2010-09-28-2010-09-14-2010-09-29
Acquired 78.6% ownership interest in Venice Energy Services Co. JV in Plaquemines Parish that features two cryogenic processing trains, a gas plant inlet and NGL production.
Targa Resources Partners LP, Houston, (NYSE: NGLS) has closed its acquisition of Targa Resources Inc.'s 76.8% ownership interest in Venice Energy Services Co. (Vesco), a joint-venture that is operated by Targa, for $175.6 million.
The deal was originally valued at $167.5 million.
The gas-gathering and -processing business is near Venice, La. in Plaquemines Parish along the Louisiana Gulf Coast. Assets include two cryogenic processing trains with a combined 750 million cubic feet per day of capacity; gas plant inlet and NGL production of approximately 421 million gross cubic feet and 22,000 barrels per day for the six-month period that ended June 30 and forecasted gross gas plant inlet volumes for the six month period ending Dec. 31 expected to exceed the previous six months.
Venice Gathering System, a subsidiary of Vesco, owns and operates an offshore gathering system with approximately 160 miles of pipelines that capture volumes from the Gulf of Mexico. Additional gas supply interconnects (direct or indirect) with Enbridge Mississippi Canyon gathering system, Tesco South Pass system, Tetco Main Pass system and various producer owned pipelines which provide most of current supply.
Gas delivery interconnects to Tetco, Gulfsouth and Columbia Gulf.
Targa Resources Partners chief executive Rene Joyce says, "We are pleased to have closed this transaction which is immediately accretive to NGLS unit holders. As previously stated, management's goal is to distribute to unit holders a portion of the cash flow accretion associated with this acquisition…"
Targa Resources Partners funded the deal through borrowings under the partnership's senior secured revolving credit facility. Targa will use the proceeds of the sale to pay debt on its term loan.
Tudor, Pickering, Holt & Co. Securities Inc. was financial advisor to Targa Resources Partners. Evercore Partners was financial advisor to Targa.