The Panic-Proof Portfolio (Stockchase Research) Targa Resources TRGP-N PAST TOP PICK Dec 27, 2022

Stockchase Research Editor: Michael O'Reilly This mid-stream energy infrastructure provider will benefit as the US energy sector steps up production levels. It recently beat earnings estimates easily, while supporting a 20% ROE. Free cash flow was up over 30% on revenues that were up 77% and operating margins that were up 57%. Its recent acquisition of a Permian Basin gas processing company will further diversify its portfolio of assets. We recommend setting a trailing stop at $55, looking to achieve $90 -- upside potential over 30%. Yield 1.99% (Analysts’ price target is $90.81)

Stockchase Research Editor: Michael O'Reilly Mid-stream energy infrastructure provider, TRGP, is reiterated as a TOP PICK. New processing capacity is coming online in the Permian as the US energy sector steps up production levels. Recently reported EPS was double from a year ago and analysts project it to grow annually by 32% over the next five years. It has been taking on more debt to complete projects, but still has $2.20 billion under its $2.75 billion revolving credit facility. We continue to recommend at stop-loss at $55, looking to achieve $93 -- upside potential over 28%. Yield 1.95% (Analysts’ price target is $93.28)

(A Top Pick Nov 08/22, Up 9.6%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with TRGP is progressing well.  To remain disciplined, we recommend trailing up the stop to $70 at this time.

(A Top Pick Nov 08/22, Down 3%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with TRGP has triggered its stop at $70.  To remain disciplined, we recommend covering the position at this time.  When combined with the previous buy recommendation, this will result in a break even net investment.