Dividend and Timing Announcement

Acquisition Completed: Stakeholder Midstream

Targa said it has closed its acquisition of Stakeholder Midstream, LLC, for $1.25 billion in cash, effective Jan. 1, 2026. The deal adds roughly 480 miles of natural-gas pipelines, about 180 million cubic feet per day of cryogenic natural gas processing and sour-gas treating capacity, plus a small crude oil gathering system to Targa’s portfolio. The acquisition extends the company’s midstream services in the Permian Basin and is expected to enhance long-term, fee-based revenue streams.

The combined assets come with long-term, fee-based contracts across about 170,000 dedicated acres, underpinning a stable volume profile that management says should contribute about $200 million annually in unlevered adjusted free cash flow once fully integrated.

Targa intends to fund the transaction with cash on hand and borrowings under its existing $3.5 billion revolving credit facility, with pro forma leverage expected to remain within its target range of 3.0 to 4.0 times debt-to-EBITDA.