Dallas based Energy Transfer (ET) said Monday it agreed to acquire the owner and operator of the Centurion Pipeline system in the Permian Basin from an affiliate of EnCap Flatrock Midstream. The deal is for cash and stock valued at $1.45B ($900M cash and ~44.5M newly issued Energy Transfer (ET) common units.)
- The Centurion Pipeline system encompasses ~3K active miles of pipeline, covering major production areas of the Permian Basin with nearly 1.5M bbl/day of capacity.
- Lotus Midstream’s Midland Terminal offers 2M barrels of crude oil storage capacity and additional supply and demand connectivity.
- Included in the deal is a 5% stake in the Wink-to-Webster Pipeline, a 650-mile system transporting 1M-plus bbl/day of crude oil and condensate from the Permian Basin to the Gulf Coast.
Energy Transfer (ET) said the Centurion assets, “located across some of the most active areas of the Permian Basin, provide significant gathering volumes from key producers while also enhancing Energy Transfer’s access to key downstream markets with consistent sources of demand.” Energy Transfer (ET) offers investors a “tollbooth to a 10% dividend yield regardless of commodity pricing,”
Energy Transfer owns one of the largest energy networks in the U.S., with about 120,000 miles of pipelines spanning 41 states. It reported 2022 revenue of $89.8 billion and nearly $6 billion in profit.
About Energy Transfer
Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with approximately 120,000 miles of pipeline and associated energy infrastructure. Energy Transfer’s strategic network spans 41 states with assets in all of the major U.S. production basins. Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (“NGL”) and refined product transportation and terminalling assets; and NGL fractionation. Energy Transfer also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and approximately 34% of the outstanding common units of Sunoco LP (NYSE: SUN), and the general partner interests and approximately 47% of the outstanding common units of USA Compression Partners, LP (NYSE: USAC).
About Lotus Midstream
Based in Sugar Land, Texas, Lotus Midstream is an independent energy company focused on the development of midstream infrastructure and services necessary to transport crude oil and condensate from the wellhead to market. Lotus owns the Centurion Pipeline System, a large-scale, integrated network of approximately 3,000 miles of crude oil gathering and transportation pipelines that extends from southeast New Mexico across the Permian Basin of West Texas to Cushing, Oklahoma. Lotus Midstream is backed by EnCap Flatrock Midstream.
Source: Energy Transfer
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