Targa's stock fell 3.65% on the news to $57.86 per share, as it's paying for the assets in part with proceeds from an equity offering of 8 million shares that's expected to dilute existing shareholders. The acquisition also helps Targa become more of a fee-based operator, TPH said, which will give it some stability. Jefferies LLC analyst Christopher Sighinolfi expressed some caution about how the deal might affect Targa's stock performance. He currently has a hold on Targa's stock with a price target of $51 per share. Seaport Global Securities Inc. also has a price target of $51 for Targa's shares and a neutral rating.

Source: Forbes January 23, 2017 20:51 UTC