Energy Transfer will acquire Lotus Midstream Operations, LLC (Lotus Midstream) in a transaction valued at about $1.45 billion from an affiliate of EnCap Flatrock Midstream (EFM).
Consideration for the transaction will comprised $900 million in cash and about 44.5 million newly issued Energy Transfer common units.
Lotus Midstream owns and operates Centurion Pipeline Company LLC, an integrated, crude midstream platform located in the Permian Basin.
Lotus Midstream’s Centurion Pipeline Company provides a full suite of midstream services, including wellhead gathering, intra-basin transportation, terminals and long-haul transportation services. Its expansive system, encompassing about 3,000 active miles of pipeline, covers major production areas of the Permian with nearly 1.5 million barrels per day of capacity. Lotus Midstream’s Midland Terminal offers 2 million barrels of crude oil storage capacity and additional supply and demand connectivity. The acquisition