Energy Transfer To Acquire Lotus Midstream In $1.45 Bln Deal

Energy Transfer LP (ET) agreed to buy Lotus Midstream Operations LLC in a transaction valued at approximately $1.45 billion from an affiliate of EnCap Flatrock Midstream (EFM). Consideration for the transaction will be comprised of $900 million in cash and about 44.5 million newly issued Energy Transfer common units.

Lotus Midstream owns and operates Centurion Pipeline Company LLC, an integrated, crude midstream platform located in the Permian Basin.

The transaction is expected to close in the second quarter of 2023.

Lotus Midstream's Centurion Pipeline Company provides a full suite of midstream services including wellhead gathering, intra-basin transportation, terminalling and long-haul transportation services.
The acquisition also includes a 5% equity interest in the Wink to Webster Pipeline, a 650-mile pipeline system transporting more than one million barrels per day of crude oil and condensate from the Permian Basin to the Gulf Coast.
The transaction is expected to be immediately accretive to free cash flow
and distributable cash flow per unit as well as neutral to Energy Transfer's
leverage metrics.

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