July 31 (Reuters) - MPLX LP ( MPLX ) 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 ( MPLX ) access to natural gas and NGL volumes," MPLX ( 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 ( MPLX ) distributable cash flow.