Enbridge (NYSE: ENB), (NYSE: MPLX), and two private equity firms are forming a new joint venture (JV) to develop, build, own, and operate natural gas pipelines and storage assets. The JV will serve as a bridge between gas supplies in the Permian Basin and market centers in the U.S. Gulf Coast region. The deal will enhance their operations in the region, diversify their cash flows, and provide new growth opportunities.

The new JV should also enhance their ability to grow their high-yielding dividends (Enbridge currently yields 7.5%, while MPLX's distribution yields 8.4%). Here's a look at the deal and how it will benefit investors in those pipeline stocks.

Enbridge, MPLX, and private equity firms White Water and I Squared Capital are forming a new JV to strategically combine the Whistler and Rio Bravo pipelines. Enbridge will contribute its wholly owned Rio Bravo Pipeline project and $350 million in cash and will fund the first $150 million of the Capital required to complete the Rio Bravo project. In exchange, it will receive a 19% equity interest in the JV and retain a 25% economic interest in Rio Bravo.

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Source Fool.com