In this video, Motley Fool energy analyst Taylor Muckerman tells us about a big new diversification move by TargaResources Partners (NYS: NGLS) . Targa has traditionally been focused on natural gas in the Texas and Gulf Coast areas, but is now making a big play for the Bakken, which moves the company into crude oil. Because this is an area with such rapid growth for the upstream oil companies, pipelines from the midstream are in constant demand, which means this will likely be a great source of revenue for Targa. Muckerman tells us what this means exactly for it, and how the company plans to pay for this expansion.
The surge in oil and natural gas production from hydraulic fracturing and horizontal drilling is creating massive bottlenecks in takeaway capacity. However, this problem for producers creates a massive and immensely profitable opportunity for midstream companies. Another company to watch in this space is Energy Transfer Partners, which helps alleviate the gluts in supply with 23,500 miles of transformational pipelines. To see if ETP and its industry-leading yield will be a fit for you, click on this detailed premium report, which will supply you with a thorough analysis of this attractive midstream.
The article Which Midstream Is Targeting the Bakken? originally appeared on Fool.com.
Joel South has no positions in the stocks mentioned above. Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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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