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Blackstone Energy Partners to Sell Its 25% Ownership in Grand Prix Pipeline to Targa Resources for $1.05B

Blackstone Energy Partners to Sell Its 25% Ownership in Grand Prix Pipeline to Targa Resources for $1.05B

Targa Resources is set to take full ownership of the Grand Prix NGL pipeline in the Permian Basin through an all-cash deal worth $1.05bn with Blackstone Energy Partners, an energy-focused private equity business.

The midstream services provider will acquire the remaining 25% stake in the pipeline from Blackstone.

According to Targa, the price of the acquisition represents nearly 8.75x the estimated 2023 adjusted EBITDA multiple of the Grand Prix NGL pipeline.

Commissioned in 2019, the Grand Prix NGL pipeline is designed to transport up to one million barrels per day of NGLs to the NGL market hub at Mont Belvieu, Texas.

The pipeline transports NGLs from the gathering and processing positions of Targa Resources throughout the Permian basin, North Texas, and Southern Oklahoma to the company’s fractionation and storage complex located at Mont Belvieu.

Targa bought a 75% stake in the pipeline project in 2022 when it repurchased stakes in its development company joint ventures from investment firm Stonepeak Partners.

The acquisition is expected to close in the first quarter of 2023.

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About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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