Targa Resources Partners LP (NYSE:NGLS)

Targa Resources Partners (NGLS) is in the right place at the right time to take advantage of the midcontinent boom in the U.S. production of natural gas liquids, a key feedstock for the chemical industry. This master limited partnership has just made its first acquisition in the Bakken Shale formation, adding an oil pipeline to its natural gas liquids focus.

The U.S. energy boom has put the squeeze on the price of natural gas liquids but, fortunately for Targa and its investors, the company gets a relatively high 46% of its revenue from fee-based services, where prices don't depend on commodity spreads. Targa projects that it will expand its fee-based business to 55% of revenue by the end of 2013 and to 65% by the end of 2014.

Distributions have grown at an average annual rate of 12.5% over the last five years. (Master limited partnerships are tax-advantaged vehicles best owned outside a retirement account. Part of the annual distribution is treated as a return of capital and is not taxed until you sell the units.)

Midstream toll collecting... Morsels of dividends making it rain!!!! love the MLP space. Tasty enough that ownership purchases by insiders are through the roof.

Targa is another interesting MLP that was featured in Barron's recent cover story on the sector. What I like about this company again is there is a story as to why its shares should rise in the future.

The story with Targa is that it is reshaping its business model towards one that is less exposed to commodity prices. Today around half of the Company's business is exposed to commodity pricing. It has a slew if new projects that are scheduled to come online by 2014, which will reduce its exposure to commodity prices to around 35%. Once the market recognizes this shift in mix to more sable business the company will likely be awarded with a higher multiple, causing its shares to rise and me who priced it in CAPS to be happy :).

Deej

natural gas growth US, distribution, valuation

I think that this company will outperform in the short term but mature a quite a bit more as supply chains flesh themselves out a bit more. Just a guess, but think that maturing will be about 4 yrs out or less.

Natural gas pipeline MLP. Energy will only increase in value, and gas is domestically produced.

Positive Stock for the next few years

It has been outperforming since last October

Actually purchased 500 shares in early April 2009 at $9.12/share. Have enjoyed the consistent, quarterly distribution, along with the appreciation in the share price as an added bonus.

It has a good combination of growing assets, a steady stream of income, specializes in natural gas transport (which will likely continue to grow), and pays a hefty dividend. What else is there to want?

Strong dividends and stable distribution profile has this MLP holding up well in the near future

Natural gas prices are low and so is demand just wait till they rebound,and the dividend isn't bad either

Energy sector should be rising and general stock will be correcting.

This company has a lot of growth ahead when the new pipelines are fully on line and producing revenues.

The PE ratio is low in comparing other energy/pipeline companies.

low p/e, debt and good yield

caps pick

ran a return on equity screen, testing to see how screen performs against market

Natural gas

NGLS has had a steady down hill slide in per share price since they hit the market...they have a solid dividend yield and nothing but UP from here.

P.A.Y.D.