90+% of Targa's business is gas related and not oil. Production of NG is also showing signs of production declines and the price of NG is up nicely. With only about 70% of Targa's revenue from fixed fees (many competitors are 80-90% fixed fees), Targa takes on more downside risk but also enjoys a large upside when prices increase. I believe that is what is happening here ...... that is my $0.03 worth. Good luck longs!
Actually, it is the opposite ..... if the WMB deals goes through, there is a bug pull back. The recent run is due largely to the higher likelihood of the merger falling apart and ETE not having to take on an additional $6Bn in debt with a variety of other factors including increasing commodity prices. Good luck longs!
Hers another 1 cent ...... very recently announced that coal consumption dropped 36% year over year and that natural gas is taking its place as a much cleaner fuel for electricity generation. As many companies switch over, it drives up demand. Good luck longs.
Read access to equity capital markets is a good thing and largely the reason in a run-up from the low 20's to where the price is today. Albeit the additional equity is very expensive in terms of both dividend yield and warrants (which will likely dilute common share holders). With a decent commodity price recovery ($70-80 oil and $3.25 gas) within the next 2+ years, the true longs should see a 2-4 bagger (I need a 2 just to get back to even) plus some nice dividends along the way. Good luck longs ........ wish for slightly higher commodity prices.