Kelcy Warren Outlines Energy Transfer’s Next Growth Targets
Energy Transfer has spent close to three decades absorbing pipelines, processors and partnerships, and executive chairman Kelcy Warren says the buying is not finished. Speaking with Hart Energy for its 2023 Hall of Fame series, Warren described a future that includes more consolidation, a wider international reach and deeper involvement in LNG and petrochemicals.
He acknowledged that attractive targets are becoming scarce. Even so, Warren said several quality assets remain on his radar, and he believes they would fit the company well.
The Crestwood Addition
The most recent example at the time was Crestwood Equity Partners, acquired for $7.1 billion. The deal strengthened Energy Transfer‘s already large positions in the Permian Basin and the Bakken Shale. It also expanded the company into the Powder River Basin, an emerging play.
“They are very compatible,” Warren said of how Crestwood’s assets connect with the existing system. Some planned construction will still be needed to link certain pieces together.
Crestwood followed two other recent purchases, Enable Midstream and Lotus Midstream. Earlier consolidation moves, starting in 2014, brought in Susser Holdings, Regency Energy Partners, PennTex Midstream Partners, USA Compression Partners and SemGroup.
Beyond Domestic Pipelines
Kelcy Warren wants Energy Transfer to grow across both North and South America. He also sees room to expand in liquefied natural gas and petrochemicals. Rising crude oil and LNG exports have already helped drive the company’s recent consolidation push by increasing the need for pipeline capacity.
Warren frames the work as continuous improvement rather than a finish line. “We always try to make our machine more efficient,” he said. He added a line that sums up his outlook: “If you’re a good pipeliner, you’ll never have the perfect system.”
For a company that began in 1996 with about 200 miles of East Texas gas lines, the ambition is striking. Kelcy Warren appears determined to keep adding pieces for as long as good ones remain available. See related link for more information.
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