Energy Transfer Agrees to Buy Delaware Basin Gatherer Vaquero Midstream

Dallas-based Energy Transfer announced a deal in early October to acquire fellow Dallas company Vaquero Midstream for about $2.625 billion.

The price is $1.95 billion in cash plus roughly 33.3 million newly issued Energy Transfer common units. Energy Transfer expects the transaction to add to distributable cash flow per unit from the start and to close in the fourth quarter of 2026, subject to regulatory approval.

What Energy Transfer gets

Vaquero's assets sit in the Delaware Basin, the western half of the Permian: about 300 miles of gathering pipeline across Loving, Reeves, Ward and Winkler counties, and the Caymus Processing Complex, which has roughly 675 million cubic feet per day of capacity across three trains and room to grow to about 1.2 Bcf/d. Revenue rests largely on long-term, fee-based contracts covering about 100,000 dedicated acres, with an average remaining contract life near 10 years.

Energy Transfer called the deal a bolt-on, noting the assets already connect to its downstream gas and NGL network, which would feed its transportation, fractionation and export businesses.

Sources: World Pipelines; BNN Bloomberg; Willkie Farr & Gallagher.