What happened to DCP Midstream and why did Phillips 66 acquire it?

DCP Midstream background: DCP Midstream Partners was formed by DCP Midstream LLC (a joint venture between Phillips 66 and Enbridge); it operated natural gas gathering, processing, and NGL logistics infrastructure in the DJ Basin (Colorado), Permian Basin (Texas/New Mexico), and Mid-Continent (Oklahoma, Kansas, South Texas); DCP was the second-largest U.S. natural gas gatherer and processor. The acquisition: Phillips 66 acquired DCP Midstream in a transaction announced in 2022 and completed in June 2023; Phillips 66 paid approximately $3.8B to acquire the remaining DCP units it didn't already own through its DCP Midstream LLC joint venture; the transaction gave Phillips 66 full control of DCP's assets. Strategic rationale: Phillips 66 wanted to vertically integrate its NGL supply chain — DCP's Permian and DJ Basin gathering systems supply NGL that ultimately flow to NGL fractionators and export terminals; controlling the supply chain from wellhead gathering through fractionation to export gives Phillips 66 a competitive advantage in the NGL value chain; the acquisition also added cash flow and EBITDA to Phillips 66's results. Impact: DCP Midstream ceased trading as a public company in June 2023 (units were converted to Phillips 66 shares); investors in DCP received PSX shares; investors seeking DCP-type midstream exposure must now invest in publicly traded peers like Targa Resources, MPLX, or Enable Midstream (acquired by Energy Transfer).

What is NGL fractionation and why does Targa's integrated position matter?

NGL fractionation: natural gas liquids (ethane, propane, butane, pentane mixed together as 'y-grade' or 'raw make' NGL) must be separated into individual components before they can be used; fractionators (often called 'frac trains') are distillation columns that separate mixed NGL by boiling point; ethane (lightest, lowest boiling point) boils off first, then propane, then butane, then pentane; each component exits the fractionator separately as a pure product stream. Why Mont Belvieu, Texas matters: Mont Belvieu is the NGL hub of the United States — the largest NGL storage cavern complex in the world (hundreds of miles of underground salt cavern storage); almost all U.S. NGL eventually flows to Mont Belvieu for fractionation, storage, and distribution; ethane is piped to Gulf Coast ethylene crackers; propane and butane are distributed nationally by truck, rail, and pipeline. Targa's integrated position: Targa's Grand Prix NGL Pipeline transports raw NGL from its Permian Basin processing plants approximately 1,000 miles to Mont Belvieu fractionators; once fractionated, Targa's product is loaded at Gulf Coast marine terminals for export; this integrated supply chain (from wellhead gathering through fractionation to export terminal) means a Permian producer can use Targa for the entire downstream logistics chain without working with multiple midstream companies — a significant customer convenience that drives volume concentration and stickiness.

How do midstream companies differ from E&P companies in how they make money?

E&P commodity exposure: upstream oil and gas companies (E&P) sell their production at commodity market prices; when WTI oil is $90/barrel, they earn $90 (minus royalties and production costs) per barrel; when WTI is $45/barrel, they earn $45; their revenue directly tracks commodity prices; earnings are highly volatile. Midstream fee-based model: midstream companies typically charge fees per unit of commodity moved, stored, or processed regardless of the commodity price; Targa earns approximately $0.50-0.80 per Mcf of gas gathered and processed whether natural gas sells for $2 or $8/MMBtu; the fee is for the service of gathering, processing, and transporting the gas, not for the gas itself; the midstream company's volumes depend on how much oil and gas producers produce (which is driven by commodity prices) but not directly on the commodity price. Why midstream is lower-risk than E&P: the fee-based model insulates midstream earnings from direct commodity price swings; midstream companies can earn consistent returns even in down commodity price cycles as long as producers keep producing through their infrastructure; the counterparty risk (producers stopping production or defaulting on gathering agreements) is the primary credit risk for midstream companies. EBITDA multiple differential: because midstream earnings are more predictable and less commodity-exposed than E&P, midstream companies trade at higher EV/EBITDA multiples than E&P companies; utilities-like predictability commands a utility-like valuation premium.

Data as of: September 18, 2026

brimindinvest.com / compare / dcp-vs-trgpLIVE

TRGP

Targa Resources Corp. · Energy - Midstream / Natural Gas Gathering & Processing

$285.07

-4.27% this month

VERSUS

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MPLX

MPLX LP (Midstream MLP Reference) · Energy - Midstream / Natural Gas & Crude Oil

$58.62

-1.25% this month

Comparison scoreboard

MPLX LEADS 3/5

AI Scorei

TRGP ✓65.5

MPLX 42.0

1Y Returni

TRGP ✓+71.19%

MPLX +24.22%

Fwd P/Ei

TRGP 23.83

MPLX ✓12.15

Target Up.i

TRGP +7.04%

MPLX ✓+7.21%

Op. Margini

TRGP 27.80%

MPLX ✓38.25%

Metrics last refreshed: 9/18/2026

Quick take

TRGP vs Midstream Natural Gas Comparison: AI Score, Valuation, Performance and Upside

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Targa Resources (TRGP) is a major Permian Basin-concentrated midstream gathering and processing company with an integrated wellhead-to-export NGL value chain, while DCP Midstream (the original comparison pair) was acquired by Phillips 66 in 2023 and is no longer publicly traded. MPLX LP provides a comparable midstream context as a large diversified midstream MLP with gathering and processing alongside crude and refined product transportation.

TRGP vs midstream gathering and processing peers is Permian-concentrated natural gas gathering and processing compounder with integrated NGL logistics (Targa Resources' Grand Prix Pipeline, Gulf Coast fractionation, and fee-based contract volume growth driven by Permian Basin production growth) — a pure-play midstream growth vehicle for investors seeking exposure to the Permian Basin's production ramp with fee-based earnings protection.

Live analysis · updated 9/18/2026

MPLX holds the edge across 3 of 5 key metrics in this comparison. TRGP has delivered stronger 1-year price return (+71.19% vs +24.22%), though MPLX has the better forward P/E setup (12.15x vs 23.83x for TRGP). MPLX leads on both revenue growth (10.60%) and operating margin (38.25%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies similar upside for both: +7.04% for TRGP and +7.21% for MPLX.

Normalized 1Y performance

TRGP

MPLX

Recent returns

TRGP

MPLX

Analyst price targets & sentiment

Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.

TRGP

Price target range

analyst mean$308.10
current price$285.07

+7.0% upside to analyst mean

MPLX · 13 analysts

STRONG BUYHOLDSTRONG SELL

Buy (2.4/5.0)

6 Buy / 8 Hold / 1 Sell

Price target range

analyst low$54.00
analyst high$73.00
analyst mean$62.85
current price$58.62

+7.2% upside to analyst mean

Who should consider this stock?

TRGP may suit investors who:

Want Permian Basin production growth exposure through midstream fee-based earnings that are less volatile than E&P commodity price exposure
Value Targa's integrated wellhead-to-export NGL value chain as creating durable customer relationships and volume growth tied to Permian Basin drilling activity
Seek a midstream company with dividend growth trajectory tied to organic EBITDA growth from expanding gathering and processing capacity

MPLX may suit investors who:

Want a high-yield midstream MLP (7-9% distribution yield) with Marathon Petroleum sponsorship providing volume visibility and financial backing
Value MPLX's diversified exposure across crude oil, refined products, and natural gas gathering as providing revenue resilience
Prefer a larger, more diversified midstream MLP over a Permian-concentrated operator like Targa Resources

Performance & AI score

Performance & AI score
Metric	TRGP	MPLX
AI scorei	65.5	42.0
AI ranki	#77	#972
Latest closei	$285.07	$58.62
1M returni	-4.27%	-1.25%
6M returni	+19.01%	+4.41%
1Y returni	+71.19%	+24.22%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

$10,000 invested — hypothetical growth (dividends reinvested)
Period	TRGP	MPLX
1Y ago	$16.76K (+67.6%) started 2025-09-18	$13.46K (+34.6%) started 2025-09-17
5Y ago	$75.77K (+657.7%) started 2021-09-20	$54.49K (+444.9%) started 2021-09-17
10Y ago	$139.49K (+1294.9%) started 2016-09-19	$183.5K (+1735.0%) started 2016-09-19

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Valuation & upside potential
Metric	TRGP	MPLX
Market capi	$61.72B	$59.43B
Trailing P/Ei	27.54	12.45
Forward P/Ei	23.83	12.15
Price/Salesi	N/A	4.94
EV/Revenuei	4.86	7.04
Analyst targeti	$308.10	$62.85
Target upsidei	+7.04%	+7.21%

Growth, profitability & risk

Growth, profitability & risk
Metric	TRGP	MPLX
Revenue growthi	4.20%	10.60%
Earnings growthi	23.30%	3.20%
EPS growthi	+23.30%	+3.20%
FCF margini	+0.39%	+11.35%
Operating margini	27.80%	38.25%
Profit margini	13.54%	39.28%
ROIC proxyi	70.84%	33.69%
Return on equityi	70.84%	33.69%
Dividend yieldi	1.74%	7.35%
Payout ratioi	40.63%	90.02%
Dividend growth streaki	No increase yet	3 yrs
Betai	0.72	0.46
Debt/equityi	515.79	183.36
Current ratioi	0.77	0.89
Quick ratioi	0.61	0.81

Correlation

Over the past year, TRGP and MPLX have moved moderately in the same direction (correlation of 0.41), based on daily returns.

1Y

0.41

-1.0+1.0

5Y

0.62

-1.0+1.0

10Y

0.68

-1.0+1.0

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

TRGP max drawdowni16.01%

MPLX max drawdowni7.71%

TRGP max wkly dropi10.34%

MPLX max wkly dropi5.19%

5Y risk snapshot

TRGP max drawdowni32.02%

MPLX max drawdowni18.46%

TRGP max wkly dropi20.93%

MPLX max wkly dropi15.94%

10Y risk snapshot

TRGP max drawdowni90.78%

MPLX max drawdowni75.21%

TRGP max wkly dropi67.27%

MPLX max wkly dropi45.62%

Performance metrics by period

Performance metrics by period
Period	Metric	TRGP	MPLX
1Y	Growthi	+67.57%	+24.22%
	CAGRi	+67.63%	+24.24%
	Volatilityi	29.05%	16.46%
	Sharpe ratioi	1.78	1.13
	Sortino ratioi	2.70	1.66
	Max drawdowni	16.01%	7.71%
	Current drawdowni	5.68%	2.67%
	Avg drawdowni	3.31%	2.43%
	Ulcer Indexi	4.78%	3.15%
	Max daily dropi	5.51%	2.64%
	Max wkly dropi	10.34%	5.19%
5Y	Growthi	+598.70%	+216.94%
	CAGRi	+47.58%	+25.95%
	Volatilityi	31.63%	18.82%
	Sharpe ratioi	1.25	1.09
	Sortino ratioi	1.77	1.57
	Max drawdowni	32.02%	18.46%
	Current drawdowni	5.68%	2.67%
	Avg drawdowni	8.23%	2.87%
	Ulcer Indexi	11.63%	4.24%
	Max daily dropi	12.15%	7.07%
	Max wkly dropi	20.93%	15.94%
10Y	Growthi	+773.18%	+343.66%
	CAGRi	+24.20%	+16.08%
	Volatilityi	47.47%	30.36%
	Sharpe ratioi	0.62	0.49
	Sortino ratioi	0.84	0.75
	Max drawdowni	90.78%	75.21%
	Current drawdowni	5.68%	2.67%
	Avg drawdowni	17.71%	9.82%
	Ulcer Indexi	25.45%	16.12%
	Max daily dropi	52.91%	17.61%
	Max wkly dropi	67.27%	45.62%

AI Prediction Signali

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Next 5 trading days

TRGP

+2.8%BUY

MPLX

+1.1%HOLD

Next 30 trading days

TRGP

+6.4%BUY

MPLX

+3.2%HOLD

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Business comparison

Business comparison
Category	TRGP	MPLX
Company	Targa Resources Corp.	MPLX LP (Midstream MLP Reference)
Sector	Energy	Energy - Midstream / Natural Gas & Crude Oil
Industry	Oil & Gas Midstream	Oil & Gas Midstream
Core business	Targa Resources is a major midstream energy company providing gathering, compression, treating, processing, and NGL logistics services to natural gas and oil producers primarily in the Permian Basin, Anadarko Basin, Bakken, and Williston Basin. Targa's operations: Gathering & Processing (G&P) — collects raw natural gas from producers via gathering pipelines, compresses and processes the gas to remove impurities and extract NGL, and delivers dry residue gas to interstate pipelines; Logistics & Transportation (L&T) — owns NGL pipelines, fractionators (separating mixed NGL into component products: ethane, propane, butane, pentane), and marine export terminals on the Gulf Coast. Targa's Grand Prix NGL Pipeline connects its Permian Basin processing plants to Gulf Coast fractionators at Mont Belvieu, Texas.	MPLX LP is a diversified midstream MLP sponsored by Marathon Petroleum Corporation (MPC), operating crude oil and refined product pipelines, marine terminals, storage facilities, and natural gas gathering and processing (G&P) systems primarily in the Midwest, Appalachian Basin, and Southwest. Following Phillips 66's acquisition of DCP Midstream in 2023, MPLX provides useful comparison context as a major publicly traded midstream MLP with gathering, processing, and logistics operations comparable to what DCP Midstream offered. DCP Midstream was the second-largest natural gas gathering and processing company in the U.S.; the Phillips 66 acquisition integrated DCP's significant DJ Basin, Permian, and Mid-Continent gathering and processing systems into Phillips 66's midstream portfolio. MPLX and Targa Resources are the most representative publicly traded comparables in the gathering and processing midstream segment.
Investor focus	Investors track Targa's fee-based contract volume growth (gallons gathered/processed), NGL fractionation volumes, EBITDA growth, dividend growth, and organic capital investment projects (new processing plants, pipeline expansions).	MPLX investors track gathering and processing fee revenue, crude oil and refined products transportation volumes, distribution coverage ratio, and the strategic relationship with Marathon Petroleum as sponsor and anchor customer.

TRGP strengths

Permian Basin concentration positions Targa in the highest-growth U.S. production region — Permian Basin oil and gas production growth drives increasing volumes through Targa's gathering and processing systems; organic volume growth is driven by producers drilling more wells connected to existing infrastructure
Integrated midstream value chain from wellhead to export provides durable customer relationships — Targa handles natural gas and NGL from the wellhead through processing and fractionation all the way to Gulf Coast export terminals; producers prefer integrated service providers who can manage the entire supply chain
Fee-based contract model provides revenue stability with volume growth upside — most of Targa's contracts charge fees per unit of gas or NGL processed rather than marking to market commodity prices; this reduces commodity price volatility while allowing earnings to grow with production volumes

MPLX strengths

MPLX's Marathon Petroleum sponsorship provides anchor customer volumes and financial backstop — approximately 50-60% of MPLX revenue comes from Marathon Petroleum's transportation and terminal needs; this concentrated anchor customer provides volume certainty
Diversified midstream exposure across crude, refined products, natural gas, and NGL provides revenue resilience — MPLX's multiple product types reduce dependence on any single commodity market or production region
MLP structure provides attractive distribution yield — MPLX distributes substantially all cash flow as quarterly distributions, typically yielding 7-9%; the tax-advantaged MLP structure appeals to income investors

Risks to watch — TRGP

Producer drilling activity in Targa's core basins is the primary volume driver — if oil prices fall and Permian producers reduce drilling activity, volumes through Targa's gathering systems decline; Targa's earnings are leveraged to U.S. oil and gas drilling cycles
Capital-intensive organic expansion projects require careful execution — new processing plants and NGL pipelines cost hundreds of millions each; cost overruns or commissioning delays create earnings risk
Regulatory environment for midstream infrastructure permitting — pipeline construction requires environmental permits; legal challenges to new pipeline permits can delay projects and increase costs

Risks to watch — MPLX

Marathon Petroleum concentration creates customer dependency — if MPC's refining volumes decline (refinery maintenance or demand reduction), MPLX's anchor customer revenue could fall
MLP structures face ongoing investor base challenges — many investors avoid K-1 tax reporting requirements; MLP valuations have been compressed relative to their C-corp midstream peers since the 2015-2016 energy downturn
Appalachian gathering system faces same natural gas price risk as the basin — MPLX has significant Marcellus/Utica G&P operations; low natural gas prices reduce producer drilling activity and gathering volumes

Frequently asked questions

Midstream definition: the energy industry is divided into upstream (exploration and production of oil and gas), midstream (transportation, storage, and processing of oil and gas), and downstream (refining, petrochemicals, and retail fuel sales). Gathering: raw natural gas produced at the wellhead contains many components beyond methane — wet gas includes ethane, propane, butane, pentane (the NGL components), water vapor, CO2, H2S, and nitrogen; gathering pipelines are the small-diameter pipelines that connect individual wellheads to central processing facilities; gathering systems are owned by midstream companies like Targa who build and maintain them under long-term gathering agreements with producers. Processing: gas processing plants receive raw wet gas from gathering systems and separate it into component streams — dry residue gas (primarily methane) is delivered to interstate pipelines for transportation to demand centers; NGL stream (ethane, propane, butane, pentane mix) is extracted and transported by NGL pipelines to fractionators; the processing is necessary because interstate pipelines require gas of specific quality (dew point, BTU content) that raw wellhead gas doesn't meet. Fee-based model: Targa and other processors charge producers a fee per Mcf (thousand cubic feet) of gas gathered and processed — these fees may be fixed or may include a 'keep-whole' component (where the midstream company keeps some of the NGLs extracted in payment); most modern contracts are fee-based to provide revenue certainty for both parties.

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