UPDATE 1 — Energy Transfer to buy Vaquero Midstream for $2.63 billion in cash and stock

(Adds details in paragraphs 2-4) Oct 6 (Reuters) — Energy Transfer said on Tuesday it has agreed to acquire Vaquero Midstream in a deal valued at about $2.63 billion in cash and stock, expanding its midstream operations. The deal includes $1.95 billion in cash and about 33.3 million newly issued Energy Transfer shares, Energy Transfer said. It said the assets, which are linked to its existing natural gas and natural gas liquids infrastructure, would provide additional volumes for its transportation, fractionation, terminalling and export businesses. The deal is expected to close in the fourth quarter of the year. (Reporting by Pranav Mathur in Bengaluru; Editing by Pooja Desai) ((Pranav.Mathur@thomsonreuters.com;)