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Natural gas pipeline operator Targa Resources Corp. reached a deal to buy smaller rival Stakeholder Midstream for $1.25 billion in cash.
The move expands Houston-based Targa’s ability to ship and store oil and gas in the Permian Basin, according to a statement Monday. The region has long been short on gas pipeline capacity, often forcing sellers to pay customers to take the fuel off their hands.
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Buying San Antonio, Texas-based Stakeholder will give Targa about 480 miles of gas pipelines, 180 million cubic feet per day of cryogenic gas processing and sour treating capacity, carbon capture infrastructure and a small crude oil gathering system, according to the statement. The assets are backed by long-term contracts across about 170,000 acres.
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The deal is expected to close in the first quarter of 2026. Targa plans to fund the acquisition with cash on hand and a $3.5 billion revolving credit facility.
RBC Capital Markets was Targa’s financial adviser on the deal, and Latham & Watkins was its legal adviser.
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