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Targa Resources (NYSE:TRGP) -1.5% in Wednesday’s trading after posting a nearly 10-year high early in the session, as Argus launched coverage with a Buy rating and $140 price target, citing the company’s strong project backlog and plans to buy back shares.
Argus analyst John Staszak expects Targa (TRGP) will continue its expansion, projecting EBITDA will exceed management’s $3.7B-$$3.9B guidance, driven by strong production in the Permian Basin over the rest of the year.
Staszak touts Targa’s (TRGP) operations in nearly every segment of the midstream sector of the oil and gas industry, as well as its geographic diversity, with many of its assets focused on some of the most productive U.S. oil and gas formations and connected with important natural gas liquids facilities.
Targa (TRGP) has large-scale operations in the Permian Basin, and despite some obstacles, the company’s production in the region has led to increased demand for NGL processing; as a result, Staszak says, the location is one of the Permian’s largest gathering and processing operations, and contributes significantly to Targa’s results.