© 2017 The Texas Lawbook.
By Natalie Posgate
(Jan. 25) – Houston-based Targa Resources Corp. said Monday that its subsidiary, Targa Resources Partners, will acquire assets in the Delaware and Midland regions of the Permian Basin for $565 million in cash.
Lawyers from Locke Lord and Vinson & Elkins advised on the deal, which entails Targa acquiring 100 percent of the membership interests of Outrigger Delaware Operating, Outrigger Southern Delaware Operating and Outrigger Midland Operating from Denver-based Outrigger Energy.
Targa General Counsel Paul Chung hired Houston partners Bill Swanstrom and Philip Lau and senior counsel Ann Williams to lead its end of the deal. The Houston and Dallas-based Locke Lord deal team also includes John Arnold (regulatory), Van Jolas (Dallas), Ryan Morgan and Michelle Gutirrez-Begin (real estate), Hanna Norvell (labor and employment), Gerry Pels (environmental), Ed Razim (ERISA), Buddy Sanders (tax), Jeannie Diep (corporate) and Tom Hillebrand (energy). The firm’s New York office also assisted in the deal.
The Outrigger entities turned to Houston corporate partner Creighton Smith of V&E to lead their end of the transaction. The V&E corporate team also included associates Atma Kabad, Mary Sprouse, Ali Choate and Daniel McEntee. Also assisting were partner David Peck and associate Brian Russell (tax), associate Matthew Dobbins (environmental), counsel Martin Luff (labor and employment), partner Stephen Jacobson (executive compensation) and associate Will Russ (real estate). The firm’s Washington, D.C. office advised on antitrust matters.
The Outrigger Delaware assets are located in Loving, Winkler and Ward counties. Targa plans to connect the Outrigger Delaware assets to Targa’s existing Sand Hills System, extending Targa’s premier Permian Basin footprint across the Delaware and Midland Basins.
The Outrigger Midland assets are located in Howard, Martin and Borden counties. Targa expects to connect the Outrigger Midland assets to its WestTx system in Martin County.
DLA Piper is also involved in the deal. Jack Langlois, the firm’s new Houston office managing partner, represents Kayne Anderson Energy Funds and Silver Hill Energy Partners in relation to the Outrigger Delaware Operating portion of the deal.
Outrigger Delaware Operating is a 50/50 joint venture between Silver Hill and Outrigger Energy. Silver Hill is controlled by an affiliate of Kayne Anderson.
Kayne Anderson General Counsel Kevin Brophy co-led the deal with Langlois. The DLA Piper deal team also included John Gilluly, the regional managing partner of DLA Piper’s Texas offices, as well as Houston corporate partner Dew Baldinger. A partner from the firm’s New York office advised on antitrust matters.
The transaction is expected to close in the first quarter.
RBC Capital Markets served as Targa’s exclusive financial advisor. Citi is serving as Outrigger’s exclusive financial advisor.
© 2017 The Texas Lawbook. Content of The Texas Lawbook is controlled and protected by specific licensing agreements with our subscribers and under federal copyright laws. Any distribution of this content without the consent of The Texas Lawbook is prohibited.
If you see any inaccuracy in any article in The Texas Lawbook, please contact us. Our goal is content that is 100% true and accurate. Thank you.