Targa Resources shares rose on Monday after ExxonMobil agreed to acquire a 25% stake in the company's Louisiana natural gas liquids (NGL) pipeline system for $2.2 billion.
The transaction, valued at $8.8 billion on an enterprise basis, includes ExxonMobil paying $2.2 billion in cash for the 25% stake, while Targa retains operational control of the assets. The midstream infrastructure, located in the Haynesville Shale region, supports the processing and transportation of natural gas liquids.
ExxonMobil’s investment aligns with its strategy to expand its presence in U.S. natural gas and NGL markets. The deal is expected to close in the second half of 2025, subject to regulatory approvals and customary closing conditions.
Targa Resources, a Houston-based midstream energy company, operates one of the largest NGL pipeline systems in the U.S., with significant assets in the Permian Basin and Louisiana. The company’s shares were up 3.5% in early trading following the announcement.
Analysts noted the deal could provide Targa with additional capital flexibility while strengthening its ties to a major energy player. The midstream sector has seen increased M&A activity as companies seek to optimize infrastructure and reduce costs amid volatile energy markets.
Targa did not disclose further financial details beyond the valuation and stake percentage.
