Targa Resources to Buy Out Stonepeak's Stake for $1B
Ticker: TRGP · Form: 8-K · Filed: Aug 7, 2024 · CIK: 1389170
| Field | Detail |
|---|---|
| Company | Targa Resources Corp. (TRGP) |
| Form Type | 8-K |
| Filed Date | Aug 7, 2024 |
| Risk Level | medium |
| Pages | 4 |
| Reading Time | 5 min |
| Key Dollar Amounts | $1.0 billion, $500.0 million, $1.5 billion |
| Sentiment | neutral |
Sentiment: neutral
Topics: acquisition, joint-venture-buyout, energy-midstream
Related Tickers: TRGP
TL;DR
Targa buying out Stonepeak's 25% stake in Targa Pipeline for $1B, expected Q4 close.
AI Summary
Targa Resources Corp. announced on August 6, 2024, that it has entered into a definitive agreement to acquire the remaining 25% equity interest in Targa Pipeline Co. LLC from an affiliate of Stonepeak. The transaction is valued at approximately $1.0 billion and is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
Why It Matters
This acquisition will result in Targa Resources fully owning Targa Pipeline Co. LLC, simplifying its capital structure and potentially enhancing its financial flexibility.
Risk Assessment
Risk Level: medium — The acquisition is subject to customary closing conditions and regulatory approvals, which could delay or prevent its completion.
Key Numbers
- $1.0B — Acquisition Value (Targa Resources is acquiring the remaining 25% equity interest in Targa Pipeline Co. LLC for this amount.)
- 25% — Equity Interest Acquired (This is the percentage of Targa Pipeline Co. LLC that Targa Resources is acquiring.)
Key Players & Entities
- Targa Resources Corp. (company) — Acquiring entity
- Stonepeak (company) — Seller of equity interest
- Targa Pipeline Co. LLC (company) — Target of acquisition
- $1.0 billion (dollar_amount) — Acquisition value
- August 6, 2024 (date) — Announcement date
- fourth quarter of 2024 (date) — Expected closing period
FAQ
What is the specific name of the affiliate of Stonepeak selling its interest?
The filing states it is 'an affiliate of Stonepeak' but does not provide a specific name for the affiliate.
What are the 'customary closing conditions' for this transaction?
The filing does not detail the specific customary closing conditions, but these typically include regulatory approvals and absence of material adverse changes.
Will this acquisition impact Targa Resources' dividend policy?
The filing does not mention any impact on the company's dividend policy.
What is the current ownership structure of Targa Pipeline Co. LLC before this transaction?
Before this transaction, Targa Resources Corp. owned 75% of Targa Pipeline Co. LLC, and an affiliate of Stonepeak owned the remaining 25%.
Are there any financing arrangements disclosed for this $1.0 billion acquisition?
The filing does not specify the financing arrangements for the acquisition.
Filing Stats: 1,144 words · 5 min read · ~4 pages · Grade level 11.6 · Accepted 2024-08-07 16:39:32
Key Financial Figures
- $1.0 billion — reed to issue and sell (the "Offering") $1.0 billion in aggregate principal amount of the Co
- $500.0 million — ch were incurred to repay the remaining $500.0 million outstanding under its prior $1.5 billio
- $1.5 billion — 0.0 million outstanding under its prior $1.5 billion unsecured term loan facility due July 2
Filing Documents
- d909594d8k.htm (8-K) — 30KB
- d909594dex11.htm (EX-1.1) — 237KB
- d909594dex991.htm (EX-99.1) — 10KB
- g909594dsp_55.jpg (GRAPHIC) — 3KB
- 0001193125-24-195966.txt ( ) — 460KB
- trgp-20240806.xsd (EX-101.SCH) — 3KB
- trgp-20240806_lab.xml (EX-101.LAB) — 18KB
- trgp-20240806_pre.xml (EX-101.PRE) — 11KB
- d909594d8k_htm.xml (XML) — 4KB
Financial Statements and Exhibits
Financial Statements and Exhibits. 1.1 Underwriting Agreement, dated August 6, 2024, by and among Targa Resources Corp., certain subsidiary guarantors named therein and Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC as representatives of the several underwriters named therein. 99.1 Press Release, dated August 6, 2024, announcing the pricing of the Offering. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). 3
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TARGA RESOURCES CORP. Dated: August 7, 2024 By: /s/ Jennifer R. Kneale Jennifer R. Kneale President – Finance and Administration 4