Houlihan Lokey Advises Vaquero Midstream

Houlihan Lokey is pleased to announce that Vaquero Midstream LLC (Vaquero), a portfolio company of Yorktown Partners and Keeneland Capital, has agreed to be acquired by Energy Transfer LP (TXSE:ET) in a transaction valued at approximately $2.625 billion. The consideration will consist of $1.95 billion in cash and approximately 33.3 million newly issued Energy Transfer common units.

Vaquero owns and operates a rapidly growing, fully integrated midstream system in the core of the Delaware Basin. The assets to be acquired include the Caymus Processing Complex and an approximately 300-mile pipeline network for gas gathering and transportation. Vaquero’s system is supported by long-term, fee-based contracts from a high-quality customer base, with an average remaining contract life of approximately 10 years.

Energy Transfer owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with approximately 140,000 miles of pipeline and associated energy infrastructure spanning 44 states. The acquisition of Vaquero’s complementary assets enhances Energy Transfer’s integrated natural gas and NGL infrastructure, strengthens its Permian footprint, and provides significant downstream synergies.

Houlihan Lokey acted as the exclusive financial advisor to Vaquero for all aspects of the transaction. This deal highlights the firm’s continued market leadership and expertise in executing landmark deals for the midstream energy sector.

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