Targa Resources (NYSE:TRGP) Posts Earnings Results, Misses Expectations By $0.27 EPS

Targa Resources (NYSE:TRGP) issued its quarterly earnings results on Thursday. The pipeline company reported $2.21 earnings per share for the quarter, missing analysts’ consensus estimates of $2.48 by ($0.27), FiscalAI reports. Targa Resources had a net margin of 12.87% and a return on equity of 73.16%. The firm had revenue of $4.09 billion during the quarter, compared to the consensus estimate of $4.68 billion.

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

• Record Q1 adjusted EBITDA of $1.4 billion and management raised 2026 adjusted EBITDA guidance to $5.7–$5.9 billion (midpoint +$300M), citing acquisition contributions and marketing/optimization gains.
• Operational momentum in the Permian with record inlet volumes, ongoing strong producer activity, multiple plants recently brought online or under construction, and two new Delaware plants announced for early‑2028 service.
• Downstream tailwinds: Train 11 is online, Trains 12/13 under construction, and LPG export capacity is being expanded (target >19 million barrels/month with incremental capacity expected Q3‑2027), with elevated global butane demand providing commercialization upside.
• Near‑term headwinds from weak Waha basis and Permian takeaway constraints have led to intermittent producer shut‑ins of roughly 200–400 MMcf/d, leaving volumes and pricing volatile until new egress (GCX expansion, WACOM, Traverse, etc.) comes online late‑2026 into 2027.
• Balance sheet and capital allocation look healthy: ~$3.1 billion liquidity, pro forma leverage ~3.6x (inside 3–4x target), ~ $4.5 billion growth capex planned for 2026, a 25% dividend increase to $1.25/share, and opportunistic buybacks ($55M in Q1).

Targa Resources Stock Performance

NYSE:TRGP traded down $4.34 during midday trading on Friday, reaching $248.10. 1,411,156 shares of the company traded hands, compared to its average volume of 1,197,568. Targa Resources has a twelve month low of $144.14 and a twelve month high of $261.95. The firm has a market capitalization of $53.29 billion, a price-to-earnings ratio of 25.09, a price-to-earnings-growth ratio of 1.60 and a beta of 0.75. The company has a debt-to-equity ratio of 5.21, a current ratio of 0.67 and a quick ratio of 0.55. The company has a fifty day moving average price of $242.08 and a 200 day moving average price of $204.25.

Targa Resources Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Thursday, April 30th will be given a dividend of $1.25 per share. The ex-dividend date is Thursday, April 30th. This represents a $5.00 dividend on an annualized basis and a yield of 2.0%. This is an increase from Targa Resources’s previous quarterly dividend of $1.00. Targa Resources’s payout ratio is presently 58.21%.

Insider Buying and Selling at Targa Resources

In other Targa Resources news, insider Patrick J. Mcdonie sold 31,537 shares of the business’s stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $239.36, for a total transaction of $7,548,696.32. Following the completion of the transaction, the insider owned 305,163 shares in the company, valued at approximately $73,043,815.68. The trade was a 9.37% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Charles R. Crisp sold 1,359 shares of the business’s stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $229.30, for a total value of $311,618.70. Following the transaction, the director owned 77,094 shares of the company’s stock, valued at $17,677,654.20. This trade represents a 1.73% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 104,929 shares of company stock worth $24,692,134. 1.37% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Miller Capital Partners Inc. acquired a new position in Targa Resources during the 4th quarter worth $30,000. Mcguire Capital Advisors Inc. acquired a new position in Targa Resources during the 4th quarter worth $52,000. DV Equities LLC acquired a new position in Targa Resources during the 4th quarter worth $55,000. Greenline Wealth Management LLC acquired a new position in Targa Resources during the 4th quarter worth $58,000. Finally, Kestra Investment Management LLC acquired a new position in Targa Resources during the 2nd quarter worth $70,000. Institutional investors and hedge funds own 92.13% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on TRGP shares. Seaport Research Partners reiterated a “neutral” rating on shares of Targa Resources in a report on Monday, May 4th. The Goldman Sachs Group boosted their price target on Targa Resources from $242.00 to $268.00 and gave the company a “buy” rating in a report on Monday, April 20th. Morgan Stanley boosted their price objective on Targa Resources from $298.00 to $327.00 and gave the company an “overweight” rating in a research report on Tuesday, April 7th. Truist Financial boosted their price objective on Targa Resources from $279.00 to $285.00 and gave the company a “buy” rating in a research report on Monday, April 13th. Finally, BMO Capital Markets restated an “outperform” rating and set a $241.00 price objective on shares of Targa Resources in a research report on Friday, February 20th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $262.14.

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.