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

Targa Resources (NYSE:TRGP) posted its quarterly earnings data on Thursday. The pipeline company reported $3.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.83 by $0.71, FiscalAI reports. Targa Resources had a return on equity of 73.14% and a net margin of 13.55%.The company had revenue of $4.44 billion during the quarter, compared to analyst estimates of $4.90 billion.

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 Price Performance

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

Targa Resources Announces Dividend

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

Insider Activity 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 transaction of $2,713,687.92. Following the transaction, the director directly owned 66,492 shares of the company’s stock, valued at approximately $17,019,292.32. This trade represents a 13.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 1.37% of the company’s stock.

Hedge Funds Weigh In On Targa Resources

A number of large investors have recently added to or reduced their stakes in TRGP. 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. raised its stake 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 in the last quarter. 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 boosted its position in Targa Resources by 26.2% during the 4th quarter. BROOKFIELD Corp ON now owns 1,667,106 shares of the pipeline company’s stock valued at $307,581,000 after acquiring an additional 346,114 shares in the last quarter. Finally, Merewether Investment Management LP grew its holdings in shares of Targa Resources by 52.9% during the 2nd quarter. Merewether Investment Management LP now owns 992,582 shares of the pipeline company’s stock worth $172,789,000 after acquiring an additional 343,319 shares during the period. Hedge funds and other institutional investors own 92.13% of the company’s stock.

Wall Street Analyst Weigh In

TRGP has been the topic of a number of research analyst reports. Royal Bank Of Canada restated an “outperform” rating and issued a $310.00 target price on shares of Targa Resources in a research note on Tuesday, July 21st. Wells Fargo & Company boosted their price objective on Targa Resources from $270.00 to $282.00 and gave the stock an “overweight” rating in a report on Friday. Truist Financial upped their price objective on shares of Targa Resources from $289.00 to $312.00 and gave the stock a “buy” rating in a research report on Wednesday, July 15th. Citigroup reaffirmed a “buy” rating on shares of Targa Resources in a research note on Wednesday, May 27th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Targa Resources from $291.00 to $315.00 and gave the stock an “overweight” rating in a research note on Thursday, July 9th. 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. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $295.24.

Key Headlines Impacting Targa Resources

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.

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.