,000 barrels per day (bpd) of new natural gas liquids volumes. This move is set to expedite MPLX's growth opportunities in the region. Five Point Infrastructure CEO and managing partner David Capobianco said: 'This transaction is a clear validation of our investment thesis regarding the need for critical infrastructure development across the nation's most productive energy basins.' Anticipated to close in the third quarter of this year, the transaction is subject to customary closing conditions, encompassing antitrust clearance under the Hart-Scott-Rodino Act of 1976. Piper Sandler & Co and Latham & Watkins advised the seller on financial and legal matters, respectively. Earlier in the year, Five Point Infrastructure was in talks over the potential sale of the Permian Basin gas infrastructure operator Northwind Midstream. "MPLX signs agreement to acquire Northwind Delaware for $2.37bn" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
31-07-2025
- Business
- Reuters
MPLX to buy Northwind Midstream for $2.38 billion to expand Permian sour gas footprint
July 31 (Reuters) - MPLX LP (MPLX.N), opens new tab 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, with a network spanning more than 200 miles of pipeline and covering over 200,000 dedicated acres. The company currently treats 150 million cubic feet per day (MMcfpd) of sour gas and has two acid gas injection (AGI) wells in service, with a third permitted. AGI safely disposes of hydrogen sulfide and carbon dioxide, common sour gas byproducts, by injecting them deep underground to prevent harmful emissions. An ongoing expansion is expected to increase Northwind's treating capacity to 440 MMcfpd by the second half of 2026. Demand for sour gas treatment in the Delaware Basin has exceeded available infrastructure, as limited AGI permitting and capacity have slowed the pace of some producer activity. MPLX said the deal would allow it to offer faster solutions to both existing and new customers in the region. "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. Dealmaking in the midstream sector has been picking up pace as some companies look to cut costs or add scale and gain access to attractive oil- and gas-producing regions as well as export facilities on the U.S. Gulf Coast. 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.
Reuters
30-07-2025
- Business
- Reuters
Five Point in talks to sell Northwind Midstream to MPLX for $2.3 billion, Bloomberg News reports
July 30 (Reuters) - Private equity firm Five Point Infrastructure is in talks to sell Northwind Midstream Partners for about $2.3 billion to U.S. midstream company MPLX (MPLX.N), opens new tab, Bloomberg News reported on Wednesday, citing people familiar with the matter. In May, Reuters had reported that Five Point is exploring a potential sale of the Permian Basin gas infrastructure operator, with any deal expected to value the company upwards of $2 billion, including debt. The deal could be reached in the coming weeks but talks could still be delayed or falter, the Bloomberg report said. Dealmaking in the pipeline sector has been picking up pace as companies look to cut costs, add scale or access attractive oil and gas producing regions. In February, MPLX said it would buy the remaining 55% interest in the BANGL natural gas pipeline from the affiliates of WhiteWater and Diamondback Energy (FANG.O), opens new tab for $715 million, as it looks to expand in the Permian Basin. Five Point Infrastructure, MPLX and Northwind Midstream Partners did not immediately respond to Reuters requests for comment. Formed by Five Point in 2022, Northwind Midstream has developed a system of pipelines, compressor stations and a treatment facility in New Mexico.
Reuters
30-07-2025
- Business
- Reuters
Five Point Infrastructure in talks to sell Northwind Midstream to MPLX, Bloomberg News reports
July 30 (Reuters) - Five Point Infrastructure is in talks to sell Northwind Midstream Partners LLC for about $2.3 billion to MPLX (MPLX.N), opens new tab, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Yahoo
20-05-2025
- Business
- Yahoo
Five Point Infrastructure exploring $2bn sale of Northwind Midstream
Five Point Infrastructure, the private equity owner of Northwind Midstream, is reportedly considering a sale of the Permian Basin gas infrastructure operator, valuing the company at more than $2bn including debt, reported Reuters, citing sources. The sale process is being managed with the assistance of investment bankers from Piper Sandler. Currently in its initial stages, the outreach to potential buyers has begun, with interest anticipated from both midstream companies and other private equity and infrastructure funds. Despite the ongoing discussions, sources, who requested anonymity due to the private nature of the deliberations, have indicated that there is no certainty that a deal will be finalised and that the final valuation may vary, the report said. Five Point has not provided any comments on the matter. Similarly, there has been no response from Northwind or Piper Sandler regarding requests for comment. Established by Five Point in 2022, Northwind Midstream has since developed a network of pipelines, compressor stations and a treatment facility, primarily located in the northern Delaware Basin in New Mexico. The company specialises in the transportation and processing of acid gas, a type of natural gas with high levels of hydrogen sulphide and carbon dioxide, which must be removed before the gas can be commercially utilised. The potential sale of Northwind Midstream is reflective of a broader trend where private equity firms are looking to divest energy infrastructure assets. These assets have been built up over recent years to support increasing production from US shale fields. For instance, NGP Energy Capital Management successfully sold Outrigger Energy II to Kinder Morgan in February for $640m, and Morgan Stanley Energy Partners is currently seeking a buyer for a majority stake in Brazos Midstream II, with an estimated value of around $2bn. In March 2025, Northwind Midstream announced the completion of a $700m senior secured first lien term loan issuance. The company intends to utilise the proceeds from this term loan to refinance existing debt and enhance its gas gathering, compression, treating, sequestration and processing system in Lea County, New Mexico, US. "Five Point Infrastructure exploring $2bn sale of Northwind Midstream" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
