Targa to acquire Permian gathering, processing system

December 15, 2025 By Brian Richesson 0 Comments

A wholly owned subsidiary of Targa Resources will acquire Stakeholder Midstream for $1.25 billion in cash, Targa announced.

Stakeholder provides natural gas gathering, treating and processing services and crude gathering and storage services in the Permian Basin, including about 480 miles of natural gas pipelines, 180 million cu. ft. per day of cryogenic natural gas processing and sour treating capacity, carbon capture (CCUS) activities generating 45Q tax credits and a small crude oil gathering system. Stakeholder’s assets are anchored by long-term, fee-based contracts across about 170,000 acres underpinned by attractive acreage with activity that has exhibited low decline rates, supporting a durable volume profile, according to Targa. Additionally, Stakeholder’s sour gas treating and CCUS activities complement Targa’s treating and CCUS footprint in the Permian.

Targa expects Stakeholder to generate unlevered adjusted free cash flow of about $200 million annually with minimal capital needs, low integration costs and attractive acreage with a stable volume profile.

“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,” says Matt Meloy, CEO of Targa. “We believe this transaction is a continuation of our strategy of identifying opportunities to create shareholder value with balance sheet strength.

“We are very familiar with the acquired assets and have strong relationships with some of the largest producers on the system,” he adds. “Targa’s organic growth opportunity set coupled with this accretive bolt-on transaction positions us well to enhance our already-strong growth profile.”

Completion of the transaction is subject to customary closing conditions, including regulatory approvals. It is expected to close in the first quarter of 2026.

RBC Capital Markets is serving as Targa’s financial adviser, and Latham & Watkins is acting as its legal counsel on the transaction.

Targa Resources is a provider of midstream services and is one of the largest independent infrastructure companies in North America. The company owns, operates, acquires and develops a portfolio of domestic infrastructure assets, which connect natural gas and natural gas liquids to domestic and international markets.

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