Targa Resources Corp. acquires Lucid Energy Delaware, LLC ("Lucid Energy")

Targa Resources Corp. acquired Lucid Energy Delaware, LLC ("Lucid Energy") for $3.55 billion in cash (approximately 7.5x estimated 2023 adjusted EBITDA), a transaction completed in July 2022, structured as all cash (cash and debt financed).

Lucid Energy Delaware, LLC ("Lucid Energy") operates in Gathering and Processing, is based in United States - Delaware Basin, primarily Eddy and Lea counties, New Mexico. On June 16, 2022, Lasso Acquiror LLC, an indirect wholly-owned subsidiary of Targa Resources Corp., entered into a Purchase and Sale Agreement to acquire Lucid Energy Delaware, LLC from Riverstone Holdings LLC and Goldman Sachs Asset Management for $3.55 billion in cash. Lucid provides natural gas gathering, treating and processing services in the Delaware Basin, including approximately 1,050 miles of natural gas pipelines and approximately 1.4 Bcf/d of cryogenic processing capacity in service or under construction, located primarily in Eddy and Lea counties, New Mexico, with greater than 600,000 dedicated acres. Targa completed the acquisition in July 2022; the assets are now integrated into Targa Northern Delaware LLC.

Targa called Lucid a complementary and highly strategic acquisition of a leading Delaware Basin gathering and processing system that increases Targa's size and scale, adds long-term fixed-fee contracts and increases overall fee-based margin.

Long-term, fixed-fee contracts and acreage dedications across 600,000+ acres with over 20 years of drilling inventory; ~70% of current volumes from investment-grade producers; overlays highly economic crude oil and natural gas producing acreage. Near- and longer-term synergy potential expected to reduce the effective acquisition multiple over time. Integrated into Targa Northern Delaware LLC (Gathering and Processing segment); referred to in filings as the "Delaware Basin Acquisition."