Targa Resources has completed its previously announced $1.6bn sale of its midstream assets in North Dakota to funds managed by GSO Capital Partners and Blackstone Tactical Opportunities (together called Blackstone).
Image: Targa Resources wraps up sale of Badlands assets to Blackstone. Photo: courtesy of outgunned21/Freeimages.com.
The North Dakota midstream assets that were offloaded by Targa Resources were owned by its subsidiary Targa Badlands (Badlands). The assets include around 772km of crude oil gathering pipelines, nearly 418.4km of natural gas gathering pipelines, 125,000 barrels of operational crude oil storage, and also the Little Missouri natural gas processing plant.
The Little Missouri gas processing facility has a gross processing capacity of approximately 90 million cubic feet per day (MMcf/d).
Badlands also held a 50% stake in the 200 MMcf/d Little Missouri 4 (LM4) Plant, which is slated to be ready in the second quarter of 2019.
All the assets and operations of Badlands that are part of the deal with Blackstone are pertained to the Bakken and Three Forks Shale plays of the Williston Basin. The midstream assets were acquired in December 2012 by Targa Resources Partners from Saddle Butte Pipeline in a $950m deal and were renamed as Targa Badlands.
In 2015, Targa Resources made a deal worth about $6.7bn to acquire 100% ownership in Targa Resources Partners.
Targa Resources, which signed the deal with Blackstone in February 2019, is planning to use the net cash proceeds from the sale of the Badlands midstream assets to reduce its debt and for general corporate purposes like funding its growth capital program.
The midstream services provider owns, operates, acquires, and develop a portfolio of complementary midstream energy assets. The company is mainly involved in gathering, compressing, treating, processing, and selling natural gas.
Targa Resources is also into storing, fractionating, treating, transporting, and selling natural gas liquids (NGLs) and NGL products and others.
In September 2018, the company signed a deal to divest its refined products and crude oil storage and terminaling facilities located in Tacoma in Washington and Baltimore in Maryland to an affiliate of ArcLight Capital Partners for about $160m.
Last August, the company alongside NextEra Energy Resources, WhiteWater Midstream and MPLX LP signed agreements to jointly develop the Whistler Pipeline Project, a natural gas pipeline to be laid from the Permian Basin to the Texas Gulf Coast.