Baron Funds Comments on Targa Resources Corp

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Mar 20, 2015

Targa Resources Corp. (TRGP) is the general partner of Targa Resources Partners, a midstream energy MLP. Falling oil prices drove down shares in the fourth quarter. In October, Targa announced the acquisition of assets from Atlas Energy, L.P. Investors became concerned aboutTarga’s commodity exposure (30% of cash flows) as crude and liquids prices collapsed, and the acquisition increasesTarga’s exposure to these price moves. We continue to believe in Targa’s ability to find and execute on profitable growth opportunities. (Jamie Stone)

From Ron Baron (Trades, Portfolio)’s Baron Growth Fund Q4 2014 Quarterly Report.