The Permian Basin, located in West Texas and Southeast New Mexico, is the growth engine of the U.S. in regard to oil and gas output. MLPs are enhancing their operations in the basin through M&A activity, as evidenced by a series of announcements from Western Midstream, MPLX LP, and Enterprise in recent weeks.
Western Midstream Diversifies Permian Offerings
Western Midstream will acquire Aris Water Solutions, expanding Western’s capabilities in New Mexico. The acquisition includes 790 miles of produced-water pipelines, enhancing Western’s current footprint that includes 830 miles of produced-water pipelines. It also extends Western’s reach into northern New Mexico. This could create more opportunities for natural gas, crude oil, and natural gas liquid (NGL) gathering and processing according to the press release.
Additionally, Aris’ prior purchase of the McNeill Ranch increases surface use opportunities and pore space area potential for Western. McNeill Ranch spans New Mexico and Texas. Notably, it sits adjacent to the Northern Delaware Basin, one of the fastest-growing areas of the Permian Basin.
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Enterprise Adds Occidental Permian-Gathering Affiliates
Enterprise Products Partners LP announced on August 6 its acquisition of an Occidental natural-gas-gathering affiliate. Located in the Midland portion of the Permian Basin, the acquisition includes 200 miles of natural-gas -gathering pipelines with access to over 1,000 drillable sites. The transaction includes a 73,000 acreage dedication for Enterprise to provide gathering and processing services to Occidental.
Alongside the acquisition, Enterprise is building the Athena natural gas processing plant. Athena is expected online by Q4 2026 with processing capacity of 300 million cubic feet per day (MMcf/d) for natural gas. Athena will also have the ability to extract up to 40,000 barrels per day (bpd) of NGLs. The bolt-on acquisition complements Enterprise’s existing assets in the Midland Basin.
MPLX Increases Sour Gas Capabilities in Permian
MPLX LP announced on July 31 its acquisition of Northwind Midstream, which provides sour gas services in Lea County, New Mexico. The addition brings over 200 miles of gathering pipelines. Furthermore, it adds two in-service acid gas injection wells and one permitted well. It extends MPLX’s sour gas gathering, treating, and processing capabilities in these areas of elevated productivity.
MPLX gains more than 200,000 dedicated acres with the acquisition of Northwind Midstream. It also provides access to up to 400 MMcf/d of natural gas and 70,000 bpd of NGLs. By adding sour gas gathering, processing, and treating capabilities, MPLX can better provide solutions for new and existing customers in the Delaware Basin.
As noted by Enterprise management, the Permian is responsible for approximately 90% of U.S. production growth for liquid hydrocarbons. Recent M&A activity within the midstream space reflects the desirability and opportunity companies anticipate in the region.
Western Midstream Partners, Enterprise Products Partners, and MPLX are the top five holdings within the Alerian MLP ETF (AMLP) as of August 20, 2025. AMLP provides exposure to the Alerian MLP Infrastructure Index (AMZI). The index is a capped, float-adjusted, capitalization-weighted composite of energy infrastructure MLPs. MLPs tracked by the index generate most of their cash flow from midstream activities.
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