Targa Resources (NYSE:TRGP) Posts Earnings Results

Targa Resources (NYSE:TRGP) issued its quarterly earnings data on Thursday. The pipeline company reported $2.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.35 by $0.16, FiscalAI reports. Targa Resources had a net margin of 9.35% and a return on equity of 51.87%. The firm had revenue of $4.06 billion during the quarter, compared to analysts’ expectations of $4.12 billion.

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

• Targa reported a record 2025 operational and financial year with Permian volumes up ~11% and Adjusted EBITDA of $4.96 billion, ~ $800 million higher year‑over‑year.
• Management expects continued momentum — 2026 guidance of $5.4–$5.6 billion Adjusted EBITDA, low‑double‑digit Permian volume growth, and announced projects (Yeti Two, Frac Train 13 and long‑lead orders for two 2028 plants) that provide line‑of‑sight to ~2.2 Bcf/d incremental processing capacity and ~320k bpd gross NGL production.
• Capital intensity is rising: ~$4.5 billion of growth capex planned for 2026 and a post‑Speedway multi‑year growth capex run‑rate ≈$2.5 billion (up from prior ~$1.7 billion) as Targa assumes ~3 plants/year, raising near‑term spending and execution risk.
• Balance sheet and returns: net leverage ~3.5x (within 3–4x target), ~$1.9 billion liquidity, $642 million of share repurchases in 2025, and management expects strong free cash flow and minimal cash taxes for ~five years due to bonus depreciation.
• Targa says >90% of cash flow is fee‑based and most non‑fee exposure is hedged (a 30% commodity move implies <2% change to 2026 EBITDA midpoint), but cautions that Waha basis volatility and marketing upside are uncertain and could create volatile short‑term outcomes.

Targa Resources Price Performance

Shares of NYSE TRGP traded up $6.14 during mid-day trading on Friday, reaching $230.30. 768,021 shares of the company were exchanged, compared to its average volume of 1,344,387. Targa Resources has a 52 week low of $144.14 and a 52 week high of $232.86. The company’s 50 day moving average price is $193.52 and its 200 day moving average price is $175.04. The stock has a market capitalization of $49.44 billion, a PE ratio of 30.57, a PEG ratio of 0.98 and a beta of 0.88. The company has a quick ratio of 0.61, a current ratio of 0.77 and a debt-to-equity ratio of 5.91.

Targa Resources Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Friday, January 30th were issued a dividend of $1.00 per share. This represents a $4.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend was Friday, January 30th. Targa Resources’s payout ratio is currently 53.19%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on TRGP. Wall Street Zen downgraded shares of Targa Resources from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. The Goldman Sachs Group restated a “buy” rating and issued a $196.00 target price on shares of Targa Resources in a research note on Monday, January 12th. BMO Capital Markets reaffirmed an “outperform” rating and issued a $241.00 target price on shares of Targa Resources in a report on Friday. UBS Group reiterated a “buy” rating on shares of Targa Resources in a report on Friday, January 9th. Finally, Royal Bank Of Canada boosted their price objective on Targa Resources from $213.00 to $218.00 and gave the stock an “outperform” rating in a research report on Wednesday, December 3rd. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $221.07.

Insider Transactions at Targa Resources

In other news, insider Gerald R. Shrader sold 2,750 shares of the company’s stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $181.21, for a total value of $498,327.50. Following the completion of the transaction, the insider directly owned 29,561 shares in the company, valued at approximately $5,356,748.81. This represents a 8.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.34% of the stock is currently owned by company insiders.

Institutional Trading of Targa Resources

A number of hedge funds have recently bought and sold shares of TRGP. Woodline Partners LP lifted its holdings in shares of Targa Resources by 40.7% in the 1st quarter. Woodline Partners LP now owns 18,423 shares of the pipeline company’s stock worth $3,693,000 after acquiring an additional 5,327 shares during the last quarter. Focus Partners Wealth raised its position in Targa Resources by 157.4% in the 1st quarter. Focus Partners Wealth now owns 3,931 shares of the pipeline company’s stock worth $788,000 after purchasing an additional 2,404 shares during the period. Baird Financial Group Inc. lifted its stake in Targa Resources by 6.3% in the second quarter. Baird Financial Group Inc. now owns 3,697 shares of the pipeline company’s stock worth $644,000 after purchasing an additional 219 shares during the last quarter. Brown Advisory Inc. lifted its stake in Targa Resources by 13.1% in the second quarter. Brown Advisory Inc. now owns 4,521 shares of the pipeline company’s stock worth $787,000 after purchasing an additional 524 shares during the last quarter. Finally, Cerity Partners LLC boosted its position in Targa Resources by 11.0% during the second quarter. Cerity Partners LLC now owns 31,881 shares of the pipeline company’s stock valued at $5,550,000 after buying an additional 3,163 shares during the period. Institutional investors own 92.13% of the company’s stock.

Targa Resources News Summary

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

• Positive Sentiment: Q4 EPS beat — Targa reported $2.51 EPS vs. consensus $2.35, with strong return on equity (51.9%) and improved margins, which supports higher valuation multiple and investor optimism. View Press Release
• Positive Sentiment: Record results and bullish 2026 outlook — Company announced record Q4 and full‑year 2025 results and provided guidance targeting a record 2026, which likely lifted investor forward expectations. GlobeNewswire Results Release
• Positive Sentiment: Dividend hike announced alongside record results — The dividend increase reinforces cash generation and shareholder return priorities, supporting sentiment among income-focused investors. TipRanks Dividend Article
• Positive Sentiment: Core profit and volume strength — Reuters notes adjusted core profit beat estimates driven by higher gas and NGL transport volumes, supporting operating leverage. Reuters Coverage
• Neutral Sentiment: Form 10‑K filed — 2025 Form 10‑K is now available, providing full disclosures (useful for fundamental review but not an immediate catalyst). 10-K Filing Notice
• Neutral Sentiment: Earnings call materials and transcript available — Management commentary and the slide deck are posted (important for color on 2026 guidance and capex but informational). View Slide Deck Listen to Conference Call
• Neutral Sentiment: Analyst notes and metric deep dives — Coverage (Zacks, Seeking Alpha) breaks down key metrics vs. estimates; useful for modeling but not an immediate market mover. Zacks Analysis
• Negative Sentiment: Revenue slightly missed — Revenue came in at $4.06B vs. Street ~$4.12B, a small topline miss that tempers the beat and could concern growth-focused investors. Investing.com Revenue Coverage

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.