Energy Transfer said Tuesday it will acquire Vaquero Midstream for roughly $2.63 billion, paid with a mix of cash and newly issued equity. The buyer plans to put up about $2 billion in cash and issue roughly 33.3 million new shares to complete the purchase.
Vaquero's footprint includes a 300-mile pipeline system and three gas plants across the Delaware Basin, with infrastructure in Loving, Reeves, Ward and Winkler counties. Those lines and facilities already tie into Energy Transfer's natural gas and natural gas liquids network, making integration more straightforward.
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Expanding in the prolific Permian Basin helps Energy Transfer push more volumes into its downstream network. The company has been building scale here, including its 2024 pickup of WTG Midstream, which broadened its reach across 6,000 miles. Before the opening bell in New York, Energy Transfer units slipped by less than 1%.
The companies anticipate closing in the fourth quarter. J.P. Morgan Securities LLC advised Energy Transfer, while Houlihan Lokey worked with Vaquero.
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