What is a Rule 10b5-1 plan?

A Rule 10b5-1 plan is a written document that pre-establishes the purchase or sale of securities. Insiders, such as officers and directors, can adopt these plans to demonstrate that any trades made were not based on material non-public information, providing a defense against accusations of insider trading.

Does the adoption of these plans mean that Mr. Perkins and Mr. Muraro are selling their Targa Resources shares?

The adoption of a Rule 10b5-1 plan means that they have *pre-arranged* the potential future sale of shares. It does not guarantee that sales will occur, or specify the timing or volume of any potential sales. Actual transactions will be reported separately to the SEC as they are executed.

Should investors be concerned about these insider trading plans?

Rule 10b5-1 plans are a standard and legitimate tool for insiders to manage their stock portfolios. They are designed to prevent insider trading concerns. While significant sales by insiders can sometimes put downward pressure on a stock, these plans often facilitate orderly selling over time rather than large, sudden disposals.

TRGP 8-K SEC Disclosure

Q: What is Perkins Blue House Investments Limited Partnership (PBHILP)?

PBHILP is a Texas family limited partnership. Joe Bob Perkins is the sole member of JBP GP, L.L.C., one of the general partners of PBHILP, indicating a close association and control over this entity, which has also adopted a Rule 10b5-1 plan.

Summary

This 8-K filing from Targa Resources Corp. (TRGP) primarily announces the adoption of trading plans under Rule 10b5-1 by key insiders. Specifically, Director Joe Bob Perkins and Chief Commercial Officer Robert M. Muraro have established these pre-arranged trading programs. Additionally, an entity associated with Mr. Perkins, Perkins Blue House Investments Limited Partnership (PBHILP), has also entered into a 10b5-1 plan. These plans are designed to allow insiders to sell company securities in a structured and pre-determined manner, mitigating concerns about insider trading or the timing of such transactions. While the adoption of these plans is announced, the actual execution and details of any sales will be reported separately via SEC filings as they occur. Investors should note that further adoption of similar plans by other officers and directors is possible.

Key Highlights

1Director Joe Bob Perkins has adopted a Rule 10b5-1 trading plan.
2Chief Commercial Officer Robert M. Muraro has adopted a Rule 10b5-1 trading plan.
3Perkins Blue House Investments Limited Partnership (PBHILP), an entity related to Mr. Perkins, has also adopted a Rule 10b5-1 trading plan.
4Rule 10b5-1 plans allow for pre-arranged sales of securities by insiders, providing a defense against insider trading allegations.
5The adoption of these plans does not necessarily indicate an intent to sell, but rather establishes a framework for potential future sales.
6Actual transactions under these plans will be reported on separate SEC filings as they happen.
7The company notes that other officers and directors may adopt similar plans in the future.

Targa Resources Corp. 8-K Report, Corporate Update (Mar 9, 2022)

Summary

Key Highlights

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