News about TRGP

Targa Resources (NYSE:TRGP) carries debt equal to 515.79% of its equity, more than almost anything in midstream, yet its stock closed at $294.90 on October 16, returned 27.4% over the last 6 months and rose 95.38% over the past year. The company gathers gas in the Permian, strips out valuable liquids and ships them to the Gulf Coast for export, and has borrowed to build plants and pipelines rather than distribute cash to owners. Its yield is just 1.70%, and the shares trade at 23.20 times next year's expected earnings versus 27.06 times the past year. The article argues the risk lies in the company having no slack, since its contracts depend on volumes that producers decide to send, so if Permian output stalls, the debt stays high without the expected returns.