Energy Transfer Expands Footprint with Lotus Midstream Aquisition

It’s not just the upstream side of the Permian that’s in the midst of a major consolidation. Over the past couple of years, a slew of significant M&A deals have been made in the midstream space, most recently Energy Transfer’s $1.45 billion plan to acquire Lotus Midstream. Backed by private equity, Lotus has assembled an impressive array of crude-oil gathering, storage and long-haul pipeline assets in West Texas and southeastern New Mexico — including the Centurion pipeline system that links the Permian with the crude oil hub in Cushing, OK. In today's RBN blog, we discuss the deal and what it means for Energy Transfer, whose role in the U.S.’s most prolific crude-oil-focused production area is poised to expand by leaps and bounds.

Energy Transfer is yet again slaking its acquisition appetite by gobbling up another natural gas gatherer and processor to further expand its already formidable Permian footprint. The company announced May 28 that it has struck a $3.25 billion cash-and-stock deal to buy WTG Midstream, a West Texas-based and private equity-backed operator whose Permian assets will boost the acquiring company’s access to gas and NGL volumes as the U.S. midstream sector shows continued consolidation. In today’s RBN blog, we’ll look at how the addition of WTG’s midstream holdings will enhance Energy Transfer’s asset lineup, including its ongoing NGL export and storage expansions. 

Colorado City, TX, has deep roots in the history of the American West, beginning as a ranger camp in 1877. As cattlemen flocked to the area, it quickly became a vital center for the cattle industry, earning the moniker “The Mother City of West Texas.” The arrival of the Texas & Pacific Railway in 1881 marked a turning point for the town. It was formally organized the following year, its economy bolstered by cattle, cotton and a soon-burgeoning oil industry. A 1920s oil boom further elevated Colorado City’s economic status, marking the beginning of its now long-standing importance in the oil industry. In today’s RBN blog, we’ll explore how Colorado City continues to serve as a critical junction, facilitating the movement of crude from the prolific Permian Basin to major destinations such as Cushing, OK, and the U.S. Gulf Coast.