Energy Transfer Expands Permian Presence With $3.25B Acquisition: Details
Portfolio Pulse from Lekha Gupta
Energy Transfer LP (NYSE: ET) is acquiring WTG Midstream Holdings LLC from Diamondback Energy, Inc. (NASDAQ: FANG) and other affiliates for $3.25 billion. The deal includes $2.45 billion in cash and 50.8 million newly issued Energy Transfer common units. The acquisition is expected to enhance Energy Transfer's natural gas pipeline and processing network in the Permian Basin. Diamondback Energy will use the proceeds to reduce debt related to its pending merger with Endeavor Energy Resources. The transaction is expected to close in Q3 2024, subject to regulatory approval.
May 28, 2024 | 4:32 pm
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Energy Transfer LP is acquiring WTG Midstream Holdings LLC for $3.25 billion, enhancing its natural gas pipeline and processing network in the Permian Basin. The deal is expected to close in Q3 2024 and add incremental revenue from downstream NGL transportation and fractionation fees.
The acquisition will significantly enhance Energy Transfer's infrastructure in the Permian Basin, which is the most active region in the U.S. The deal is expected to add incremental revenue and increase Distributable Cash Flow per common unit.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Diamondback Energy, Inc. is selling WTG Midstream Holdings LLC to Energy Transfer LP for $3.25 billion. The proceeds will be used to reduce debt related to its pending merger with Endeavor Energy Resources.
The sale will provide Diamondback Energy with significant funds to reduce debt, which is crucial for its pending merger with Endeavor Energy Resources. This financial maneuver is likely to be viewed positively by investors.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Diamondback Energy (FANG) through the Texas Capital Funds Trust Texas Capital Texas Oil Index ETF (NYSE: OILT).
The ETF provides a way for investors to gain exposure to Diamondback Energy, which is involved in a significant transaction that could positively impact its stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Diamondback Energy (FANG) through the Invesco Energy Exploration & Production ETF (NYSE: PXE).
The ETF provides a way for investors to gain exposure to Diamondback Energy, which is involved in a significant transaction that could positively impact its stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50