Key Highlights:

• Acquisition Cost: $2,275 million in cash and 50.8 million newly issued ET common units

• Network Expansion: Adds 6,000 miles of gas gathering pipelines

• Processing Capacity: Includes eight gas processing plants with 1.3 Bcf/d capacity

• Future Growth: Anticipated increase in Distributable Cash Flow (DCF) per common unit

Source (Business Wire)

Notable Quotes:

Our Take:

The completion of Energy Transfer's acquisition of WTG Midstream Holdings LLC marks a significant enhancement of their operations in the Midland Basin. This strategic move not only extends Energy Transfer's gas gathering network by 6,000 miles but also boosts their processing capabilities with eight new gas processing plants. The expected increase in Distributable Cash Flow per common unit by 2025 reflects the strong financial upside of this transaction. This acquisition positions Energy Transfer to capture additional revenue through increased natural gas volumes and provides substantial growth potential in the coming years.