Targa Resources Corp. (NYSE: TRGP) said Sept. 12 it agreed to sell assets in its petroleum logistics business for about $160 million.
An affiliate of Boston-based ArcLight Capital Partners LLC will buy Targa’s assets comprised of refined products and crude oil storage and terminaling facilities in Tacoma, Wash., and Baltimore, Md.
Targa, based in Houston, said it intends to use the proceeds to fund a portion of its growth capital program, of which roughly 75% is focused on the Permian Basin.
Most recently, Targa announced plans in August of a joint project between the company, NextEra Energy Resources LLC (NYSE: NEE), WhiteWater Midstream LLC and MPLX LP (NYSE: MPLX) aimed at providing an outlet for increased natural gas production from the Permian Basin to growing markets along the Texas Gulf Coast.
The project includes the joint development of the proposed Whistler Pipeline, which is expected to transport roughly 2 billion cubic feet per day of natural gas through about 450 miles of 42-inch pipeline from Waha, Texas, to NextEra’s Agua Dulce market hub.
The sale of Targa’s petroleum logistics assets to the ArcLight affiliate is expected to close in fourth-quarter 2018, subject to customary closing conditions. Evercore Group LLC is Targa’s exclusive financial adviser on the transaction.
Diversified Gas & Oil, known as DGO, said it acquired Core Appalachia Holding, a conventional producer and processor of natural gas in the southern Appalachian Basin.
Terminal is connected to Enterprise facility.
H2O Midstream's acquisition is concurrent with the execution of an acreage dedication based midstream water services agreement with Encana for a portion of its Permian Basin position.