Energy Transfer Agrees to Acquire Vaquero Midstream for $2.6 Billion
Energy Transfer has agreed to acquire midstream services company Vaquero Midstream in a deal valued at $2.6 billion, with nearly $2 billion paid in cash and the remainder through new units. The acquisition is expected to close by Q4 and will expand Energy Transfer’s presence in Texas's Delaware Basin, where it already operates an interconnected network of pipelines and processing facilities. Vaquero owns a 300-mile pipeline system and the Caymus Processing Complex with current capacity for 675 MMcf/d. The complex can be expanded to support up to 1.2 Bcf/d in total gas-processing capability, offering long-term growth potential. Energy Transfer expects this acquisition to immediately boost its distributable cash flow per unit, supporting a stable and growing distribution yield of around 6.5%. The deal aligns with Energy Transfer’s strategy of consolidating midstream assets through strategic acquisitions that enhance operational integration and financial performance. The company plans significant capital investments in the coming years, including major pipeline projects expected to support rising demand for natural gas from AI data centers and LNG export terminals.
Tickers: $ET
Topics: Energy Infrastructure Midstream services