Targa Resources has agreed to sell two of its natural gas gathering and processing operations to Targa Resources Partners - its publicly trade limited partnership - for $705 million — the Houston energy company said today.
Targa Resources said this sale is part of a program to shift some of its income earning properties into Targa Partners, which it will pay with cash and units of the general partnershi, which manages Targa Partners.
The two operations sold — its San Angelo and Louisiana operating units — generated nearly $23 million in distributable cash flow for the first six months of 2007, according to the Targa Resources release.
It said an increase in the payout to holders of Targa Partners units is now under consideration, which could begin after the closing of the deal later this year.
Via|Chron
