MPLX completes San Juan midstream buy, notes $1 billion in deals this year
MPLX LP has expanded its crude oil value chain with the acquisition of the San Juan basin midstream business from Whiptail Midstream LLC, Tulsa, Okla., a portfolio company of I Squared Capital.
The sale, which includes oil, gas, and water gathering systems in New Mexico, was made through an MPLX subsidiary for cash consideration of $237 million.
Whiptail Midstream said its San Juan basin systems “played a critical role in supporting the growth of…producer customers in the Gallup oil play, and MPLX’s ownership will allow for continued investment and growth of the system as activity continues.”
In its first-quarter earnings release, MPLX said the assets consist primarily of crude and natural gas gathering systems in the Four Corners region and enhance the company’s relationship with MPC, “particularly when you think about its connectivity to the El Paso refinery,” said Maryann Mannen, president and chief executive officer, on an earnings call May 6.
“I think it really supports our requirements when we think about putting capital to work. We expect it to be immediately accretive, deliver mid-teens returns, and really complement the strategic relationship and the value chains between MPC and MPLX,” she said.
The March deal with Whiptail is the second in a series of acquisitions totaling $1 billion made by the company so far this year.
Adding to the NGL value chain, MPLX agreed to acquire the remaining 55% interest in the BANGL NGL pipeline system. “Full ownership of BANGL and its expansion opportunities enhance our Permian platform as we connect growing NGL production from the wellhead to our recently announced Gulf Coast fractionation facilities,” Mannen said on the call. In this year’s first quarter, the BANGL Pipeline completed its expansion to a capacity of 250,000 b/d. The mainline expansion to 300,000 b/d is progressing and expected to be operational in second-half 2026 (OGJ Online, Feb. 5, 2025).
The company also entered into an agreement to double its stake in the Matterhorn Express Pipeline to 10% from 5% (OGJ Online, May 8, 2025).
MPLX earnings
MPLX had first-quarter 2025 net income attributable to MPLX of $1.126 billion, compared with $1.005 billion for first-quarter 2024. Adjusted earnings before interest, taxes, depreciation, and amortization attributable to MPLX was $1.757 billion, compared with $1.635 billion for first-quarter 2024.
During the quarter, MPLX generated $1.246 billion in net cash provided by operating activities, $1.486 billion of distributable cash flow, and adjusted free cash flow of $641 million.