Targa Resources Corp. (Targa) will acquire Stakeholder Midstream LLC (Stakeholder) for US$1.25 billion.
Headquartered in San Antonio, Stakeholder provides natural gas gathering, treating, and processing services and crude gathering and storage services in the Permian Basin, including approximately 480 miles of natural gas pipelines, approximately 180 MMcf/d of cryogenic natural gas processing and sour treating capacity, carbon capture (CCUS), and a small crude oil gathering system.
Stakeholder’s operations are based in West Texas and Southeast New Mexico and include the San Andres Crude Gathering System, the Campo Viejo Gas Gathering System, and the Pozo Acido and Rattlesnake carbon sequestration wells.
Stakeholder’s assets are anchored by long-term, fee-based contracts across approximately 170,000 dedicated acres. Additionally, Stakeholder’s sour gas treating and CCUS activities complement Targa’s best-in-class treating and CCUS footprint in the Permian.
“This acquisition is a nice bolt-on asset that has meaningful free cash flow supported by a stable to modestly growing volume profile with minimal capital needs and executed at an attractive valuation,” said Matt Meloy, chief executive officer of Targa. “We believe this transaction is a continuation of our strategy of identifying opportunities to create shareholder value with balance sheet strength.”
Meloy added, “We are very familiar with the acquired assets and have strong relationships with some of the largest producers on the system. Targa’s organic growth opportunity set coupled with this accretive bolt-on transaction positions us well to enhance our already strong growth profile.”
The transaction is expected to close in the first quarter of 2026. The company expects to fund the acquisition using its strong liquidity position, including cash on hand and its existing US$3.5 billion revolving credit facility.
Headquartered in Houston, Targa provides midstream services and is one of the largest independent infrastructure companies in North America. The company owns and operates a diversified portfolio of complementary domestic infrastructure assets.
