Why Shares of Targa Resources Partners LP Dropped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of midstream energy company Targa Resources Partners LP (NYSE: NGLS  ) fell as much as 14% Friday after the company dismissed buyout rumors.

So what: Targa Resources' shares jumped Thursday on rumors that Energy Transfer Equity, L.P. was going to buy the company but Targa squashed those rumors today. In a release, the company said it had "preliminary discussions regarding a potential business combination" but those discussions have been terminated. 

Now what: The moves have been a bit jolting but shares are actually trading higher than they were at the close on Wednesday. Assuming the deal is indeed dead, I wouldn't be surprised to see shares fall back to that level, leaving about 5% more downside. There's really no reason to buy today but don't change your investment thesis either because the wild ride of the last two days doesn't really change the fundamental business Targa is in.

Do you know this energy tax "loophole"?
This drop doesn't mean the midstream business is in trouble and in fact there are many opportunities in energy right now. Take advantage of some key profitable opportunity by grabbing your brand-new special report, "The IRS Is Daring You to Make This Investment Now!," and you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3002495, ~/Articles/ArticleHandler.aspx, 8/27/2015 11:01:55 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated 1 hour ago Sponsored by:
DOW 16,654.77 369.26 2.27%
S&P 500 1,987.66 47.15 2.43%
NASD 4,812.71 115.17 2.45%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/27/2015 4:05 PM
NGLS $28.90 Up +1.52 +5.55%
Targa Resources Pa… CAPS Rating: ****