Report: Five Point Eyes Sale of Permian Midstream Assets for $2.3B
Five Point Infrastructure is in talks to sell Delaware Basin midstream assets to MPLX LP for $2.3 billion.
Five Point portfolio company Northwind Midstream operates a natural gas midstream system focused on sour gas gathering and processing in Lea County, New Mexico.
A sale to MPLX could value Northwind’s assets at over $2 billion, including debt, Bloomberg News reported July 30, noting that a deal is not guaranteed.
Northwind’s portfolio includes over 220 miles of low- and high-pressure pipelines, five compressor stations and a central treating and sequestration hub, according to the company’s website.
Northwind’s system is designed to handle over 400 MMcf/d of natural gas treating capacity. The plant can currently handle 150 MMcf/d of sour gas and is adding another 50 MMcf/d.
Five Point was reportedly exploring a sale of Northwind Midstream earlier this year.
Publicly traded MPLX has been expanding its natural gas and NGL midstream footprint between the Permian and Gulf Coast.
In February, the company announced it was acquiring the remaining 55% of the BANGL NGL pipeline from partners WhiteWater Midstream and Diamondback Energy for $715 million. The 250,000-bbl/d pipeline carries NGL from the Permian Basin to the Gulf Coast.
MPLX is also building the Traverse Pipeline, a bi-directional gas pipeline to carry 1.75 Bcf/d of gas between key Texas trading hubs near Corpus Cristi and Katy.
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Report: Delaware Basin’s Northwind Midstream Considering $2B Sale