Energy Transfer to Acquire Vaquero Midstream for $2.63 Billion
The deal aims to expand Energy Transfer's footprint in the Permian Basin.
Energy Transfer LP announced it has entered into a definitive agreement to acquire Vaquero Midstream for $2.63 billion. The transaction includes $1.95 billion in cash and approximately 33.3 million newly issued Energy Transfer common units, according to a company statement.
Vaquero Midstream operates a natural gas and crude oil midstream infrastructure system located in the Permian Basin of West Texas. The acquisition is expected to enhance Energy Transfer's existing footprint in the region, a prolific oil and gas producing area.
The deal is anticipated to close in the third quarter of 2024, subject to customary closing conditions and regulatory approvals. The acquisition is part of Energy Transfer's strategy to grow its operations and service its customer base in key producing basins.