FINDLAY,
Ohio, Feb. 28, 2025 /PRNewswire/ -- MPLX LP
(NYSE: MPLX) today announced it has signed a definitive
agreement with affiliates of WhiteWater and Diamondback Energy to
acquire the remaining 55% interest in BANGL, LLC for $715 million. Additionally, upon achievement of
specific financial performance metrics, MPLX would make earnout
payments up to a specified cap. The transaction is immediately
accretive and is expected to generate mid-teen returns for the
partnership.
"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," said
Maryann Mannen, MPLX president and
chief executive officer.
The transaction is expected to close in July 2025 and is subject to customary closing
conditions, including clearance under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976. Following closing, the BANGL
Pipeline will be a wholly owned asset of MPLX and consolidated in
MPLX's financial results.
About the BANGL Pipeline
The BANGL pipeline system
transports up to 250 thousand barrels per day of natural gas
liquids from the Permian basin of Texas to fractionation markets along the Gulf
Coast. BANGL is being expanded to 300 thousand barrels per day,
which is anticipated to come online in the second half of 2026. The
BANGL pipeline system will enable liquids to reach MPLX's Gulf
Coast fractionation complex, which is expected in service in
2028.
About MPLX LP
MPLX is a diversified, large-cap master
limited partnership that owns and operates midstream energy
infrastructure and logistics assets and provides fuels distribution
services. MPLX's assets include a network of crude oil and refined
product pipelines; an inland marine business; light-product
terminals; storage caverns; refinery tanks, docks, loading racks,
and associated piping; and crude and light-product marine
terminals. The company also owns crude oil and natural gas
gathering systems and pipelines as well as natural gas and NGL
processing and fractionation facilities in key U.S. supply basins.
More information is available at www.MPLX.com.
Investor Relations Contact: (419)
421-2071
Kristina Kazarian,
Vice President Finance and Investor Relations
Brian Worthington, Senior Director,
Investor Relations
Isaac Feeney, Director, Investor
Relations
Evan Heminger, Analyst, Investor
Relations
Media Contact: (419) 421-3577
Jamal Kheiry,
Communications Manager
About WhiteWater
WhiteWater's investment in BANGL, LLC
was held through an affiliate, WhiteWater BANGL Holdings, LLC,
which is backed by Ridgemont Equity Partners, Trace Capital
Management, and First Infrastructure Capital. WhiteWater was
advised by Simpson Thacher & Bartlett, LLP as legal counsel and
Barclays as financial advisor.
This press release contains forward-looking statements
regarding MPLX LP (MPLX). These forward-looking statements may
relate to, among other things, MPLX's expectations, estimates and
projections concerning its business and operations and financial
and strategic priorities, including its NGL wellhead to water
strategy and construction of its Gulf Coast fractionation complex,
the acquisition of the remaining 55% interest in BANGL, LLC and the
expansion of the BANGL pipeline system. You can identify
forward-looking statements by words such as "anticipate,"
"believe," "commitment," "could," "design," "endeavor," "estimate,"
"expect," "focus," "forecast," "goal," "guidance," "intend," "may,"
"objective," "opportunity," "outlook," "plan," "policy,"
"position," "potential," "predict," "priority," "progress,"
"project," "prospective," "pursue," "seek," "should," "strategy,"
"strive," "target," "trends," "will," "would" or other similar
expressions that convey the uncertainty of future events or
outcomes. MPLX cautions that these statements are based on
management's current knowledge and expectations and are subject to
certain risks and uncertainties, many of which are outside of the
control of MPLX, that could cause actual results and events to
differ materially from the statements made herein. Factors that
could cause MPLX's actual results to differ materially from those
implied in the forward-looking statements include but are not
limited to: the adequacy of capital resources and liquidity,
including the availability of capital resources to execute on its
strategic priorities; the ability to access debt markets on
commercially reasonable terms or at all; changes to the expected
construction costs and in service dates of planned and ongoing
projects and investments and the ability to obtain regulatory and
other required approvals with respect thereto within the expected
timeframes, if at all; the ability to obtain regulatory and other
approvals and the satisfaction of the other conditions to the
closing of the BANGL, LLC acquisition within the expected
timeframe, if at all; and the other factors set forth under the
heading "Risk Factors" and "Disclosures Regarding Forward-Looking
Statements" in MPLX's and MPC's Annual Reports on Form 10-K for the
year ended Dec. 31, 2024, and in
other filings with the SEC.
Any forward-looking statement speaks only as of the date of
the applicable communication and we undertake no obligation to
update any forward-looking statement except to the extent required
by applicable law.
Copies of MPLX's Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and other SEC filings are available on the
SEC's website, MPLX's website at http://ir.mplx.com or by
contacting MPLX's Investor Relations office. Copies of MPC's Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC
filings are available on the SEC's website, MPC's website
at https://www.marathonpetroleum.com/Investors/ or by
contacting MPC's Investor Relations office.
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SOURCE MPLX LP
