Targa Resources Corp. is set to sell a 25% stake in a joint venture in its Grand Prix natural gas liquids pipeline to  Blackstone Energy Partners. Once completed, Grand Prix will be a new 300 thousand barrel per day common carrier NGL pipeline from the Permian Basin to Mont Belvieu, Texas, and with expansion capability to 550 thousand BPD.

Concurrent with the sale of the interest in Grand Prix to Blackstone, Targa and EagleClaw Midstream Ventures, LLC, a Blackstone portfolio company, executed a long-term Raw Product Purchase Agreement for transportation and fractionation services whereby EagleClaw has dedicated and committed significant NGLs associated with EagleClaw’s natural gas volumes produced or processed in the Delaware Basin. EagleClaw is the largest private natural gas gathering and processing company in the Delaware Basin based on almost 275,000 dedicated acres primarily in Reeves County.

Targa is expected to realise substantial net capital savings, plus other strategic and financial benefits, through the sale of the 25% interest in Grand Prix to Blackstone. Also, the addition of EagleClaw’s volumes for T&F services provides substantial incremental fee-based cash flow to Targa over the long-term. Targa continues to expect Grand Prix to be operational in the second quarter of 2019.

For more information visit www.targaresources.com

9th October 2017

9th October 2017