Targa Resources to Acquire Lucid Energy in $3.55 Billion Cash Deal

Targa Resources Corp. on June 16 agreed to acquire Lucid Energy Group in the Permian Basin from Riverstone Holdings LLC and Goldman Sachs Asset Management.

The $3.55 billion cash transaction, which will increase Targa size and scale in the Delaware Basin, follows the company’s recent “bolt-on” acquisition of Southcross Energy in the Eagle Ford for $200 million. Targa said it has available liquidity, including cash on hand, its existing $2.75 billion revolving credit facility, and committed debt financing to fund the Lucid acquisition.

“The strength of Targa’s standalone financial position has afforded us the flexibility to consider attractive opportunities to grow our business through acquisitions, as evidenced by our ability to finance the purchase of Lucid utilizing available cash and debt with estimated pro forma year-end 2022 leverage around 3.5 times, well within our long-term leverage ratio target range,” Targa CEO Matt Meloy commented in a company release.