Dallas-based Energy Transfer said Tuesday it will acquire Vaquero Midstream in a bolt-on transaction valued at about $2.625 billion ($1.95 million cash). Vaquero has a rapidly growing midstream services business that includes wellhead gathering and intrabasin transportation pipelines and a natural gas processing complex. The 300-mile pipeline network serves leading operators in Loving, Reeves, Ward and Winkler counties in southern Delaware Basin. Closing is expected in fourth quarter.
Vaquero’s Caymus processing complex in Coyanosa in Pecos County includes three processing trains with capacity of 675 million cubic feet per day. And Vaquero owns acreage to support construction of two additional trains that could increase total processing capacity to about 1.2 billion cfd.
Energy Transfer said the Vaquero assets already are connected to Energy Transfer’s downstream natural gas and NGL infrastructure. In its report of the transaction, Hart Energy said the deal price “reflects the scarcity of Permian midstream assets.”