09:27 AM EDT, 05/28/2024 (MT Newswires) -- (Updates with additional details throughout.)

Energy Transfer ( ET ) has agreed to acquire WTG Midstream Holdings for about $3.25 billion from Stonepeak affiliates, the Davis Estate, and Diamondback Energy ( FANG ) , according to a press release on Tuesday.

The deal includes $2.45 billion in cash and 50.8 million newly issued Energy Transfer ( ET ) common units. Expected to close in Q3, the acquisition includes a 20% interest in the 425-mile BANGL Pipeline, according to the press release.

Energy Transfer ( ET ) anticipates the WTG assets to add around $0.04 of distributable cash flow per common unit in 2025, growing to around $0.07 per unit in 2027.

Shares of Energy Transfer ( ET ) and Diamondback were up 0.3% and 1.4%, respectively, in recent Tuesday premarket activity.

Price: 15.49, Change: +0.05, Percent Change: +0.32