Targa Resources Corp. (TRGP), provider of midstream natural gas and services, priced its IPO on 6th December, 2010 at $22 per share, with a first day return of 10%.
Business Overview (from prospectus)
We own general and limited partner interests, including incentive distribution rights (“IDRs”), in Targa Resources Partners LP (NYSE: NGLS), a publicly traded Delaware limited partnership that is a leading provider of midstream natural gas and natural gas liquid services in the United States. The Partnership is engaged in the business of gathering, compressing, treating, processing and selling natural gas and storing, fractionating, treating, transporting and selling natural gas liquids, or NGLs, and NGL products.
Offering: 16.4 million shares at $22 per share. All the shares sold are by selling stockholders and the company will not receive any proceeds from the IPO.
Revenue increased $797.2 million to $3,942 million for nine months ended September 30, 2010 as compared to nine months ended September 30, 2009...Gross margin increased $34.3 million to $551.4 million for nine months ended September 30, 2010 as compared to nine months ended September 30, 2009...Operating expenses increased $7.7 million to $190.4 million for nine months ended September 30, 2010 as compared to nine months ended September 30, 2009...
The Partnership faces strong competition in acquiring new natural gas supplies. Competition for natural gas supplies is primarily based on the location of gathering and processing facilities, pricing arrangements, reputation, efficiency, flexibility, reliability and access to end-use markets or liquid marketing hubs. Competitors to the Partnership’s gathering and processing operations include other natural gas gatherers and processors, such as major interstate and intrastate pipeline companies, master limited partnerships and oil and gas producers. The Partnership’s major competitors for natural gas supplies in its current operating regions include Atlas Gas Pipeline Company (ATLS), Copano Energy, L.L.C. (CPNO), WTG Gas Processing L.P. (“WTG”), DCP Midstream Partners LP (DPM), Devon Energy Corp (DVN), Enbridge Inc. (ENB), GulfSouth Pipeline Company, LP, Hanlan Gas Processing, Ltd., J W Operating Company, Louisiana Intrastate Gas and several other interstate pipeline companies. Many of its competitors have greater financial resources than the Partnership possesses.
- Company website
- WSJ: Targa Resources Corp 16.4 Mln-Share IPO Prices At $22, Above Range
- Businessweek: Warburg’s Targa Resources Raises $360 Million in IPO
- Reuters: Targa Resources shares jump in NYSE debut