Targa Resources Corp (TRGP), owner of the general partner to the MLP Targa Resources, LP (NGLS), is poised to offer dividend growth north of 20% and has growth prospects from an acquisition in the Bakken shale, says John Edwards, Director and Senior Equity Research Analyst at Credit Suisse Group.
“While we’re looking for high single-digits out of the underlying MLP, because of the amount of growth projects that will be on board for the MLP, some equity issuance combined with the distribution growth will translate to dividend growth at TRGP well north of 20%, so we think that’s another really nice play for the next few years,” Edwards said.
TRGP‘s Bakken shale growth comes from an acquisition made in the area, where the company acquired midstream infrastructure assets which will allow it to serve the burgeoning E&P industry in the region.
“The underlying LP recently made a step-out acquisition in the Bakken shale — buying some oil transportation, storage and terminals assets there, which also have terrific growth prospects there with over 260,000 acres of oil production dedicated to those assets,” Edwards said.
Targa Resources Corp (TRGP) Grows Dividend Annually at 25% to 30% Rate
April 23, 2013
Above-Average Earnings Growth Likely for Dominion Resources, Inc. (D)
February 20, 2015
BDCs Ares Capital (ARCC), Fidus (FDUS) and THL Credit (TCRD) Show Above-average Dividend Growth
January 02, 2013
Fidus (FDUS), Hercules Technology (HTGC) and Solar Capital (SLRC) Have Above-Average Dividend Growth
July 03, 2013
Northeast Utilities System (NU) a Low-Risk Utility with Above-Average Earnings and Dividend Growth
December 24, 2014
