Bulletin: Energy Transfer L.P.'s Acquisition Of WTG Midstream LLC Is Leverage Neutral

NEW YORK (S&P Global Ratings) May 28, 2024--S&P Global Ratings today said that Energy Transfer L.P.'s (ET) proposed $3.25 billion acquisition of WTG Midstream LLC (WTG; not rated) complements its competitive position in the Midland Basin. WTG's assets are supported by volumes from large cap producers with a combination of firm long-term contracts and acreage dedications. We believe the transaction will likely improve ET's natural gas and natural gas liquid (NGL) volumes within its Permian midstream and downstream businesses. The transaction will comprise $2.45 billion in cash and approximately 50.8 million of newly issued ET common units. Despite the larger cash consideration than recently completed ET acquisitions, we continue to expect S&P Global Ratings-adjusted leverage to remain at approximately 4x.

...May 28, 2024 NEW YORK (S&P Global Ratings) May 28, 2024--S&P Global Ratings today said that Energy Transfer L.P.'s (ET) proposed $3.25 billion acquisition of WTG Midstream LLC (WTG; not rated) complements its competitive position in the Midland Basin. WTG's assets are supported by volumes from large cap producers with a combination of firm long-term contracts and acreage dedications. We believe the transaction will likely improve ET's natural gas and natural gas liquid (NGL) volumes within its Permian midstream and downstream businesses. The transaction will comprise $2.45 billion in cash and approximately 50.8 million of newly issued ET common units. Despite the larger cash consideration than recently completed ET acquisitions, we continue to expect S&P Global Ratings-adjusted leverage to remain at approximately 4x. We forecast the transaction to marginally impact forecasted adjusted leverage metrics by less than 10 basis points. WTG is owned by affiliates of Stonepeak Partners L.P., the...

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