PSX - Devon Sells Matterhorn, What Does This Mean For Midstream
2025-05-17 06:24:06 ET
Summary
- Devon Energy monetized its Matterhorn Express pipeline stake at a premium, retaining valuable shipping capacity and highlighting hidden midstream value in upstream portfolios.
- Enbridge and MPLX paid above their own trading multiples, underscoring the enduring strategic value of Texas gas pipelines, despite commodity price volatility.
- The deal demonstrates the market's failure to fully credit upstream firms for midstream assets, creating opportunities for value realization through selective monetization.
- This transaction exemplifies how upstream companies can optimize portfolios and close valuation gaps with midstream peers by unlocking underappreciated infrastructure value.
WhiteWater Midstream, Enbridge ( ENB ), and MPLX ( MPLX ) have announced that they agreed to acquire Devon Energy's ( DVN ) equity interests in the recently put into service Matterhorn Express pipeline for $375mm; this was a 12.5% equity stake, so it valued the pipeline at $5,700mm in total including project level debt....
Devon Sells Matterhorn, What Does This Mean For Midstream