In terms of analysts ratings, MPLX LP (MPLX), a diversified midstream MLP owned by Marathon Petroleum (MPC), places third among the seven midstream companies we’re looking at.
ONEOK has the lowest distribution yield of 4.8% among selected peers, which could be attributed to the partnership’s strong distribution growth guidance supported by its strong earnings growth potential and impressive distribution coverage.
OKE’s strong earnings growth in the first quarter was mainly due to strong throughput volume growth across its Natural Gas Gathering & Processing and Natural Gas Liquids segments.
All four of the peers we’re analyzing in this series—DCP Midstream (DCP), Western Gas Partners (WES), OKEOK (OKE), and Targa Resource Corporation (TRGP)—have leverage ratios within or below the industry standard.
In the previous part of this series, we looked at the recent operating performance for the four peers we’re analyzing: DCP Midstream (DCP), ONEOK (OKE), Targa Resources (TRGP), and Western Gas Partners (WES).
Midstream companies such as Kinder Morgan (KMI), Targa Resource (TRGP), and ONEOK (OKE) are taxed as C-corps, so the revised policy doesn’t apply to them.
Kinder Morgan (KMI) expects a DCF (distributable cash flow) of “less than 1 percent below budget” for 2017 due to the IPO (initial public offering) of its Canadian assets and impacts from Hurricane Harvey.
DCP Midstream DCP Midstream (DCP) has the second-highest correlation with crude oil, after EnLink Midstream (ENLC). The one-year correlation between DCP and crude oil was 0.51 on October 6, 2017. DCP Midstream’s high correlation with crude oil reflects its high direct commodity price exposure, mainly through its natural gas processing and NGL (natural gas liquid) business. The […]
On October 4, Targa Resources (TRGP) announced a letter of intent with a Kinder Morgan (KMI) subsidiary and DCP Midstream (DCP) for the joint development of the Gulf Coast Express Pipeline project.
On October 4, Targa Resources (TRGP) announced an agreement to sell a 25% joint venture interest in its Grand Prix NGL (natural gas liquids) pipeline to funds managed by Blackstone Energy Partners.
2017 capital expenditure Targa Resources (TRGP) revised its 2017 capital expenditure guidance upwards, by 37% to $960 million. Targa’s plans for new projects include two processing plants—one in the Midland Basin and another in the Delaware Basin. Moreover, Targa plans to double its investment in the Williston Basin to $150 million, to expand crude gathering […]
The median target price for EEP as provided by surveyed analysts is $24, which implies a 37% price return in one year from EEP’s current price of $17.48.
Of the analysts surveyed by Reuters, 58% recommend “holds” on Targa Resources (TRGP) stock. About 42% of analysts have rated Targa Resources as a “buy.”
Targa Resources reported its 4Q16 results on February 15, 2016. Targa’s distributable cash flow rose to $246.2 million in 4Q16, compared to $216.1 million in 4Q15.
Targa Resources will report its 4Q16 earnings on February 15. Analysts expect its EBITDA for 4Q16 to be $294 million—an increase of 25% compared to 3Q16.
Of the analysts surveyed by Reuters, ~66.7% rated Kinder Morgan (KMI) as a “buy” and ~33.3% rated it as a “hold.” None of the analysts rated it as a “sell.”
Targa has an effective operational capacity of 6.5–7.0 MMBbl (million barrels) per month of exports. The company expects to export more than 5 MMBbl per month in 2016.
Of the analysts surveyed by Bloomberg, 47% rate Targa Resources Partners (NGLS) a “buy,” and 53% rate it a “hold.” None of the analysts rate it a “sell.” The consensus target price for NGLS is $37.54.
The merger deal between Targa Resources Partners (NGLS) and Targa Resources (TRGP) will greatly simplify the current complex structure. The merger will create one simplified public C corporation.
On November 3, 2015, Targa Resources (TRGP) and Targa Resources Partners (NGLS) announced that Targa Resources plans to acquire Targa Resources Partners in an all-stock deal.
After Targa Resources Partners (NGLS) announced its 1Q15 earnings on May 5, its stock performance increased marginally, from $45.09 on previous close to $45.32.
Targa Resources Partners’ revenues for 1Q15 declined by 27% to $1.67 billion compared to $2.29 billion for the same quarter of 2014. Targa says it’s a result of lower commodity prices.
Kinder Morgan (KMI) is one of the largest independent operators of liquids terminals in the US. Its terminals are located throughout the US and in some parts of Canada.
FMC obtained global rights for a new herbicide from research companies based in Japan. The herbicide is reportedly effective in controlling broadleaf weeds.
In October 2014, Targa announced its agreement to acquire Atlas Pipeline and Atlas Energy for ~$7.7 billion, expected to close by the end of February 2015.
Micron plans to invest ~$4 billion to expand the company’s Singapore fabrication plant. This expansion will add a significant amount of clean room space
After spinning off its non-midstream assets, ATLS’ assets will include its general partner and incentive distribution rights in APL, as well as 5.8 million APL units.
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.
The acquisition marked NGLS’s foray into the crude oil pipeline business and strongly complements Targa’s logistics and terminalling assets for refined products.
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.
The definition of “liquefied petroleum gas” or “LPG” can vary depending on context, but it’s commonly used to refer to the hydrocarbons propane and butane.
Propane exports have increased significantly through 2013, and have spiked recently. Increased propane exports are a positive for domestic propane prices.
