Targa Resources Corp. Executes Agreements to Acquire its Development Company Joint Venture Interests
January 10 2022 - 4:10PM
Targa Resources Corp. (NYSE: TRGP) (“Targa” or the “Company”)
announced today that it has executed agreements to repurchase
interests in its development company joint ventures (“DevCo JVs”)
from investment vehicles affiliated with Stonepeak Partners LP
(“Stonepeak”) for approximately $925 million. Targa had
approximately $3.2 billion of available liquidity at December 31,
2021 and intends to fund the DevCo acquisition using available
liquidity.
The acquisition will close on January 14, 2022.
Pro forma, Targa will own a 75 percent interest in its Grand Prix
NGL Pipeline, 100 percent of its Train 6 fractionator in Mont
Belvieu, TX, and a 25 percent equity interest in the Gulf Coast
Express Pipeline. Targa will benefit from a full year of Adjusted
EBITDA and cash flows associated with the acquired DevCo JV assets
in 2022.
About Targa Resources Corp.
Targa Resources Corp. is a leading provider of
midstream services and is one of the largest independent midstream
infrastructure companies in North America. The Company owns,
operates, acquires, and develops a diversified portfolio of
complementary midstream infrastructure assets and its operations
are essential to the efficient, safe, and reliable delivery of
energy across the United States and increasingly to the world. The
Company’s assets connect natural gas and natural gas liquids (NGLs)
to domestic and international markets with growing demand for
cleaner fuels and feedstocks. The Company is primarily engaged in
the business of: gathering, compressing, treating, processing,
transporting, and purchasing and selling natural gas; transporting,
storing, fractionating, treating, and purchasing and selling NGLs
and NGL products, including services to LPG exporters; and
gathering, storing, terminaling, and purchasing and selling crude
oil.
Targa is a FORTUNE 500 company and is included
in the S&P 400.
For more information, please visit the Company’s
website at www.targaresources.com.
About Stonepeak
Stonepeak is a leading alternative investment
firm specializing in infrastructure and real assets with
approximately $43.5 billion of assets under management. Through its
investment in defensive, hard-asset businesses globally, Stonepeak
aims to create value for its investors and portfolio companies, and
to have a positive impact on the communities in which it operates.
Stonepeak sponsors investment vehicles focused on private equity
and credit. The firm provides capital, operational support, and
committed partnerships to sustainably grow investments in its
target sectors, which include transport and logistics,
communications, water, energy transition, and power and renewable
energy. Stonepeak is headquartered in New York with offices in
Austin, Hong Kong, Houston, and Sydney. For more information,
please visit https://stonepeakpartners.com.
Forward-Looking Statements
Certain statements in this release are
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements, other
than statements of historical facts, included in this release that
address activities, events or developments that the Company
expects, believes or anticipates will or may occur in the future,
are forward-looking statements. These forward-looking statements
rely on a number of assumptions concerning future events and are
subject to a number of uncertainties, factors and risks, many of
which are outside the Company’s control, which could cause results
to differ materially from those expected by management of the
Company. Such risks and uncertainties include, but are not limited
to, weather, political, economic and market conditions, including a
decline in the price and market demand for natural gas, natural gas
liquids and crude oil, the impact of pandemics such as COVID-19,
actions by the Organization of the Petroleum Exporting Countries
(“OPEC”) and non-OPEC oil producing countries, the timing and
success of business development efforts, and other uncertainties.
These and other applicable uncertainties, factors and risks are
described more fully in the Company’s filings with the Securities
and Exchange Commission, including its most recent Annual Report on
Form 10-K, and any subsequently filed Quarterly Reports on Form
10-Q and Current Reports on Form 8-K. The Company does not
undertake an obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Contact:
Targa Sanjay LadVice President, Finance &
Investor Relations
Jennifer KnealeChief Financial Officer
InvestorRelations@targaresources.com(713)
584-1133
Stonepeak Kate
Beers646-540-5225beers@stonepeak.com
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