Targa Resources (NYSE:TRGP) Posts Earnings Results, Beats Expectations By $0.71 EPS

Targa Resources (NYSE:TRGP) announced its earnings results on Thursday. The pipeline company reported $3.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.83 by $0.71, FiscalAI reports. The company had revenue of $4.44 billion during the quarter, compared to analyst estimates 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 Trading Down 4.1%

Shares of TRGP traded down $10.98 during trading hours on Friday, hitting $257.25. The company had a trading volume of 1,636,146 shares, compared to its average volume of 1,176,386. Targa Resources has a 52-week low of $144.14 and a 52-week high of $291.04. The company has a quick ratio of 0.62, a current ratio of 0.72 and a debt-to-equity ratio of 5.64. The stock’s 50 day moving average price is $268.84 and its 200 day moving average price is $247.93. The firm has a market cap of $55.22 billion, a P/E ratio of 24.59, a P/E/G ratio of 1.36 and a beta of 0.72.

Targa Resources Dividend Announcement

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

Analysts Set New Price Targets

A number of equities research analysts have weighed in on TRGP shares. 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 research report on Thursday, July 9th. Wells Fargo & Company upped their price objective on Targa Resources from $270.00 to $282.00 and gave the stock an “overweight” rating in a report on Friday. Scotiabank increased their price objective on Targa Resources from $249.00 to $257.00 and gave the company an “outperform” rating in a research report on Tuesday, May 12th. Morgan Stanley reissued an “overweight” rating and set a $333.00 price objective on shares of Targa Resources in a report on Tuesday, July 21st. Finally, Citigroup restated a “buy” rating on shares of Targa Resources in a research report on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Buy” and a consensus target price of $295.24.

Insiders Place Their Bets

In related news, Director Charles R. Crisp sold 10,602 shares of the firm’s stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $255.96, for a total transaction of $2,713,687.92. Following the transaction, the director directly owned 66,492 shares in the company, valued at $17,019,292.32. This trade represents a 13.75% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.37% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in Targa Resources in the 3rd quarter worth $121,426,000. Tortoise Capital Advisors L.L.C. lifted its holdings in Targa Resources by 20.3% in the fourth quarter. Tortoise Capital Advisors L.L.C. now owns 3,389,006 shares of the pipeline company’s stock worth $625,272,000 after buying an additional 572,562 shares during the period. Deutsche Bank AG lifted its holdings in Targa Resources by 44.5% in the fourth quarter. Deutsche Bank AG now owns 1,260,615 shares of the pipeline company’s stock worth $232,583,000 after buying an additional 387,996 shares during the period. BROOKFIELD Corp ON grew its stake in Targa Resources by 26.2% in the fourth quarter. BROOKFIELD Corp ON now owns 1,667,106 shares of the pipeline company’s stock worth $307,581,000 after purchasing an additional 346,114 shares during the period. Finally, Merewether Investment Management LP raised its holdings in Targa Resources by 52.9% in the second quarter. Merewether Investment Management LP now owns 992,582 shares of the pipeline company’s stock worth $172,789,000 after purchasing an additional 343,319 shares in the last quarter. Institutional investors own 92.13% of the company’s stock.

Targa Resources News Roundup

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.

Targa Resources Company Profile

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.