Energy Transfer to buy Vaquero Midstream for $2.63 billion in cash and stock - Reuters

Energy Transfer LP announced that it will acquire Vaquero Midstream LP in a transaction valued at approximately $2.63 billion, combining cash and stock considerations. The deal is structured as a cash-and-stock purchase, with the exact mix of consideration to be disclosed at the time of closing.

Under the terms of the agreement, Vaquero Midstream shareholders will receive a combination of cash and Energy Transfer shares for each share of Vaquero they own. The transaction is expected to be financed through a combination of existing cash resources and the issuance of new Energy Transfer stock, subject to customary closing conditions.

The acquisition is intended to expand Energy Transfer’s footprint in the midstream sector, adding Vaquero’s assets and infrastructure to its existing portfolio. Vaquero Midstream operates a network of pipelines, processing facilities, and storage assets primarily focused on the Permian Basin and surrounding regions, which aligns with Energy Transfer’s strategic emphasis on high‑growth energy markets.

Both companies indicated that the transaction has been approved by their respective boards of directors and is subject to regulatory approvals and customary closing conditions. The parties anticipate that the deal will close in the fourth quarter of the current fiscal year, pending the receipt of all required consents.

Following the completion of the acquisition, Vaquero Midstream will become a wholly owned subsidiary of Energy Transfer, and its operations will be integrated into Energy Transfer’s broader midstream platform. The combined entity is expected to benefit from operational synergies and enhanced scale in the transportation and processing of crude oil and natural gas liquids.