Energy Transfer grows stronger with $3.25 billion acquisition in Permian Basin


The growing national natural gas pipeline system of Energy Transfer just became larger as the Dallas company reached a $3.25 billion deal to aquire the processing network of WTG Midstream, LLC  in the Permian Basin.

The deal came just three years after the company did the same kind of expansion in the acquisition of Oklahoma City’s Enable Midstream.

With the acquisition, Energy Transfer added more than 6,000 miles of gas gathering pipelines and eight gas processing plants with two more under construction. WTC Midstream Holdings LLC was owned by affiliates of Stonepeak, the Davis Estate and Diamondback Energy, Inc.

The transaction was comprised of $2.45 billion in cash and approximately 50.8 million newly issued Energy Transfer common units. The transaction is expected to close in the third quarter of 2024, subject to regulatory approval and customary closing conditions.

The addition of WTG assets is expected to provide Energy Transfer with increased access to growing supplies of natural gas and NGL volumes enhancing the partnership’s Permian operations and downstream businesses. The acquisition also includes a 20% interest in BANGL Pipeline, an approximately 425-mile NGL pipeline with an initial capacity of 125,000 Bbls/d (expandable up over 300,000 Bbls/d) connecting the Permian Basin to markets on the Texas Gulf Coast.

The acquisition adds to Energy Transfer’s pipeline system that was increased three years ago when the company acquired Oklahoma City-based Enable Midstream Partners from OGE Energy Corp. and CenterPoint Energy, Inc.

The Enable Midstream deal strengthened Energy Transfer’s assets in the Andarko Basin in Oklahoma along with intrastate and interstate pipelines in the state and surrounding states. It also boosted Energy Transfer’s gas gatheering and processing asset in the Arkoma basin across Oklahoma and Arkansas as well as in the Haynesville Shale in East Texas and North Louisiana.