Why Targa Resources Is Poised to Keep Poppin'

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, midstream natural gas services specialist Targa Resources Partners  has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Targa and see what CAPS investors are saying about the stock right now.

Targa facts

Headquarters (founded)

Houston, Texas (2006)

Market Cap

$5.0 billion


Oil and gas storage and transportation

Trailing-12-Month Revenue

$5.6 billion


CEO Joe Perkins

COO Michael Heim

Return on Equity (average, past 3 years)



$102.1 million / $2.5 billion

Dividend Yield




Enterprise Products Partners

ONEOK Partners

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 286 members who have rated Targa believe the stock will outperform the S&P 500 going forward.   

Earlier today, one of those Fools, AnsgarJohn, succinctly summed up the Targa bull case for our community:

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. ...

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.)

There are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

The article Why Targa Resources Is Poised to Keep Poppin' originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Enterprise Products Partners L.P. and ONEOK Partners, L.P. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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