The deal is expected to close by late 2019 or early 2020, subject to approvals. This acquisition will expand Energy Transfer’s geographic footprint and help increase the connectivity for its crude oil and NGL transportation businesses.
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The transaction will also help in expanding Energy Transfer’s
crude oil and NGL infrastructure through the addition of assets and pipelines
in Colorado and Oklahoma. The deal is expected to be immediately accretive to
distributable cash flow per common unit.
The combined entity expects to
generate more than $170 million of annual run-rate synergies, comprising commercial
and operational synergies of $80 million, financial savings of $50 million and
cost savings of $40 million.
In its most recent quarter, SemGroup reported revenues of $675 million and net loss attributable to common shareholders of $35 million, or $0.45 per share.