Energy Transfer has agreed to acquire Vaquero Midstream in a transaction valued at approximately $2.625 billion, expanding its natural-gas gathering and processing network in the Delaware Basin.
The consideration consists of $1.95 billion in cash and approximately 33.3 million newly issued Energy Transfer common units.
Vaquero operates roughly 300 miles of pipelines serving producers across Loving, Reeves, Ward and Winkler counties in Texas.
Its Caymus Processing Complex includes three processing trains capable of handling approximately 675 million cubic feet of natural gas per day.
The company also owns enough land to add two additional processing trains, which could eventually increase capacity to approximately 1.2 billion cubic feet per day.
The assets are supported by customers with contracts averaging approximately 10 years, providing Energy Transfer with additional fee-based volumes feeding its broader pipeline and natural-gas-liquids infrastructure.
The acquisition illustrates continued consolidation in the U.S. midstream sector as operators seek to connect growing Permian Basin production with processing facilities and downstream markets.
Energy Transfer expects the transaction to be immediately accretive to distributable cash flow per common unit.
Closing is expected during the fourth quarter of 2026, subject to regulatory approval and customary conditions.
For investors, the key issue will be whether the acquired assets generate enough additional volumes and downstream business to justify the purchase price while Energy Transfer continues funding its broader capital program.
