Targa Resources Acquires Stakeholder Midstream for $1.25 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 01 2025
0mins
Should l Buy TRGP?
Source: Newsfilter
- Acquisition Announcement: Targa Resources has announced a definitive agreement to acquire Stakeholder Midstream for $1.25 billion, which is expected to generate approximately $200 million in annual unlevered free cash flow, thereby enhancing its market position in the Permian Basin.
- Asset Integration: The acquisition includes around 480 miles of natural gas pipelines and a processing capacity of 180 million cubic feet per day, which will support sustainable business growth through stable long-term contracts, improving overall operational efficiency.
- Financial Impact: Targa anticipates limited impact on its leverage ratio from this transaction, maintaining its long-term target range of 3.0 to 4.0 times, demonstrating the company's strong financial position and liquidity.
- Strategic Alignment: This acquisition aligns with Targa's growth strategy, aiming to enhance its competitiveness in the energy market by integrating high-quality assets and strengthening customer relationships.
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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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