HOUSTON, March 15, 2011 (GLOBE NEWSWIRE) -- Targa Resources Partners LP (NYSE:NGLS) ("Targa Resources Partners" or the "Partnership"), today announced that, through its wholly owned subsidiary, Coast Energy Group LLC, it has acquired a refined petroleum products and crude oil storage and terminaling facility (the "Terminal") in Channelview, TX. Located on Carpenter's Bayou along the Houston Ship Channel, the Terminal can handle multiple grades of blend stocks, products and crude. The transaction was paid entirely with cash funded through borrowings under the Partnership's senior secured revolving credit facility. Total value of the transaction is below the Hart-Scott-Rodino Act ("HSR") minimum.
"This transaction will be immediately accretive to the Partnership's unit holders and is complementary to our existing terminal asset base and business along the Gulf Coast. This acquisition enables us to apply our current terminaling expertise to an expanded product slate on a long term fee basis and enhances the Partnership's cash flow mix and geographical footprint. We expect to invest incremental growth capital in the near future to expand the capacity of the Terminal supported by new long term contracts. This is the first acquisition for our recently added products and crude storage and terminaling team who has been charged with growing this asset base. They are actively negotiating other refined products and crude storage and terminaling acquisition opportunities that could be consummated this year. If we were to acquire these properties, they would also generate fee-based income and potentially provide organic growth opportunities," said Rene Joyce, Chief Executive Officer of the Partnership's general partner and of Targa Resources Corp. ("TRC" or the "Company").
The Terminal has approximately 544,000 barrels of storage capacity and contains blending and heating capabilities, tanker truck and barge loading and unloading infrastructure. Currently, the capacity is 100% leased to customers that include a multi-national oil company and regional refineries.
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