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Blackstone sells pipeline stake to Targa for $1.05bn

Blackstone Energy Partners is selling its 25% stake in Grand Prix NGL Pipeline to Targa Resources Corp for $1.05 billion in cash plus customary working capital adjustments. On closing, Targa will own 100% of Grand Prix.

Blackstone Energy Partners (Blackstone) is selling its 25% stake in Grand Prix NGL Pipeline (Grand Prix) to Targa Resources Corp (Targa) for $1.05 billion in cash plus customary working capital adjustments. On closing, Targa will own 100% of Grand Prix.

The acquisition price represents approximately 8.75 times Grand Prix’s estimated 2023 adjusted EBITDA multiple.

Grand Prix which has the capacity to transport up to one million barrels per day of natural gas liquids (NGL), connects Targa’s gathering and processing positions throughout the Permian Basin, North Texas, and Southern Oklahoma (as well as third-party positions) to Targa’s fractionation and storage complex at Mont Belvieu in Texas. 

The acquisition is expected to close in the first quarter of 2023.

Truist Securities, Inc is serving as Targa’s financial advisor and Vinson & Elkins LLP is acting as Targa’s legal counsel on the transaction.
 

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