DCP - Targa Resources Stonepak seek pipeline stake sale - Reuters

Targa Resources (TRGP +2.7%) and Stonepak Infrastructure Partners are exploring a sale of their 25% stake in the Gulf Coast Express natural gas pipeline for more than $750M, Reuters reports. Stonepeak owns 80% of Targa GCX Pipeline, the company that owns the stake in the Gulf Coast Express pipeline, while Targa Resources holds the other 20%. The 530-mile pipeline began operating in September 2019 and can carry 2B cf/day of gas; other owners include Kinder Morgan (KMI +1.8%), DCP Midstream (DCP -0.9%) and Altus Midstream (ALTM +2.5%). Separately, Targa is upgraded to Outperform from In Line at Evercore ISI, as analyst Stephen Richardson calls it "the best positioned midstreamer able to grow EBITDA with minimal capital" given volume growth tailwinds, while offering "a zero distortion message" on shareholder returns.

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Targa Resources, Stonepak seek pipeline stake sale - Reuters