Targa Expands Permian Footprint with Acquisition, New Pipeline

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Targa's latest acquisition bolsters its presence in the Permian Basin, which it expects to further develop with a pipeline that will carry product to the U.S. Gulf Coast.

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Permian Presence Powers Up

Targa Resources Corporation (Houston, Texas) recently closed its acquisition of Stakeholder Midstream LLC (San Antonio, Texas) for $1.25 billion, adding a tier to its already-significant presence in the Permian Basin. The deal also adds 480 miles to Targa's 31,200 miles of natural gas pipelines, as well as 180 million cubic feet to its 11.7 billion cubic feet per day of cryogenic natural gas processing and sour treating capacity. Industrial Info is tracking more than $7.5 billion worth of active and proposed projects from Targa, more than 80% of which are located in Texas.

"This acquisition is a nice bolt-on asset that has meaningful free cash flow, supported by a stable-to-modestly growing volume profile with minimal capital needs and executed at an attractive valuation," said Matt Meloy, the chief executive officer of Targa, in a press release announcing the acquisition. "We are very familiar with the acquired assets and have strong relationships with some of the largest producers on the [Stakeholder] system."

Industrial Info is tracking progress at six Stakeholder facilities, all located in either Denver City, Texas, or Plains, Texas, both of which are on the northern edge of the Permian Basin. The facilities include three compressor stations; two gas-processing plants; and a 30,000-barrel crude oil terminal. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Plant Database can learn more from a detailed list of plant profiles.

Targa's efforts to build out its own capacity in the Permian include a second train at its Falcon Gas-Processing Plant near Orla, which is expected to increase capacity from 410 million to 685 million standard cubic feet per day. Construction started in May 2025 and is set to wrap up this summer. Subscribers to Industrial Info's GMI Oil & Gas Plant and Project databases can learn more about the new processing train--including investment values, necessary equipment and key components--from a detailed plant profile and project report.

Two entirely new gas-processing plants from Targa are set to finish construction in the Permian later this year, each with a 275 million-standard-cubic-foot-per-day capacity: the East Pembrook Plant in Midkiff and the East Driver Plant in Midland. Unlike the Falcon addition, which faced years of setbacks, these two plants are set to finish construction ahead of schedule. Subscribers can read detailed reports on the East Pembrook and East Driver projects.

By the Numbers

• More than $7.5 billion: Total investment value of Targa projects tracked by Industrial Info
• 180 million cubic feet: Total capacity added to Targa's natural gas-pipeline system from its acquisition of Stakeholder Midstream
• 825 million standard cubic feet per day: Total capacity additions from Targa's three new gas-processing trains in the Permian

Connecting to the Coast

In response to rising demand for more transportation capacity out of the Permian, Targa is preparing to begin construction this spring on its Apex Pipeline from Midland County to Jefferson County, Texas. The system is designed to carry up to 2 billion cubic feet per day about 563 miles to downstream facilities on the Texas Gulf Coast. It will be supported by six compressor stations, each to be built along the same schedule.

Subscribers can learn more about the Apex Pipeline from a detailed project report and a detailed list of reports on the substations.

"We continue to expect meaningful long-term growth in Permian gas and [natural gas liquid] volumes across our footprint," Meloy said in Targa's most recent earnings-related conference call. "Our conviction is supported by multiple factors, including the bottom-up forecast from our existing producer customers, our continued commercial success, and the continued industry trend of rising gas-to-oil ratios."

Meloy also noted Targa's many projects in progress mean the company's growth-related capital expenditures are expected to be elevated for 2025 and 2026, with 2025's full-year total estimated at $3.55 billion.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for active and proposed projects from Targa.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Key Takeaways

• Targa's acquisition of Stakeholder Midstream will boost its presence in the Permian Basin substantially.
• The Apex Pipeline, set to begin construction this year, will connect the Permian region to the Gulf Coast.
• Targa estimates 2025's full-year growth-related capital expenditures will total $3.55 billion.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).