Outrigger Energy, a Denver-based firm, said Tuesday that it has sold its petroleum gathering and processing assets in the Permian Basin of Texas for an amount that could reach as high as $1.5 billion in cash.
Houston-based Targa Resources Corp., through a subsidiary, has agreed to acquire three of Outrigger’s midstream subsidiaries active in the Permian Basin for $565 million in cash up front.
If those acquisitions hit certain performance targets in 2018 and 2019, Targa will pay an additional $935 million in cash to Outrigger under the terms of the deal, which is expected to close in the first quarter.
After the sale, Outrigger Energy will be left with gathering systems in the Powder River Basin in Wyoming. Besides west Texas, Targa Resources has gathering systems in northern Texas, Oklahoma, Kansas and Louisiana.
