Targa Resources Executes Agreements to Acquire Bolt-On Assets for $200 Million
Targa Resources Corp. announced on March 17 that it has executed agreements to acquire Southcross Energy Operating LLC and its subsidiaries in South Texas for $200 million.
- 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.
Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent midstream infrastructure companies in North America.