Targa Resources (NYSE:TRGP) Issues Quarterly Earnings Results

Targa Resources (NYSE:TRGP) announced its earnings results on Thursday. The pipeline company reported $3.54 EPS for the quarter, beating analysts’ consensus estimates of $2.83 by $0.71, FiscalAI reports. The firm had revenue of $4.44 billion for the quarter, compared to analysts’ expectations of $4.90 billion. Targa Resources had a net margin of 13.55% and a return on equity of 73.14%.

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

• Positive Sentiment: Adjusted EBITDA rose 38% year over year to $1.603 billion, driven by record Permian volumes and strong performance across NGL transportation, fractionation, LPG exports, and marketing.
• Positive Sentiment: Targa now expects 2026 adjusted EBITDA toward the top of its $5.7 billion-$5.9 billion guidance range, implying growth near $1 billion over 2025. Permian volumes reached a record 7.2 Bcf/d and are tracking ahead of prior expectations as price-related shut-ins largely return.
• Positive Sentiment: Major growth projects remain on schedule, including five Permian processing plants, the Speedway NGL pipeline, and the LPG export expansion. Management also highlighted long-term upside from LNG, power generation, global hydrocarbon demand, and improved Permian gas egress.
• Positive Sentiment: The company increased its quarterly dividend 25% year over year to $1.25 per share and repurchased approximately $80 million of stock. Targa ended the quarter with $3.2 billion of liquidity and pro forma leverage of about 3.4 times.
• Negative Sentiment: Management expects second-half results to face a headwind from moderating marketing optimization gains, including benefits that contributed roughly $250 million of outperformance in the first half. Targa also remains below fee-floor levels across much of its portfolio and plans approximately $4.5 billion of 2026 growth capital spending.

Targa Resources Stock Performance

Shares of TRGP stock traded down $10.98 during trading hours on Friday, reaching $257.25. The company had a trading volume of 1,636,146 shares, compared to its average volume of 1,176,386. The company has a debt-to-equity ratio of 5.64, a quick ratio of 0.62 and a current ratio of 0.72. The business has a fifty day moving average price of $268.84 and a 200-day moving average price of $247.93. Targa Resources has a one year low of $144.14 and a one year high of $291.04. The firm has a market cap of $55.22 billion, a PE ratio of 24.59, a price-to-earnings-growth ratio of 1.36 and a beta of 0.72.

Targa Resources Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 31st will be paid a $1.25 dividend. The ex-dividend date is Friday, July 31st. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.9%. Targa Resources’s payout ratio is currently 50.56%.

Targa Resources News Summary

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

• Positive Sentiment: Strong Q2 earnings and guidance: Targa reported adjusted EBITDA of $1.603 billion, up 38% year over year, while EPS of $3.54 exceeded the $2.83 consensus estimate. Management now expects full-year adjusted EBITDA toward the high end of its $5.7 billion–$5.9 billion range. Reuters article
• Positive Sentiment: Volume growth and project execution: Record Permian inlet volumes, NGL transportation, fractionation and LPG exports supported results. Targa also brought its Train 11 fractionator, Delaware Express expansion and East Driver processing plant online, with East Driver starting ahead of schedule.
• Positive Sentiment: Shareholder returns and analyst support: Targa raised its quarterly dividend 25% to $1.25 per share and repurchased $80 million of stock. Wells Fargo raised its price target to $282 and assigned an “overweight” rating; TD Cowen lifted its target to $275, although it maintained a “hold” rating. Benzinga article
• Neutral Sentiment: Revenue performance was mixed: Quarterly revenue rose 4% to $4.44 billion but fell short of the $4.90 billion analyst forecast. Lower natural-gas prices and unfavorable hedge impacts limited commodity-sales growth, while higher fee-based midstream revenue helped offset the weakness.
• Negative Sentiment: Commodity and balance-sheet risks remain: Negative Waha natural-gas prices in the Permian, higher operating and depreciation expenses, approximately $19.6 billion of debt and planned 2026 growth capital spending of about $4.5 billion may concern investors. The stock’s recent decline suggests the strong earnings beat and guidance raise were not enough to overcome those concerns.

Insider Transactions at Targa Resources

In other Targa Resources news, Director Charles R. Crisp sold 10,602 shares of Targa Resources stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $255.96, for a total value of $2,713,687.92. Following the completion of the sale, the director owned 66,492 shares of the company’s stock, valued at approximately $17,019,292.32. The trade was a 13.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.37% of the company’s stock.

Institutional Trading of Targa Resources

Several large investors have recently modified their holdings of TRGP. Mcguire Capital Advisors Inc. bought a new position in Targa Resources in the fourth quarter valued at about $52,000. Corient Private Wealth LLC increased its position in shares of Targa Resources by 548.8% during the 4th quarter. Corient Private Wealth LLC now owns 224,984 shares of the pipeline company’s stock valued at $41,510,000 after purchasing an additional 190,306 shares during the last quarter. Beacon Pointe Advisors LLC lifted its stake in shares of Targa Resources by 104.2% in the 4th quarter. Beacon Pointe Advisors LLC now owns 3,022 shares of the pipeline company’s stock worth $557,000 after purchasing an additional 1,542 shares during the period. CacheTech Inc. bought a new position in shares of Targa Resources in the 4th quarter worth approximately $214,000. Finally, Empowered Funds LLC boosted its holdings in shares of Targa Resources by 180.9% in the fourth quarter. Empowered Funds LLC now owns 19,949 shares of the pipeline company’s stock worth $3,681,000 after buying an additional 12,846 shares during the last quarter. Institutional investors own 92.13% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Citigroup restated a “buy” rating on shares of Targa Resources in a report on Wednesday, May 27th. Erste Group Bank began coverage on Targa Resources in a research note on Thursday, June 25th. They issued a “buy” rating on the stock. Mizuho lifted their price objective on Targa Resources from $260.00 to $300.00 and gave the company an “outperform” rating in a research note on Wednesday, May 27th. JPMorgan Chase & Co. raised their price target on Targa Resources from $291.00 to $315.00 and gave the company an “overweight” rating in a report on Thursday, July 9th. Finally, Raymond James Financial set a $335.00 price target on shares of Targa Resources in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $295.24.

About Targa Resources

Targa Resources Corporation (NYSE: TRGP) is a U.S.-focused midstream energy company that provides gathering, processing, transportation, storage and marketing services for natural gas, natural gas liquids (NGLs), and condensate. Its operations span the midstream value chain, including gas gathering systems that collect production from wells, processing plants that separate and recover NGLs and other hydrocarbons, fractionation and purification facilities that prepare NGLs for market, and pipeline and terminal assets that move and store products for producers, refiners and other customers.

The company operates a network of pipelines, processing plants, fractionators and storage facilities that serve producers and consumers across major U.S.