Summary
Targa Resources Corp. (TRGP) announced the completion of its acquisition of Lucid Energy Group II Holdings, LLC, a significant player in the Delaware Basin's natural gas gathering, treating, and processing sector. The acquisition, effective August 1, 2022, involved the purchase of Lucid's assets for approximately $3.55 billion in cash. This strategic move substantially expands Targa's footprint in a key growth region, adding 1,050 miles of natural gas pipelines and approximately 1.4 billion cubic feet per day of processing capacity. The financing for this substantial acquisition was secured through a combination of debt facilities, including $1.5 billion from a 3-year term loan, $1.25 billion from a recent senior notes offering, and $800 million drawn from its revolving credit facility. This 8-K filing confirms the closing of the transaction, although detailed financial statements and pro forma information for the acquired business will be provided in a subsequent amendment.
Key Highlights
- 1Targa Resources Corp. has successfully completed the acquisition of Lucid Energy Group II Holdings, LLC.
- 2The acquisition significantly enhances Targa's presence in the Delaware Basin, adding substantial natural gas gathering, treating, and processing infrastructure.
- 3Lucid's assets include 1,050 miles of natural gas pipelines and approximately 1.4 billion cubic feet per day of processing capacity.
- 4The total purchase price for the acquisition was approximately $3.55 billion in cash.
- 5The acquisition was financed through a combination of term loans, senior notes, and revolving credit facilities.
- 6The transaction became effective for accounting purposes and purchase price adjustments on August 1, 2022.
- 7Detailed financial statements and pro forma information for Lucid will be filed in an amendment to this 8-K.