The acquisition is expected to close in the 4th quarter 2026, subject to regulatory approval and customary closing conditions. Vaquero has a rapidly growing midstream services business, including wellhead gathering and intrabasin transportation pipelines, as well as a natural gas processing complex. The company's approximately 300-mile pipeline network serves leading operators across some of the most active areas of the Delaware Basin, including Loving, Reeves, Ward and Winkler counties. Vaquero currently operates the Caymus Processing Complex, which includes three processing trains with a total capacity of approximately 675 MMcf/d, and owns sufficient acreage to support the construction of two additional trains that could increase total processing capacity to up to approximately 1.2 Bcf/d.

Vaquero’s system is supported by long-term, fee-based firm contracts and acreage dedications, providing a stable and predictable cash flow profile. The addition of Vaquero’s assets is expected to further strengthen Energy Transfer's Permian footprint by increasing access to growing natural gas and NGL production volumes while enhancing connectivity to the partnership's broader midstream platform.

The Vaquero assets are already interconnected with Energy Transfer's downstream natural gas and NGL infrastructure, creating benefits across the partnership's value chain. This connectivity is expected to generate incremental revenue opportunities through pipeline transportation, fractionation, terminalling, and export services.

The acquisition is expected to enhance Energy Transfer's strategic position in one of the most active and lowest-cost producing regions in North America. The assets are well positioned to benefit from continued development across the Delaware Basin and provide additional long-term growth opportunities as production expands around Energy Transfer's existing infrastructure network.

Positive Financial Impact

Energy Transfer expects the Vaquero assets to be immediately accretive to DCF per common unit. Vaquero’s cash flows are supported by approximately 100,000 dedicated acres and a high-quality customer base with contracts having an average remaining life of approximately 10 years.