- I Squared, MPLX LP (MPLX), and Enbridge Inc. (ENB) to acquire interests in the Matterhorn Express Pipeline.
- WhiteWater will hold a 65% stake, while MPLX and Enbridge will each own 10%.
- The transaction is scheduled to close in the second quarter of 2025.
In a significant infrastructure development, I Squared, MPLX LP (MPLX), and Enbridge Inc. (ENB) have announced a definitive agreement to acquire equity interests in the Matterhorn Express Pipeline from Ridgemont Equity Partners and Devon Energy Corp. (DVN, Financial). This acquisition represents a strategic expansion into the energy transportation sector for the three involved companies.
Post-transaction, the ownership of the Matterhorn Express Pipeline will be distributed with WhiteWater retaining a 65% stake, while MPLX and Enbridge will each hold a 10% share. WhiteWater's equity interest will be jointly backed by FIC and I Squared. Importantly, WhiteWater will continue to operate the pipeline, ensuring continuity in its operations.
The Matterhorn Express Pipeline, operational since November 2024, boasts a daily capacity of approximately 2.5 billion cubic feet, and spans an impressive 510 miles. It serves a critical role in transporting natural gas from the Waha area in the Permian Basin to Wharton, Texas, with additional delivery capabilities into the Katy, Texas area.
This transaction is slated for completion in the second quarter of 2025, marking a new chapter for the involved companies and a significant milestone in infrastructure investment in the energy sector. Devon Energy's divestment of its interests may positively impact its balance sheet, offering potential benefits for its strategic realignment.
