Targa Resources Corp. Executes Agreements to Acquire Bolt-On Assets for $200 Million
March 17 2022 - 4:30PM
Targa Resources Corp. (NYSE: TRGP) (“Targa” or the “Company”)
announced today that it has executed agreements to acquire
Southcross Energy Operating LLC and its subsidiaries in South Texas
for $200 million.
Transaction Highlights
- Attractive acquisition price represents approximately 4 times
adjusted EBITDA multiple
- Further synergy potential to reduce acquisition multiple over
time
- Potential to move a currently idle 200 million cubic feet per
day plant
- Fee-based contracts, with the vast majority of volumes being
low pressure wellhead gathering
- Continued simplification through acquisition of remaining T2
joint venture interests
Wells Fargo Securities, LLC is serving as
Targa’s financial advisor and Winston & Strawn LLP is acting as
Targa’s legal counsel on the transaction. The acquisition is
expected to close in the second quarter of 2022 following customary
closing conditions.
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.
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 the Company's investor relations
department by email at InvestorRelations@targaresources.com or
by phone at (713) 584-1133.
Sanjay LadVice President, Finance & Investor
Relations
Jennifer KnealeChief Financial Officer
Targa Resources (NYSE:TRGP)
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