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Targa (TRGP) to Acquire Southcross Energy for $200 Million
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Targa Resources Corp. (TRGP - Free Report) declared that it signed agreements to take over Southcross Energy Operating LLC and its subsidiaries in South Texas in a deal worth $200 million. This deal will help strengthen Targa’s natural gas gathering and processing footprint.
Per Targa, this transaction signifies a 4X adjusted EBITDA multiple and provides the added synergy potential to reduce the acquisition multiple over time. The deal also offers the potential to move a presently idle 200 million cubic feet per day plant through fee-based contracts and continued simplification through the acquisition of Southcross’ remaining T2 joint-venture interests.
The deal, which is subject to conventional closing conditions, is anticipated to be closed by the second quarter of 2022.
Targa Resources is a premier energy infrastructure company. A leading provider of integrated midstream services in North America, this Houston, TX-based operator primarily derives its revenues from gathering, compressing, treating, processing and selling natural gas. TRGP also provides services associated with natural gas liquids, including those to liquefied petroleum gas exporters and crude oil.
Targa currently has a Zacks Rank #3 (Hold). Those interested in the energy sector might want to look at stocks that carry a better Zacks Rank. Centennial Resource Development , SM Energy (SM - Free Report) and Imperial Oil (IMO - Free Report) each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Centennial’s 2022 earnings is projected at $1.37 per share, which implies an increase of approximately 98.5% from the projected year-ago earnings of 69 cents.
Centennial stock has increased 86.5% in a year. The Zacks Consensus Estimate for CDEV’s 2022 earnings per share (EPS) has been revised from $1.12 to $1.37, up about 22.3%, in the past 60 days.
The Zacks Consensus Estimate for SM Energy’s 2022 earnings is projected at $6.67 per share, up about 260.5% from the projected year-ago earnings of $1.85.
SM Energy beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 153.9%. SM stock has rallied 134.2% in a year.
Imperial Oil is valued at around $30 billion. The Zacks Consensus Estimate for Imperial Oil’s 2022 earnings is projected at $5.42 per share, up about 95% from the projected year-ago earnings of $2.78.
The Zacks Consensus Estimate for IMO’s 2022 EPS has been revised from $4.38 to $5.42, up about 23.7%, in the past 60 days. IMO stock has gone up 92.1% in a year.
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Targa (TRGP) to Acquire Southcross Energy for $200 Million
Targa Resources Corp. (TRGP - Free Report) declared that it signed agreements to take over Southcross Energy Operating LLC and its subsidiaries in South Texas in a deal worth $200 million. This deal will help strengthen Targa’s natural gas gathering and processing footprint.
Per Targa, this transaction signifies a 4X adjusted EBITDA multiple and provides the added synergy potential to reduce the acquisition multiple over time. The deal also offers the potential to move a presently idle 200 million cubic feet per day plant through fee-based contracts and continued simplification through the acquisition of Southcross’ remaining T2 joint-venture interests.
The deal, which is subject to conventional closing conditions, is anticipated to be closed by the second quarter of 2022.
Targa Resources is a premier energy infrastructure company. A leading provider of integrated midstream services in North America, this Houston, TX-based operator primarily derives its revenues from gathering, compressing, treating, processing and selling natural gas. TRGP also provides services associated with natural gas liquids, including those to liquefied petroleum gas exporters and crude oil.
Targa currently has a Zacks Rank #3 (Hold). Those interested in the energy sector might want to look at stocks that carry a better Zacks Rank. Centennial Resource Development , SM Energy (SM - Free Report) and Imperial Oil (IMO - Free Report) each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Centennial’s 2022 earnings is projected at $1.37 per share, which implies an increase of approximately 98.5% from the projected year-ago earnings of 69 cents.
Centennial stock has increased 86.5% in a year. The Zacks Consensus Estimate for CDEV’s 2022 earnings per share (EPS) has been revised from $1.12 to $1.37, up about 22.3%, in the past 60 days.
The Zacks Consensus Estimate for SM Energy’s 2022 earnings is projected at $6.67 per share, up about 260.5% from the projected year-ago earnings of $1.85.
SM Energy beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 153.9%. SM stock has rallied 134.2% in a year.
Imperial Oil is valued at around $30 billion. The Zacks Consensus Estimate for Imperial Oil’s 2022 earnings is projected at $5.42 per share, up about 95% from the projected year-ago earnings of $2.78.
The Zacks Consensus Estimate for IMO’s 2022 EPS has been revised from $4.38 to $5.42, up about 23.7%, in the past 60 days. IMO stock has gone up 92.1% in a year.