TRGP · 10-Q · 2026Q2 · Full report
Permian Asset Acquisition
Targa Resources Corp. · 2026-08-06 · Importance 59 · Surprise 60 · In source text
Targa completed the $1.25 billion Stakeholder Midstream acquisition in January 2026 and integrated its Permian Basin infrastructure into the Permian Delaware operations. The acquired portfolio includes natural-gas pipelines, cryogenic processing and sour-treating capacity, carbon-capture activities generating 45Q tax credits, and a crude-oil gathering system. Stakeholder contributed $125.4 million of revenue and $22.5 million of net income in the first six months of 2026, and Targa incurred $8.9 million of acquisition-related costs. The transaction was funded with $650.0 million of commercial-paper borrowings and $600.0 million from the securitization facility, while preliminary acquired property, plant and equipment and customer-relationship intangibles were valued at $590.3 million and $659.0 million, respectively.
Key facts
- Completed acquisition of all membership interests in Stakeholder Midstream, LLC for $1.25 billion in cash in January 2026 with effective date January 1, 2026. source
- We used $650.0 million in borrowings from our Commercial Paper Program and $600.0 million from our Securitization Facility to fund the Stakeholder Acquisition source
- Stakeholder Acquisition preliminary purchase price allocation included intangible assets (customer relationships) of $659.0 million and property, plant and equipment, net of $590.3 million; purchase price $1,291.2 million source
- Copperhead plant (275 MMcf/d) in Permian Delaware is expected to begin operations in the first quarter of 2027. source
- Yeti plant (275 MMcf/d) in Permian Delaware is expected to begin operations in the third quarter of 2027. source
- Yeti II plant (275 MMcf/d) in Permian Delaware is expected to begin operations in the fourth quarter of 2027. source
- Roadrunner III plant (265 MMcf/d) in Permian Delaware is expected to begin operations in the first quarter of 2028. source
- Copperhead II plant (275 MMcf/d) in Permian Delaware is expected to begin operations in the first quarter of 2028. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -4.4% | Completed acquisition of all membership interests in Stakeholder Midstream, LLC for $1.25 billion in cash in January 2026 with effective… |
| liability | negative | realized | -4.4% | We used $650.0 million in borrowings from our Commercial Paper Program and $600.0 million from our Securitization Facility to fund the… |
| assets | positive | realized | +2.3% | Stakeholder Acquisition preliminary purchase price allocation included intangible assets (customer relationships) of $659.0 million and… |
| assets | positive | realized | +2.1% | Stakeholder Acquisition preliminary purchase price allocation included intangible assets (customer relationships) of $659.0 million and… |
| cash | negative | realized | -0.4% | Dovetail Acquisition completed December 2025 for aggregate cash consideration of approximately $122.8 million, with contingent additional… |
| assets | positive | realized | +0.4% | Dovetail Acquisition completed December 2025 for aggregate cash consideration of approximately $122.8 million, with contingent additional… |
| liability | negative | contingent | -0.0% | Dovetail Acquisition completed December 2025 for aggregate cash consideration of approximately $122.8 million, with contingent additional… |
| revenue | positive | probable | — | Copperhead plant (275 MMcf/d) in Permian Delaware is expected to begin operations in the first quarter of 2027. |
| revenue | positive | probable | — | Yeti plant (275 MMcf/d) in Permian Delaware is expected to begin operations in the third quarter of 2027. |
| revenue | positive | probable | — | Yeti II plant (275 MMcf/d) in Permian Delaware is expected to begin operations in the fourth quarter of 2027. |
| revenue | positive | probable | — | Roadrunner III plant (265 MMcf/d) in Permian Delaware is expected to begin operations in the first quarter of 2028. |
| revenue | positive | probable | — | Copperhead II plant (275 MMcf/d) in Permian Delaware is expected to begin operations in the first quarter of 2028. |