Targa Resources has moved to strengthen its position in the Permian Basin. The company will acquire Stakeholder Midstream in a 1.25 billion dollar cash deal. The Permian is the most productive oil and gas region in the United States. It sits across Texas and New Mexico. The area has vast reserves. It also has steady activity from drillers. Midstream companies sit between producers and customers. They gather, treat and move oil and gas through pipelines. This deal helps Targa expand that role.
Stakeholder Midstream brings a wide set of assets. It runs about 480 miles of natural gas pipelines. It operates cryogenic plants. These plants cool natural gas to separate liquids from the gas stream. It offers sour gas treating. Sour gas contains hydrogen sulphide. It must be treated before it can be sold. Removing the sulphur protects workers and equipment. Stakeholder also works on carbon capture and storage. This process stores carbon dioxide underground. It helps cut emissions. The US government offers tax credits for this under a rule known as 45Q.
These activities sit within long-term contracts that cover roughly 170,000 acres. This means the company has guaranteed volumes from producers in that area. Low decline rates support stable gas flows. Low decline means wells keep producing for a long time before output drops. Targa says this creates a dependable volume profile.
