Targa Resources Partners LP (NGLS)

[Timothy Smith]

Targa Resources Partners (NGLS)

Market Cap: $3.5 Billion

Dividend Yield: 7.09%

Targa is an MLP, which operates in the Continental United States, with a large presence in Texas and Louisiana. The company is pursuing a change in its revenue structure, as it currently receives about 45% of its revenue from fee based contracts, Targa wants to increase this percentage to a range of 55%-65% by 2014 and maintain this percentage thereafter.

Targa has grown its distribution to shareholders at a CAGR of 10% since the beginning of 2010. Additionally, the company plans on increasing distributions by 10-12% in 2013.

Targa is planning to spend more than $1.9 Billion in organic capex through 2014. The stock is up less than 1% over the past 52 weeks, and is down by approximately 9% over the past three months.