Targa Resources has agreed to acquire midstream company Lucid Energy Delaware from Riverstone and Goldman Sachs Asset Management in an all-cash deal worth $3.55 billion. Targa Resources and Permian Basin gas processor Lucid Energy Group have announced a definitive agreement.

Lucid Energy operates in the Delaware Basin and provides natural gas gathering, processing and processing services. These include nearly 1,689 kilometers of natural gas pipelines and about 1.4 billion cubic feet of low-temperature natural gas processing capacity per day. The company's midstream assets are primarily located in Eddie and Lia counties in New Mexico. The vast majority of the assets are said to have been constructed within the past five years.

Lucid Energy CEO Mike Latchem said, "Over the past few years, Lucid has firmly established itself as a leading Delaware Basin with a talented team, proven operations and infrastructure, and strong customer partnerships. The status of midstream processors. I am incredibly proud of what we have accomplished as today's transaction is a testament to the commitment and expertise of our team members and our strategy to grow our business for the benefit of all our stakeholders.

For Targa Resources, the acquisition adds a complementary and highly strategic collection and processing system in the Delaware Basin. The deal also expands the size and scale of the listed midstream infrastructure company in the resources sector. Matt Meloy, CEO of Targa Resources, said: "Lucid's management team has established an attractive position in the Delaware Basin and we look forward to continuing to provide value-added services to our producer customers.

This is an exciting acquisition that aligns with our integrated strategy as we expand and diversify our Permian Basin footprint, while Lucid complements its presence with an attractive investment multiple, which we expect to further strengthen shareholders value creation and continue to drive more transaction volume downstream through Targa. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in the third quarter of 2022. Keywords: engineering construction, engineering news

Earlier in 2022, Targa Resources signed an agreement to sell its 25% stake in the Gulf Coast Express pipeline for $857 million.Editor/XingWentao