Energy Transfer to Expand Oil Pipeline Network with $1.45 Billion Acquisition
Dallas-based Energy Transfer on Monday, March 27, announced its plans to expand its oil pipeline network by over 3,000 miles following the purchase of Lotus Midstream, a Sugar Land energy company, for $1.45 billion, the company announced via a press release.
The deal will increase Energy Transfer's substantial footprint in the productive Permian Basin and is expected to close by mid-year pending regulatory approval. Lotus Midstream operates Centurion Pipeline Co., a pipeline system that stretches across southeast New Mexico and West Texas to Cushing, Okla., a significant hub for gathering large volumes of U.S. crude.
Energy Transfer said the Acquisition would boost its storage capacity in Midland by 2 million barrels and also include a 5% stake in the Wink to Webster Pipeline, a 650-mile system that carries more than 1 million barrels of crude oil and condensates a day from the Permian Basin to the Gulf Coast.
Once the deal is completed, Energy Transfer plans to construct a 30-mile pipeline to connect barrels stored in its Midland terminals for delivery to the Cushing hub.
With approximately 120,000 miles of pipelines extending over 41 states, Energy Transfer already owns one of the largest energy networks in the U.S. The company reported $89.8 billion in revenue and almost $6 billion in profit for 2022.