MPLX LP Announces Agreement to Acquire Remaining 55% Interest in BANGL, LLC, Advancing NGL Wellhead to Water Strategy

Rhea-AI Summary

MPLX LP (NYSE: MPLX) has announced a definitive agreement to acquire the remaining 55% interest in BANGL, for $715 million from WhiteWater and Diamondback Energy affiliates. The transaction includes potential additional earnout payments based on specific financial performance metrics.

The acquisition, expected to close in July 2025, will be immediately accretive and is projected to generate mid-teen returns for the partnership. Upon completion, the BANGL Pipeline will become a wholly owned asset of MPLX, consolidated in their financial results.

This strategic move enhances MPLX's growth platform by connecting growing NGL production from the Permian basin to their recently announced Gulf Coast fractionation complex. The deal remains subject to customary closing conditions, including Hart-Scott-Rodino Antitrust Improvements Act clearance.

Positive

• Immediately accretive acquisition with mid-teen returns expected
• Full ownership (100%) of BANGL Pipeline after closing
• Strategic expansion of NGL infrastructure from Permian to Gulf Coast
• Enhanced growth platform through vertical integration

Negative

• Significant capital outlay of $715 million
• Additional earnout payment obligations based on performance metrics
• Regulatory approval required for closing

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

FAQ

What is the value of MPLX's acquisition of BANGL 's remaining stake?

MPLX is acquiring the remaining 55% interest in BANGL for $715 million, with additional potential earnout payments based on performance metrics.

When is MPLX expected to close the BANGL acquisition?

The transaction is expected to close in July 2025, subject to customary closing conditions and regulatory approval.

What are the expected returns from MPLX's BANGL acquisition?

The transaction is immediately accretive and expected to generate mid-teen returns for the partnership.

How will the BANGL acquisition benefit MPLX's operations?

The acquisition will connect NGL production from Permian basin to MPLX's Gulf Coast fractionation complex, improving their growth platform.