The deal with Atlas Pipeline Partners, L.P. (APL) will strengthen Targa Resources Partners LP’s (NGLS) position in the Permian Basin. The move will also broaden the company’s reach in the Eagle Ford Shale and Bakken Shale.
According to Targas’s management, “The acquisitions will significantly and immediately increase our scale and geographic diversity, accelerating the growth of our premier North American midstream platform. APL’s footprint solidifies the Partnership’s position as a leader in the Permian Basin, while adding top-tier assets in the Midcontinent and South Texas regions.”
Premier Permian footprint
Targa’s company presentation notes that pro forma NGLS will be the second-largest Permian processor with 1.4 Bcf per day (billion cubic feet) in gross processing capacity.
Atlas’ WestTX system will complement Targa’s existing assets in the Permian Basin.
Exposure to other basins
Atlas’ assets will also provide exposure to the Eagle Ford, Mississippi Lime, and SCOOP (South Central Oklahoma Oil Province) plays. Atlas’ SouthTX, SouthOK, and WestOK systems are currently operational in these plays.
Apart from increasing scale and diversity, the combined midstream company will derive additional revenue along the natural gas liquids (or NGLs) value chain. The addition of APL’s NGLs production complements NGLS’ downstream assets in Mount Belvieu and Galena Park.
In the next article in this series, we’ll continue our look at this deal’s value proposition for Targa.