Energy Transfer LP (TSXE: ET), a midstream energy operator, said Tuesday it agreed to acquire Vaquero Midstream LLC in a ~$2.625 billion transaction.
The deal strengthens its Delaware Basin gas gathering and processing network while expanding access to natural gas and NGL volumes.
Vaquero Adds Scale in Delaware Basin
The deal includes $1.95 billion in cash and about 33.3 million newly issued Energy Transfer common units. Energy Transfer expects to close the transaction in the fourth quarter of 2026, pending regulatory approval and customary conditions.
Vaquero operates roughly 300 miles of pipelines across Loving, Reeves, Ward and Winkler counties. It also owns the Caymus Processing Complex, which has three processing trains with about 675 MMcf/d of capacity.
The company has enough acreage to add two more processing trains, potentially lifting total capacity to approximately 1.2 Bcf/d.
Vaquero’s system is supported by roughly 100,000 dedicated acres and long-term, fee-based contracts with an average remaining life of about 10 years.
Energy Transfer Sees Strategic and Financial Benefits
Vaquero’s assets already connect to Energy Transfer’s downstream natural gas and NGL infrastructure.
The connection creates additional opportunities in pipeline transportation, fractionation, terminalling, and export services.
Energy Transfer expects the acquisition to be immediately accretive to distributable cash flow per common unit while increasing access to growing natural gas and NGL volumes in the Delaware Basin.
Energy Transfer held $1.02 billion in cash and cash equivalents as of June 30, 2026.
ET Price Action: Energy Transfer shares were trading 0.92% lower at $20.43 on Tuesday at the time of publication.
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