---
title: "This Overlooked Pipeline Stock Just Became a Rival's Joint-Venture Partner Without Anyone Noticing"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/299543934.md"
description: "MPLX LP, Western Midstream Partners, Diamondback Energy, and Devon Energy have formed a joint venture for the Solitude Pipeline System. This project connects Permian Basin natural gas to the Gulf Coast, with completion expected by 2030. By sharing ownership and costs among rivals, these companies mitigate financial burdens while ensuring future pipeline access and demand."
datetime: "2026-09-20T06:00:13.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/299543934.md)
  - [en](https://longbridge.com/en/news/299543934.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/299543934.md)
generator: "portal-rs"
---

# This Overlooked Pipeline Stock Just Became a Rival's Joint-Venture Partner Without Anyone Noticing

The Solitude Pipeline System has gotten the green light. You probably haven't heard of it, but the project will help connect natural gas production in the Permian Basin to demand on the Gulf Coast. Given the current global demand for natural gas, this could be a valuable capital investment project.

But what's most interesting here is that the Solitude Pipeline System is being backed by companies that are actually rivals, including pipeline owners **MPLX LP** (MPLX +1.40%) and **Western Midstream Partners** (WES +0.28%), and upstream producers **Diamondback Energy** (FANG -2.29%) and **Devon Energy** (DVN -0.23%). Here's why these competitors are teaming up.

![A person in protective gear with pipes and a drilling rig in the background.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84ODc4NzgvMjFfMDVfMTgtYS1wZXJzb24taW4tcHJvdGVjdGl2ZS1nZWFyLXdpdGgtcGlwZXMtYW5kLWEtZHJpbGxpbmctcmlnLWluLXRoZS1iYWNrZ3JvdW5kLV9nZXR0eWltYWdlcy0xMTkyNDc4NjY1LmpwZyZ3PTM4NDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Image source: Getty Images.

## Pipeline projects are big deals

Building a new pipeline can cost hundreds of millions of dollars and often more. They take years to develop. For example, the Solitude Pipeline, which received the go-ahead in mid-August of 2026, won't start transporting any product until the second half of 2029 if everything goes as planned. And that's just the first phase of the capital investment project, with a second phase expected to be completed in 2030. While cost figures haven't been provided, the key is that no revenue will be produced until gas is moving through the pipeline. 

Step back and consider that fact for a second. There is a huge up-front cost and no revenue until the project is finished. That's a big burden for a company to take on. It helps greatly if you can share that burden, even if it means partnering with your competitors. That's basically what is going on with MPLX LP and Western Midstream Partners. MPLX LP will own 10% of the pipeline, with Western Midstream owning 7.5%. A private energy infrastructure company, **Whitewater**, owns 50%. So MPLX LP and Western Midstream Partners are actually teaming up with a third midstream competitor. 

Expand

![MPLX Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL01QTFgucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

## NYSE: MPLX

MPLX

Today's Change

(1.40%) $0.82

Current Price

$59.44

### Key Data Points

Market Cap

$60BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$58.53 - $59.55

52wk Range

$47.80 - $60.95

Volume

2.5M

Avg Vol

1.4M

Gross Margin

43.71%

Dividend Yield

7.24%

## Helping to ensure there's demand

That's 67.5% of the project accounted for. What about the rest? Well, that's where Diamondback Energy and Devon Energy, two rivals in the upstream production side of the energy sector, come in. Upstream companies use pipelines to get their products to market, and helping fund projects ensures they have access to pipelines to support production growth. Devon Energy will own 25% of the pipeline, with Diamondback Energy at 7.5%, rounding out the final 32.5%.

All in all, this is good news for all the companies involved. And spreading the financial burden will help to ensure the project is a success. Deals like this often go unnoticed, showing up as a simple line item in a midstream operator's capital investment plans. But the group dynamic here is often how business gets done in the energy sector.

### Related Stocks

- [MPLX.US](https://longbridge.com/en/quote/MPLX.US.md)
- [WES.US](https://longbridge.com/en/quote/WES.US.md)
- [FANG.US](https://longbridge.com/en/quote/FANG.US.md)
- [DVN.US](https://longbridge.com/en/quote/DVN.US.md)

## Related News & Research

- [Major Stakeholder Makes a Massive Exit From Diamondback](https://longbridge.com/en/news/299390785.md)
- [Western Midstream Partners (WES) Could Be 5% Undervalued If Growth Projects Deliver](https://longbridge.com/en/news/299579692.md)
- [This New Pipeline Could Unlock Years of Growth for 4 Energy Stocks. Here's Why That's a Win for All of Them.](https://longbridge.com/en/news/296131763.md)
- [Is MPLX (MPLX) Cheap As Strong Q2 Earnings And Spending Plans Lift Expectations?](https://longbridge.com/en/news/298103918.md)
- [Diamondback Energy (FANG), What Is Behind The Fresh Attention?](https://longbridge.com/en/news/297229971.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**