Targa Resources Corp

Spectra Energy Corp. (SE), headquartered in Houston, Texas, owns and operates a large and diversified portfolio of natural gas–related assets in North America.

Most MLPs operate in the midstream energy industry. They’re mainly involved in gathering, processing, storing, and transporting energy commodities.

Significantly higher rates of propane exports have helped to boost propane prices—and the margins of some MLP names.

In 2013, the company processed an average of 780.1 million cubic feet per day of natural gas and produced an average of 91.9 thousand barrels per day of NGLs.

Cheniere Energy (LNG) was among the top midstream gainers last week. The stock rose 2.8% during the week.

Natural gas gathering and processing is a significant part of the operations of many midstream master limited partnerships.

Companies in the natural gas processing space—many of which are MLPS—keep an eye on the fractionation or “frac” spread. Here’s why.

The combined company will create a midstream enterprise with more than 22,500 miles of crude oil and natural gas pipelines across the U.S. The $7.7 billion deal is expected to close in the first quarter of 2015.

In this series, we’ll look at the historical outliers in midstream energy, which have generated massive wealth amid turbulent times.

Regency recently acquired a foothold in the Marcellus by buying PVR Partners LP in March this year in a deal worth $5.6 billion, specifically to boost its footprint in the Appalachian Basin.

Enterprise Products Partners (EPD) is one of the largest master limited partnerships operating in the midstream energy space.

Mont Belvieu ethane prices fell 3% to $0.15 per gallon in the week ending February 5, 2016. Ethane prices had risen 5% to $0.16 per gallon in the previous week.

Mont Belvieu ethane prices rose 9% to $0.15 per gallon in the week ended January 1, 2016, from $0.14 per gallon in the previous week.

According to Wall Street analysts’ consensus outlook, Kinder Morgan’s (KMI) dividend is expected to grow by ~15.3% year-over-year by the end of 2015.

Natural gas processing MLPs typically benefit when the price of NGLs is high relative to natural gas.

The EIA (Energy Information Administration) monitors seven key tight oil and gas regions in the US.

The distribution coverage ratio is the most important ratio for MLPs, as it highlights the cash available to the LP unit holders divided by the cash distributed to LP unit holders.

Considering the rock solid performance of ETP during the slump in energy prices, it is clear that ETP has more fee-based contracts.

IDRs entitle the GP to receive a higher percentage of incremental cash distributions after certain target distribution levels have been achieved for the LP unitholders.

MLPs’ tax structure is the major difference that separates them from C Corps. MLPs’ earnings aren’t taxed at the partnership level. The taxes are passed to the unitholders.

MLPs’ valuations are different from other stocks. To value MLPs, the widely used PE ratio isn’t as useful as the PDCF ratio.

Sunoco’s terminals facilities business operates crude oil, refined products, and natural gas liquids (or NGL) terminals.

Targa Resources Partners LP (NGLS) is a master limited partnership operating in the midstream energy space. Targa Resources Corp. (TRGP) is the general partner of NGLS.

With attractive NGL pricing relative to naphtha refinery streams, the feedstock percentage of NGLs has been increasing, with ethane taking a disproportionate share of the total.