July 16, 2024 [Storage Terminals Magazine]- Energy Transfer LP announced the successful completion of its acquisition of WTG Midstream Holdings LLC. The total consideration for the transaction was $2.275 billion in cash, along with approximately 50.8 million newly issued ET common units.
This acquisition significantly expands Energy Transfer’s footprint in the Midland Basin by adding approximately 6,000 miles of gas gathering pipelines to its network. Additionally, the transaction includes eight gas processing plants with a total capacity of around 1.3 Bcf/d, as well as two more processing plants currently under construction.
The newly acquired assets are expected to enhance Energy Transfer’s system by increasing the supply of NGL and natural gas volumes. This will generate additional revenue from gathering and processing activities, as well as from downstream transportation and fractionation fees. Energy Transfer anticipates that the WTG assets will contribute approximately $0.04 of Distributable Cash Flow per common unit in 2025, with an increase to around $0.07 per common unit by 2027.
The completion of this transaction underscores Energy Transfer’s commitment to expanding its infrastructure and capabilities within the energy sector, reinforcing its position as a leading player in the industry.
