The US-based energy infrastructure group Energy Transfer has entered into a definitive agreement on the acquisition of WTG Midstream from affiliates of Stonepeak, the Davis Estate and Diamondback Energy in a US$3.25bn deal. WTG Midstream is a privately held operator in the US state of Texas, with 9,600 km of gas pipelines in the state’s Midland basin. Under the terms of the deal, Energy Transfer will also acquire eight gas processing plants and two more under construction, as well as a 20% stake in the 684 km-long BANGL natural gas liquids (NGL) pipeline, a 125,000 bbl/d pipeline that connects the Permian basin to Texas’ US Gulf of Mexico coast and could possibly be expanded to 300,000 bbl/d. The transaction will include US$2.45bn in cash and 50.8 million newly issued Energy Transfer shares, with the sale being scheduled to close in the third quarter of 2024, subject to regulatory approval and customary closing conditions.
Energy Transfer owns and operates a diversified portfolio of energy assets in the United States, with more than 200,000 km of pipeline and associated energy infrastructure.