Targa Resources Acquires Stakeholder Midstream, a Permian Basin Gas Gathering Company, for $1.25 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 01 2025
0mins
Should l Buy TRGP?
Source: SeekingAlpha
Acquisition Details: Targa Resources has agreed to acquire Stakeholder Midstream for $1.25 billion in cash, which includes natural gas gathering, treating, processing, and crude gathering services in the Permian Basin.
Asset Overview: Stakeholder's assets feature approximately 480 miles of natural gas pipelines, significant processing capacity, and carbon capture activities, supported by long-term contracts across 170,000 acres with low decline rates.
Financial Expectations: Targa anticipates that the acquisition will generate around $200 million per year in unlevered adjusted free cash flow with minimal capital requirements and low integration costs.
CEO's Perspective: Targa's CEO, Matt Meloy, described the acquisition as a valuable addition that offers meaningful free cash flow and a stable volume profile at an attractive valuation.
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Analyst Views on TRGP
Wall Street analysts forecast TRGP stock price to fall
8 Analyst Rating
8 Buy
0 Hold
0 Sell
Strong Buy
Current: 218.260
Low
188.00
Averages
214.75
High
266.00
Current: 218.260
Low
188.00
Averages
214.75
High
266.00
About TRGP
Targa Resources Corp. is a provider of midstream services in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic midstream infrastructure assets and delivers energy across the United States. The Company is engaged in the business of gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling natural gas liquids (NGLs) and NGL products, including services to liquefied petroleum gas (LPG) exporters; and gathering, storing, terminaling, and purchasing and selling crude oil. Its segments are Gathering and Processing, and Logistics and Transportation. Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells. Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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