HOUSTON, March 17, 2022 (GLOBE NEWSWIRE) — Targa Resources Corp. (NYSE: TRGP) 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.
