US-based Energy Transfer has signed an agreement to acquire Delaware Basin midstream operator Vaquero Midstream in a transaction valued at around $2.63bn.
Under the terms, Energy Transfer will pay $1.95bn in cash and issue around 33.3 million new common units to fund the acquisition.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The deal is targeted for completion in the fourth quarter of 2026, contingent upon regulatory approval and customary closing conditions.
The planned purchase will bring Vaquero’s gas gathering and processing assets into Energy Transfer’s portfolio, further extending the company’s network in the Delaware Basin.
Vaquero’s operations centre on a gathering and intrabasin transportation network stretching across roughly 300 miles of pipeline in western Texas.
Its network primarily serves areas in Loving, Reeves, Ward and Winkler counties.
The Caymus Processing Complex, part of Vaquero’s operations, houses three processing plants with a combined capacity of around 675 million cubic feet per day.
Vaquero also possesses acreage for the potential expansion of up to two additional processing trains, which could raise total capacity to approximately 1.2 billion cubic feet per day.
Its assets are supported by long-term, fee-based contracts and acreage dedications, with contracts reportedly averaging about ten years in duration.
Energy Transfer said the acquisition would increase on-system natural gas and natural gas liquids volumes and bolster its connectivity within the region.
The existing interconnections between Vaquero’s system and Energy Transfer’s downstream infrastructure are also expected to provide opportunities in transportation, fractionation, terminalling and export services.
Energy Transfer stated that it expects the deal to be immediately accretive to distributable cash flow per common unit.
The customer base for Vaquero’s system covers around 100,000 dedicated acres.
JP Morgan Securities is acting as financial adviser to Energy Transfer, with Sidley Austin serving as legal counsel.
Vaquero’s advisers for the transaction are Houlihan Lokey and Willkie Farr & Gallagher.
Energy Transfer owns an extensive US energy infrastructure network, spanning approximately 140,000 miles of pipelines and associated assets across 44 states.
The company’s core operations include natural gas midstream, transportation, storage, crude oil and refined product assets.
