Global infrastructure investment firm I Squared Capital, alongside midstream operator MPLX LP and Canadian energy infrastructure company Enbridge, has entered into a definitive agreement to acquire a combined equity interest of up to 85% in the Matterhorn Express Pipeline, according to a report by Reuters.
Under the terms of the transaction, WhiteWater, an Austin-based infrastructure company backed by I Squared and infrastructure investor FIC, will hold a majority stake of up to 65% in the pipeline. Enbridge and MPLX will each acquire a 10% interest. WhiteWater will retain operational responsibilities for the asset.
The interests are being acquired from Ridgemont Equity Partners and Devon Energy Corp. While financial details of the full transaction remain undisclosed, Bloomberg previously reported that a deal could value the Matterhorn Express Pipeline at over $5bn, including debt.
As part of a separate announcement on Tuesday, MPLX disclosed its acquisition of an additional 5% stake in the Matterhorn joint venture for approximately $151m.
The 580-mile Matterhorn Express Pipeline transports natural gas from the Permian Basin in West Texas and New Mexico to the Katy area near Houston, with a designed capacity of up to 2.5 billion cubic feet per day.
