Energy Transfer announced the acquisition of Crestwood today. (Source)

In the announcement, it states "Under the deal terms, Crestwood (CEQP) common unitholders will receive 2.07 Energy Transfer (ET) common units for each Crestwood common unit; upon closing, Crestwood common unitholders would own ~6.5% of Energy Transfer's outstanding common units."

As a Crestwood Shareholder, the stock closed at $27.39 today. If I am getting 2.07 shares of ET, (which trades at 12.77), that only comes out to $26.43 in value right? Am I missing something? I assume yes, since CEQP was up today as well, but where is this ~$1 in share difference going? Cash?

TIA

You are looking at the prices contemporaneously. The deal terms were not set today, and it doesn't close today.

Also, the change in value for Crestwood is relative to ET. It also is impacted by time until closing and risk it doesn't close. Smaller factors could be some speculation (informed or otherwise) on how accretive this will be.

So in short, there is no ~$1. It is just an amalgamation of risk and speculative risk.

I own the Crestwood busted preferred; awaiting to see how ET works these out.