Houston-Based Targa Resources Acquiring Permian Basin Assets for $565 Million

HOUSTON, TX -- One of the largest energy companies in Houston has announced plans to acquire significant pipeline assets in Midlands Permian Basin.

Targa Resources Inc., has announced plans to buy Denver-based Outrigger Energy's assets in the region for $565 million, according to a report in the Houston Business Journal.

However, the agreed upon amount could increase to as much as $1.5 billion, which would be based on performance and would close before the end of the first quarter of 2017.

The acquisitions are located within the Delaware and Midland basins, within the Permian Basin main segments.

In recent weeks other Houston area companies have announced acquisition efforts in the Permian region.

On Jan. 16, Noble Energy announced it was buying Midland-based Clayton Williams Energy Inc. for $2.7 billion in cash and stocks, while Plains All American Pipeline LP is investing in its midstream footprint in the Permian Basin with an expansion of its 310-mile Cactus Pipeline.

Collectively, Targa Resources Inc. will gain about 250,000 acres within the Permian Basin that will provide an estimated 80 million feet of processing capacity for natural gas, and result in about 80,000 barrels of crude gathering capacity per day.

“The acquisition of the Outrigger Permian assets complements our existing gas gathering and processing footprint very nicely, while expanding our reach deeper into both the Delaware and Midland basins," Targa Resources CEO Joe Bob Perkins said in the release.

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