Targa Resources shares jump 7% after company agrees to sell North Dakota stake in $1.6 billion deal

Targa Resources Corp. shares jumped about 7% Tuesday, after the company said it has agreed to sell a 45% stake in Targa Badlands to private-equity firms GSO Capital Partners and Blackstone Group LP for $1.6 billion in cash. Houston, Tx.-based Targa said it will remain operator and hold majority governance rights in Targa Badlands, which is the entity holding all of its assets in North Dakota. The assets are located in the Bakken and Three Forks Shale plays of the Williston Basin in North Dakota, and include about 480 miles of crude oil pipelines, 125,000 barrels of operational crude oil storage, about 260 miles of natural gas gathering pipelines and the Little Missouri natural gas processing plant with a current gross processing capacity of approximately 90 million cubic feet per day. The deal is expected to close in the second quarter. Proceeds have been earmarked for debt reduction and general corporate purposes, including the growth capital program. Shares have gained 1.2% in the last 12 months, while the S&P 500 has gained 1.8%.

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