Targa to acquire Blackstone’s 25% interest in Grand Prix for $1.05B

Targa Resources Corp. (TRGP) announced a definitive agreement to acquire Blackstone Energy Partners’ (BX) 25 percent interest in Targa’s Grand Prix NGL Pipeline for $1.05B in cash plus customary working capital adjustments. Targa will own 100 percent of Grand Prix upon closing. Grand Prix has capacity to transport up to one million barrels per day of natural gas liquids to the NGL market hub at Mont Belvieu, Texas. Grand Prix connects Targa’s gathering and processing positions throughout the Permian Basin, North Texas, and Southern Oklahoma to Targa’s fractionation and storage complex at Mont Belvieu. The acquisition price represents approximately 8.75 times Grand Prix’s estimated 2023 adjusted EBITDA multiple and allows Targa to further benefit by now owning 100 percent of the recently announced Daytona Pipeline expansion of Grand Prix. The acquisition is expected to close in the first quarter of 2023 with an effective date of January 1, 2023.