Mon, Nov. 16, 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.
Tue, Nov. 3, 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.
Tue, Nov. 3, 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
Tue, Nov. 3, 7:17 AM
Mon, Oct. 5, 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%.
Tue, Aug. 25, 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.
Tue, Aug. 4, 9:26 AM
Wed, Jul. 29, 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.
Tue, Jul. 21, 5:18 PM
Mon, Jun. 22, 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).
Wed, May 13, 3:49 PM
- Energy MLPs are trading with mixed results, which is not in line with an analyst's expectation that several names in the space may be outperformers today after Williams Cos. (WMB +6.2%) agreed to buy Williams Partners (WPZ +22.7%).
- In an earlier note to investors, Credit Suisse named Plains GP Holdings (PAGP +1%), Targa Resources (TRGP +1.1%), NuStar GP Holdings (NSH -0.1%) and Western Gas Equity (WGP -0.7%) as MLPs that could climb on the news.
- Meanwhile, Wells Fargo says the deal is positive, since it reduces the WMB's cost of capital, will immediately increase its profits, and enhances its dividend growth outlook.
- Among major energy MLPs: EPD -1.5%, ETP +0.9%, PAA +0.2%, EEP -0.2%, MWE +2.2%, MMP -0.3%.
Thu, May 7, 2:22 AM
Tue, May 5, 3:39 PM
- Targa Resources Partners (NGLS, TRGP) is working closely with Noble Group as the commodity trader evaluates whether to go ahead with a deal to support a Targa-built condensate splitter, a new terminal or both in Texas, Targa CEO Joe Bob Perkins said in today's earnings conference call.
- Noble agreed a year ago to support a new $115M, 35K bbl/day splitter at Targa's Channelview terminal on the Houston Ship Channel, but Noble has since come under scrutiny for its accounting methods; earlier this year, Targa and Noble renegotiated their deal to allow for the splitter, new storage at its other ship channel terminal, or both.
- In today's call, Perkins said the projects remained under consideration and Targa expected Noble to decide on one or both later this year.
- Earlier: Targa Resources Partners misses by $0.05, misses on revenue
Tue, Apr. 21, 10:32 PM
Wed, Mar. 11, 4:57 PM
- Targa Resources (NYSE:TRGP) -3.1% AH after announcing a public offering of 3.25M common shares, with an underwriters option to purchase up to an additional 487.5K shares.
- TRGP plans to use the proceeds to repay a portion of the outstanding borrowings under its credit facility, to make a $53M capital contribution to Targa Resources Partners (NYSE:NGLS) to maintain its 2% general partnership interest and for general corporate purposes.
Fri, Feb. 13, 7:04 AM
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