Energy Transfer has agreed to acquire Vaquero Midstream (Vaquero) for US$2.6 billion, expanding its natural gas gathering, compression, and processing footprint in the Southern Delaware Basin. The transaction includes Vaquero’s integrated midstream system, which consists of approximately 300 miles (482 km) of high-pressure natural gas gathering pipelines across Loving, Reeves, Ward, and Winkler counties in West Texas, along with the Caymus Processing Complex (Caymus) near the Waha Hub. Vaquero’s system is supported by approximately 100,000 dedicated acres (40,468 ha) and long-term fee-based contracts.
For Energy Transfer, the strategic appeal extends beyond the assets themselves. Vaquero’s gathering, compression, and processing network is already interconnected with Energy Transfer’s existing natural gas and natural gas liquids (NGL) infrastructure, creating opportunities to move additional volumes through its downstream transportation, fractionation, storage, terminal, and export assets.
The centerpiece of the acquisition is Caymus, which currently processes 675 MMcf/d (19.1 x 106 m3/d) of natural gas. The site also offers significant expansion potential, with available acreage capable of supporting two additional processing trains that could increase total capacity to roughly 1.2 bcf/d (33.9 x 106 m3/d) as production growth continues across the basin.
The transaction further integrates Energy Transfer’s operations across the natural gas value chain, allowing the company to capture volumes at the gathering and compression stage and maintain those molecules within its system through processing and market delivery.
Energy Transfer already operates one of the largest energy infrastructure networks in the United States, with approximately 140,000 miles (225,308 km) of pipeline and related assets spanning 44 states. Its portfolio includes natural gas gathering and processing, intrastate and interstate transportation and storage, NGL transportation and fractionation, and crude oil and refined products logistics.
