UPDATE 1-Targa Resources to acquire Stakeholder Midstream for $1.25 billion

Targa Resources Corp. -0.93%

Targa Resources Corp.

TRGP

237.68

-0.93%

Adds details from paragraph 2

Dec 1 (Reuters) - Pipeline operator Targa Resources TRGP.N said on Monday it will acquire Stakeholder Midstream for $1.25 billion in cash.

Stakeholder provides natural gas gathering, treating and processing services and crude gathering and storage services in the Permian Basin.

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

The U.S. LNG sector has been rapidly expanding after President Donald Trump lifted the moratorium on new export permits shortly after taking office in January.

The company expects to fund the acquisition with cash and its existing $3.5 billion revolving credit facility.

The transaction is expected to close in the first quarter of 2026.


(Reporting by Katha Kalia in Bengaluru; Editing by Shailesh Kuber and Shreya Biswas)

((Katha.Kalia@thomsonreuters.com;))

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