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Energy Transfer has completed its acquisition of WTG Midstream Holdings in cash-and-stock transaction valued at $3.18 billion, Energy Transfer said on July 15.
Total consideration for the transaction was $2.275 billion in cash and approximately 50.8 million newly issued ET common units. Last month, Energy Transfer said that WTG’s 20% interest in the BANGL pipeline would not be included transaction, lowering the deal's value from its initial $3.25 billion price tag.
Energy Transfer’s acquisition will extend its reach into the Midland Basin with the addition of approximately 6,000 miles of complementary gas gathering pipelines. The assets tap into a growing supply of NGL and natural gas volumes.
Energy Transfer also added WTG’s eight gas processing plants with a total capacity of approximately 1.3 Bcf/d. Two additional processing plants with approximately 0.4 Bcf/d in capacity were under construction when the deal was announced in May. The first new plant was expected to be in service in the third quarter of 2024 and the second in third-quarter 2025.
Energy Transfer expects the deal to increase distributable cash flow per common unit by $0.04 in 2025, which will increase to approximately $0.07 per common unit in 2027.
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