The natural gas gathering and processing business is located in West Texas and New Mexico. Total value of the transaction is approximately $230m.
The Versado System consists of the Saunders, Eunice and Monument gas processing plants and related gathering systems with aggregate refrigerated cryogenic processing capacity of 280mmcf per day (176mmcf per day net to Targa Resources Partners’ interest upon closing). The gathering systems consist of approximately 3,100 miles of natural gas gathering pipelines.
Targa Resources Partners expects to finance the acquisition over time through a combination of debt and equity as market conditions permit, consistent with its stated capital management strategy. The transaction is anticipated to close in the third quarter of this year.
Targa Resources Partners was formed by Targa Resources Inc to engage in the business of gathering, compressing, treating, processing and selling natural gas and fractionating, treating and selling natural gas liquids and natural gas liquids products.
