Energy Transfer in $7.2B deal for midstream firm

Dallas-based pipeline giant Energy Transfer is acquiring an Oklahoma City company in an all-stock deal valued at $7.2 billion.

Energy Transfer announced the deal with Enable Midstream before Wednesday’s trading markets opened. Company executives are scheduled to discuss it in detail after the market close.

The acquisition strengthens Energy Transfer’s natural gas transportation business, according to the company. It also comes at a time when it’s waging a court battle to keep its controversial Dakota Access crude pipeline open.

A federal appeals court recently raised doubts about the future of the 557,000 barrel-per-day pipeline that extends from North Dakota to Illinois when it upheld a ruling that a key easement violated federal law. American Indian tribes, environmentalists and Democratic congressional leaders are pressing President Joe Biden to shutter the pipeline.

Energy Transfer said the deal with Enable will add natural gas gathering and processing systems in the Anadarko Basin in Oklahoma and connect to its extensive network of U.S. Gulf Coast facilities. Infrastructure in the Arkoma basin across Oklahoma and Arkansas, and the Haynesville Shale in East Texas and North Louisiana also are part of the deal.