Energy Transfer LP and Vaquero Midstream LLC announced October 6 that they have entered into a definitive agreement under which Energy Transfer will acquire Vaquero in a $2.625 billion transaction. The announcement was issued from Dallas in the morning.
The acquisition adds natural gas gathering and processing assets in the core of the Delaware Basin, including three processing plants with total capacity of about 675 million cubic feet per day. The assets are supported by high-quality customers with an average contract life of about 10 years. Energy Transfer said the deal will be immediately accretive to distributable cash flow per common unit.
Vaquero is backed by Yorktown Partners and Keeneland Capital, with J.P. Morgan advising Energy Transfer and Sidley Austin as legal adviser. The seller roster continues the pattern of private capital rotating out of contracted midstream assets into strategics building integrated Permian networks.