MPLX will acquire the remaining 55% interest in BANGL Pipeline for $715MM from affiliates of WhiteWater and Diamondback Energy. The deal is the next big move in the race to control Permian NGLs, expanding MPLX’s reach to export docks on the Texas coast.
MPLX will take full control of the BANGL system stretching from the Permian Basin to fractionation markets on the Gulf Coast. The companies expect to close the deal in July ‘25, according to the February 28 announcement. MPLX guided to mid-teen returns from the purchase.
BANGL can transport up to 250 Mb/d of NGLs currently, and a planned expansion will increase capacity to 300 Mb/d by 2H26.
What We Like: Securing full ownership of BANGL aligns with MPLX's strategy to control the entire NGL value chain from wellhead to water.
The map in the figure, available in East Daley Analytics’ NGL Hub Model in Energy Data Studio, shows NGL pipeline infrastructure from the Permian to the Texas Gulf Coast. EDA estimates that MPLX currently produces ~150 Mb/d of NGLs from its processing plants in the Permian and sends those volumes to the Robstown and Sweeny fracs on the Texas coast. By 2029, we model MPLX will produce 210 Mb/d of NGLs from its Permian assets, and will be able redirect those liquids to its new fracs under development in Texas City. MPLX can also use BANGL to secure barrels for the new export facility it is developing in a joint venture with ONEOK (OKE).
The Knock-On Effect: The BANGL acquisition introduces downside risk for Phillips 66 (PSX) as MPLX shifts volumes away from PSX’s NGL infrastructure. Phillips owns the Sweeny fractionation complex and is acquiring the Robstown frac via the $2.2B EPIC acquisition. BANGL ownership gives MPLX more flexibility to reduce reliance on PSX systems. – Julian Renton Tickers: MPLX, OKE, PSX.
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