ATLANTA, GEORGIA (Chad Archey, Energy Analytics Institute, 26.Feb.2025) — Texas-based ExxonMobil Corporation is a logical candidate to acquire Targa, as it currently supplies approximately 30% of Targa’s volumes and owns a 27% interest in its Midland system, according to East Daley.
The rationale is that Exxon would benefit from Targa’s infrastructure, using its pipelines, storage, and export facilities for NGL transportation, East Daley said 26 Feb. 2025 in an emailed statement. Owning Targa would provide Exxon full control over its value chain, reducing costs, the consultancy said.
Exxon has the financial strength to acquire Targa ($40bn market cap), with $36bn in free cash flow and $31bn in cash as of 2023. Also, Exxon could offset acquisition costs by divesting non-core Targa assets, such as those in the Anadarko Basin, according to East Daley.
“Private equity firms may find these divested midstream assets attractive,” East Daley said.
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By Chad Archey reporting from Atlanta. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
