Targa Resources Strikes $925 Million Deal with Stonepeak

The repurchase of interests in its development company joint ventures with Stonepeak had previously been discussed during Targa Resources’ third-quarter earnings call last November.

Targa Resources Corp. is buying back the interests in its development company joint ventures (DevCo JV) from investment firm Stonepeak Partners LP for approximately $925 million, the Houston-based midstream company said in a Jan. 10 release.

The assets from the DevCo JVs—originally formed in 2018—include a 20% interest in Grand Prix NGL Pipeline, a 25% interest in Gulf Coast Express Pipeline and a 100% interest in Train 6 fractionator in Mont Belvieu, Texas. The transaction, which is scheduled to close on Jan. 14, had previously been discussed during the company’s third-quarter earnings call last November.

“With all assets set to be consolidated as of Friday, we anticipate a near-term sale of GCX (Gulf Coast Express Pipeline) could be in the works as previously rumored sales price of ~$750 million would reduce the net outflow to $175 million resulting in a TPHe sub-2.0x transaction multiple on the remaining Grand Prix and Frac 6 interests,”  analysts with Tudor, Pickering, Holt & Co. (TPH) wrote in a Jan. 11 research note.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.