The Investor
02 Dec 2025, 09:46
Targa Resources Corp. (NYSE: TRGP) announced a $1.25 billion cash deal to acquire Stakeholder Midstream, expanding its gathering and processing footprint in the Permian Basin. The acquisition includes 480 miles of natural gas pipelines, 180 MMcf/d of processing and sour gas treating capacity, carbon capture activities generating 45Q tax credits, and a crude gathering system.
The assets are backed by long-term, fee-based contracts tied to approximately 170,000 dedicated acres with low decline rates, supporting a stable volume profile. Targa expects the acquired system to generate around $200 million in annual unlevered adjusted free cash flow with minimal capital needs.
CEO Matt Meloy said the deal strengthens Targa’s growth profile and aligns with its strategy of value creation and balance-sheet discipline. The transaction is expected to close in the first quarter of 2026, funded through cash on hand and Targa’s existing $3.5 billion credit facility, with limited impact on leverage.
The assets are backed by long-term, fee-based contracts tied to approximately 170,000 dedicated acres with low decline rates, supporting a stable volume profile. Targa expects the acquired system to generate around $200 million in annual unlevered adjusted free cash flow with minimal capital needs.
CEO Matt Meloy said the deal strengthens Targa’s growth profile and aligns with its strategy of value creation and balance-sheet discipline. The transaction is expected to close in the first quarter of 2026, funded through cash on hand and Targa’s existing $3.5 billion credit facility, with limited impact on leverage.
