May 28 (Reuters) - Energy Transfer ( ET ) said on

Tuesday it would buy WTG Midstream Holdings in a deal valued at

about $3.25 billion, the latest in the pipeline operator's

string of deals since last year aimed at expanding its gas

transportation and processing network in the Permian Basin.

The deal will be comprised of $2.45 billion in cash and

about 50.8 million newly issued Energy Transfer ( ET ) shares and is

expected to close in the third quarter of 2024.

WTG's assets include a 6,000-mile pipeline network that

serves the Midland Basin, eight processing, and two new plants

that are under construction.

Energy Transfer ( ET ) would acquire WTG from affiliates of

Stonepeak, the Davis Estate, and Diamondback Energy ( FANG ).

Upon closing, Diamondback, which holds a 25% stake in WTG,

stands to earn approximately $375 million.

The acquisition also includes a 20% interest in the BANGL

Pipeline, a roughly 425-mile natural gas pipeline connecting the

Permian Basin to markets on the Texas Gulf Coast.

Energy Transfer ( ET ) is one of three companies looking to build a

deepwater port along the Texas coast. It expects to receive a

draft Environmental Impact Statement (EIS) for its Blue Marlin

offshore terminal this quarter.

Its transported oil volumes grew by 44% during the first

quarter.