- Energy Transfer agreed to acquire Vaquero Midstream for $2.625 billion, consisting of $1.95 billion in cash and about 33.3 million newly issued common units.
- Vaquero adds three natural gas processing plants with about 675 MMcf/d of capacity and a roughly 300-mile pipeline network in the southern Delaware Basin.
- Vaquero's producer contracts cover about 100,000 dedicated acres with an average remaining life of about 10 years.
- Energy Transfer expects the deal to be immediately accretive to distributable cash flow per common unit, with closing expected in Q4 2026 subject to regulatory approval.
- Simply Wall St estimates ET fair value at $24.58 against a $20.72 unit price, citing a 6.5% dividend yield and fee-based midstream model.
Quotes
“Energy Transfer expects the Vaquero assets to be immediately accretive to DCF per common unit”
“subject to regulatory approval and customary closing conditions”