Targa Resources (NYSE:TRGP) Releases Quarterly Earnings Results, Beats Expectations By $0.16 EPS

Targa Resources (NYSE:TRGP) announced its earnings results 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. The company had revenue of $4.06 billion for the quarter, compared to analyst estimates of $4.12 billion. Targa Resources had a return on equity of 51.87% and a net margin of 9.35%.

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 Stock Performance

TRGP traded up $4.09 during trading hours on Friday, hitting $228.25. The company’s stock had a trading volume of 737,242 shares, compared to its average volume of 1,342,312. The company has a 50-day simple moving average of $193.52 and a 200 day simple moving average of $175.04. The company has a current ratio of 0.77, a quick ratio of 0.61 and a debt-to-equity ratio of 5.91. The firm has a market capitalization of $49.00 billion, a PE ratio of 30.40, a PEG ratio of 0.98 and a beta of 0.88. Targa Resources has a fifty-two week low of $144.14 and a fifty-two week high of $232.86.

Targa Resources Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, January 30th were issued a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend was Friday, January 30th. Targa Resources’s dividend payout ratio is 53.19%.

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

Insider Transactions at Targa Resources

In other Targa Resources news, insider Gerald R. Shrader sold 2,750 shares of the company’s stock in a transaction that occurred on 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 sale, the insider directly owned 29,561 shares in the company, valued at $5,356,748.81. This represents a 8.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.34% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Targa Resources

A number of institutional investors and hedge funds have recently modified their holdings of the stock. State Street Corp boosted its position in shares of Targa Resources by 1.3% in the 4th quarter. State Street Corp now owns 12,668,233 shares of the pipeline company’s stock valued at $2,337,289,000 after purchasing an additional 162,878 shares during the period. Tortoise Capital Advisors L.L.C. lifted its stake in Targa Resources by 20.3% during the fourth quarter. Tortoise Capital Advisors L.L.C. now owns 3,389,006 shares of the pipeline company’s stock valued at $625,272,000 after buying an additional 572,562 shares in the last quarter. UBS Group AG boosted its holdings in shares of Targa Resources by 9.9% in the third quarter. UBS Group AG now owns 2,360,311 shares of the pipeline company’s stock worth $395,447,000 after buying an additional 212,887 shares during the period. Northern Trust Corp increased its position in shares of Targa Resources by 3.3% in the fourth quarter. Northern Trust Corp now owns 2,246,742 shares of the pipeline company’s stock worth $414,524,000 after acquiring an additional 71,198 shares in the last quarter. Finally, BROOKFIELD Corp ON raised its holdings in shares of Targa Resources by 26.2% during the fourth 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 during the period. Institutional investors and hedge funds own 92.13% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on TRGP shares. Scotiabank reissued an “outperform” rating and issued a $224.00 target price on shares of Targa Resources in a research report on Friday, January 16th. Barclays reaffirmed an “overweight” rating and set a $226.00 target price on shares of Targa Resources in a report on Friday. Wells Fargo & Company boosted their price target on Targa Resources from $205.00 to $207.00 and gave the company an “overweight” rating in a report on Thursday, December 18th. Morgan Stanley restated an “overweight” rating and set a $266.00 price objective on shares of Targa Resources in a research note on Wednesday, January 28th. Finally, Wall Street Zen lowered shares of Targa Resources from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. 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. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $221.07.

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.