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MPLX LP (MPLX - Free Report) has announced the acquisition of the remaining interest in BANGL LLC from the affiliates of WhiteWater and Diamondback Energy. The deal involves acquiring the remaining 55% interest in BANGL, following which MPLX will take complete ownership of the NGL pipeline. The deal has been valued at $715 million.
The NGL pipeline has a transportation capacity of 250,000 barrels per day (bbl/d), bringing the Permian production from West Texas to the Gulf Coast facilities. Currently, the capacity of the BANGL pipeline is being expanded to 300,000 bbl/d. Following the expansion, the pipeline is expected to begin operations in the second half of 2026. MPLX has also started the construction of a fractionation facility on the Gulf Coast that is expected to be concluded by 2028.
MPLX mentioned that having full ownership over the BANGL pipeline solidifies its long-term growth prospects by connecting the growing Permian Basin NGL production to its fractionation complex on the Gulf Coast. The acquisition also offers MPLX control over the pipeline's expansion opportunities.
Additionally, the deal includes a provision, wherein MPLX may make earnout payments subject to the fulfillment of certain financial performance metrics. The payments are to be capped at a specified limit, implying that disbursements made over and above the purchase price would have an upper limit. The deal is expected to be closed in July 2025, contingent upon customary closing conditions. MPLX stated that the acquisition should be immediately accretive to key financial metrics. The move is expected to generate strong returns for the partnership.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Matador Resources is a leading U.S.-based exploration and production firm. The company has consistently exceeded production expectations, demonstrating operational efficiency and robust growth. MTDR’s production efficiency, combined with the favorable oil price environment, is expected to positively impact its bottom line.
Equinor ASA is one of the leading integrated energy companies globally and the second-largest supplier of natural gas in Europe. The company’s expansion in the renewable energy space positions it for long-term growth as more and more countries transition toward cleaner energy solutions to meet their climate goals. Its strategic pivot toward low-carbon energy solutions unlocks new revenue streams in the growing market for clean energy and carbon management solutions.
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MPLX to Fully Acquire BANGL Pipeline, Boost Permian Basin NGL Capacity
MPLX LP (MPLX - Free Report) has announced the acquisition of the remaining interest in BANGL LLC from the affiliates of WhiteWater and Diamondback Energy. The deal involves acquiring the remaining 55% interest in BANGL, following which MPLX will take complete ownership of the NGL pipeline. The deal has been valued at $715 million.
The NGL pipeline has a transportation capacity of 250,000 barrels per day (bbl/d), bringing the Permian production from West Texas to the Gulf Coast facilities. Currently, the capacity of the BANGL pipeline is being expanded to 300,000 bbl/d. Following the expansion, the pipeline is expected to begin operations in the second half of 2026. MPLX has also started the construction of a fractionation facility on the Gulf Coast that is expected to be concluded by 2028.
MPLX mentioned that having full ownership over the BANGL pipeline solidifies its long-term growth prospects by connecting the growing Permian Basin NGL production to its fractionation complex on the Gulf Coast. The acquisition also offers MPLX control over the pipeline's expansion opportunities.
Additionally, the deal includes a provision, wherein MPLX may make earnout payments subject to the fulfillment of certain financial performance metrics. The payments are to be capped at a specified limit, implying that disbursements made over and above the purchase price would have an upper limit. The deal is expected to be closed in July 2025, contingent upon customary closing conditions. MPLX stated that the acquisition should be immediately accretive to key financial metrics. The move is expected to generate strong returns for the partnership.
MPLX’s Zacks Rank and Key Picks
MPLX currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Archrock Inc. (AROC - Free Report) , Matador Resources Corporation (MTDR - Free Report) and Equinor ASA (EQNR - Free Report) . Archrock currently sports a Zacks Rank #1 (Strong Buy), while Matador Resources and Equinor carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Matador Resources is a leading U.S.-based exploration and production firm. The company has consistently exceeded production expectations, demonstrating operational efficiency and robust growth. MTDR’s production efficiency, combined with the favorable oil price environment, is expected to positively impact its bottom line.
Equinor ASA is one of the leading integrated energy companies globally and the second-largest supplier of natural gas in Europe. The company’s expansion in the renewable energy space positions it for long-term growth as more and more countries transition toward cleaner energy solutions to meet their climate goals. Its strategic pivot toward low-carbon energy solutions unlocks new revenue streams in the growing market for clean energy and carbon management solutions.