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.
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.
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%.
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).
May 13, 2015, 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%.
Mar. 11, 2015, 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.
Feb. 2, 2015, 5:35 PM
Nov. 28, 2014, 7:48 AM
- The oil market will need to balance via slower U.S. shale growth and OPEC cuts at some later date (their next meeting is on June 5), says Goldman's Brian Singer, maintaining his team's WTI oil price outlook of $70-$75 per barrel for next year.
- Among the energy sub-sectors, refiners and pipelines continue as favorites, and five of Goldman's eleven energy and utilities stocks on the Americas Conviction Buy list are from midstream/refining: KMI, MWE, PAGP, TRGP, TSO (all are lower premarket on oil's tumble).
- Not buyers of oil services and E&P names, Goldman nevertheless does have favorites in these areas: CRR, BAS, RIG.
Oct. 13, 2014, 7:58 AM
- Targa Resources Partners (NYSE:NGLS) and Targa Resources (NYSE:TRGP) agree to acquire Atlas Pipeline Partners (NYSE:APL) and Atlas Energy (NYSE:ATLS) for $5.8B, including $1.8B of debt.
- Prior to Targa's acquisition of ATLS, ATLS will spin off its non-midstream assets; after giving effect to the spinoff, ATLS assets will solely comprise its general partner and incentive distribution rights interests in APL and 5.8M APL common units.
- The combination creates one of the largest diversified MLPs on an enterprise value basis, bringing Atlas' positions in the Woodford/SCOOP, Mississippi Lime and Eagle Ford and additional Permian assets to Targa's existing Permian, Bakken, Barnett and Louisiana Gulf coast operations.
- ATLS +14.1%, APL +12.8% premarket.
Jun. 20, 2014, 9:14 AM
Jun. 20, 2014, 7:20 AM
- Targa Resources (TRGP) confirmed high-level preliminary discussions on a sale to Energy Transfer Partners (ETP), but says the talks ended without any deal. There are no assurances talks could resume.
- TRGP -13.7%, NGLS -9.1%, RGP +1%, ETE +0.5% premarket.
- Previously: Bloomberg: Energy Transfer near deal to buy Targa Resources
Jun. 19, 2014, 4:15 PM
- Targa Resources (TRGP) shares spiked 20.4% just before the close on a report that Energy Transfer Partners (ETP) is near a deal for the company.
- TRGP and Targa Resources Partners (NGLS), which surged 17.7%, could be valued at a combined total of more than $15B in the deal, sources tell Bloomberg; Regency Energy Partners (RGP), another pipeline company controlled by ETP, also could be involved in the deal.
Jun. 16, 2014, 8:58 AM
- Williams Cos. (WMB) +12.3% premarket after agreeing to buy Access Midstream Partners (ACMP) for $6B and is upgraded to Buy from Neutral at Jefferies with a $65 price target.
- Jefferies notes WMB's yield/dividend growth is now consistent with pure-play general partner peers; says Plains GP (PAGP), Targa Resources (TRGP) and ONEOK (OKE) trade with an average ~3.5% dividend yield, which would equate to a $71 price for WMB.
- Credit Suisse raises its WMB target price to $65 from $50, and believes a significant re-rating should ensue.
Oct. 18, 2012, 12:56 PM
Targa Resources (TRGP -1.9%) expects FY 2012 adjusted EBITDA at or slightly below low-end guidance of $515M, including the impact from Hurricane Isaac and lower average liquefied natural gas prices, which are ~25% lower than the company assumed when it issued guidance at this time last year.| Oct. 18, 2012, 12:56 PM