Energy Transfer agreed on Oct 6 to buy Vaquero Midstream, a gas gatherer and processor in the southern Delaware Basin, for about $2.63bn in cash and units.
Why Energy Transfer is buying Vaquero Midstream
Vaquero's roughly 300-mile network and 675 MMcf/d Caymus processing complex tie into Energy Transfer's gas and NGL system, opening extra revenue from transport, fractionation and exports.
Deal terms and financing
Consideration is $1.95bn in cash and about 33.3m new Energy Transfer common units. Energy Transfer expects the deal to be immediately accretive to distributable cash flow per unit.
Regulatory approvals and timing
Closing is expected in the fourth quarter of 2026.
Market context
Permian midstream assets remain in demand as gas output from the basin grows.
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