I Squared Capital, a leading independent global infrastructure investment manager, together with MPLX LP (NYSE: MPLX), and Enbridge Inc. (NYSE: ENB), today announced that it has agreed to acquire a significant equity interest in the Matterhorn Express Pipeline (MXP), a 2.5 billion cubic feet per day (Bcf/d) natural gas pipeline connecting the Permian Basin to key Texas demand centers and U.S. Gulf Coast LNG export terminals.
“This investment exemplifies our strategy of acquiring critical infrastructure assets that support the major re-industrialization themes we see in the U.S. economy today,” said Gautam Bhandari, Global Chief Investment Officer and Managing Partner of I Squared Capital. “The pipeline benefits from a prime location and serves some of the fastest-growing energy demand centers in North America, including LNG export terminals, industrial hubs, and rapidly expanding AI-driven data centers in the Austin and Houston metro areas. The WhiteWater team is a proven management team with a successful track-record of working with I Squared. We are excited to partner with them, once again, to support the continued growth of this platform.”
Under the terms of the transaction, I Squared will acquire, through its ISQ Global Infrastructure Fund III, approximately 37% of Matterhorn InvestCo, LLC (“MXP HoldCo”), alongside FIC and WhiteWater Midstream. Following the close of the transaction, MXP will be owned 65% by MXP HoldCo, 15% by ONEOK (NYSE: OKE), 10% by MPLX, and 10% by Enbridge. WhiteWater Midstream, through MXP HoldCo, will continue to operate MXP.
MXP is a newly constructed, 100% contracted natural gas pipeline in the heart of the Permian Basin. It was placed into service in November 2024 and has approximately 2.5 billion cubic feet per day of fully contracted capacity. The system transports natural gas from the Waha area in the Permian Basin with delivery capabilities throughout the greater Houston area.
The transaction is expected to close in mid-2025, subject to customary regulatory approvals and closing conditions. Kirkland & Ellis LLP served as legal counsel to I Squared in this transaction.
