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

Targa Resources (NYSE:TRGP) released its earnings results 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. The company had revenue of $4.44 billion during the quarter, compared to analyst estimates of $4.90 billion. Targa Resources had a return on equity of 73.14% and a net margin of 13.55%.

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 NYSE TRGP traded down $10.98 during midday trading on Friday, hitting $257.25. The company’s stock had a trading volume of 1,636,146 shares, compared to its average volume of 1,176,386. The firm has a market capitalization of $55.22 billion, a price-to-earnings ratio of 24.59, a P/E/G ratio of 1.36 and a beta of 0.72. The company has a current ratio of 0.72, a quick ratio of 0.62 and a debt-to-equity ratio of 5.64. The stock 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.

Targa Resources Dividend Announcement

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

Insider Activity

In related news, Director Charles R. Crisp sold 10,602 shares of the stock in a transaction dated 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 sale, the director owned 66,492 shares of the company’s stock, valued at approximately $17,019,292.32. This represents a 13.75% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 1.37% of the company’s stock.

Institutional Trading of Targa Resources

Several institutional investors and hedge funds have recently bought and sold shares of TRGP. Miller Capital Partners Inc. purchased a new position in shares of Targa Resources during the 4th quarter valued at $30,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Targa Resources in the fourth quarter worth $52,000. DV Equities LLC bought a new stake in Targa Resources during the fourth quarter valued at $55,000. Greenline Wealth Management LLC bought a new stake in Targa Resources during the fourth quarter valued at $58,000. Finally, Kestra Investment Management LLC purchased a new position in Targa Resources during the second quarter worth about $70,000. 92.13% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about 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.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on TRGP shares. UBS Group reissued a “buy” rating and issued a $318.00 price objective on shares of Targa Resources in a research report on Thursday, July 9th. The Goldman Sachs Group lifted their target price on Targa Resources from $242.00 to $268.00 and gave the stock a “buy” rating in a research note on Monday, April 20th. Wolfe Research set a $335.00 price target on shares of Targa Resources in a report on Friday. Wells Fargo & Company increased their price target on shares of Targa Resources from $270.00 to $282.00 and gave the company an “overweight” rating in a research report on Friday. Finally, Truist Financial raised their price objective on shares of Targa Resources from $289.00 to $312.00 and gave the stock a “buy” rating in a report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Buy” and a consensus price target of $295.24.

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.