Natural gas pipeline company Targa Resources Corp. (NYSE: TRGP) said it would acquire the common units of its MLP, Targa Resources Partners LP (NYSE: NGLS), that it did not already own, in a deal that valued TRP at about $6.67 billion.
Targa, which has a stake of about 8.8% in the MLP, said on Nov. 3 it has offered 0.62 of its share for each Targa Resources Partners unit.
The offer values Targa Resources Partners at $36.09 per share, and represents a premium of 18.4% to the stock's closing price on Nov. 2, according to Reuters' calculations.
Houston-based Targa formed Targa Resources Partners in 2006 to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets.
Targa owns a 2% general partner interest (which the company holds through its 100% ownership interest in the general partner of the partnership), all of the outstanding IDRs and a portion of the outstanding limited partner interests in Targa Resources Partners.
Targa Resources Partners is a leading provider of midstream natural gas and NGL services in the U.S., according to the company's website. The company has assets in the Permian Basin, Barnett Shale, Bakken Shale, Eagle Ford Shale, Anadarko Basin, Arkoma Basin, onshore Louisiana and the Gulf of Mexico.
Evercore Partners is adviser to the Targa's board and Barclays is its financing adviser. Citigroup is financial adviser to the conflicts committee of Targa Resources Partners. Richards, Layton & Finger is legal counsel to the conflicts committee of Targa Resources Partners and Vinson & Elkins LLP is legal counsel to Targa.
Recommended Reading
Deep Well Services, CNX Launch JV AutoSep Technologies
2024-04-25 - AutoSep Technologies, a joint venture between Deep Well Services and CNX Resources, will provide automated conventional flowback operations to the oil and gas industry.
EQT Sees Clear Path to $5B in Potential Divestments
2024-04-24 - EQT Corp. executives said that an April deal with Equinor has been a catalyst for talks with potential buyers as the company looks to shed debt for its Equitrans Midstream acquisition.
Matador Hoards Dry Powder for Potential M&A, Adds Delaware Acreage
2024-04-24 - Delaware-focused E&P Matador Resources is growing oil production, expanding midstream capacity, keeping debt low and hunting for M&A opportunities.
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.
Ithaca Energy to Buy Eni's UK Assets in $938MM North Sea Deal
2024-04-23 - Eni, one of Italy's biggest energy companies, will transfer its U.K. business in exchange for 38.5% of Ithaca's share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5% of the combined group.