Business Strategy and Outlook| Stephen Ellis |
Targa Resources is primarily a gatherer and processor, or G&P, of natural gas with an attractive position in the Permian Basin and other key U.S. shale plays. The firm weathered a very difficult 2020 via sharply reduced capital spending, a nearly 90% dividend reduction, and expense cuts. With a more stable 2021, it reduced debt by $1 billion that year, which we think was a good move. With leverage now at reasonable levels, we think returning the dividend to $1.40 a share from $0.40 per share annually makes sense.