Targa Resources Partners L.P. said it agreed to buy a handful of oil and gas assets from Saddle Butte Pipeline LLC for $950 million, expanding its footprint in the oil-rich Bakken Shale region.
Targa said it will purchase Saddle Butte's ownership of its Williston Basin crude oil pipeline and terminal system, as well as its natural gas gathering and processing operations. The assets being acquired include about 155 miles of crude oil pipelines and about 95 miles of natural gas gathering pipelines. The deal is expected to close during the fourth quarter.
Separately, Targa said it will offer 9.5 million units in the company, and plans to use the proceeds for the Saddle Butte acquisition.
Targa Partners is managed by its general partner, Targa Resources GP LLC, which is wholly owned by Targa Resources Corp.
"This acquisition of a major, strategic midstream business complements our extensive portfolio of midstream assets, extends our footprint to the very attractive Bakken Shale play, further diversifies our business with the addition of crude oil gathering, and adds significant long-term growth in fee-based revenues," Joe Bob Perkins, chief executive of Targa Resources, said.
Targa Resources Partners shares closed at $39 Wednesday and were inactive premarket. The stock is up 4.6% so far this year.
Copyright (c) 2012 Dow Jones & Company, Inc.
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