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01/18/2023
On January 3, Targa Resources Corp asserted that it is purchasing the remaining stake for $1.05 billion in cash from Blackstone Inc's energy unit in its Grand Prix NGL Pipeline that it does not already own.
Targa, which is going to acquire a 25% stake from Blackstone Energy Partners, purchased 75% interest in the pipeline last year when it repurchased interests in its development company joint ventures from investment firm Stonepeak Partners LP for almost $925 million.
The Stonepeak agreement also included 100% interest in its Train 6 fractionator in Mont Belvieu, Texas, and a 25% equity interest in the Gulf Coast Express Pipeline.
Grand Prix has the capacity to transfer up to 1 MMbbl/d of NGL to the NGL market hub at Mont Belvieu.
As Targa CEO Matt Meloy claimed, the performance of Grand Prix NGL Pipeline has exceeded anticipations since it began full operations in the third quarter of 2019, integrating the company's leading NGL supply aggregation position in the Permian Basin to key demand markets in Mont Belvieu and along the U.S. Gulf Coast.
The advantage of the pipeline is that it connects Targa's gathering and processing positions throughout the Permian Basin, North Texas, and Southern Oklahoma to Targa's fractionation and supply complex at Mont Belvieu.
The same day Targa maintained the price of the Blackstone Energy Partners agreement, which is anticipated closing in the first quarter of 2023, representing roughly 8.75 times Grand Prix's valued 2023 adjusted EBITDA multiple.
Targa Resources Corp is mainly engaged in the business of gathering, compressing, treating, processing, and selling natural gas; transporting, storing, fractionating, treating, and selling NGL and NGL products, including services to liquefied petroleum gas (LPG) exporters.
It has a leading position in Mont Belvieu, Texas the NGL hub of North America, as the company has one of the largest fractionation ownership positions in Mont Belvieu and world-class LPG export facilities on the Gulf Coast at its Galena Park Marine Terminal, which is interconnected to Mont Belvieu.
