Targa To Acquire Membership Interests Of Outrigger Delaware & Outrigger Midland

(RTTNews) - Targa Resources Corp. (TRGP) announced an agreement for its subsidiary, Targa Resources Partners LP, to acquire 100% of the membership interests of Outrigger Delaware Operating, LLC, Outrigger Southern Delaware Operating, LLC and Outrigger Midland Operating, LLC. The company will pay initial cash consideration of $565 million. The total potential consideration that could be paid to sellers is up to a maximum of $1.5 billion, which includes the initial consideration.

Joe Bob Perkins, CEO, stated: "As structured, this transaction is accretive in 2017, and we believe that the earn-out structure de-risks the overall transaction profile and aligns us with the continued success of the acquired assets."

The Outrigger Delaware gas gathering and processing and crude gathering assets are located in Loving, Winkler and Ward counties. The Outrigger Midland gas gathering and processing and crude gathering assets are located in Howard, Martin and Borden counties.