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Tue, Feb. 2, 9:00 AM| Tue, Feb. 2, 9:00 AM
- January monthly performance was: -5.46%
- 52-week performance vs. the S&P 500 is: -9%
- $0.15 in dividends were paid in January
- Top 10 Holdings as of 12/31/2015: Targa Resources Corp (TRGP): 1.4%, Cal-Maine Foods Inc (CALM): 1.23%, Covanta Holding Corp (CVA): 1.04%, Theravance Inc (THRX): 0.94%, Pattern Energy Group Inc Class A (PEGI): 0.88%, Regal Entertainment Group (RGC): 0.86%, ALLETE Inc (ALE): 0.74%, WisdomTree MidCap Dividend ETF (DON): 0.73%, Black Hills Corp (BKH): 0.67%, Laclede Group Inc (LG): 0.65%
Tue, Jan. 19, 11:33 PM
Thu, Jan. 14, 3:44 PM
- Targa Resources (TRGP +6.9%) is upgraded to Buy from Hold with a $26 price target at Jefferies, which sees a more constructive risk/reward profile since the NGLS merger will permit TRGP to reduce its total cash outlay by $175M in dividend savings on current annualized payouts.
- The firm thinks TRGP can sustain its current $3.64/share annualized dividend through 2017 under current commodity strips without the need for equity capital or breaching TRP debt covenants, and the Targa entities have no debt maturities before 2018.
- Jefferies also raises Targa Resources Partners (NGLS +7%) to Buy from Hold on valuation.
Dec. 31, 2015, 5:42 PM
Dec. 21, 2015, 10:06 AM
- Targa Resources (TRGP -7.8%) and Targa Resources Partners (NGLS -8.9%) are downgraded (I, II) to Underperform from Outperform at Credit Suisse, citing dividend cut pressures.
- On TRGP, Credit Suisse says it sees distribution coverage below 1x and leverage above 6x and sees "no way out of the woods" without a "substantial" dividend cut; the firm models an 80% dividend cut in 2016 with zero growth until 2020, when leverage finally drops below 3.5x.
- The firm cuts its stock price targets to $36 from $79 on TRGP and to $22 from $49 for NGLS.
Dec. 10, 2015, 7:18 PM
- Widespread MLP distribution cuts are "possible but unlikely," Fitch Ratings says, as most MLPs are not as highly leveraged as Kinder Morgan and do not have such large capital funding requirements.
- But some analysts are coming out with MLPs they say are in need of capital market funding options; Morningstar's Josh Peters, for example, "would be worried" about Plains All American Pipeline (NYSE:PAA) and Plains GP Holdings (NYSE:PAGP), as well as ONEOK (NYSE:OKE) and ONEOK Partners (NYSE:OKS).
- At the same time, Peters says he is "very comfortable and very confident" in Magellan Midstream Partners (NYSE:MMP), Spectra Energy (NYSE:SE), Spectra Energy Partners (NYSE:SEP) and Enterprise Products Partners (NYSE:EPD) - all of which were much more conservative than necessary in the boom days and are now set to benefit in the current environment.
- Christopher Sighinolfi of Jefferies, the analyst who suggested KMI cut its dividend to a penny, tells CNBC that the most imminently similar company to KMI is Targa Resources (NYSE:TRGP), which has a nearly 12% dividend yield and is down 70% YTD; he also raises the possibility of distribution cuts at EnLink Midstream (NYSE:ENLC), OKE, PAGP and SE.
- ETFs: AMLP, AMJ, KYN, MLPL, YMLP, TYG, SRV, KYE, CEM, MLPI, NML, FEN, NTG, MLPA, KMF, EMLP, FMO, MLPN, SRF, FEI, JMF, CBA, MLPG, MLPX, GMZ, EMO, MLPS, MLPY, TTP, CTR, YMLI, AMU, CEN, MLPJ, ZMLP, GER, AMZA, SMM, MIE, DSE, ENFR, FPL, ATMP, JMLP, MLPC, MLPW, IMLP
Nov. 16, 2015, 4:56 PM
- Targa Resources (NYSE:TRGP) and Targa Resources Partners (NYSE:NGLS) say President and COO Michael Heim is stepping down, effective immediately.
- Helm will serve as vice chairman of the board and will remain a full-time employee and member of the executive team acting in an advisory role on commercial and operational matters.
Nov. 3, 2015, 3:27 PM
- Targa Resources (TRGP -13.6%) plunges after announcing the acquisition of its Targa Resources Partners (NGLS -2.1%) infrastructure MLP at an 18% premium.
- According to Amey Stone of Barron's, some investors say the parent company stands to lose the valuable incentive distribution payments it garnered from its MLP, whose units have turned lower heading into the close.
- For TRGP, the general partner, "it’s silly to give up the incentive distribution rights,” portfolio manager Jay Hatfield tells Barron’s, “but this is a way for them to fix the problem that NGLS was growth-challenged.”
- TRGP CEO Joe Bob Perkins says that by simplifying its structure, lowering its cost of capital, and increasing its retained cash flow, the company "will be better positioned to continue to invest in high-return growth projects that will drive dividend growth beyond 2016."
- The sale is a taxable event for NGLS unitholders, who must vote to approve the deal.
Nov. 3, 2015, 7:57 AM
- Targa Resources (NYSE:TRGP) agrees to acquire the common units of Targa Resources Partners (NYSE:NGLS) it does not already own, in a deal that values NGLS at ~$6.67B.
- TRGP, which has an ~8.8% stake in NGLS, is offering at a ratio of 0.62 TRGP common shares per common unit of NGLS; the implied unit price represents an 18% premium to its volume-weighted average price during the 10 previous trading days.
- Following the deal, TRGP expects dividend growth of 15% for 2016 and greater than 10% compound annual dividend growth through 2018.
- Also: Targa Resources Partners misses by $0.08, misses on revenue
Nov. 3, 2015, 7:17 AM
- Targa Resources (NYSE:TRGP): Q3 EPS of $0.23 misses by $0.35.
- Revenue of $1.63B (-28.8% Y/Y) misses by $190M.
Oct. 5, 2015, 12:18 PM
- Sanchez Energy (SN +7%) and Targa Resources Partners (NGLS +2.2%) enter a 50-50 joint venture agreement to construct a cryogenic natural gas processing plant and associated high pressure gathering pipelines near SN's Catarina asset in Texas' Eagle Ford shale.
- The plant is expected to be operational in early 2017 and will have initial capacity of 200M cf/day; NGLS says it will design, build and operate the plant and contribute $125M to the project, while SN will contribute $115M.
- The deal is expected to help SN lower the gathering and transportation fees it pays for the Catarina plant, and will allow NGLS to grow its presence in the Eagle Ford Shale.
- Separately, NGLS projects 15% Y/Y dividend growth in 2016 and dividend coverage of ~$1x.
- TRGP +8.3%.
Aug. 25, 2015, 6:45 PM
- Rose Rock Midstream (NYSE:RRMS) is downgraded to Hold from Buy with a $35 price target, cut from $57, by the MLP analyst team at U.S. Capital Advisors, which also reduces its price target for Semgroup (NYSE:SEMG) to $60 from $84.
- The firm says dropdowns are a major part of the RRMS story, as it struggles to see how SEMG can make accretive dropdowns into RRMS without taking meaningful asset writedowns; it also expects the White Cliffs pipeline to face margin and/or volume pressure once the new DJ Basin pipelines come online in 2016.
- The firm also cuts price targets on 11 other stocks: KMI, MMP, CPPL, SMLP, PAA, PAGP, SE, WPZ, NGLS, TRGP, NFG.
- Top picks include EPD, CQP, TEP and RMP.
Aug. 4, 2015, 9:26 AM
- Targa Resources (NYSE:TRGP): Q2 EPS of $0.27
- Revenue of $1.7B (-17.5% Y/Y) misses by $310M.
Jul. 29, 2015, 7:27 PM
- Energy MLPs have been "whipsawed not just by fundamentally driven factors but also perhaps by more technically oriented trading," Wunderlich's Jeff Birnbaum writes, but despite a challenging backdrop, he still expects Q2 throughput trends generally will meet estimates and does not expect major guidance revisions for H2.
- Birnbaum's top picks are are Enterprise Products Partners (NYSE:EPD), Magellan Midstream Partners (NYSE:MMP) and Western Gas Partners (NYSE:WES); on EPD, he expects “solid” distribution coverage and says recent transactions will “create a slimmer, more integrated and growth-oriented asset base and better position the balance sheet for additional M&A.”
- He cuts price targets for American Midstream Partners (NYSE:AMID) and DCP Midstream Partners (NYSE:DPM) but keeps Buy ratings on both, and rates Targa Resource Partners (NYSE:NGLS) and Targa Resources (NYSE:TRGP) at Hold and thinks Q2 results may disappoint, but says the units are not expensive and may become an acquisition target in the future.
Jul. 21, 2015, 5:18 PM
- Targa Resources (NYSE:TRGP) declares $0.875/share quarterly dividend, 5.4% increase from prior dividend of $0.83.
- Forward yield 3.99%
- Payable Aug. 17; for shareholders of record Aug. 3; ex-div July 30.
Jun. 22, 2015, 3:30 PM
- Williams Cos. (WMB +23.8%) must either show its ability to stand on its own merit or accept a better takeout offer, analysts say after the company rejected a $48B buyout bid from Energy Transfer Equity (ETE -3.8%).
- Analysts suggest that given the limited number of potential buyers, ETE stands a good chance of eventual success, perhaps after raising its offer; Raymond James analyst Darren Horowitz, for one, expects a higher offer to come in, since pipelines remain a coveted, high-value infrastructure that is attractive to own even though oil and gas prices have plunged.
- Jefferies' Christopher Sighinolfi says disclosing the bid was a "defensive move" by WMB, and says he is waiting to learn of WMB's timetable for completing its strategic review.
- Argus says WMB management has demonstrated its ability to create shareholder value through both acquisitions and divestitures; the firm believes that the rejection of ETE's all-stock offer is prudent, and that ETE will need to raise its offer if it wishes to pursue the deal (Briefing.com).
- While WMB surges, Williams Partners (WPZ -6.9%) is sharply lower, since ETE's offer was contingent on the termination of WMB's pending absorption of WPZ.
- Analysts say other companies that run big pipelines may be merger candidates, including Oneok (OKE, OKS) and regional specialists such as Targa Resources (TRGP, NGLS).
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