Houston-based Targa Resources said Monday a subsidiary will acquire Stakeholder Midstream for $1.25 billion cash. San Antonio-based Stakeholder provides natural gas gathering, treating and processing services and crude oil gathering and storage services on 170,000 dedicated acres Permian Basin. The assets include 480 miles of natural gas pipelines, 180 million cfd of cryogenic natural gas processing and sour treating capacity, carbon capture activities, and a small crude oil gathering system.
Matt Meloy, CEO of Targa, said, “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… We are very familiar with the acquired assets and have strong relationships with some of the largest producers on the system.”
Closing is expected in 2026 first quarter.