What Stakeholder Midstream does

Stakeholder Midstream, LLC was a privately-held, independent midstream energy company founded in San Antonio, Texas in 2015 with a $250 million equity commitment from EnCap Flatrock Midstream. The company built and operated integrated infrastructure serving oil and gas producers in the Permian Basin's San Andres formation, spanning approximately 480 miles of natural gas pipelines, 180 MMcfd of cryogenic processing and sour treating capacity (anchored by the Campo Viejo facility), the San Andres Crude Gathering System covering approximately 150 miles with 60,000 barrels of storage, and the Pozo Acido carbon capture and sequestration well. Its core services included low-pressure natural gas gathering, compression, amine-based sour gas treating, cryogenic processing with nitrogen rejection, NGL handling, crude oil gathering and storage, and permanent geologic CO2 sequestration, with the latter distinguished by the first EPA-approved MRV plan for non-EOR permanent sequestration in Texas.

The company generated revenue through fee-based, volume-driven contracts under long-term acreage dedications with upstream producers, primarily targeting unconventional Horizontal San Andres operators such as Steward Energy II and Riley Exploration Permian. Pricing was negotiated bilaterally based on volume commitments and service scope rather than published rates, with multi-year contract terms typical. The go-to-market model was relationship-driven B2B sales originating from direct engagement with producer engineering and commercial teams, supplemented by industry events and a content-marketing presence through its News & Resources section. By 2025, Stakeholder operated across more than 200,000 acres of dedicated acreage, generated approximately $200 million in annual unlevered adjusted free cash flow, and was acquired by Targa Resources Corp. for $1.25 billion in cash, effective January 1, 2026.

Post-acquisition, Stakeholder's assets — including its sour gas processing, crude gathering, and CCS infrastructure — have been integrated into Targa's broader Permian midstream portfolio. Key third-party relationships included downstream pipeline interconnects with Phillips 66, Plains All American, and Centurion Pipeline for crude takeaway, and adjacency to Kinder Morgan's Cortez CO2 pipeline for potential third-party CCS volumes. The company's regulatory first-mover status in Texas non-EOR carbon sequestration and its specialized sour-gas-handling capabilities were the principal differentiators underpinning its valuation at exit.

Name

Stakeholder Midstream

Legal name

Stakeholder Midstream, LLC

Website

https://stakeholdermidstream.com

Company type

Private

Founded year

2015

Operating status

Acquired

Headcount range

251–500 employees

Short description

Stakeholder Midstream was a private, Permian Basin-focused midstream company that provided natural gas gathering, sour gas treating, cryogenic processing, NGL solutions, crude oil gathering, and carbon sequestration services to oil and gas producers in the Horizontal San Andres play before being acquired by Targa Resources Corp. for $1.25 billion in January 2026.

Ownership category

akta.pro rank

Product category

Midstream Oil & Gas Services

NAICS

Pipeline Transportation of Crude Oil (486110)

SIC

Oil & Gas Field Services, Nec (1389)

akta.pro primary industry

Gas Pipeline & Midstream Asset Management (EUAEAMAF)

akta.pro secondary industries

Pipeline Operations, Integrity & Control (SCADA, Pigging, Leak Detection) (EUALADAK), Oil & Gas Midstream & Pipeline O&M (Pipelines, Compressor Stations) (EUAEAGAF), CO2 Gathering & Compression (for EOR/CCUS feed) (EUALACAJ), Tank Leasing & Third-Party Storage Operators (EUALAEAF)

Keywords

• Midstream oil and gas services
• Natural gas gathering and processing
• Crude oil gathering pipelines
• Carbon capture and sequestration
• Sour gas treating

Headquarters

HQ city

San Antonio

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Personnel, Supply Chain, Marketing or Sales

Revenue model

1. Natural Gas Gathering and Processing Services: Fee-based midstream services including natural gas gathering, compression, treating, and cryogenic processing. Revenue is generated through long-term contracts with acreage dedications from oil and gas producers. Services are priced based on volume throughput and contractual terms.
2. Crude Oil Gathering and Transportation: Crude oil gathering and transportation services provided under long-term contracts with producer dedications. Revenue derived from volume-based fees for gathering and transportation services to downstream pipeline connections.
3. Carbon Capture and Sequestration Services: CO2 sequestration services enabling third parties to qualify for 45Q tax credits. Revenue generated from carbon sequestration fees charged to third-party emitters seeking to reduce carbon intensity and meet ESG goals.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels3 records

Core offering

Stakeholder Midstream provides integrated midstream energy infrastructure services to oil and gas producers in unconventional shale plays, principally in the Permian Basin's San Andres formation. Its offerings span natural gas gathering, compression, treating, cryogenic processing, NGL solutions, crude oil gathering, transportation and storage, and carbon capture and sequestration, delivered under long-term fee-based acreage dedication and volume commitment contracts.

Product overview

Stakeholder Midstream is an independent midstream company providing a comprehensive suite of services to oil and gas producers in unconventional shale plays. The company operates a portfolio of integrated infrastructure assets including natural gas gathering, compression, treating, and processing services; innovative NGL solutions; crude oil gathering, transportation, and storage; and carbon capture and sequestration (CCS). Key assets include the San Andres Crude Gathering System, Campo Viejo Gas Gathering System, Lovington Gas Gathering System, and Santa Fe Gas Gathering and Processing Assets, all serving producers in the Permian Basin's San Andres formation. The company also operates the Pozo Acido carbon sequestration well with EPA-approved MRV capabilities. Stakeholder was acquired by Targa Resources Corp. for $1.25 billion in January 2026.

Differentiator

Problem solved

Functional benefit

Products and services

• Natural Gas Gathering, Treating and Processing Services Comprehensive in-field natural gas gathering, compression, treating, and cryogenic processing services for oil and gas producers in unconventional shale plays, including sour gas handling, nitrogen rejection, and acid gas injection to monetize complex San Andres gas streams.
• Crude Oil Gathering, Transportation and Storage Crude oil gathering, transportation, and storage services including pipeline systems, pump stations, and crude oil storage terminals with downstream pipeline connections for upstream producers in the San Andres formation.
• NGL Solutions Innovative natural gas liquids (NGL) solutions that complement Stakeholder's gathering and processing services, enabling producers to capture value from NGL streams in unconventional shale plays.
• Carbon Capture and Sequestration (CCS) Services Permanent carbon dioxide capture and geologic sequestration services through EPA-approved Monitoring, Reporting and Verification (MRV) operations at the Pozo Acido injection well, enabling third-party emitters and producers to qualify for 45Q tax credits and meet ESG goals.
• San Andres Crude Gathering System Crude oil gathering system serving wells producing from the San Andres formation in Yoakum County, Texas and Lea County, New Mexico, with approximately 150 miles of gathering pipelines, 60,000 barrels of storage, and downstream connections to Phillips 66, Plains All American, and Centurion Pipeline System.
• Campo Viejo Gas Gathering System Natural gas treating and processing facility at Campo Viejo in the Northwest Shelf of the Permian Basin, with total inlet gas capacity of 160 MMcfd after Train II expansion; includes sour gas treating, cryogenic processing, nitrogen rejection, and an acid gas injection well.
• Lovington Gas Gathering System Gas gathering system in the Northwest Shelf of the Permian Basin (Lea and Chaves counties, New Mexico), comprising approximately 295 miles of gas gathering lines, 7,400 horsepower of compression, and a 35,000 Mcfd refrigeration plant.
• Santa Fe Gas Gathering and Processing Assets Gas gathering and processing assets in Yoakum County, Texas, including the 30-30 Gas Treating and Processing Plant, low-pressure gas gathering pipelines, and downstream residue and NGL lines backed by long-term acreage dedication.
• Pozo Acido Carbon Sequestration Well State-of-the-art CO2 injection well for permanent geologic sequestration located in the Permian Basin near the Texas-New Mexico border, injecting CO2 into the Devonian formation more than two miles below surface at over 70,000 metric tons per year as part of Stakeholder's broader CCS services.

Quantifiable outcome

• Reduced crude oil truck traffic by removing over 200,000 truckloads from local roads and highways
• +2 more outcomes

Named customers2 records

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Six partnerships are on record, tiered minor and moderate.

• Santa Fe Midstream, LLCminorOthers · 15 December 2020Stakeholder acquired gas gathering and processing assets from Santa Fe Midstream, including the 30-30 Gas Treating and Processing Plant and related gathering infrastructure in Yoakum County, Texas.
• Lucid Energy GroupminorOthers · 10 April 2017Stakeholder acquired the Lovington Gas Gathering System from Lucid Energy Group, comprising approximately 295 miles of gas gathering lines, 7,400 horsepower of compression, and a 35,000 Mcfd refrigeration plant in Lea and Chaves counties, New Mexico.
• Kinder MorganmoderateStrategic or Co-development PartnerStakeholder's Pozo Acido CCS well is located adjacent to the Kinder Morgan Cortez CO2 pipeline, creating strategic partnership opportunities for third-party carbon sequestration services. Kinder Morgan's pipeline network provides CO2 transportation capabilities across three states.
• Phillips 66minorStrategic or Co-development PartnerDownstream pipeline connection for Stakeholder's San Andres Crude Gathering System, providing producers with market access through Phillips 66 pipeline infrastructure.
• Plains All AmericanminorStrategic or Co-development PartnerDownstream pipeline connection for crude oil transportation, providing flow assurance and market flexibility for San Andres Crude Gathering System shippers.
• Centurion Pipeline SystemminorStrategic or Co-development PartnerDownstream pipeline connection providing additional takeaway capacity for crude oil from the San Andres Crude Gathering System.

Scale indicators9 records

Recent moves9 records

Expansion highlights5 records

Broad incumbents

• Kinder Morgan: Largest U.S. natural gas pipeline operator and significant CO2 transportation provider. The Kinder Morgan Cortez pipeline is adjacent to Stakeholder's Pozo Acido CCS well, creating both an operational partnership and a broader midstream comparable.
• Enterprise Products Partners: One of the largest U.S. midstream companies with comprehensive natural gas, NGL, and crude infrastructure. Operates broadly across multiple basins and product streams at scale beyond Stakeholder's niche Permian focus.
• Phillips 66: Diversified downstream and midstream energy company. Serves as a downstream pipeline connection for Stakeholder's crude gathering system while also operating midstream assets of its own, making it both a counterparty and a broader midstream comparable.
• Occidental Petroleum (Oxy Midstream): Integrated energy company with a sizable midstream and marketing subsidiary serving Permian producers. Comparable gas processing and crude gathering footprint to Stakeholder, though embedded within a larger upstream-focused parent.

Direct peers

• Crestwood Equity Partners: Midstream partnership offering gas gathering/processing, NGL, and crude services across multiple U.S. shale basins including the Permian. Similar fee-based revenue model and infrastructure focus to Stakeholder.
• EnLink Midstream: Integrated midstream services provider across Texas, Oklahoma, and Louisiana with Permian gas processing and crude gathering operations. Comparable fee-based business model and producer-customer relationships.
• Plains All American Pipeline: Major crude oil midstream operator providing gathering, transportation, and storage across U.S. basins including the Permian; serves as a downstream connection for Stakeholder's San Andres Crude Gathering System, making it both a counterparty and a service-line comparable.
• Targa Resources Corp. Permian-focused midstream operator and the acquirer of Stakeholder Midstream. Operates gathering, processing, and NGL logistics assets across the Permian Basin and shares Stakeholder's core gas gathering/processing and crude gathering service lines, making it the most direct comparable.
• Western Midstream Partners: Midstream partnership operating natural gas and crude oil gathering, processing, and transportation assets concentrated in the Permian Basin. Closely comparable service mix and geographic focus to Stakeholder Midstream's gas and crude systems.
• Williams Companies: Major natural gas gathering and processing operator with significant Permian presence (Cureton Front Range, Shenzi). Several Stakeholder executives previously worked at Williams, and the company shares a comparable gas gathering/processing business model.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks7 records

Key highlights7 records

Customer concentration

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles15 records

Subsidiaries1 record

Funding overview

Funding rounds1 record

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Stakeholder Midstream