Targa Resources Corp. Completes Acquisition of Lucid Energy
July 29 2022 - 4:04PM
Targa Resources Corp. (NYSE: TRGP) (“Targa” or the “Company”)
announced today that one of its wholly-owned subsidiaries has
completed the previously announced acquisition of Lucid Energy
Delaware, LLC (“Lucid”) for $3.55 billion. This acquisition extends
and further strengthens Targa’s position in the core of the
Delaware Basin.
Targa funded the acquisition with (i) $1.5
billion in proceeds drawn under its 3-year term loan facility; (ii)
$1.25 billion from the Company’s underwritten public offering of
senior notes that closed in July 2022; and (iii) $800 million drawn
on its $2.75 billion revolving credit facility.
Lucid’s assets, which will be integrated into
Targa’s existing Permian Basin footprint, include approximately
1,050 miles of natural gas pipelines and approximately 1.4 billion
cubic feet per day (“Bcf/d”) of cryogenic natural gas processing
capacity in service or under construction located primarily in Eddy
and Lea counties of New Mexico. Lucid’s Delaware Basin footprint
overlays some of the most economic crude oil and natural gas
producing acreage in North America. Lucid’s assets are anchored by
over 600,000 dedicated acres from a diverse set of high-quality
customers and underpinned by long-term, fixed-fee contracts.
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 domestic midstream infrastructure assets and its
operations are critical 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 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,
commodity price volatility due to ongoing conflict in Ukraine,
actions by the Organization of the Petroleum Exporting Countries
(“OPEC”) and non-OPEC oil producing countries, the timing and
success of business development efforts, expected benefits relating
to the acquisition of Lucid and their impact on the Company’s
results of operations, 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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