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

Targa Resources’ acquisition of Lucid Energy in the Permian Basin from Riverstone Holdings and Goldman Sachs follows the company’s $200 million bolt-on of Southcross Energy earlier this year.

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

Lucid Energy Group is the largest privately held natural gas processor in the Permian Basin, providing the full range of gas midstream services to more than 50 customers in New Mexico and West Texas, according to the Targa release. (Source: Lucid Energy)

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.

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