Stonepeaka and Targa Reportedly Exploring A Sale of Stake in the Gulf Coast Express
November 15, 2021 at 10:23 am EST
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Stonepeak Partners LP and pipeline operator Targa Resources Corp. (NYSE:TRGP) are exploring a sale of their 25% stake in the Gulf Coast Express Pipeline LLC natural gas pipeline for more than $750 million, people familiar with the matter said on November 15, 2021. Stonepeak and Targa Resources have hired an investment bank to sell Targa GCX Pipeline LLC, the company that owns the stake in the Gulf Coast Express Pipeline LLC, the sources said. Stonepeak owns 80% of Targa GCX Pipeline and Targa Resources owns the remainder. The sources cautioned that no deal is certain and asked not to be identified because the matter is confidential. Stonepeak declined to comment, Targa did not respond to a comment request.
Targa Resources Corp. is a provider of midstream services in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic midstream infrastructure assets and delivers energy across the United States. The Company is engaged in the business of gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling natural gas liquids (NGLs) and NGL products, including services to liquefied petroleum gas (LPG) exporters; and gathering, storing, terminaling, and purchasing and selling crude oil. Its segments are Gathering and Processing, and Logistics and Transportation. Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells. Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products.