MPLX LP ( MPLX ) disclosed that it has entered into a definitive deal with affiliates of WhiteWater and Diamondback Energy, Inc. ( FANG ) to acquire the remaining 55% interest in BANGL, LLC for $715 million.

Additionally, MPLX ( MPLX ) may make earnout payments up to a specified cap upon meeting certain financial performance targets.

The transaction is immediately accretive and is expected to deliver mid-teen returns for the partnership.

The transaction, subject to customary closing conditions, is projected to close in July 2025.

Post closure, the BANGL Pipeline will be a wholly owned asset of MPLX ( MPLX ) and will be consolidated in MPLX’s financial results.

Maryann Mannen, MPLX ( MPLX ) president and chief executive officer, said, “With full ownership of BANGL and its expansion opportunities, our growth platform is further improved for the long term as we connect growing NGL production from the Permian basin to our recently announced Gulf Coast fractionation complex.”

Earlier this month, MPLX ( MPLX ) reported fourth-quarter earnings per limited partner unit of $1.07, beating the consensus of $1.03. Total revenues and other income of $3.06 billion missed the consensus of $3.07 billion. 

As of December 31, 2024, MPLX ( MPLX ) had $1.5 billion in cash, $2.0 billion available on its bank revolving credit facility, and $1.5 billion available through its intercompany loan agreement with MPC.

Investors can gain exposure to the stock via InfraCap MLP ETF ( AMZA ) and Alerian MLP ETF ( AMLP ) .

Price Action: MPLX ( MPLX ) shares are up 0.38% at $52.44 at the last check Friday.

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