Energy Transfer LP has announced its acquisition of Vaquero Midstream LLC for $2.625 billion. The deal enhances Energy Transfer’s natural gas gathering and processing capabilities in the southern Delaware Basin of Texas.
Key Details:
-
Vaquero Assets:
- A 300-mile pipeline network servicing areas like Loving, Reeves, Ward, and Winkler Counties.
- Operates the Caymus processing complex in Coyanosa, Pecos County, which has a capacity of 675 MMcfd, with plans for additional expansions potentially increasing this to 1.2 bcfd.
-
Revenue Opportunities: The acquisition aligns Vaquero’s assets with Energy Transfer’s infrastructure, which could open up new revenue streams through transportation, fractionation, and export services.
-
Contractual Support: Vaquero’s operations are bolstered by long-term contracts averaging 10 years, covering 100,000 dedicated acres.
-
Deal Structure: The total consideration includes $1.95 billion in cash and around 33.3 million newly issued common units of Energy Transfer. The deal is projected to finalize in Q4 of this year, pending regulatory approvals.
This acquisition marks a significant expansion for Energy Transfer within the already dynamic natural gas landscape of the Delaware Basin.
