We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Targa Resources (TRGP) Inks Pipeline Agreement for $1.5B
Read MoreHide Full Article
Houston, TX-based midstream energy player Targa Resources Corp (TRGP - Free Report) announced that it has inked an agreement to acquire pipeline assets from Denver, CO-based Outrigger Energy for up to $1.5 billion. The transaction is scheduled for completion by the end of March, subjected to regulatory approvals and conditions.
As part of the deal, Targa will acquire the midstream properties by making an initial payment of $565 million to Outrigger. The total transaction costs, however, is likely go up to $1.5 billion based on the performance measures.
The deal will broaden Targa’s reach into the Permian Basin by acquiring oil and gas gathering and processing assets in Delaware and Midland basin. With the acquisition, Targa will own 5,000 and 5,500 miles of pipelines in Delaware and Midland basin respectively. The gross processing capacity is estimated to rise around 2 billion cubic feet per day by the end of the year.
The immediate concern of the partnership would be to connect the Outrigger systems to the existing pipeline footprint in the Permian. Outrigger Delaware assets will be linked to Targa’s existing Sand Hills system. The Midland assets will be linked to WestTX system in Martin. Currently, there is a crude oil gathering capacity of 40,000 barrels per day on the Outrigger Delaware and Midland system. Further, Targa plans to assess future connections from Delaware to its Versado system.
Targa Resources, Inc. is a midstream natural gas and natural gas liquid service provider in U.S. The company process, stores, transports and provides related services of NGL components. Targa currently carries a Zacks Rank #3 (Hold). The partnership outperformed the Zacks categorized Oil Refining & Marketing MLP industry over the prior three months. During the aforesaid period, shares of Targa improved almost 28% while the broader industry gained around 13%.
Better-ranked players in the industry include Global Partners LP (GLP - Free Report) , CVR Refining, LP and Sprague Resources LP . While Global Partners sports Zacks Rank #1 (Strong Buy), CVR Refining and Sprague Resources carry a Zacks Rank #2. (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CVR Refining is expected to report a y-o-y growth of 68.67% on its earnings.
For Global Partners, The Zacks Consensus estimated a loss of 1 cent in the previous quarter whereas the company reported earnings of 3 cents, depicting a surprise of 400%.
Sprague Resources is expected to report a y-o-y growth of 7.92% and 105.2% on its revenue and earnings for 2017.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Targa Resources (TRGP) Inks Pipeline Agreement for $1.5B
Houston, TX-based midstream energy player Targa Resources Corp (TRGP - Free Report) announced that it has inked an agreement to acquire pipeline assets from Denver, CO-based Outrigger Energy for up to $1.5 billion. The transaction is scheduled for completion by the end of March, subjected to regulatory approvals and conditions.
As part of the deal, Targa will acquire the midstream properties by making an initial payment of $565 million to Outrigger. The total transaction costs, however, is likely go up to $1.5 billion based on the performance measures.
The deal will broaden Targa’s reach into the Permian Basin by acquiring oil and gas gathering and processing assets in Delaware and Midland basin. With the acquisition, Targa will own 5,000 and 5,500 miles of pipelines in Delaware and Midland basin respectively. The gross processing capacity is estimated to rise around 2 billion cubic feet per day by the end of the year.
The immediate concern of the partnership would be to connect the Outrigger systems to the existing pipeline footprint in the Permian. Outrigger Delaware assets will be linked to Targa’s existing Sand Hills system. The Midland assets will be linked to WestTX system in Martin. Currently, there is a crude oil gathering capacity of 40,000 barrels per day on the Outrigger Delaware and Midland system. Further, Targa plans to assess future connections from Delaware to its Versado system.
Targa Resources, Inc. is a midstream natural gas and natural gas liquid service provider in U.S. The company process, stores, transports and provides related services of NGL components. Targa currently carries a Zacks Rank #3 (Hold). The partnership outperformed the Zacks categorized Oil Refining & Marketing MLP industry over the prior three months. During the aforesaid period, shares of Targa improved almost 28% while the broader industry gained around 13%.
Better-ranked players in the industry include Global Partners LP (GLP - Free Report) , CVR Refining, LP and Sprague Resources LP . While Global Partners sports Zacks Rank #1 (Strong Buy), CVR Refining and Sprague Resources carry a Zacks Rank #2. (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CVR Refining is expected to report a y-o-y growth of 68.67% on its earnings.
For Global Partners, The Zacks Consensus estimated a loss of 1 cent in the previous quarter whereas the company reported earnings of 3 cents, depicting a surprise of 400%.
Sprague Resources is expected to report a y-o-y growth of 7.92% and 105.2% on its revenue and earnings for 2017.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>