Published Oct. 6, 2026. Energy Transfer has agreed to acquire Vaquero Midstream in a cash-and-stock transaction valued at approximately $2.625 billion, expanding its natural-gas gathering and processing footprint in the Delaware Basin of West Texas.
The consideration consists of $1.95 billion in cash and approximately 33.3 million newly issued Energy Transfer common units. The companies expect the acquisition to close in the fourth quarter of 2026, subject to regulatory approval and customary conditions.
What Energy Transfer is buying
Vaquero operates roughly 300 miles of gathering and intrabasin transportation pipelines in Loving, Reeves, Ward and Winkler counties. Its Caymus Processing Complex has three processing trains with combined capacity of approximately 675 million cubic feet per day.
According to Energy Transfer’s Oct. 6 announcement, the site has room for two additional processing trains that could raise total capacity to about 1.2 billion cubic feet per day.
How the assets fit Energy Transfer’s network
The Vaquero system is already connected to Energy Transfer infrastructure. The buyer said that connection could add volumes to its transportation, fractionation, terminal and export businesses.
Vaquero’s system is supported by fee-based contracts covering approximately 100,000 dedicated acres. Energy Transfer said those contracts have an average remaining term of about 10 years.
Company claims and closing conditions
Energy Transfer described the transaction as immediately accretive to distributable cash flow per common unit. That is a company projection rather than a completed financial result. Integration, commodity activity, regulatory review and closing timing could affect the eventual outcome.
Reuters reported that the acquisition continues a broader consolidation trend among midstream energy businesses. The deal has not yet closed.
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Sources
- Energy Transfer, Oct. 6, 2026.
- Reuters, Oct. 6, 2026.
Featured image: Pump jack in an energy-producing region. Photo by Delfino Barboza on Unsplash. The image is illustrative.