Energy Transfer agreed to acquire Vaquero Midstream in a deal valued at about $2.6 billion, including $1.95 billion in cash and about 33.3 million newly issued shares. The acquisition is expected to close in the fourth quarter.
Energy Transfer said the acquisition will add Vaquero Midstream’s assets, which are linked to its existing natural gas and natural gas liquids infrastructure. The company said the assets would provide additional volumes for its transportation, fractionation, terminalling and export businesses.
Vaquero operates roughly 300 miles of pipeline across four Texas counties and serves producers in the Southern Delaware Basin. Its Caymus Processing Complex has three processing trains with combined capacity of about 675 million cubic feet per day. Its fee-based contracts are supported by about 100,000 dedicated acres and have an average remaining term of approximately 10 years.
Energy Transfer expects to invest between $5 billion and $5.5 billion in capital in 2026, primarily in natural gas network projects, the company said earlier this year.
