AUSTIN,
Texas, March 26, 2024 /PRNewswire/
-- WhiteWater, I Squared, MPLX LP (NYSE: MPLX), and Enbridge
Inc. (TSX: ENB) (NYSE: ENB) jointly announce they have entered into
a definitive agreement to strategically combine the Whistler
Pipeline and Rio Bravo Pipeline project in a newly formed joint
venture.
Enbridge will contribute its wholly-owned Rio Bravo Pipeline
project and cash in exchange for an ownership stake in the newly
formed joint venture. Following the closing of the transaction, the
ownership in the joint venture will be WhiteWater/I Squared
(50.6%), MPLX (30.4%), and Enbridge (19.0%). Enbridge will retain a
25% economic interest in the Rio Bravo Pipeline project as part of
its investment (subject to certain redemption rights of the joint
venture partners). WhiteWater will continue to operate the joint
venture's assets, including the Rio Bravo Pipeline project.
The combined platform will provide significant benefits to the
joint venture's customers by connecting Permian supply to
incremental LNG export markets via Rio
Bravo's connectivity with NextDecade's Rio Grande LNG
facility. Additionally, the creation of this platform is
anticipated to support the development of incremental pipeline
projects connecting Permian supply to export markets along the Gulf
Coast.
The transaction is expected to close in the second quarter of
2024 after receipt of required regulatory approvals and
satisfaction of other customary closing conditions.
"This strategic transaction is a win for WhiteWater/I Squared
and MPLX. It extends the average contract tenor, brings us closer
to an important strategic partner in Enbridge and positions us well
for future development opportunities supporting Gulf Coast LNG.
WhiteWater is excited to add Enbridge as a partner and NextDecade's
Rio Grande LNG as a customer. Together we will continue to grow our
Texas pipeline network," said
Christer Rundlof, Chief Executive
Officer of WhiteWater.
"This transaction is a continuation of MPLX's wellhead-to-water
growth strategy, enhancing our natural gas value chain in the
Permian basin and South Texas. The
strategic combination of these assets position the Whistler
Pipeline system for future capacity expansions to meet increasing
demand for natural gas supply to Gulf Coast LNG facilities," said
Dave Heppner, Senior Vice President
of MPLX.
"We are excited to join WhiteWater/I Squared and MPLX in a joint
venture to connect sustainable Permian natural gas production to
export markets as part of our USGC strategy. Acquiring a meaningful
equity interest in an integrated natural gas pipeline and storage
network that is directly connected to our existing infrastructure
provides customers, like NextDecade, with valuable last mile
connectivity and unlocks future growth opportunities," said
Cynthia Hansen, EVP and President,
Gas Transmission and Midstream of Enbridge.
"The combination of Whistler Pipeline and Rio Bravo Pipeline
assets confirms the importance of our Rio Grande LNG project as a
major market for associated gas from the Permian Basin," said
Matt Schatzman, NextDecade Chairman
and Chief Executive Officer. "We are excited to have WhiteWater, I
Squared, MPLX and Enbridge as partners in the delivery of the Rio
Bravo Pipeline for the Rio Grande LNG project and we look forward
to growing our relationship with their new joint venture."
About the Whistler Pipeline
The Whistler Pipeline has approximately 2.5 billion cubic feet
per day of capacity and the system is comprised of approximately
450 miles of 42-inch diameter pipeline that transports natural gas
from the Permian Basin to Agua Dulce,
Texas, with direct connections to Corpus Christi and the gulf coast. The
pipeline also has an approximately 85-mile, 36-inch diameter
lateral to the Midland Basin.
About WhiteWater
WhiteWater is an Austin, Texas
based infrastructure company, and operator of the Whistler
Pipeline. WhiteWater is partnered with multiple private equity
funds including but not limited to I Squared Capital. For more
information about WhiteWater, visit www.wwdev.com.
About I Squared Capital
I Squared Capital is a leading independent global infrastructure
investment manager with over $38
billion in assets under management focused on investing in
North America, Europe, Asia,
and Latin America. Headquartered
in Miami, the firm has more than
260 professionals across its offices in London, Munich, New
Delhi, São Paulo, Singapore, Sydney and Taipei. I Squared Capital has invested in a
diverse portfolio of 82 companies with over 66,000 employees in 71
countries across the utilities, energy, digital infrastructure,
transport, environmental infrastructure, and social infrastructure
sectors providing essential services to millions of people around
the world. You can find out more by visiting:
www.isquaredcapital.com.
About MPLX LP
MPLX is a diversified, large-cap master limited partnership that
owns and operates midstream energy infrastructure and logistics
assets and provides fuels distribution services. MPLX's assets
include a network of crude oil and refined product pipelines; an
inland marine business; light-product terminals; storage caverns;
refinery tanks, docks, loading racks, and associated piping; and
crude and light-product marine terminals. MPLX also owns crude oil
and natural gas gathering systems and pipelines as well as natural
gas and NGL processing and fractionation facilities in key U.S.
supply basins. More information is available
at www.MPLX.com
About Enbridge Inc.
At Enbridge, we safely connect millions of people to the energy
they rely on every day, fueling quality of life through our North
American natural gas, oil, and renewable power networks and our
growing European offshore wind portfolio. We are investing in
modern energy delivery infrastructure to sustain access to secure,
affordable energy and building on more than a century of operating
conventional energy infrastructure and two decades of experience in
renewable power. We are advancing new technologies, including
hydrogen, renewable natural gas, carbon capture, and storage, and
are committed to achieving net zero greenhouse gas emissions by
2050. Headquartered in Calgary,
Alberta, Enbridge's common shares trade under the symbol ENB
on the Toronto (TSX) and
New York (NYSE) stock exchanges.
To learn more, visit us at enbridge.com.
MPLX Forward-Looking Statement
This press release contains forward-looking statements regarding
MPLX. These forward-looking statements may relate to, among other
things, MPLX's expectations, estimates and projections concerning
its business and operations, including with respect to MPLX's
investment in the joint venture and the strategic combination
announced herein (the "Transaction"), including anticipated
benefits and expected closing date of the Transaction. You can
identify forward-looking statements by words such as "anticipate,"
"believe," "commitment," "continue," "could," "design," "estimate,"
"expect," "forecast," "future," "goal," "guidance," "intend,"
"may," "objective," "opportunity," "outlook," "plan," "policy,"
"position," "potential," "predict," "priority," "project,"
"prospective," "pursue," "seek," "should," "strategy," "target,"
"will," "would" or other similar expressions that convey the
uncertainty of future events or outcomes. MPLX cautions that these
statements are based on management's current knowledge and
expectations and are subject to certain risks and uncertainties,
many of which are outside of the control of MPLX, that could cause
actual results and events to differ materially from the statements
made herein. Factors that could cause MPLX's actual results to
differ materially from those implied in the forward-looking
statements include but are not limited to: the timing and impact of
the Transaction; the timing and extent of changes in commodity
prices and demand for natural gas, crude oil, refined products,
feedstocks or other hydrocarbon-based products or renewables;
changes in the timing and construction costs and in service dates
of planned and ongoing projects and investments, including with
respect to the Transaction; the ability to obtain regulatory and
other approvals with respect to the Transaction or related planned
projects; industrial incidents or other unscheduled shutdowns;
other risk factors inherent to MPLX's industry; the impact of
adverse market conditions or other similar risks to those
identified herein affecting MPLX; and the factors set forth under
the heading "Risk Factors" in MPLX's and Annual Report on Form 10-K
for the year ended Dec. 31, 2023, and
in other filings with the SEC.
All forward-looking statements, whether written or oral,
attributable to MPLX or persons acting on MPLX's behalf, are
expressly qualified in their entirety by these cautionary
statements. Any forward-looking statement speaks only as of the
date of the applicable communication and we undertake no obligation
to update any forward-looking statement except to the extent
required by applicable law.
Enbridge Forward-Looking Statement
Forward-looking information, or forward-looking statements, have
been included in this news release to provide information about
Enbridge and its subsidiaries and affiliates, including
management's assessment of Enbridge and its subsidiaries' future
plans and operations. This information may not be appropriate for
other purposes. Forward-looking statements are typically identified
by words such as ''anticipate'', ''expect'', ''project'',
''estimate'', ''forecast'', ''plan'', ''intend'', ''target'',
''believe'', "likely" and similar words suggesting future outcomes
or statements regarding an outlook. Forward-looking information or
statements included or incorporated by reference in this document
include, but are not limited to, statements with respect to
Enbridge's investment in the joint venture and related matters (the
"Transaction"), including anticipated benefits and expected closing
date of the Transaction.
Although Enbridge believes these forward-looking statements are
reasonable based on the information available on the date such
statements are made and processes used to prepare the information,
such statements are not guarantees of future performance and
readers are cautioned against placing undue reliance on
forward-looking statements. By their nature, these statements
involve a variety of assumptions, known and unknown risks and
uncertainties and other factors, which may cause actual results,
levels of activity and achievements to differ materially from those
expressed or implied by such statements. Material assumptions
include assumptions about customer, regulatory and stakeholder
support and approvals, including with respect to the Transaction;
expectations about our joint venture partners' ability to complete
the Transaction; the timing and impact of the Transaction; and the
ability of management to execute key priorities. Assumptions
regarding the expected supply of and demand for crude oil, natural
gas, natural gas liquids, liquefied natural gas and renewable
energy, and the prices of these commodities, are material to and
underlie all forward-looking statements, as they may impact current
and future levels of demand for Enbridge's services. Similarly,
exchange rates, inflation and interest rates impact the economies
and business environments in which Enbridge operates and may impact
levels of demand for Enbridge's services and cost of inputs and
are, therefore, inherent in all forward-looking statements. Due to
the interdependencies and correlation of these macroeconomic
factors, the impact of any one assumption on a forward-looking
statement cannot be determined with certainty.
Enbridge's forward-looking statements are subject to risks and
uncertainties, including, but not limited to with respect to the
realization of anticipated benefits of the Transaction and other
risks and uncertainties discussed in this news release and in
Enbridge's other filings with Canadian and U.S. securities
regulators. The impact of any one risk, uncertainty or factor on a
particular forward-looking statement is not determinable with
certainty as these are interdependent and Enbridge's future course
of action depends on management's assessment of all information
available at the relevant time. Except to the extent required by
applicable law, Enbridge assumes no obligation to publicly update
or revise any forward-looking statements made in this news release
or otherwise, whether as a result of new information, future events
or otherwise. All forward-looking statements, whether written or
oral, attributable to Enbridge or persons acting on Enbridge's
behalf, are expressly qualified in their entirety by these
cautionary statements.
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SOURCE WhiteWater
