Enbridge Forms Powerhouse JV For Permian Basin Gas Pipeline Expansion: Details
Portfolio Pulse from Lekha Gupta
Enbridge Inc. (NYSE:ENB) has entered into a joint venture with WhiteWater/I Squared Capital and MPLX LP (NYSE:MPLX) to expand natural gas pipeline and storage assets in the Permian Basin. The JV aims to connect Permian Basin gas supply to LNG and US Gulf Coast demand. The venture includes stakes in Whistler and Rio Bravo pipelines, ADCC pipeline, and Waha Gas Storage assets. The deal, expected to close in Q2 2024, is seen as immediately accretive to Enbridge's DCF per share.
March 26, 2024 | 4:35 pm
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Enbridge Inc. enters a JV for Permian Basin gas pipeline expansion, expected to be accretive to its DCF per share and optimize its balance sheet.
The joint venture is expected to be immediately accretive to Enbridge's DCF per share, indicating a positive impact on its financial health. The strategic partnership and investment in the Permian Basin gas pipeline and storage assets align with Enbridge's growth objectives, potentially enhancing its market position and financial performance.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
MPLX LP partners with Enbridge Inc. and WhiteWater/I Squared Capital in a JV to expand natural gas pipeline and storage in the Permian Basin.
MPLX LP's involvement in the joint venture to expand natural gas pipeline and storage assets in the Permian Basin signifies a strategic move to capitalize on the growing LNG and US Gulf Coast demand. This partnership is likely to bolster MPLX's operational capabilities and financial performance, given the long-term contracted capacity and investment-grade counterparties.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80