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Assessing Targa Resources’ trading levels compared to select peers

Ingrid Pan, CFA

Targa Resources company overview and 4Q13 earnings review (Part 5 of 5)

(Continued from Part 4)


In the natural gas gathering arena, Targa’s competitors include Kinder Morgan Energy Partners (KMP), DCP Midstream (DPM), Enbridge Energy (EEP), and ONEOK Partners (OKS), as well as various private companies. In the natural gas liquids marketing space, Targa’s competitors include upstream oil and gas producers that market their own natural gas liquids production, as well as Enterprise Products Partners (EPD), and DCP Midstream (DPM). In the natural gas liquids fractionation business, Targa competes primarily with Enterprise Products Partners, ONEOK, and LoneStar—which is a joint venture between Regency Energy Partners (RGP) and Energy Transfer Partners (ETP). In the export of propane and butane, Targa competes primarily with Enterprise Products Partners.

Relative value

Refer to the above chart to see how Targa Resources compares against some of its peers in terms of size, distribution yield, and returns.

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