Energy Transfer to buy Vaquero Midstream for $2.63 billion in cash and stock
ET•Energy Transfer agreed to acquire Vaquero Midstream in a deal valued at about $2.63 billion, including $1.95 billion in cash and about 33.3 million newly issued shares. The deal is expected to close in the fourth quarter.
1. Deal details
Energy Transfer said the acquisition would add assets linked to its existing natural gas and natural gas liquids infrastructure, providing additional volumes for its transportation, fractionation, terminalling and export businesses.
2. Vaquero assets
Vaquero operates roughly 300 miles of pipeline across Loving, Reeves, Ward and Winkler counties in Texas, serving producers in the Southern Delaware Basin. Its Caymus Processing Complex has three trains with combined capacity of about 675 million cubic feet per day.
3. Contract profile
Vaquero's fee-based contracts are supported by about 100,000 dedicated acres and have an average remaining term of approximately 10 years.
