MPLX to Divest Rockies Midstream Assets & Sharpen Focus on Core Basins

MPLX LP MPLX, a master limited partnership operating in the midstream sector, has announced the sale of its Rockies gathering and processing assets for $1 billion in cash. The partnership has signed a sales and purchase agreement with a subsidiary of Harvest Midstream, a privately-owned midstream company, for the sale of its Rockies assets.

Details of the Assets

The transaction includes MPLX’s natural gas gathering and processing infrastructure in the Uinta and Green River basins. These assets consist of gathering and transportation pipelines, as well as 1.2 billion cubic feet per day of processing capacity. The assets were utilized at 52% capacity in 2024, suggesting that these assets can support additional throughputs.  The unused capacity can support an increase in natural gas production from these basins in the future.

MPLX’s Uinta Basin assets include gas-gathering pipelines spanning 700 miles and around 345 million cubic feet per day of active gas processing capacity. These assets are also under expansion at present, which should enhance their capacity. The Green River Basin assets include gathering and transportation pipelines spanning 800 miles. It also encompasses 500 million cubic feet per day of active gas processing capacity at the Blacks Fork and Vermilion facilities. Furthermore, these assets include an additional fractionation capacity of 10 thousand barrels per day. The Uinta and Green River Basin assets are collectively spread across Utah, Colorado and Wyoming in the United States.

MPLX’s Portfolio Optimization

By divesting these assets, MPLX aims to focus on its core business areas in the Marcellus and Permian basins. The sale of non-core assets high-grades its portfolio and positions the partnership for sustainable growth in the future. The deal is anticipated to conclude in the fourth quarter of 2025. For Harvest Midstream, these assets align with its strategy of building a reliable midstream network that can support energy security in the United States. The acquisition also supports the diversification of its operations beyond Alaska and North Dakota.

MPLX’s Zacks Rank & Key Picks

Currently, MPLX carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Repsol S.A. REPYY, Antero Midstream Corporation AM and Galp Energia SGPS SA GLPEY. While Repsol and Antero Midstream sports a Zacks Rank #1 (Strong Buy) each, Galp Energia carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. This suggests that Repsol is positioning itself in line with global energy transition needs.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

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This article originally published on Zacks Investment Research (zacks.com).

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