Acquisitions and Related Transactions

6 Months Ended

Jun. 30, 2022

ACQUISITIONS AND DIVESTITURE TRANSACTIONS

Woodford Express Acquisition

In August 2022, Energy Transfer entered into an agreement to acquire 100% of the membership interests in Woodford Express, LLC, a Mid-Continent gas gathering and processing system, for approximately $485 million in cash consideration. The system, which is located in the heart of the SCOOP play, has 450 MMcf/d of cryogenic gas processing and treating capacity and over 200 miles of gathering lines, which are connected to Energy Transfer’s pipeline network. The transaction is expected to close by the end of the third quarter, subject to customary closing conditions including Hart-Scott-Rodino Act clearance.

Energy Transfer Canada Sale

In March 2022, the Partnership announced a definitive agreement to sell its 51% interest in Energy Transfer Canada. The sale is expected to result in cash proceeds to Energy Transfer of approximately C$340 million (US$264 million at the June 30, 2022 exchange rate), subject to certain purchase price adjustments. The transaction is expected to close by the third quarter of 2022.

Energy Transfer Canada’s assets and liabilities were reflected as held for sale in the Partnership’s consolidated balance sheet as of June 30, 2022. Energy Transfer Canada’s assets and operations are included in the all other segment. Energy Transfer Canada does not meet the criteria to be reflected as discontinued operations in the Partnership’s consolidated statement of operations. Based on the anticipated proceeds of the sale, during the three months ended March 31, 2022, the Partnership recorded a write-down on Energy Transfer Canada’s assets of $300 million, of which $164 million was allocated to noncontrolling interests and $136 million was reflected in net income attributable to partners.

The following table presents the assets and liabilities classified as held for sale in the Partnership’s consolidated balance sheet as of June 30, 2022:


	June 30, 2022
Carrying amounts of assets held for sale
Cash and cash equivalents	$	3
Accounts receivable, net	102
Other current assets	7
Property, plant and equipment, net	1,486
Other non-current assets, net	16
Intangible assets, net	97
Total assets held for sale	$	1,711

Carrying amounts of liabilities held for sale
Accounts payable	$	2
Accrued and other current liabilities	58
Long-term debt, including current maturities	543
Other non-current liabilities, net	195
Redeemable noncontrolling interests	291
Total liabilities held for sale	$	1,089

Spindletop Assets Purchase

In March 2022, the Partnership purchased the membership interests in Caliche Coastal Holdings, LLC (subsequently renamed Energy Transfer Spindletop LLC), which owns an underground storage facility near Mont Belvieu, Texas, for approximately $325 million.

Enable Acquisition

On December 2, 2021, the Partnership completed the acquisition of Enable. As of August 4, 2022, there has been no material changes to the preliminary purchase price allocation disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 18, 2022.

Sunoco LP Acquisition

On April 1, 2022, Sunoco LP completed the acquisition of a transmix processing and terminal facility in Huntington, Indiana for $264 million, of which $96 million was allocated to intangible assets, $19 million to goodwill, $72 million to property, plant and equipment, and $77 million to working capital.