TRGPTarga Resources, Inc.

Targa Resources gathers gas in the Permian basin and exports natural gas liquids through its own terminal.

The chain is built end to end: gathering gas at the wellhead, processing on site, transporting to the Gulf Coast and loading onto tankers. Owning every link allows earning at each and sharing margin with no intermediary.

Export demand is rising: American natural gas liquids are cheaper than world prices, and the difference ships to Asia and Europe as petrochemical feedstock. Expanding the export terminal is the main capital expense.

Some contracts are volume-linked and some price-linked, so the company is more price-sensitive than a pure pipeline operator. Risks: Permian drilling activity, construction costs and debt. The company pays a growing dividend.