Targa Resources (NYSE:TRGP) Posts Quarterly Earnings Results, Beats Expectations By $0.30 EPS

Targa Resources (NYSE:TRGP) posted its quarterly earnings data on Thursday. The pipeline company reported $3.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.30, FiscalAI reports. The business had revenue of $5.60 billion for the quarter, compared to analysts’ expectations of $4.77 billion. Targa Resources had a return on equity of 69.26% and a net margin of 13.55%.

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

• Targa raised its 2026 adjusted EBITDA outlook to at least $6 billion, up more than 21% from 2025, citing strong operating performance. Permian volumes reached a record 7.5 Bcf/d, and management expects similar growth in 2027 with multiple years of double-digit Permian growth visible.
• New 20-year, fee-based agreements with ExxonMobil, supported by significant acreage dedications, add to Targa’s growth visibility. Management said the competitive deal is expected to generate attractive returns, though it acknowledged Exxon negotiated firmly on pricing and terms.
• Third-quarter adjusted EBITDA was $1.5 billion, down 6% sequentially as lower marketing and optimization opportunities and LPG exports offset record volumes. Targa raised 2026 growth capital expectations to about $5 billion and said 2027 capital spending is likely to remain elevated, with a meaningful free-cash-flow profile expected in 2028.
• Several major projects are on schedule or ahead of schedule, including the Copperhead processing plant and Train 12 fractionator, while new plants, the Speedway NGL pipeline, and an LPG export expansion are intended to support future growth. Targa also announced Train 14, expected to begin operations in 2029.
• Targa declared a quarterly dividend of $1.25 per share, up 25% year over year, and plans to recommend a 20% increase in the 2027 annual dividend to $6 per share. The company also repurchased about $187 million of stock during the first nine months of 2026.

Targa Resources Trading Down 2.6%

Shares of TRGP stock traded down $7.17 on Friday, reaching $264.65. 2,608,434 shares of the stock were exchanged, compared to its average volume of 1,125,636. The stock has a market cap of $56.75 billion, a P/E ratio of 23.42, a price-to-earnings-growth ratio of 1.22 and a beta of 0.76. The company has a quick ratio of 0.68, a current ratio of 0.77 and a debt-to-equity ratio of 5.01. The firm has a 50 day moving average of $289.31 and a two-hundred day moving average of $261.35. Targa Resources has a 1-year low of $166.18 and a 1-year high of $316.60.

Targa Resources Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 17th. Stockholders of record on Friday, October 30th will be paid a dividend of $1.25 per share. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.00 annualized dividend and a dividend yield of 1.9%. Targa Resources’s payout ratio is currently 47.80%.

Key Targa Resources News

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

• Positive Sentiment: Third-quarter adjusted earnings were $3.04 per share, above analyst estimates of roughly $2.74–$2.81 and up from $2.20 a year earlier. Revenue reached $5.60 billion, also topping estimates. Q3 earnings and revenue beat estimates
• Positive Sentiment: Targa expects its 2027 common dividend to increase 20%, and declared a $1.25 dividend, reinforcing the company’s cash-return outlook. Quarterly results and dividend outlook
• Positive Sentiment: The company ordered equipment for a plant expansion and announced Train 14, a new natural gas liquids fractionator. The projects could add capacity and support future growth. Plant expansion and Train 14 announcement
• Negative Sentiment: Despite the earnings beat and dividend news, TRGP shares declined around the results. One report noted a sharp drop on the SEC filing day, but the coverage provided no clear explanation for the selling. Stock movement around filing day

Analyst Ratings Changes

Several equities analysts recently weighed in on the company. Wolfe Research set a $335.00 target price on Targa Resources in a research report on Friday, August 7th. Morgan Stanley lifted their price target on Targa Resources from $343.00 to $359.00 and gave the company an “overweight” rating in a report on Wednesday, September 16th. The Goldman Sachs Group restated a “buy” rating and issued a $322.00 price target on shares of Targa Resources in a report on Tuesday, October 13th. Citigroup upped their price objective on shares of Targa Resources from $325.00 to $338.00 and gave the company a “buy” rating in a research note on Friday. Finally, Mizuho increased their price objective on shares of Targa Resources from $300.00 to $320.00 and gave the stock an “outperform” rating in a report on Friday, September 11th. Two research analysts have rated the stock with a Strong Buy rating and twenty have given a Buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Buy” and an average price target of $325.58.

Insider Buying and Selling

In related news, Director S Davis sold 2,400 shares of Targa Resources stock in a transaction on Friday, August 21st. The stock was sold at an average price of $299.67, for a total value of $719,208.00. Following the transaction, the director owned 1,529 shares in the company, valued at approximately $458,195.43. This trade represents a 61.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Paul Chung sold 1,816 shares of Targa Resources stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $296.11, for a total value of $537,735.76. Following the completion of the transaction, the director owned 44,000 shares in the company, valued at $13,028,840. The trade was a 3.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 7,216 shares of company stock valued at $2,127,634. 1.37% of the stock is currently owned by company insiders.

About Targa Resources

Targa Resources Corp. is a midstream energy company that gathers, processes, transports and stores natural gas and natural gas liquids (NGLs), and provides services for crude oil. Its infrastructure connects oil and gas producers with pipelines, processing facilities, fractionators, storage sites and domestic and international markets.

The company’s services include natural gas gathering, compression and processing; NGL transportation and fractionation; and crude oil gathering and terminaling.