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MPLX to Sell Off Its Javelina Facility to Howard Energy

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MPLX LP’s (MPLX - Free Report) subsidiaryMarkWest Energy Partners LPrecently signed an agreement with the independent midstream energy company Howard Energy Partners to sell its cryogenic natural gas processing and fractionation complex Javelina Facility (Javelina) in Corpus Christi, TX.

The deal is expected to close by early next year. However, details of the transaction value are yet to be disclosed. Per the terms of the agreement, Howard Energy Partners will retain its existing staff employed at the Javelina complex.

Javelina is connected to all the key refineries in the Corpus Christi area though a pipeline and the plant accumulates and processes off-gas streams from six adjacent refineries. The fractionation facility sifts the liquids from the gas processing plant and produces ethylene, propylene, hydrogen and natural gas liquids. The plant’s cryogenic processing capacity is worth 142 million cubic feet on a daily basis.

Chairman and CEO Mike Howard confirmed that the Javelina prospect is a precious hub associated with sustainable and much sought-after refinery operations. This, in turn, backs the partnership's long-haul growth goals and its penetration of uncharted geographies as well as exploration of new services. He further believes that this acquisition will expand the firm’s footprint in the Corpus Christi market.

Company Profile

Findlay, OH-based MPLX is a master limited partnership (MLP) engaged in providing a wide range of midstream energy services including fuel distribution solutions. The large-cap partnership was created in 2012 to own, operate and develop midstream energy infrastructures and logistics assets, mostly for its parent company Marathon Petroleum Corporation. Notably, Marathon Petroleum (MPC - Free Report) holds around 64% of MPLX's outstanding common units.

Zacks Rank & Key Picks

MPLX currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Hess Midstream Partners LP (HESM - Free Report) and China Petroleum & Chemical Corporation , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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