Cardinal Midstream Wins $52M Court Verdict Against Energy Transfer

Here's a lawsuit we were unaware of, even though it's been playing out for years. It's quite complicated. On the surface, at a very basic level, Cardinal Midstream II (we assume a subsidiary of the Dallas-based Cardinal Midstream) sued Energy Transfer (ET) for not paying an "earnout" (which we'll explain) after buying a gas gathering system in Beaver County, PA. The PA judge found in favor of Cardinal and ordered ET to pay $33 million plus $19 million in interest. The judge also found ET's related claim of a "force majeure" event when its Revolution Pipeline exploded did not excuse ET from its obligation to Cardinal.

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