Targa Resources: Loading The Chamber For Future Growth (Rating Upgrade)

Ronald Ferrie3.66K FollowersFollow5ShareSavePlay(9min)CommentsSummaryTarga Resources is executing large-scale investments in long-haul pipelines and export terminals to enable bottleneck-free G&P business growth.TRGP leverages third-party volumes to optimize asset utilization until internal infrastructure matures, supporting a well-head-to-water model.This strategy derisks future growth and enhances margins, positioning TRGP as a continued industry leader in ROIC.With superior 5-year growth and an attractive valuation, I rate TRGP a BUY based on growth, value, and disciplined capital deployment. Obradovic/iStock via Getty Images Thesis Targa Resources (TRGP) is making significant investments in its long-haul pipeline and export terminal infrastructure. These investments are large-scale and larger than the company’s current upstream assets can provide. This allows the company toThis article was written byRonald Ferrie3.66K FollowersFollowI am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real estate properties for cash flow and long-term appreciation. My articles are to serve as a platform for presenting the underlying fundamentals and long-term potential of each equity/business.Analyst’s Disclosure: I/we have a beneficial long position in the shares of EPD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.