Boston, MA 04/08/2014 (wallstreetpr) – Targa Resources Partners LP (NYSE:NGLS) is a $6.8 billion master limited partnership company. Last week the company issued an update about its financial and operation outlook. The update carried key hints which investors should never miss.
By law, master limited companies distribute all their income to investors. This simply means that investors are wise to identify MLPs with enough projects to keep the income coming and increasing. Targa Resources Partners LP (NYSE:NGLS) seems to fit the bill here.
Targa seems to have enough new projects, some underway and others waiting to be implemented. And the present environment of cheap money makes it capable for the company to raise the money it needs to invest in its new projects.
From the latest company update, Targa modeled a bright future, expecting earnings to increase by 60 percent in the first quarter, over the first quarter of 2013. This will be possible, according to the company, due to the increase in liquid petroleum gas (LPG) exports. The demand for LPG is projected to grow in the global market, mostly to Asia, and the U.S. which is a source of cheap, quality and big LPG production, is expected to play an important supply role to the global market.
By 2012 the U.S. became a net exporter of LPG, and its exports are expected to increase to the point where the U.S. becomes world’s top net exporter of LPG. And that is projected to happen around 2020.
Expanding market
Already Targa Resources Partners LP (NYSE:NGLS) and other LPG providers are circling Asian markets for their products. Yet, exports to Europe are also expected to increase in the face of the geopolitical tension created by Russia. European consumers who have looked to Russia for LPG are now looking for alternative sources and the U.S. seems well-positioned to benefit in that shift.
To sum up
Targa Resources Partners LP (NYSE:NGLS) seems to be well-positioned to benefit from the stable prices of LPG and LNG. Also, the increasing demand for the commodities means that the company will have several projects to guarantee income for quite some time.
