Targa Resources Inc.
In 2003, Targa Resources (Targa), located in Houston, Texas, was formed by Warburg Pincus and an experienced management team in order to build a leading midstream energy company through acquisitions and reinvestment in oil and gas gathering, processing, storage, and transmission assets. Targa’s business plan involved: acquiring midstream assets; stabilizing, growing and improving performance of the assets; and reinvesting cash flows in incremental, high-return projects. At the time of Warburg Pincus’ investment in the company, the Targa management team had, as a group, over 160 years of experience successfully executing this strategy. Over the course of the investment, Warburg Pincus played a central role in the growth and evolution of Targa. The firm worked closely with management on the development of the business plan and on screening and evaluating the initial acquisitions. In addition, Warburg Pincus’ capital markets experience and equity investment were instrumental in the successful acquisition of Dynegy Midstream Services’ midstream business. Finally, Warburg Pincus helped to recruit several members of Targa’s Board of Directors. In February 2007, Targa Resource Partners was established as an MLP and completed an IPO on NASDAQ under the symbol “NGLS”. Targa retained a 39% ownership interest in NGLS, as well as incentive distribution rights. In December 2010, Targa executed an IPO on the New York Stock Exchange under the symbol “TRGP”. Warburg Pincus exited its investment between 2010 and 2013.
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