Baron Funds Comments on Targa Resources Corp

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Mar 16, 2017

Targa Resources Corp. (NYSE:TRGP) has a prime gathering and processing footprint in low cost oil and gas basins (specifically the Permian Basin) and the Gulf Coast. Shares of this midstream energy company rose during the fourth quarter on recovering commodity prices after OPEC signed a deal to cut production. We believe this deal will translate into better visibility, volumes, and operating leverage for Targa, allowing it to stabilize its dividend and improve its coverage ratio, and explore potential avenues for growth through better utilization and footprint expansion.

From Baron Energy and Resources Fund fourth quarter 2016 commentary.