A few highlights on Targa Resource Partners LP(NGLS):
-Targa Resource Partners has a very attractive, high yield preferred stock.
-On a relative basis, the preferred stock is very tiny compared to the whole business structure.
-Recently the preferred stock has fallen in value. Buying 20% off the par value gives investors a good margin of safety.
-The recent buy upgrade and low senior debt due in the next 24 months shows the preferred is stable.
-There is low commodity risk exposure due to the structure of the business model.
The article was written by Nicholas Bodnar and can be found on it’s entirety here:http://seekingalpha.com/article/3835546-digging-value-targa-resource-partners-11_25-percent-preferred-stock