Energy Transfer to acquire Vaquero Midstream for $2.6 billion

Energy Transfer LP has entered into a definitive agreement to acquire Vaquero Midstream LLC in a transaction valued at approximately $2.625 billion. The deal is structured as $1.95 billion in cash and roughly 33.3 million newly issued Energy Transfer common units.

The acquisition is intended to expand Energy Transfer’s footprint in the Permian Basin by adding Vaquero’s natural gas gathering and processing business in the Delaware Basin. Vaquero operates a pipeline network spanning approximately 300 miles across Loving, Reeves, Ward, and Winkler counties in Texas. Its assets include the Caymus Processing Complex, which currently has a capacity of about 675 million cubic feet per day (MMcf/d), with the potential to expand to 1.2 Bcf/d through additional processing trains.

The transaction, which is subject to regulatory approval and customary closing conditions, is expected to close in the fourth quarter of 2026. Energy Transfer anticipates the deal will contribute to distributable cash flow per common unit from the outset, as Vaquero’s infrastructure already connects to the partnership’s existing downstream natural gas and natural gas liquids (NGL) networks.