Enbridge, I Squared, MPLX to Acquire Up to 85% Stake in Matterhorn Gas Pipeline
(Reuters) — Infrastructure investment firm I Squared, midstream company MPLX LP, and pipeline operator Enbridge Inc. have entered an agreement to acquire up to 85% interest in the Matterhorn Express gas pipeline, the companies said on May 6.
Infrastructure company WhiteWater, which counts I Squared as one of its partners, will own up to 65% interest in the pipeline, the companies said in a statement, adding that Canada-based Enbridge and MPLX will own another 10% each in the Matterhorn pipeline following a closing of the transaction.
The companies would acquire these equity interests from private equity firm Ridgemont Equity Partners and Devon Energy Corp., the statement said.
Reuters reported earlier this week that Miami-based I Squared Capital was in talks to acquire a majority stake in the natural gas pipeline from WhiteWater Midstream. A deal could value Matterhorn Express pipeline at more than $5 billion including debt, a Bloomberg report had said.
WhiteWater's equity interest in the Matterhorn Express Pipeline will be jointly backed by infrastructure investment firm FIC and I Squared, according to the statement. WhiteWater will continue to operate the Matterhorn Express Pipeline.
Earlier on Tuesday, MPLX said it is acquiring an additional 5% interest in the joint venture that owns the Matterhorn Express pipeline for $151 million.
The Matterhorn pipeline carries natural gas from the Permian Basin of West Texas and New Mexico to the outskirts of Houston. The 580-mile pipeline was designed to carry up to 2.5 billion cubic feet per day of gas, according to its website.
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