Billionaire Kelcy Warren’s Energy Transfer LP agreed to buy Vaquero Midstream LLC for about $2.63 billion in cash and stock, expanding its network to ship natural gas in the Permian Basin. Energy Transfer will pay about $2 billion in cash and roughly 33.3 million newly issued shares for Dallas-based Vaquero, according to a statement Tuesday. Expanding its network in the prolific Permian Basin will enable Energy Transfer to feed more gas into its downstream network as booming US exports and development of data centers drive demand for the fuel.
Energy Transfer shares slipped less than 1% before the start of regular trading in New York. Vaquero operates a 300-mile pipeline network, and its assets already connect to Energy Transfer’s gas and natural gas liquids infrastructure. The deal includes three gas processing plants and pipeline infrastructure across the Delaware Basin, including in Loving, Reeves, Ward and Winkler counties.
The deal is expected to close in the fourth quarter. Energy Transfer acquired Permian operator WTG Midstream in 2024 that expanded its network across 6,000 miles. J.
P. Morgan Securities LLC advised Energy Transfer on the deal. Houlihan Lokey advised Vaquero.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing