Targa Resources Announces Creation of a Joint Venture in Grand Prix Pipeline with Blackstone Energy Partners and Long-Term Vo...
October 04 2017 - 4:07PM
Targa Resources Corp. (NYSE:TRGP) ("Targa" or the "Company")
announced today that it has executed agreements to sell a 25
percent joint venture interest in its previously announced Grand
Prix natural gas liquids (“NGL”) pipeline (“Grand Prix”) to funds
managed by Blackstone Energy Partners (“Blackstone”). Once
completed, Grand Prix will be a new 300 thousand barrel per day
(“BPD”) common carrier NGL pipeline from the Permian Basin to Mont
Belvieu, Texas, and with expansion capability to 550 thousand BPD.
Concurrent with the sale of the interest in Grand
Prix to Blackstone, Targa and EagleClaw Midstream Ventures, LLC
(“EagleClaw”), a Blackstone portfolio company, executed a long-term
Raw Product Purchase Agreement for transportation and fractionation
(“T&F”) services whereby EagleClaw has dedicated and committed
significant NGLs associated with EagleClaw’s natural gas volumes
produced or processed in the Delaware Basin. EagleClaw is the
largest private natural gas gathering and processing company in the
Delaware Basin based on almost 275,000 dedicated acres primarily in
Reeves County.
Targa is expected to realize substantial net
capital savings, plus other strategic and financial benefits,
through the sale of the 25 percent interest in Grand Prix to
Blackstone. Also, the addition of EagleClaw’s volumes for T&F
services provides substantial incremental fee-based cash flow to
Targa over the long-term. Targa continues to expect Grand Prix to
be operational in the second quarter of 2019.
Gulf Coast Express PipelineTarga
also announced that it has executed a letter of intent along with
Kinder Morgan Texas Pipeline LLC, a subsidiary of Kinder Morgan,
Inc. (NYSE:KMI) and DCP Midstream, LP (NYSE:DCP) with respect to
the joint development of the proposed Gulf Coast Express Pipeline
Project (“GCX Project”), which would provide an outlet for
increased natural gas production from the Permian Basin to growing
markets along the Texas Gulf Coast. The participation of the three
parties involved with the GCX Project is subject to negotiation and
execution of definitive agreements. As part of the definitive
agreements, Targa would own a 25 percent equity interest in the GCX
Project, and would commit significant volumes to the proposed
project, including certain volumes provided by Pioneer Natural
Resources Company (NYSE:PXD) (“Pioneer”), a joint owner in Targa’s
WestTX Permian Basin system and one of the largest producers in the
Permian Basin.
The GCX Project is expected to have capacity of
approximately 1.92 billion cubic feet per day, and would include a
lateral into the Midland Basin, consisting of approximately 50
miles of 36-inch pipeline and associated compression to serve gas
processing facilities owned by Targa, as well as those owned
jointly by Targa and Pioneer in Targa’s WestTX system. The
expected in-service date of the pipeline continues to be scheduled
for the second half of 2019, pending the timely completion of
definitive agreements with shippers and a final investment decision
by the three parties.
Forward Looking Statements
Certain statements in this press 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 press
release that address activities, events or developments that Targa
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 Targa's control, which could cause results to
differ materially from those expected by management of Targa.
Such risks and uncertainties include, but are not limited to, the
timing and extent of changes in commodity prices, interest rates
and demand for services, the level and success of crude oil and
natural gas drilling around assets, the timing and success of
business development efforts, ability to access the capital
markets, the amount of collateral required to be posted from time
to time in transactions, success in risk management activities, the
credit risk of customers, changes in laws and regulations, weather
and other uncertainties. These and other applicable uncertainties,
factors and risks are described more fully in Targa's Annual Report
on Form 10-K for the year ended December 31, 2016 and other reports
filed with the Securities and Exchange Commission. Targa undertakes
no obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or
otherwise.
About Targa Resources Corp.Targa
Resources Corp. is a leading provider of midstream services and is
one of the largest independent midstream energy companies in North
America. Targa owns, operates, acquires, and develops a diversified
portfolio of complementary midstream energy assets. The Company is
primarily engaged in the business of: gathering, compressing,
treating, processing, and selling natural gas; storing,
fractionating, treating, transporting, and selling NGLs and NGL
products, including services to LPG exporters; gathering, storing,
and terminaling crude oil; storing, terminaling, and selling
refined petroleum products.
For more information, please visit our website at
www.targaresources.com.
Contact investor relations by phone at (713)
584-1133.
Sanjay LadDirector - Investor Relations
Jennifer KnealeVice President - Finance
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