Targa Resources To Acquire Lucid Energy Delaware For $3.55 Bln In Cash

(RTTNews) - Targa Resources Corp. (TRGP) agreed to acquire Lucid Energy Delaware, LLC from Riverstone Holdings LLC and Goldman Sachs Asset Management for $3.55 billion in cash.

Lucid provides natural gas gathering, treating, and processing services in the Delaware Basin, including approximately 1,050 miles of natural gas pipelines and approximately 1.4 billion cubic feet per day of cryogenic natural gas processing capacity in service or under construction located primarily in Eddy and Lea counties of New Mexico.

Targa expects the acquisition to be immediately accretive to distributable cash flow per share. The transaction is expected to close in the third quarter of 2022.

Targa said it has available liquidity, including cash on hand, its existing $2.75 billion revolving credit facility, and committed debt financing to fund the acquisition.

Targa now estimates standalone 2022 adjusted EBITDA to be between $2.675 billion and $2.775 billion and year-end leverage ratio of about 2.7 times.