Targa Resources Acquires Stakeholder Midstream for $1.25 Billion

Targa Resources Corp. has agreed to acquire Stakeholder Midstream LLC for $1.25 billion in cash. The deal includes 480 miles of natural gas pipelines, 180 MMcf/d of cryogenic processing and sour treating capacity, and carbon capture or CCUS activities generating 45Q tax credits. The assets are supported by long-term, fee-based contracts covering 170,000 dedicated acres. The acquisition is expected to generate $200 million in annual unlevered adjusted free cash flow with minimal capital requirements and low integration costs.