Targa Resources Partners LP (Targa Partners) agreed to acquire a 63% interest in Versado Gas Processors, L.L.C. (Versado) from Targa Resources, Inc (Targa Resources) for a purchase consideration of $230m, subject to certain adjustments.
Versado is a joint venture company between Targa Resources and Chevron USA Inc. It operates a natural gas gathering and processing business in West Texas and New Mexico. The Versado System consists of the Saunders, Eunice and Monument gas processing plants and related gathering systems with an aggregate refrigerated cryogenic processing capacity of 280 MMcf per day (176 MMcf per day net to the Partnership's interest upon closing).
Versado gathering systems consist of approximately 3,100 miles of natural gas gathering pipelines. Gross inlet throughput for the six months ended on June 30, 2010 was approximately 185 MMcf per day with recovered gas liquids content of approximately 4.7 gallons per Mcf.
Tudor, Pickering, Holt & Co. Securities, Inc. is acting as financial advisor to Targa Partners for this transaction. Evercore Partners is acting as a financial advisor to Targa Resources, Inc. for this transaction.
Scope
- Rationale behindTarga Partners acquiring assets from Targa Resources
- Strategic Benefits for the companies involved
- Geography covered -US
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