Dallas-based Energy Transfer signed an agreement to acquire Woodford Express, LLC, a Mid-Continent gas gathering and processing system for approximately $485 million. The acquisition was revealed by the company’s Co-Chief Executive Officer, Tom Long, during Energy Transfer’s Q2 2022 earnings conference call on Wednesday.
“This bolt-on opportunity will provide a roughly 450 million cubic foot per day of cryogenic gas processing and treating capacity in Grady County, Oklahoma as well more than 200 miles of low and mid-pressure gathering lines in the heart of the SCOOP play,” said Long. “The assets are already connected to our inter and intrastate systems as well our gas gathering system. The system is supported by dedicated acreage with long-term predominantly fixed fee contracts with active proven producers. We’re excited to have these strong assets, quality customer contracts and established operations to our footprint in the Mid-Continent, all at an attractive valuation that will be immediately accretive to Energy Transfer unitholders.”
The transaction is expected to close by the end of the third quarter of this year, subject to regulatory review and other customary closing conditions.