Houston-based Energy Transfer said Tuesday it agreed to acquire Midland’s WTG Midstream Holdings from affiliates of Davis Estate, Diamondback Energy and Stonepeak. The deal is valued at $3.25 billion, including $2.45 billion in cash and about 50.8 million newly issued Energy Transfer common units. The assets are expected to provide Energy Transfer with increased access to growing supplies of natural gas and NGL to enhance its Permian Basin operations and downstream businesses.
WTG provides comprehensive midstream services, including wellhead gathering, intra-basin transportation, and processing services. The company’s 6,000-mile pipeline network services significant operators in some of the most active areas of Midland Basin, including Howard, Irion, Martin, Reagan and Upton counties.
WTG also operates 8 processing plants with total capacity of about 1.3 bcfd and is constructing 2 new plants with an additional capacity of about 0.4 bcfd. The transaction also includes 20 percent interest in BANGL, a 425-mile NGL pipeline from Permian Basin to markets on the Texas Gulf Coast. Closing is expected in 2024Q3.