Targa Resources has reached a definitive agreement to acquire Stakeholder Midstream for $1.25 billion, adding a concentrated natural gas and crude gathering network across the San Andres region of West Texas and southeastern New Mexico. The bolt-on acquisition includes gas processing plants, sour-gas treating facilities, crude gathering assets, and more than 900 miles of pipelines—complementing Targa’s broader expansion strategy in the Permian Basin.
The asset package is anchored by long-term, fee-based contracts across roughly 170,000 dedicated acres with low decline rates. Stakeholder also operates CCUS-aligned sour gas treating systems generating 45Q tax credits, adding regulatory and commercial upside to the deal.
Why It Matters
· Strengthening Permian scale
Stakeholder’s network enhances Targa’s position in the western Permian, adding high-deliverability volumes and new inlet points for Targa’s growing NGL and gas-handling systems.
· Immediate integration with low capital needs
The system requires minimal sustaining capex and is expected to produce approximately $200 million in unlevered free cash flow annually, supporting Targa’s margin and throughput profile.
· Sour-gas and CCUS capability
Stakeholder’s cryogenic and sour-gas treating plants provide Targa with additional H₂S-handling capacity in a region experiencing growing sour-gas development.
· Stable, long-term commercial foundation
Dedicated acreage under long-duration, fee-based agreements provides predictable volumes and enhances Targa’s basin-wide utilization.
What the Map Shows
The DataLink map displays Stakeholder Midstream’s full gas and crude network integrating into Targa’s Permian system:
· Gas Processing Plants – 4 total (3 operational, 1 under development), cryogenic + sour-gas treating (gold stars)
· Crude Oil Liquid Terminal – San Andres – 30,000 bbl operational storage (blue triangle)
· Pipeline Network – 803 miles of natural gas pipelines (red) and 192 miles of crude pipelines (green) across the San Andres fairway
Together, the layers show a consolidated midstream corridor linking producers, treating capacity, and gathering routes within Targa’s expanding Permian footprint.
A Deeper Dive with DataLink
· Filter natural gas and crude pipelines to compare gathering density around San Andres producers.
· Analyze sour-gas corridors and processing plant locations to identify where treating capacity aligns with high-H₂S development areas.
· Overlay CCUS-related acreage and infrastructure to evaluate carbon-handling potential.
· Assess which producing blocks or operators benefit most from new gathering and processing optionality.
Review pipeline connectivity to understand integration opportunities with Targa’s existing Permian network.
