Overview
- Stakeholder adds roughly 480 miles of gas pipelines, about 180 MMcf/d of cryogenic processing and sour treating, CCUS activities that generate 45Q tax credits, and a small crude gathering system.
- The acquired system is anchored by long-term, fee-based contracts across approximately 170,000 dedicated acres with a stable volume profile.
- Targa values the purchase at about six times 2026 estimated unlevered adjusted free cash flow and projects roughly $200 million in annual unlevered adjusted free cash flow with minimal capital needs.
- Funding will come from cash on hand and Targa’s $3.5 billion revolving credit facility, with the company expecting limited impact to its leverage and to remain within its 3.0–4.0x target range.
- Coverage places the move within a broader southern U.S. pipeline buildout tied to LNG expansion and rising natural gas demand from power-hungry AI and data centers.