Pipeline operator Energy Transfer said on Tuesday it would buy WTG Midstream Holdings in a deal valued at about $3.25 billion as the pipeline operator looks to expand its gas transportation and processing network in the Permian Basin.
It would acquire WTG from affiliates of Stonepeak, the Davis Estate and Diamondback Energy. The deal will be comprised of $2.45 billion in cash and about 50.8 million newly issued Energy Transfer shares.
WTG’s assets include a 6,000-mile pipeline network that serves the Midland Basin, eight processing, and two new plants that are under construction.
The deal is expected to close in the third quarter of 2024.
(Reporting by Seher Dareen in Bengaluru; Editing by Savio D’Souza and Ravi Prakash Kumar)