Targa Resources Partners
The midstream natural gas company is scheduled to report its fourth-quarter results on Thursday. Analysts, on average, expect 50 cents a share in earnings on $2.2 billion in revenue."We forecast unit distribution growth through 2014 at [about] 10% compound annual growth rate driven by a favorable natural gas processing environment and due to incremental contributions from a $1.2B expansion growth/capital acquisition program through 2013," Morgan Keegan analysts wrote in a Jan. 26 report. Shares of Targa Resources Partners hit a 52-week high Tuesday of $41.31. The stock's 52-week low of $28.83 was set on Aug. 8. Targa Resources has a forward P/E of 21.31; the average for pipeline companies is 64.55. Enterprise Products Partners (EPD) and Williams Partners (WPZ) both have lower forward P/Es of 20.55 and 18.87 respectively. Ten of the 14 analysts who cover Targa Resources rated it buy; four rated it hold. Targa Resources gets a A- grade from TheStreet Ratings with a buy rating and $49.76 price target. The stock has risen 10.41% year to date.
Magellan Midstream Partners The petroleum transportation company has extended the open season for shippers' capacity commitments to bring oil from Crane, Tex. to East Houston. "In general, 4Q11 performance benefited from higher transportation and terminal revenues due to a 7% tariff increase on July 1, 2011 which partially offset reduced shipment volumes, higher fees for pipeline capacity, additional pipeline firm capacity lease purchases, recently constructed storage in Cushing, Oklahoma, new refined products tanks at MMP's marine terminals, tank additions at Cushing tank farm and Marrero, Louisiana terminal, and rate increases at Galena Park, Texas terminal," Ladenburg Thalman analysts wrote in a Feb. 8 report. "Overall, the strong performance in these two segments helped MMP generate approximately $131.3 million in distributable cash flow, compared with $128.1 million a year ago and our estimate of $109.7 million." Shares of Magellan Midstream Partners hit a 52-week high Tuesday of $72. The stock's 52-week low of $51 was set on Aug. 8. Magellan Midstream Partners has a forward P/E of 17.33; the average for pipeline companies is 64.53. For comparison, Enterprise Products Partners (EPD) has a higher forward P/E of 20.55. Ten of the 17 analysts who cover Magellan Midstream Partners rated it hold; seven analysts rated it buy. TheStreet Ratings gives Magellan Midstream Partners an A+ grade with a buy rating and $85.54 price target. The stock has increased 3.85% year to date.
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