Targa Resources to Acquire Permian Gas Gathering, Processing Assets in $3.55 Billion Deal
6/16/2022
(Reuters) — Oil and gas infrastructure company Targa Resources on Thursday agreed to buy natural gas processor Lucid Energy Group from private equity firm Riverstone Holdings LLC and Goldman Sachs Asset Management for $3.55 billion in cash.
The deal comes at a time U.S. natural gas prices have more than doubled as Russia's invasion of Ukraine has roiled global supply that was already squeezed by post-pandemic demand.
Lucid provides natural gas gathering, treating and processing services in the Delaware Basin, including a portfolio of about 1,050 miles of natural gas pipelines.
Targa said the deal which is expected to close in the third quarter, will immediately add to distributable cash flow per share.
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Pipeline Project Spotlight
Owner:
Gaz-System, Energinet
Project:
Baltic Pipe
Type:
Baltic Pipe will transport Norwegian natural gas from the Norwegian North Sea via Denmark to Poland.
Length:
560 miles (900 km)
Capacity:
110 Bcf per annum
Start:
Q2 2020
Completion:
Q4 2022
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