Targa Resources Corp. has reached a definitive agreement for a wholly-owned subsidiary to acquire Stakeholder Midstream, LLC for $1.25 billion in cash. The acquisition expands Targa's gathering and processing footprint in the Permian Basin and is underpinned by long-term acreage dedications of approximately 170,000 acres and fee-based contracts. The assets are expected to generate around $200 million in unlevered adjusted free cash flow annually with minimal capital needs and low integration costs. The purchase price represents roughly six times the estimated 2026 unlevered adjusted free cash flow. Targa expects to fund the transaction using cash on hand and its existing revolving credit facility, with little impact on its leverage ratio. The transaction is anticipated to close in the first quarter of 2026, subject to customary closing conditions.