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
Which Haynesville E&Ps Might Bid for Tellurian’s Upstream Assets?
2024-02-12 - As Haynesville E&Ps look to add scale and get ahead of growing LNG export capacity, Tellurian’s Louisiana assets are expected to fetch strong competition, according to Energy Advisors Group.
From Tokyo Gas to Chesapeake: The Slow-burning Fuse that Lit Haynesville M&A
2024-03-01 - TG Natural Resources rides the LNG wave with Rockcliff deal amid shale consolidation boom.
Exclusive: Is TG Natural Resources Looking to Snap Up More?
2024-03-27 - At Hart Energy's DUG Gas+ Conference and Expo in Shreveport, Louisiana, TG Natural Resources' President and CEO Craig Jarchow said the integration of the Rockcliff Energy acquisition is well underway and that "being acquisitive is certainly" in the company's future.
An Untapped Haynesville Block: Chevron Asset Attracts High Interest
2024-04-03 - Chevron’s 72,000-net-acre property in Panola County, Texas is lightly developed for the underlying Haynesville formation — and the supermajor may cut it loose.
Exclusive: Frank Tsuru Reflects on Indigo's History, Impact in the Haynesville
2024-04-11 - Frank Tsuru, president and CEO of Momentum Midstream and former CEO of Indigo Natural Resources, looks back at the early stages of Haynesville development and the Indigo-Southwestern deal, in this Hart Energy Exclusive interview.