Wed, Jan. 21, 6:20 PM
- The energy analyst team at Credit Suisse today cut price targets on 10 top MLPs even while upgrading Energy Transfer Partners, expecting the group to remain broadly under pressure in the near term until crude oil prices find a floor and despite positive valuation indicators based on yield spreads.
- Credit Suisse expects crude to bottom some time later in Q1, most likely in March as refineries are in full turnaround season, undercutting crude oil demand; the debate is how long crude takes to rebound off the lows.
- The firm applied price target cuts for BBEP, DPM, ENLC, [ETP, [EVEP]], MWE, MEP, NGLS, TRGP and RGP.
Wed, Jan. 21, 5:32 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.
Nov. 4, 2014, 7:00 AM
Oct. 23, 2014, 7:30 PM| Comment!
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.
Aug. 12, 2014, 12:23 PM
- "There are a lot of growth opportunities" following Richard Kinder's suggestion that he'll be looking to acquire rival pipeline operators, says Global Hunter analyst Sunil Sibal, who considers MarkWest Energy (NYSE:MWE) and Targa Resources (NYSE:TRGP) as prime buyout candidates.
- MWE processes and transports natural gas from U.S. shale basins including the Marcellus and Utica, while TRGP has a footprint in the Permian and Bakken, as well as one of the Gulf coast’s two commercial export terminals for natural gas liquids - "assets which are very desirable in the current production growth environment,” Sibal says.
- So far todfay: KMI -1.9%, KMP -2.4%, KMR -1.7%, EPB -1.9%.
Jul. 16, 2014, 7:58 AM
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.
- Source: Press Release
- 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.
Apr. 15, 2014, 6:07 PM| Comment!
Feb. 14, 2014, 12:39 PM
- Targa Resources (TRGP +0.2%) is downgraded to Market Perform from Outperform at Wells Fargo based on valuation, while the firm lifts its target price to $94-$98 from $78-$84.
- The raised valuation range reflects a higher five-year distribution CAGR forecast of 18% vs. 15.4% previously, driven primarily by an increased distribution growth outlook at Targa Resources Partners (NGLS +0.3%), although this growth appears reflected in the valuation, the firm says.
- In an updated investor presentation, TRGP reiterated its 7%-9% 2014 distribution growth guidance and 25%-plus 2014 dividend growth guidance.
Oct. 21, 2013, 6:18 PM| Comment!
Sep. 19, 2013, 7:55 AM
- Questions around Kinder Morgan's (KMI) maintenance capex practices and the capex treatment of acquired assets have not been fully resolved after yesterday's conference call with CEO Richard Kinder, Jefferies says.
- As a result, the firm does not expect the Kinder family of companies to outperform peers; it maintains its Hold rating and $38 price target on KMI, preferring Williams Cos. (WMB) and Targa Resources (TRGP).
- In the premarket, KMI +0.4%, KMP +0.1%, KMR -0.6%, EPB flat.
TRGP vs. ETF Alternatives
Targa Resources Corp., through its partnership firm, is engaged in the business of gathering, compressing, processing and selling natural gas & storing, fractionating, transporting and selling natural gas liquids, and NGL products.
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