ET - Energy Transfer Is Adding More Fuel to Grow Its Nearly 10%-Yielding Payout With This $7.1 Billion Deal
2023-08-17 05:47:00 ET
Energy Transfer 's (NYSE: ET) buying binge continues. The midstream behemoth is acquiring fellow master limited partnership (MLP) Crestwood Equity Partners (NYSE: CEQP) in an all-equity deal valued at $7.1 billion. That's its second acquisition this year. Its latest transaction will enhance Energy Transfer's operations and cash flow, giving it more fuel to support its strategy of growing its 9.9%-yielding distribution by 3% to 5% per year.
Here's a closer look at the deal and how it will benefit the pipeline company .
Energy Transfer will acquire Crestwood Equity Partners for $7.1 billion, which includes the assumption of $3.3 billion in debt. It will exchange 2.07 of its units for each unit of Crestwood Equity Partners. The companies expect the transaction to close in the fourth quarter.
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Energy Transfer Is Adding More Fuel to Grow Its Nearly 10%-Yielding Payout With This $7.1 Billion Deal