Kelcy Warren likes big. He thinks big, buys big, and donates big in quintessential Texas fashion. So, at a time when most energy CEOs are tightening the purse strings to appease financial backers and shareholders, Warren is making deals and opening his wallet big-time.
Energy Transfer is one of the largest and most diversified midstream energy companies in the country with more than 86,000 miles of pipelines traversing 38 states transporting the oil and gas products that make our lives possible.
RMR is following news from Warren’s Dallas-based Energy Transfer, which just announted it will purchase Tulsa-based SemGroup for $5.1 billion. With 86,000 miles of pipelines spanning the country along with terminals, fractionators, storage, and gas processing and regasification facilities, Energy Transfer has emerged a midstream giant transporting natural gas, NGLs, crude oil, refined products and LNG.
Now with the SemGroup acquisition, Energy Transfer will increase its connectivity with complimentary infrastructure and expand its Gulf Coast presence from one to two terminals. The latter, however, looks to be the crown jewel in the deal as Energy Transfer eyes exporting fuels. Plans are in play to convert the company’s LNG import facility into an export hub, and SemGroup’s crude and products terminal is one of the largest of its kind on the Houston Ship Channel. And for Warren, bigger is better. What do you think?