![Energy Transfer Closes $3B WTG Midstream Acquisition](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/07/energy-transfer-buys-permian-midstream-player-wtg-3b.jpg?itok=9ob916rU)
(Source: Shutterstock.com)
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.
RELATED
Energy Transfer to Buy Permian Midstream Player WTG for $3.25B
Recommended Reading
Trio Chairman Robin Ross Named CEO Less Than a Month After Return
2024-07-15 - Robin Ross, who last month returned to Trio Petroleum as board chair, has been named CEO while predecessor Michael Peterson will remain as a consultant.
Upstream, Midstream Dividends Declared in the Week of July 8, 2024
2024-07-11 - Here is a selection of upstream and midstream dividends declared in the week of July 8.
Solaris Stock Jumps 40% On $200MM Acquisition of Distributed Power Provider
2024-07-11 - With the acquisition of distributed power provider Mobile Energy Rentals, oilfield services player Solaris sees opportunity to grow in industries outside of the oil patch—data centers, in particular.
Offshore Guyana: ‘The Place to Spend Money’
2024-07-09 - Exxon Mobil, Hess and CNOOC are prepared to pump as much as $105 billion into the vast potential of the Stabroek Block.
Pembina Completes Partial Redemption of Series 19 Notes
2024-07-08 - The redemption is part of Pembina Pipeline’s $300 million (US$220.04 million) aggregate principal amount of senior unsecured medium-term series 19 notes due in 2026.