Energy Transfer Just Agreed to Buy Vaquero Midstream for $2.6 Billion. Here's What It Means for Investors.

Energy Transfer agreed to acquire Vaquero Midstream for $2.6 billion, paying nearly $2 billion in cash and issuing 33.3 million new units. The Delaware Basin-based midstream company operates a 300-mile pipeline network and gas processing complex. The deal is expected to be immediately accretive to Energy Transfer's distributable cash flow per unit and supports its 6.5% dividend yield while adding long-term growth potential in a region with growing natural gas demand.