Bulletin: Energy Transfer L.P.'s Planned Acquisition Strengthens Its Position In The Permian

NEW YORK (S&P Global Ratings) March 27, 2023--S&P Global Ratings said today that Energy Transfer L.P.'s (ET, BBB-/Positive/A-3) agreement to acquire Lotus Midstream Operations LLC (Lotus), a Permian crude oil and condensate gathering and transportation company owned by Encap Flatrock Midstream and Lotus management for $1.45 billion supports ET's credit quality. The transaction will be funded with $900 million of cash and newly issued ET units. This transaction is ET's first since the $485 million acquisition of Woodford Express LLC in September of 2022. We view the partial equity component as supportive of ET's positive rating outlook as our pro forma financial measures are largely unchanged. We view ET's approach to its recent acquisitions as evidence of a financial policy

...March 27, 2023 NEW YORK (S&P Global Ratings) March 27, 2023--S&P Global Ratings said today that Energy Transfer L.P.'s (ET, ###-/Positive/A-3) agreement to acquire Lotus Midstream Operations LLC (Lotus), a Permian crude oil and condensate gathering and transportation company owned by Encap Flatrock Midstream and Lotus management for $1.45 billion supports ET's credit quality. The transaction will be funded with $900 million of cash and newly issued ET units. This transaction is ET's first since the $485 million acquisition of Woodford Express LLC in September of 2022. We view the partial equity component as supportive of ET's positive rating outlook as our pro forma financial measures are largely unchanged. We view ET's approach to its recent acquisitions as evidence of a financial policy more balanced and considerate of its creditors. Lotus owns and operates Centurion Pipeline Co. LLC (Centurion) which consists of a pipeline system in the Permian, terminals in Midland and Cushing, and...

Bulletin