Targa Resources (TRGP) has risen 115% in 2016. In comparison, ONEOK Partners (OKS) is up 54%, and Kinder Morgan (KMI) is up 42% during the same timeframe. The Alerian MLP ETF (AMLP) is up 5.5% in 2016. So, TRGP has gained more than peers in 2016.
In this series, we’ll analyze the reasons for this outperformance. We’ll also analyze the company’s key financial and operational metrics in depth. Finally, we’ll look at TRGP’s performance compared to peers.
Targa Resources completed the acquisition of its MLP, Targa Resources Partners, in February 2016. The merger was announced in November 2015.
The above graph shows TRGP’s stock price movement over the last one-year period. It also shows TRGP’s 50-day and 200-day moving averages. Targa Resources currently trades 15% above its 50-day moving average and 35% above its 200-day moving average. The stock price crossed above its 50-day moving average in February 2016 and its 200-day average in May 2016 and has been on an upward trend since then.
Targa Resources engages primarily in the gathering and processing of natural gas; NGL (natural gas liquids) storage, fractionation, and transport; and storing and terminaling of crude oil and refined products.
Targa Resources’ gathering and processing assets are located in the Permian Basin, the Bakken Shale, the Barnett Shale, the Eagle Ford Shale, the Anadarko Basin, the Arkoma Basin, onshore Louisiana, and the Gulf of Mexico.
Next, we’ll see what Wall Street analysts currently recommend for Targa Resources.