MPLX (MPLX) announced it has signed a definitive agreement with affiliates of WhiteWater and Diamondback Energy to acquire the remaining 55% interest in Bangl for $715M. 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. The transaction is expected to close in July 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.
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