Target Hospitality extends contract with Pecos Children’s Center

Target Hospitality (TH) announced the extension and amendment of the company’s Pecos Children’s Center, or PCC, contract, reaffirmed its previously announced 2024 financial outlook and enhanced its strategic capabilities. The PCC contract extension and amendment, effective November 16, supports a community capable of serving up to 6,000 individuals and will represent annual minimum lease revenue of approximately $168M. The PCC Contract continues to provide for additional occupancy based variable services revenue depending on active community population. However, given the dynamic fluctuations in community population, Target believes it prudent to continue excluding any incremental PCC variable revenue from its 2024 outlook. The company has engaged Carla Provost, a former chief of the United States Border Patrol under the previous Trump administration, to serve as a strategic advisor and government liaison. With over 25 years of service in the U.S. Border Patrol, the company believes Provost’s knowledge and experience will provide insight as Target actively evaluates multiple government focused strategic growth initiatives.