Energy Transfer to Acquire Vaquero Midstream for $2.625 Billion

en.Wedoany.com Reported - On October 6, Energy Transfer signed a definitive agreement with Vaquero Midstream to acquire Vaquero for approximately $2.625 billion, with consideration comprising $1.95 billion in cash and approximately 33.3 million newly issued Energy Transfer common units. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and satisfaction of customary closing conditions.

Vaquero's core assets are located in the southern Delaware Basin of the Permian Basin in Texas, United States, comprising approximately 300 miles of natural gas wellhead gathering and intrabasin transportation pipelines, serving Loving, Reeves, Ward, and Winkler counties, among others. The company also operates the Caymus natural gas processing complex near Coyanosa in Pecos County, which currently has 3 processing trains with total processing capacity of approximately 675 million cubic feet per day.

The Caymus processing complex also has land available for the continued construction of two additional processing trains, which upon expansion could increase total processing capacity to as much as approximately 1.2 billion cubic feet per day. Vaquero's existing system corresponds to approximately 100,000 acres of dedicated service area, with customer contracts primarily structured as long-term, fee-based arrangements with an average remaining contract term of approximately 10 years.

Vaquero's existing pipeline network is already connected to Energy Transfer's downstream natural gas and natural gas liquids infrastructure. Following completion of the transaction, incremental natural gas and natural gas liquids can further access Energy Transfer's existing pipeline transportation, fractionation, terminal, and export systems, directly linking Delaware Basin upstream production with its downstream midstream network.

Energy Transfer currently operates approximately 140,000 miles of pipelines and related energy infrastructure in the United States. The company expects the Vaquero assets to be immediately accretive to distributable cash flow per unit upon consolidation; the transaction also expands its natural gas gathering and processing capacity in the Delaware Basin and preserves conditions for the subsequent expansion of two additional processing trains at Caymus.