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Targa Resources (TRGP) Sells Its 25% GCX Stake for $875M

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Houston, TX based Targa Resources (TRGP - Free Report) , which is one of the largest independent midstream infrastructure companies in North America, announced that it has signed a deal to sell its wholly owned subsidiary that has a 25% share in Permian’s 2 billion cubic feet of gas per day Gulf Coast Express Pipeline (GCX) to an undisclosed buyer.

Targa declared that the transaction value of the sale contract was $857 million. The company expects to receive the entire deal amount by the second quarter of 2022 following a customary call-right period in favor of the other owners of GCX.

The GCX transports natural gas from the Permian Basin to the hub near Agua Dulce, Texas and also allows for exports to Mexico and LNG liquefaction terminals on the Gulf coast. It has a mainline, which is 447.5-miles long and has a 42-inch diameter. The pipeline began its operation in September 2019.

Targa Resources Corp. is a premier energy infrastructure company. A leading provider of integrated midstream services in North America, the operator primarily derives its revenues from gathering, compressing, treating, processing and selling natural gas. TRGP also provides services associated with natural gas liquids, including those for liquefied petroleum gas exporters and crude oil.

Targa currently has a Zacks Rank #3 (Hold). Those interested in the energy sector might want to look at stocks that sport a better Zacks Rank. ExxonMobil (XOM - Free Report) , Centennial Resource Development (CDEV - Free Report) and Eni (E - Free Report) each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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