Update: Energy Transfer will acquire Vaquero Midstream in a cash and stock transaction worth $2.63 billions.
路透社2026/10/06 15:01The transaction includes $1.95 billion in cash and about 33.3 million shares of stock. Vaquero owns around 300 miles of pipeline across four counties in West Texas. The contracts are on a fee-based structure, supported by approximately 100,000 acres of dedicated land, with an average remaining term of about 10 years. Additional share information is provided in paragraph 4, and analysts’ comments are added in paragraphs 6 and 7. Pranav Mathur, Reuters, October 6th – Energy Transfer (ET.N) said on Tuesday that it has agreed to acquire Vaquero Midstream for approximately $2.6 billion in cash and stock, a move that will expand the pipeline company’s midstream business. Energy Transfer said the deal includes $1.95 billion in cash and about 33.3 million newly issued shares. Earlier this year, the company stated it expects to invest $5 to $5.5 billion in capital in 2026, mainly for its natural gas network projects. Shares of Energy Transfer fell 1.2% in early trading. The company said these assets connect to its existing natural gas and NGL infrastructure, providing additional volumes for its transportation, fractionation, terminal, and export business. “With the wave of consolidation continuing in this space, this marks the continuation of midstream consolidation, highlighting the value of these assets,” said James West, analyst at Melius Research. He noted that the combination of M&A and organic expansion projects is ushering midstream companies into a growth cycle that could last over a decade and is likely to drive further upward revaluation for the sector. The acquisition is expected to close in the fourth quarter of this year. Vaquero operates about 300 miles of pipelines in Loving, Reeves, Ward, and Winkler counties, Texas, serving producers in the Southern Delaware Basin. Its Caymus processing complex features three processing trains with a total capacity of about 675 million cubic feet per day. Vaquero’s contracts are fee-based and backed by about 100,000 acres of dedicated land, with an average remaining contract term of about 10 years. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several other languages. Automated translations may contain errors or not capture the intended context; Reuters does not guarantee their accuracy and provides them solely for readers’ convenience. Reuters accepts no liability for any damage or loss arising from the use of automated translation.)
Paragraph 4 adds information on shares; paragraphs 6 and 7 include analyst commentary.
Pranav Mathur
Reuters, October 6 - Energy Transfer (ET.N) said on Tuesday it has agreed to acquire Vaquero Midstream for about $2.6 billion in cash and stock, expanding the pipeline company's midstream operations.
Energy Transfer said the transaction includes $1.95 billion in cash and about 33.3 million newly issued shares.
Earlier this year, the company said it expects to invest $5 billion to $5.5 billion in capital in 2026 (link), primarily for its natural gas network projects.
Energy Transfer shares fell 1.2% in early trading.
The company stated these assets are connected to its existing natural gas and natural gas liquids infrastructure, providing additional transportation volumes to its transportation, fractionation, terminal, and export businesses.
"As the wave of industry consolidation continues, this marks a continuation of midstream sector integration and highlights the value of these assets," said Melius Research analyst James West.
He pointed out that the combination of mergers and organic expansion projects is driving midstream companies into a decade-long growth cycle, which is expected to further boost valuations across the industry.
The acquisition is expected to be completed in the fourth quarter of this year.
Vaquero operates about 300 miles of pipelines in Loving, Reeves, Ward, and Winkler counties, Texas, serving producers in the southern Delaware Basin.
Its Caymus processing facility has three processing trains, with a total capacity of about 675 million cubic feet per day.
Vaquero contracts are rate-based and backed by about 100,000 acres of exclusive land, with an average remaining term of about 10 years.
(To assist non-English speakers, Reuters automatically translates its reports into several other languages. As automated translations may contain errors or lack contextual precision, Reuters does not guarantee the accuracy of automated translations and provides them for reader convenience only. Reuters does not accept responsibility for any damage or loss resulting from the use of automated translation services.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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