Targa to Buy Rival Permian Pipeline Operator for $1.25 Billion

Natural gas pipeline operator Targa Resources Corp. reached a deal to buy smaller rival Stakeholder Midstream for $1.25 billion in cash.

The move expands Houston-based Targa’s ability to ship and store oil and gas in the Permian Basin, according to a statement Monday. The region has long been short on gas pipeline capacity, often forcing sellers to pay customers to take the fuel off their hands.