Energy Transfer, Sunoco unveil Permian Basin crude oil joint venture

Energy Transfer (NYSE:ET) and Sunoco (SUN) said Tuesday they have formed a joint venture combining their respective crude oil and produced water gathering assets in the Permian Basin.

Energy Transfer (ET) will serve as operator of the joint venture and contribute its Permian crude oil and produced water gathering assets and operations, while Sunoco (SUN) will contribute all of its Permian crude oil gathering assets and operations to the JV.

The joint venture will operate more than 5K miles of crude oil and water gathering pipelines with crude oil storage capacity totaling more than 11M barrels.

Energy Transfer (ET) said it will hold a 67.5% interest in the venture, while Sunoco (SUN) will own a 32.5% stake; both companies expect the JV will be immediately accretive to distributable cash flow.

Separately, Energy Transfer (ET) said late Monday it completed the acquisition of WTG Midstream for $2.275B in cash and ~50.8M newly issued common units.

Energy Transfer (ET) said the acquired assets add 6K miles of complementary gas gathering pipelines that extend its Midland Basin network, as well as eight gas processing plants with a total capacity of 1.3B cf/day, and two additional processing plants which are under construction.