Targa Finds its Target

Targa Finds its Target

Back in November, Houston-based midstreamer Targa Resources announced it had nearly tripled its 3Q net income to $182.2 million This, from $69.3 million in the same three-month period in 2020. Targa, one of the largest independent infrastructure companies in North America, operates expansive assets across the U.S., where it gathers, processes, transports, connects, and stores natural gas, NGLs, and crude oil. Not surprisingly, many of its assets are co-owned through joint ventures. Reese Energy Consulting today is following the latest news from Targa, which reiterated in its latest 3Q earnings report that it will buy back its interest in three JV assets from investment firm Stonepeak for $925 million. They include:

  • A 20% interest in the 220-mile Grand Prix NGL Pipeline, now being expanded into Okla, and potentially N.M., which connects to Mount Belvieu and export assets
  • A 25% interest in the 497-mile natural gas Gulf Coast Express Pipeline,
  • A 100% interest in the Train 6 (its second) fractionator in Mount Belvieu

The deal closes tomorrow.

What do you think? Learn more about REC and our natural gas expertise at www.ReeseEnergyConsulting.com.

Targa Resources

Targa Resources is a Fortune 500 company based in Houston, Texas. Targa, a midstream energy infrastructure corporation, is one of the largest infrastructure companies delivering natural gas and natural gas liquids in the United States.

www.targaresources.com

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Haynesville Players Club

Haynesville Players Club

If you’re in the market for assets in the gas-rich Haynesville and have a few billion bucks to spare, you might want to drop a line to Dallas-based Atheon Energy. And while you’re at it, better check under the sofa cushions for a few billion more. Reese Energy Consulting today is following reports citing anonymous sources (code term for PR folks) that energy investment firm Atheon has enlisted bankers to scope out potential buyers for its Haynesville position in La. The company also operates in the East Texas Haynesville but apparently that’s not part of the sales package valued at more than $6 billion. Atheon’s website doesn’t disclose the size of its Haynesville presence, but our intrepid researcher dusted off a press release from 2018 that announced Atheon’s acquisition of QEP’s La., gas assets for $735 million. That deal included 49,700 net acres, 607 wells, and gas gathering and treating systems to support up to 600 MMCFD. The purchase gave Atheon a total Haynesville position of 455,000+ net acres and 650 MMCFD. Will the ultimate buyer be the play’s largest producer? Will Atheon ultimately sell? These questions and more are what get us up in the morning.

What do you think? Learn more about REC and our natural gas marketing expertise at www.ReeseEnergyConsulting.com.

Atheon Energy Management

Aethon Energy Management is a Dallas, Texas based private investment firm focused on direct investments in North American onshore upstream oil & gas assets

www.aethonenergy.com

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