Targa Resources (NYSE:TRGP) Posts Quarterly Earnings Results, Beats Estimates By $0.30 EPS

Targa Resources (NYSE:TRGP) posted its quarterly earnings results on Thursday. The pipeline company reported $3.04 EPS for the quarter, beating analysts’ consensus estimates of $2.74 by $0.30, FiscalAI reports. The company had revenue of $5.60 billion during the quarter, compared to analyst estimates of $4.77 billion. Targa Resources had a net margin of 13.55% and a return on equity of 69.26%.

Here are the key takeaways from Targa Resources’ conference call:

• Targa raised its 2026 adjusted EBITDA outlook to at least $6 billion, up more than 21% from 2025, citing strong operating performance. Permian volumes reached a record 7.5 Bcf/d, and management expects similar growth in 2027 with multiple years of double-digit Permian growth visible.
• New 20-year, fee-based agreements with ExxonMobil, supported by significant acreage dedications, add to Targa’s growth visibility. Management said the competitive deal is expected to generate attractive returns, though it acknowledged Exxon negotiated firmly on pricing and terms.
• Third-quarter adjusted EBITDA was $1.5 billion, down 6% sequentially as lower marketing and optimization opportunities and LPG exports offset record volumes. Targa raised 2026 growth capital expectations to about $5 billion and said 2027 capital spending is likely to remain elevated, with a meaningful free-cash-flow profile expected in 2028.
• Several major projects are on schedule or ahead of schedule, including the Copperhead processing plant and Train 12 fractionator, while new plants, the Speedway NGL pipeline, and an LPG export expansion are intended to support future growth. Targa also announced Train 14, expected to begin operations in 2029.
• Targa declared a quarterly dividend of $1.25 per share, up 25% year over year, and plans to recommend a 20% increase in the 2027 annual dividend to $6 per share. The company also repurchased about $187 million of stock during the first nine months of 2026.

Targa Resources Stock Down 2.6%

TRGP traded down $7.17 during trading on Friday, reaching $264.65. The stock had a trading volume of 2,608,434 shares, compared to its average volume of 1,125,636. The stock’s 50 day moving average is $289.31 and its two-hundred day moving average is $261.35. The company has a current ratio of 0.77, a quick ratio of 0.68 and a debt-to-equity ratio of 5.01. The company has a market capitalization of $56.75 billion, a price-to-earnings ratio of 23.42, a P/E/G ratio of 1.22 and a beta of 0.76. Targa Resources has a one year low of $166.18 and a one year high of $316.60.

Targa Resources Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 17th. Shareholders of record on Friday, October 30th will be issued a $1.25 dividend. The ex-dividend date is Friday, October 30th. This represents a $5.00 dividend on an annualized basis and a yield of 1.9%. Targa Resources’s dividend payout ratio is 47.80%.

Insider Buying and Selling at Targa Resources

In related news, Director Paul W. Chung sold 1,816 shares of the business’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $296.11, for a total transaction of $537,735.76. Following the sale, the director owned 44,000 shares of the company’s stock, valued at $13,028,840. The trade was a 3.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Waters S. Iv Davis sold 2,400 shares of the company’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $299.67, for a total transaction of $719,208.00. Following the completion of the sale, the director owned 1,529 shares in the company, valued at approximately $458,195.43. This trade represents a 61.08% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 7,216 shares of company stock valued at $2,127,634. 1.37% of the stock is currently owned by company insiders.

Key Targa Resources News

Here are the key news stories impacting Targa Resources this week:

• Positive Sentiment: Third-quarter adjusted earnings were $3.04 per share, above analyst estimates of roughly $2.74–$2.81 and up from $2.20 a year earlier. Revenue reached $5.60 billion, also topping estimates. Q3 earnings and revenue beat estimates
• Positive Sentiment: Targa expects its 2027 common dividend to increase 20%, and declared a $1.25 dividend, reinforcing the company’s cash-return outlook. Quarterly results and dividend outlook
• Positive Sentiment: The company ordered equipment for a plant expansion and announced Train 14, a new natural gas liquids fractionator. The projects could add capacity and support future growth. Plant expansion and Train 14 announcement
• Negative Sentiment: Despite the earnings beat and dividend news, TRGP shares declined around the results. One report noted a sharp drop on the SEC filing day, but the coverage provided no clear explanation for the selling. Stock movement around filing day

Wall Street Analyst Weigh In

Several equities analysts have recently commented on TRGP shares. Royal Bank Of Canada upped their price objective on shares of Targa Resources from $312.00 to $338.00 and gave the company an “outperform” rating in a research note on Thursday, August 27th. Jefferies Financial Group cut their target price on Targa Resources from $326.00 to $311.00 and set a “buy” rating on the stock in a research note on Friday. Stifel Nicolaus set a $335.00 target price on Targa Resources in a research note on Friday, October 9th. Scotiabank restated an “outperform” rating and set a $319.00 target price on shares of Targa Resources in a report on Thursday, October 15th. Finally, Morgan Stanley raised their price target on Targa Resources from $343.00 to $359.00 and gave the stock an “overweight” rating in a research note on Wednesday, September 16th. Two equities research analysts have rated the stock with a Strong Buy rating and twenty have given a Buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus target price of $325.58.

About Targa Resources

Targa Resources Corp. is a midstream energy company that gathers, processes, transports and stores natural gas and natural gas liquids (NGLs), and provides services for crude oil. Its infrastructure connects oil and gas producers with pipelines, processing facilities, fractionators, storage sites and domestic and international markets.

The company’s services include natural gas gathering, compression and processing; NGL transportation and fractionation; and crude oil gathering and terminaling.