TRGP - Targa Resources Corp.

NYSE - NYSE Delayed Price. Currency in USD
39.37
+0.02 (+0.05%)
At close: 4:03PM EST
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Previous Close39.35
Open38.94
Bid39.41 x 1100
Ask0.00 x 1000
Day's Range38.17 - 39.47
52 Week Range32.00 - 48.78
Volume2,873,632
Avg. Volume2,036,680
Market Cap9.165B
Beta (5Y Monthly)1.76
PE Ratio (TTM)N/A
EPS (TTM)-1.41
Earnings DateFeb 17, 2020 - Feb 23, 2020
Forward Dividend & Yield3.64 (9.25%)
Ex-Dividend DateJan 28, 2020
1y Target Est44.18
  • JPMorgan: 3 High-Yield Dividend Stocks to Snap Up Now
    TipRanks

    JPMorgan: 3 High-Yield Dividend Stocks to Snap Up Now

    Growth and dividends are the sure-fire ways to find profit in your investments. The hard part is finding stocks that combine the two. It’s not that they are necessarily incompatible – rather, it is just that the highest growth stocks tend to achieve their appreciation by plowing profits directly back into the company. Dividend payments dilute this, by paying some or all of the profits back to investors. Still, there are investment sectors where growth and dividends walk hand-in-hand.The natural place to look is in sectors with high cash flows and essential products. Energy comes to mind. Without energy, our modern digital economy will grind to a quick halt. Energy companies – whether they extract oil from the ground or generate electricity for commercial use – earn a profit buy fueling modern life. Investors can piggyback on that, drawing profits from the sector’s cash flow.Investment bank JPMorgan released a special report on the North American energy industry, emphasizing just these attributes – the rising production, the high cash flow, and the fundamental strength of the industry to survive a prolonged period of low prices. On US natural gas production, JPM “sees ~3% US onshore growth in 2020, driven largely by [Permian basin] production,” while noting that, for crude oil, “[Texas’] Midland remains the most economic shale play in the US as breakevens have drifted lower over the last year, largely due to increased oil pipeline capacity.”JPM’s final point, on increased pipeline capacity, brings us to the midstream sector, a vital component of the energy industry. Midstream companies move the oil and gas that extraction companies pull out of the ground; without the midstream segment, fuel would not reach the customers. JPMorgan sees room in midstream for investment activity, saying, “We believe yield-hungry investors will continue to gravitate towards quality midstreamers with strong business models and corporate governance.”In this article, we’ll look at three JPMorgan dividend stock recommendations from the energy sector. As you can see from the TipRanks Stock Comparison tool, all three offer excellent dividend yields, affordable cost of entry, and a genuine upside potential. Let's take a closer look.Plains All American Pipeline (PAA)Start with Plains All American, a pipeline company based in Houston, Texas. The company operates across much of North America, with oil pipelines across the US, natural gas storage facilities in Michigan and Louisiana, and liquid petroleum gas facilities in Canada. The company owns and operates over 17,000 miles of crude oil and gas pipelines, as well as rail, trucking, and river transport assets, along with 109 million barrels of storage capacity.In Q3 last year, the most recent quarterly report on record, PAA showed an adjusted EPS of 52 cents, beating the expectation by an impressive 33%. That number was also up 20% year-over-year. Revenues, at $7.89 billion, were in line with expectations, but down 10% year-over-year. The company’s Transportation, Facilities, and Supply and Logistics segments all showed yoy increases. Forward guidance predicts full year 2019 earnings at $2.35 – investors will have to wait until February 4 for the Q4 and full year numbers to find out.PAA does have an immediate treat for shareholders, however. The company pays out a dividend of 36 cents quarterly, or $1.44 annually per share. This translates to an impressive yield of 7.75%. Considering that the average dividend yield among S&P 500 listed companies is only 2%, this gives PAA shares a strong return on cash invested. The payout ratio, a comparison of the dividend with the earnings, stands at 69%, indicating that the dividend is easily sustainable at current rates.JPMorgan analyst Jeremy Tonet reviewed this stock and he's clearly bullish. In his comments, the 4-star analyst said, “We see PAA as well-positioned for pipe competition with lower leverage and S&L expectations, as well as JV strategic partner alignment. As such, we favor PAA's Permian torque & solid project backlog.”Tonet reiterated his Buy rating on PAA alongside a $25 price target, which indicates confidence in a 34% upside potential. (To watch Tonet’s track record, click here)PAA’s Strong Buy consensus rating is based on 14 reviews – including 11 Buys against just 3 Holds. The stock sells for an affordable price of $18.59, and the $22.79 average price target suggests an upside of 22%. (See Plains All American’s stock analysis at TipRanks)Targa Resources Corporation (TRGP)Targa is a midstream company, like PAA above. These are the companies that provide the infrastructure needed to get oil from the wellheads to markets. Targa operates mainly in the states Texas-New Mexico-Oklahoma-Louisiana, with over 28,000 miles of natural gas pipelines, moving over 3.9 trillion cubic feet of gas and 415,000 barrels of natural gas liquids.Late last year, Targa sold off its West Texas Permian oil gathering assets, in a move that allows the company to focus on pipeline operations. The move was intended to compensate for high overhead and somewhat disappointing Q3 earnings. TRGP missed badly on revenues, with the $1.9 billion reported coming in well below the $2.17 billion forecast. Worse, from an investor perspective, the company gave forward guidance on capex for 2020 of $1.3 billion, higher than expected.With all of that, however, TRGP maintained its hefty dividend. The yield, at over 9%, is 4.5x the average on the S&P, and the annual payment is $3.64. This comes out to 91 cents paid out per share quarterly. Targa has held that dividend steady since 2H15, providing investors with a reliable, high-yield income stream.JPMorgan's Jeremy Tonet, quoted above, also examined Targa in his energy industry report. Seeing the company as a Buy proposition, Tonet wrote, “Targa possesses top tier leverage to liquids rich production and downstream NGL logistics, with attractive exposure to the Permian. While TRGP's commodity price exposure represents a double-edged sword, we believe executing on the current portfolio of attractive NGL logistics projects will deliver the 'pig through the python' and drive de-leveraging and positive re-rating.”Tonet gave TRGP a $49 price target, implying an upside of 22%. (To watch Tonet’s track record, click here)Targa has received 10 recent analyst reviews, and the split reflects both the company’s strong position and worries over the Q3 revenues. The stock’s 4 Buys, 5 Holds, and 1 Sell rating combine to give a Moderate Buy consensus view. Shares are selling for $40.22, and the $42.44 average price target indicates a 5.5% upside potential. (See Targa’s stock analysis at TipRanks)Williams Companies (WMB)Tulsa-based Williams is a utility provider, dealing mainly in natural gas processing and transport. The company also owns assets in the petroleum industry and in electricity generation. Williams handles – through provision or transport – as much as 30% of the natural gas used daily in the US. Customers range from residential to commercial to power generation companies.WMB was showing mixed results in 2H19. For the third quarter, the company’s revenues missed the forecast by 4.3%, coming in at $2 billion. Worse, that performance was also 13% below the year-ago number. Earnings, however, rose, and the 26 cent EPS reported was 8.3% better than expected. And even better, for income-minded dividend investors, distributable cash flows rose 8% to $822 million.Williams uses its cash flow to fund a 6.6% dividend. That yield is impressive – it’s 3.3x the S&P average – even though the absolute number is low. The quarterly payment of 38 cents annualizes to $1.52 per share. The company has been slowly – but steadily – increasing the dividend since 2017.Once again, we have a review from Jeremy Tonet for this stock. Tonet says of WMB, “Williams owns one of the largest integrated natgas infrastructure positions in North America... We believe that WMB as a single security, IG-rated energy infrastructure c-corp with a strong yield will attract significant generalist investor interest.”Tonet’s Buy rating is backed by a $28 price target, suggesting a strong 22% upside potential. (To watch Tonet’s track record, click here)Overall, WMB shares have a Moderate Buy from the analyst consensus, based on 5 Buys and 3 Holds recently assigned. The stock sells for $23.01, and the $30.71 average price target indicates a premium potential of 33% from that selling price. (See Williams’ stock analysis at TipRanks)

  • When Will Targa Resources Corp. (NYSE:TRGP) Turn A Profit?
    Simply Wall St.

    When Will Targa Resources Corp. (NYSE:TRGP) Turn A Profit?

    Targa Resources Corp.'s (NYSE:TRGP): Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP...

  • GlobeNewswire

    Targa Resources Corp. Announces Quarterly Dividends

    Targa Resources Corp. (“TRC”, “Targa” or the “Company”) (TRGP) announced its quarterly dividend on common shares and its quarterly dividend on Series A preferred shares with respect to the fourth quarter of 2019. TRC announced today that its board of directors has declared a quarterly cash dividend of 91.00¢ per share, or $3.64 per common share on an annualized basis, for the fourth quarter of 2019. This cash dividend will be paid February 18, 2020 on all outstanding common shares to holders of record as of the close of business on January 31, 2020.

  • GlobeNewswire

    Targa Resources Partners LP Announces Monthly Distribution on Preferred Units

    Targa Resources Partners LP (“Targa Resources Partners” or the “Partnership”) (NYSE:NGLS PR A) announced its monthly distribution on the Partnership’s 9.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units ("Series A Preferred Units") for January 2020. Targa Resources Partners LP announced today that the board of directors of its general partner has declared a monthly cash distribution of 18.75¢ per Series A Preferred Unit, or $2.25 per Series A Preferred Unit on an annualized basis, for January 2020. This cash distribution will be paid February 18, 2020 on all outstanding Series A Preferred Units to holders of record as of the close of business on January 31, 2020.

  • Hedge Funds Are Dumping Targa Resources Corp (TRGP)
    Insider Monkey

    Hedge Funds Are Dumping Targa Resources Corp (TRGP)

    Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that's why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an […]

  • GlobeNewswire

    Targa Resources Corp. to Participate in Wells Fargo Annual Midstream and Utility Symposium

    A copy of the slides used for the conference meetings will be available in the Investors section of the Company's website at www.targaresources.com, or by going to https://ir.targaresources.com/events. Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent midstream energy companies in North America. The Company owns, operates, acquires, and develops a diversified portfolio of complementary midstream energy assets.

  • GlobeNewswire

    Targa Resources Corp. to Participate in RBC Capital Markets Midstream Conference

    A copy of the slides used for the conference meetings will be available in the Investors section of the Company's website at www.targaresources.com, or by going to https://ir.targaresources.com/events. Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent midstream energy companies in North America. The Company owns, operates, acquires, and develops a diversified portfolio of complementary midstream energy assets.

  • Thomson Reuters StreetEvents

    Edited Transcript of TRGP earnings conference call or presentation 7-Nov-19 4:00pm GMT

    Q3 2019 Targa Resources Corp Earnings Call

  • GlobeNewswire

    Targa Resources Partners LP Prices Upsized $1.0 Billion Offering of Senior Notes

    Targa Resources Partners LP (the “Partnership”), a subsidiary of Targa Resources Corp. (TRGP), and the Partnership’s subsidiary Targa Resources Partners Finance Corporation announced today the pricing of an upsized offering of $1.0 billion aggregate principal amount of senior unsecured notes due 2030 (the “2030 Notes”). The Partnership intends to use the net proceeds from the offering to repay borrowings under its credit facilities and for general partnership purposes, which may include redemptions or repurchases of the Partnership’s outstanding senior notes, repayment of other indebtedness, working capital and funding capital expenditures and acquisitions. The securities offered have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and unless so registered, the securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

  • Moody's

    Targa Resources Partners LP -- Moody's rates Targa Resources Partners' new notes Ba3

    TRP is wholly owned by Targa Resources Corp. (Targa). Targa and TRP's other ratings and Targa's stable outlook remained unchanged. The notes proceeds are expected to be primarily used to reduce borrowings under TRP's revolving credit facility, and therefore, the transaction will be debt neutral.

  • 3 Buy-Rated Stocks with Over 8% Dividend Yield
    TipRanks

    3 Buy-Rated Stocks with Over 8% Dividend Yield

    Investors with a sense of history are a bit nervous – we’re in the fourth quarter, and Q4 last year saw a 9% drop in S&P 500 index. There is growing evidence of a general global economic slowdown, the UK is on a path out of the EU, but no one knows exactly how, and December’s scheduled Parliamentary elections are not likely bring any clarity. And under everything, the US-China trade tensions continue to simmer. So, the only thing certain these days is uncertainty.So, what can investors do, to protect their portfolios and income streams? Treasury bonds, the traditional safe-haven investment, are notoriously low-yielding. One solution is dividend stocks, but stocks come with risks, too. Still, plenty of companies are committed to returning income to shareholders, and some of the more established of them will maintain a dividend payout even if earnings run at a loss – as an incentive to investors. We’ve used TipRanks’ Stock Screener tool to find three Buy-rated stocks that meet this profile – a long-term commitment to paying the shareholders, and a high-yield dividend to bake it up.Artisan Partners Asset Management (APAM)Artisan is an investment management firm with a 25-year history and over $114.5 billion in total assets under management. The company has offices across the US, as well as in London, Dublin, Singapore, and Sydney.APAM has seen success in the past year, and the stock is up 38% year-to-date. This growth rate heavily outperforms the broader markets – the S&P 500 has gained 23% this year, and the Dow Jones 27%. Despite the gains, APAM’s growth has been choppy in the last 10 months, and the stock has shown high volatility.Volatility may worry investors, but Artisan has kept up investor interest in the stock with an 8.82% dividend yield. The average yield for S&P listed companies is about 2%, and APAM’s yield is more than quadruple that value. The annualized payout of $2.60 is based on a quarterly payment of 65 cents. The company also pays out a ‘special’ dividend annually; the last such payment, back in February, was $1.03 per share. The payment ratio, a comparison of the dividend payment to the quarterly earnings, stands at 100%, indicating that APAM returns all of its earnings to shareholders. While this would not normally be sustainable, management has a plan to adjust this – more on that below.Normally analysts reiterate stock ratings- so when a stock is upgraded, it’s worth taking note. Last week, Citi analyst William Katz upgraded APAM to Buy (from Neutral) and raised his price target to $33 (from $25), which implies about 12% upside from current levels. (To watch Katz's track record, click here)Katz noted, "Following an extensive retooling of our model to bridge to product level outlook vs. top down team view, we now see the potential for NNA to inflect positively into ’21. While potentially not much of a swing factor vs. current LSD annualized loss rate, it should be enough to drive modest multiple expansion, against higher EPS outlook. At the margin, we are increasingly encouraged by lead indicators in APAM’s Generation III new business segment, coming at a time when more pronounced legacy DC exposure works lower, driving elevated redemption more recently."RBC Capital analyst Kenneth Lee also likes what he sees in APAM. He writes, “We think Artisan Partners' differentiated investment approach stands apart from most other asset managers…” and goes on to point out important factors in the company’s future growth potential: “Continued growth of non-US domiciled client assets, through the intermediary channel, could help the company’s organic growth rates.” He notes the dividend, too, and of the high payment ratio points out: “Transition to a variable quarterly dividend should enable cash dividends to better match quarterly cash generation.” Lee’s $32 price target suggests an 8% upside for APAM.All in all, this stock has just two "buy" ratings in recent weeks. Shares sell for $29.41, so the $32.50 average price target indicates room for a 10% upside. (See Artisan stock analysis on TipRanks)AMC Entertainment (AMC)Based in Kansas, the world’s largest movie theater company puts up some impressive numbers: 8,200 screens in 661 theaters in the US, and a further 2,200 screens in 244 theaters in Europe. Movies are big business, of course, and not just for Hollywood; AMC posted $5.5 billion in revenue in 2018, netting $110 million in income.AMC isn’t just relying on traditional box office ticket sales, however. The company is pushing several new ideas, including screening NFL games at selected theaters, and even offering on-demand movies for home viewing. In the last four years, AMC has spent over $3.4 billion acquiring smaller theater companies in the US and Europe. In addition to expansion, the company is undergoing a management transition, as long-time CFO Craig Ramsey will be retiring in February. AMC announced in October that Sean Goodman, of Asbury Automotive Group, will take up the position.On the negative side, AMC’s expansion activity has cut deeply into the company’s net cash position. In 1H19, AMC reported a 48% drop in net cash, to $154 million, while the free cash flow dropped from 1H18’s $187.3 million to just $50.3 million. The decline in cash flow explains AMC’s reluctance to raise the dividend, which has paid out 20 cents per share since 2014. The company has instead manipulated the yield to keep the payment stable.That yield manipulation, after share price declines, leaves AMC with a dividend yielding 8.62%. The stock has been trading in a $3 range – between $8.70 and $11.90 – since July, so assuming the share price remains stable, AMC offers a high return. The 8.62% yield is more than 4x the average dividend yield on the S&P 500.Assessing the full picture, Wedbush analyst Michael Pachter sees reason for optimism in AMC. He writes, “AMC should outperform the industry… as it expands its upgrades throughout Europe and expands its footprint in the Middle East… AMC has committed to using its incremental free cash flow toward paying down its high debt balance. We view the CFO transition to Sean Goodman as an overall positive, given his extensive international experience... We see little downside to AMC’s new on-demand offering, given its reach to loyal customers.” Pachter puts a $15 price target on AMC, suggesting an impressive 61% upside. (To watch Pachter's track record, click here)Other analysts share a similar enthusiasm with Pachter when it comes to AMC. TipRanks data shows out of 9 analysts, 7 are bullish and 2 are sidelined. With a consensus price target of $15.11, the potential upside is about 63%. (See AMC stock analysis on TipRanks)Targa Resources (TRGP)The last few years have seen the US move into the number one slot among energy producers worldwide. The country produces nearly 12.5 million barrels per day of oil, and is on track to become a net energy exporter in 2022. The increase in oil production has restarted the Texas oil industry, and created a boom in North Dakota’s Bakken formation.All of this oil activity has created a huge opening for midstream energy companies – the companies that provide pipeline, storage, and transport facilities for the oil and gas drillers. Targa, based in Houston, is a major player in the Texas-New Mexico-Oklahoma-Louisiana region, as well as in North Dakota. Targa recently sold its West Texas oil gathering network to Oryx Midstream in a $135 million deal. The move allows Targa to focus on its 28,500 miles of natural gas pipelines, which moved 3.9 trillion cubic feet of gas in 2018, along with 415,000 barrels of natural gas liquids.Energy is a high-overhead sector, and Targa’s sale of Permian oil gathering assets was a move to control costs. It’s an important move, as the company missed revenues and earnings in the recent Q3 report. Quarterly revenue came to $1.9 billion, against a forecast of $2.17 billion, and the company’s forward guidance indicates continued capital expenditure in 2020 of $1.2 to $1.3 billion. CEO Joe Bob Perkins put a good spin on it, saying, “We are beginning to demonstrate the strategic benefits of our premier integrated midstream position and our cash flow profile is expected to strengthen meaningfully, positioning Targa well over the long-term.”As part of the company’s strong positioning, Targa pays out a quarterly dividend of 91 cents. The company has kept that dividend stable since 2015, like AMC manipulating the yield to keep the payout steady. TRGP’s current dividend yield is an impressive 9.38%.4-star analyst Jeremy Tonet, of JPMorgan, looks at Targa and sees plenty of potential for the future. The analyst writes: "…with $4bn of growth projects entering service since the beginning of 2019, and capex moderating going forward, we see TRGP at an important growth inflection point where the company has evolved into full value chain integration and can achieve improved financial flexibility.” Tonet’s $49 price target implies a healthy 26% upside to the stock. (To watch Tonet's track record, click here)TRGP’s Moderate Buy consensus rating reflects the company’s earnings difficulties in recent months, and is based on 6 "buy" and 5 "hold" ratings. The stock’s $44.90 average price target suggests room for a 15% upside form the share price of $38.81. (See Targa stock analysis on TipRanks)

  • GlobeNewswire

    Targa Resources Partners LP Announces $750.0 Million Offering of Senior Notes

    Targa Resources Partners LP (the “Partnership”), a subsidiary of Targa Resources Corp. (TRGP), and the Partnership’s subsidiary Targa Resources Partners Finance Corporation announced today that, subject to market conditions, they intend to sell in an offering in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to persons outside of the United States pursuant to Regulation S under the Securities Act, $750.0 million in aggregate principal amount of senior unsecured notes due 2030. The Partnership intends to use the net proceeds from the offering to repay borrowings under its credit facilities and for general partnership purposes, which may include redemptions or repurchases of the Partnership’s outstanding senior notes, repayment of other indebtedness, working capital and funding capital expenditures and acquisitions.

  • GlobeNewswire

    Targa Resources Corp. Reports Third Quarter 2019 Financial Results and Provides Preliminary 2020 Growth Capital Outlook

    HOUSTON, Nov. 07, 2019 -- Targa Resources Corp. (NYSE: TRGP) (“TRC”, the “Company” or “Targa”) today reported third quarter 2019 results. Third Quarter 2019 Financial.

  • Hess (HES) Gears Up for Q3 Earnings: What's in the Cards?
    Zacks

    Hess (HES) Gears Up for Q3 Earnings: What's in the Cards?

    Hess' (HES) third-quarter 2019 earnings are expected to have been affected by lower hydrocarbon production and commodity prices.

  • GlobeNewswire

    Targa Resources Corp. Announces Timing of Third Quarter 2019 Earnings Conference Call and Webcast

    HOUSTON, Oct. 17, 2019 -- Targa Resources Corp. (NYSE: TRGP) ("Targa" or the "Company") will report its third quarter 2019 financial results before the market opens for trading.

  • Estimating The Intrinsic Value Of Targa Resources Corp. (NYSE:TRGP)
    Simply Wall St.

    Estimating The Intrinsic Value Of Targa Resources Corp. (NYSE:TRGP)

    How far off is Targa Resources Corp. (NYSE:TRGP) from its intrinsic value? Using the most recent financial data, we'll...

  • 8 Stocks That Can Lead Longterm as Steep Market Selloff Looms
    Investopedia

    8 Stocks That Can Lead Longterm as Steep Market Selloff Looms

    These stocks offer low valuations and high dividends, and look poised to outperform under several possible economic backdrops.

  • Moody's

    Stonepeak Lonestar Holdings LLC -- Moody's rates Stonepeak Lonestar Holdings' term loan B1

    The proceeds from the term loan issuance will primarily be used to recapitalize Lonestar, which holds equity interests in development joint ventures with affiliates of Targa Resources Corp. (Targa, Ba2 stable). Stonepeak Infrastructure Partners (Stonepeak) is the private equity sponsor and sole owner of Lonestar. "Lonestar benefits from favorable counter-party contracts from the infrastructure assets underlying the JVs and positive free cash flow which will help to organically reduce leverage due to the excess cash flow sweep," said Arvinder Saluja, Moody's Vice President.

  • How Many Targa Resources Corp. (NYSE:TRGP) Shares Did Insiders Buy, In The Last Year?
    Simply Wall St.

    How Many Targa Resources Corp. (NYSE:TRGP) Shares Did Insiders Buy, In The Last Year?

    We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly...