Targa Resources Grows Delaware Basin Holdings with $3.5 Billion Purchase

Targa Resources Corporation?(NYSE:TRGP) (Houston, Texas) will substantially increase its Delaware Basin presence in eastern New Mexico with its purchase of?Lucid Energy Group LLC?(Dallas, Texas).

Industrial Info is tracking 25 projects, worth $807 million, by Targa. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production and Terminals project databases can?click here?for related project reports.

Industrial Info also is tracking 10 Lucid Energy projects, worth $1.07 billion. Subscribers can?click here?for the related project reports.

The acquisition includes natural gas gathering, treating, and processing services in the Delaware Basin, including about 1,050 miles of natural gas pipelines and 1.4 billion cubic feet per day (Bcf/d) of cryogenic natural gas-processing capacity in service or under construction. This is located primarily in Eddy and Lea counties of New Mexico.

"Lucid's Delaware Basin footprint overlays some of the most economic crude oil and natural gas producing acreage in North America. Current rig activity supports over 20 years of drilling inventory on Lucid's greater than 600,000 dedicated acres, which are further supplemented by significant volumes subject to minimum volume commitments," Targa said last week in its announcement.

Targa is acquiring Lucid from?Riverstone Holdings LLC?(New York, New York) and?Goldman Sachs Asset Management?(New York) for $3.55 billion in cash.

In making the announcement, Targa Chief Executive Officer Matt Meloy noted a boost in the company's expected earnings for the year.

Targa increased its guidance on its full-year 2022 earnings before interest, taxes, depreciation and amortization (EBITDA) to a range of $2.675 billion to $2.77 billion, up from its previous guidance of $2.3 billion to $2.5 billion. The jump comes amid higher energy commodity prices.

Among the Targa projects being tracked by Industrial Info are:

• Cedar Bayou Fractionator Train No. 9?in Mont Belvieu, Texas. The new train will be able to produce 120,000 barrels per day (BBL/d) of high-purity butane, propane, and ethane. Construction kickoff is planned for third-quarter 2023, with completion in fourth-quarter 2024. Subscribers can?click here?for the project report.
• Peregrine Natural Gas Processing Plant Train II Addition?near Orla, Texas. Preliminary design work continues for the 200 million-standard-cubic-foot-per-day train, with a kickoff planned for the end of 2022 and completion in second-quarter 2023;?click here?for more details.
• Falcon Natural Gas Processing Plant Train II Addition?near Orla. The cryogenic processing train will have a capacity of 200 million standard cubic feet per day. Kickoff is planned for fourth-quarter 2022, with completion in second-quarter 2023;?click here?for more project details.

Among the Lucid Energy projects being tracked by Industrial Info are:

• Roadrunner Cryogenic Natural Gas Processing Plant Train II Addition?near Loving, New Mexico. Now in the late engineering stage, the train addition would process between 200 million and 230 million standard cubic feet per day to produce natural gas liquids. Kickoff is planned for fourth-quarter 2022, with completion in second-quarter 2023. Train III and IV additions also are in the works. Subscribers can?click here?for the Train II project report.
• Avalon/Bone Spring Grassroot 3rd Gas Processing Plant?southwest of Jal, New Mexico. Now under preliminary design, the plant would have an initial capacity of 200 million standard cubic feet per day. Kickoff is targeted for third-quarter 2022, with completion in first-quarter 2023:?click here?for the project report.
• Red Hills CO2 Carbon Capture And Sequestration (CCS) Storage Addition?near Jal, New Mexico. This project involves installation of an injection well to inject and permanently store 13 million standard cubic feet per day at the existing Red Hills Cryogenic Natural Gas Processing Plant. Kickoff is planned for third-quarter 2022, with completion in fourth-quarter 2022;?click here?for more details.

Subscribers can?click here?for all project reports cited in this article and?click here?for all related plant profiles.

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