Targa Resources to sell 25% stake in Gulf Coast Express Pipeline for $857m

Targa Resources said that it has signed agreements to sell its fully-owned subsidiary that has a 25% stake in the Gulf Coast Express Pipeline (GCX pipeline) for $857 million.

The US midstream services provider anticipates receiving the full proceeds from the divestiture in Q2 2022 after a customary call right period in favor of the other members of the Gulf Coast Express Pipeline.

Targa Resources‘ financial advisor for the sale of a stake in the 720km long natural gas pipeline was J.P. Morgan, while Vinson & Elkins LLP served as the legal counsel.

Targa Resources to sell 25% stake in Gulf Coast Express Pipeline for $857m. Photo courtesy of Arulonline from Pixabay.

Commissioned in late 2019, the Gulf Coast Express Pipeline brings natural gas sourced from the Waha area in West Texas to Agua Dulce located near the Texas Gulf Coast.