Want to see TRGP full AI Analyst Report?
Top Page
Targa Resources
(NYSE:TRGP)
Select Model
Select Model
Rating:76Outperform
Price Target:
$333.00
▲(16.06% Upside)
Action:Reiterated
Date:08/25/26
The score is driven primarily by improving operating performance and a strong, upbeat earnings outlook (top-end EBITDA guidance supported by record volumes and project progress), alongside favorable technical momentum. The main offsets are balance-sheet leverage and only moderate free-cash-flow conversion, plus a relatively premium valuation (P/E ~27.9) with a modest dividend yield (~1.53%).
Positive Factors
Record throughput growth
Record volumes across gathering, transportation and fractionation show strong customer demand and improving asset utilization. Sustained Permian growth and integrated downstream capacity can support durable earnings expansion over the next several years.
Negative Factors
High financial leverage
The substantial debt load leaves Targa with a relatively limited equity cushion if commodity conditions, volumes or capital markets weaken. Elevated leverage can also constrain financial flexibility while the company funds an ambitious expansion program.
Read all positive and negative factors
Positive Factors
Negative Factors
Record throughput growth
Record volumes across gathering, transportation and fractionation show strong customer demand and improving asset utilization. Sustained Permian growth and integrated downstream capacity can support durable earnings expansion over the next several years.
Read all positive factors
Targa Resources Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures profit from each business unit after operating costs, showing which segments drive earnings and where margins are expanding or contracting. Highlights the parts of the business that convert revenue into cash most efficiently and where cost or volume changes are affecting overall profitability.
Measures profit from each business unit after operating costs, showing which segments drive earnings and where margins are expanding or contracting. Highlights the parts of the business that convert revenue into cash most efficiently and where cost or volume changes are affecting overall profitability.
Data provided by:
The Fly
The FlyTarga Resources (TRGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$62.20B
Dividend Yield1.53%
Average Volume (3M)1.25M
Price to Earnings (P/E)27.9
Beta (1Y)0.41
Revenue Growth-0.83%
EPS Growth49.90%
CountryUS
Employees3,570
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)10.53
Shares Outstanding214,431,020
10 Day Avg. Volume1,060,715
30 Day Avg. Volume1,245,058
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)12.93
Price to Sales (P/S)2.31
P/FCF Ratio67.91
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$315.25Price Target Upside9.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)11.25
Revenue Forecast (FY)$19.01B
Targa Resources Business Overview & Revenue Model
Company Description
Targa Resources Corp., alongside its subsidiary Targa Resources Partners LP, is a significant entity in the North American midstream energy sector, focusing on the ownership, operation, acquisition, and development of crucial energy infrastructure...
How the Company Makes Money
Targa makes money by charging fees and earning margins for moving, treating, and marketing natural gas and NGLs from upstream producers to downstream buyers. Key revenue streams typically include: (1) Gathering and Processing: collecting raw natur...
Targa Resources Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution and record volumes across the Permian and downstream systems, with significant adjusted EBITDA growth, project progress (multiple plants, fractionators and pipeline expansions), robust liquidity and increased shareholder returns. Key near-term challenges include earlier price-driven shut-ins, per-unit margin pressure in G&P due to commodity sensitivity, moderation of marketing optimization gains in H2, and extended lead times for some project components. On balance, the positive operational momentum, record throughput, project execution and financial strength materially outweigh the disclosed headwinds.Positive Updates
Strong Adjusted EBITDA Performance
Reported adjusted EBITDA of $1.603 billion in Q2 2026, up 14% sequentially and adjusted EBITDA increased ~38% year-over-year. Company now expects full-year 2026 adjusted EBITDA toward the top end of guidance ($5.7B–$5.9B) and suggests 2026 adjusted EBITDA growth over 2025 may be close to $1 billion.
Negative Updates
Price-Related Producer Curtailments and Shut-ins
During Q2 management disclosed ~200–400 MMcf/d of gas shut-in on any given day due to weak Waha prices earlier in the period; while most curtailed volumes returned in July, some shut-ins remained into early August, indicating exposure to regional basis volatility and takeaway constraints.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Adjusted EBITDA Performance
Reported adjusted EBITDA of $1.603 billion in Q2 2026, up 14% sequentially and adjusted EBITDA increased ~38% year-over-year. Company now expects full-year 2026 adjusted EBITDA toward the top end of guidance ($5.7B–$5.9B) and suggests 2026 adjusted EBITDA growth over 2025 may be close to $1 billion.
Read all positive updates
Company Guidance
Targa said it now expects full‑year 2026 adjusted EBITDA toward the top of its $5.7–$5.9 billion guidance range (Q2 adjusted EBITDA was $1.603 billion, +14% QoQ and +38% YoY), implying 2026 adjusted EBITDA could be roughly $1 billion higher than 2025; the company reiterated 2026 net growth capital of ~ $4.5 billion and net maintenance capital of $250 million, reported $3.2 billion of available liquidity and a pro‑forma consolidated leverage ratio of ~3.4x (target range 3–4x), extended its A/R securitization to July 30, 2027 and added $200 million capacity, declared a Q2 common dividend of $1.25/sh (+25% YoY) and repurchased about $80 million of stock at an average $259.93/sh, noted H1 marketing outperformance of ~ $250 million (not included in guidance), and framed operational drivers for the guidance including record Permian volumes of 7.2 Bcf/d (+7% QoQ, +14% YoY), record NGL transport of 1.1 MMbpd, fractionation of 1.2 MMbpd, Q2 LPG exports averaging 14.8 MMb/month, Train 11 online (Trains 12/13 on track), Speedway initial capacity 500k bpd (expandable to 1.0 MMbpd) and an LPG export expansion to ~19 MMb/month targeted for Q3 2027.Targa Resources Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
58
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.79B | 17.14B | 16.63B | 15.62B | 21.68B | 17.44B |
| Gross Profit | 6.14B | 4.54B | 3.33B | 2.54B | 2.79B | 2.09B |
| EBITDA | 4.80B | 4.85B | 4.14B | 3.97B | 3.21B | 1.70B |
| Net Income | 2.26B | 1.84B | 1.27B | 828.20M | 1.14B | 71.20M |
Balance Sheet | ||||||
| Total Assets | 28.52B | 25.22B | 22.73B | 20.67B | 19.56B | 15.21B |
| Cash, Cash Equivalents and Short-Term Investments | 132.30M | 166.10M | 157.30M | 141.70M | 219.00M | 158.50M |
| Total Debt | 20.14B | 17.55B | 14.27B | 13.01B | 11.56B | 6.63B |
| Total Liabilities | 24.72B | 22.02B | 18.32B | 16.06B | 14.58B | 10.03B |
| Stockholders Equity | 3.66B | 3.07B | 2.59B | 2.74B | 2.67B | 2.01B |
Cash Flow | ||||||
| Free Cash Flow | 740.90M | 584.10M | 683.90M | 826.20M | 1.05B | 1.80B |
| Operating Cash Flow | 4.29B | 3.92B | 3.65B | 3.21B | 2.38B | 2.30B |
| Investing Cash Flow | -5.05B | -5.44B | -3.02B | -2.40B | -4.15B | -473.20M |
| Financing Cash Flow | 780.00M | 1.53B | -612.80M | -888.10M | 1.83B | -1.91B |
Targa Resources Technical Analysis
Positive
286.91
Price Trends
277.61
Positive
267.64
Positive
236.86
Positive
Market Momentum
5.34
Positive
57.77
Neutral
55.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRGP, the sentiment is Positive. The current price of 286.91 is below the 20-day moving average (MA) of 288.20, above the 50-day MA of 277.61, and above the 200-day MA of 236.86, indicating a bullish trend. The MACD of 5.34 indicates Positive momentum. The RSI at 57.77 is Neutral, neither overbought nor oversold. The STOCH value of 55.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRGP.
Targa Resources Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $60.50B | 12.84 | 33.42% | 7.20% | 4.79% | 10.20% | |
76 Outperform | $62.20B | 27.95 | 72.08% | 1.53% | -0.83% | 49.90% | |
75 Outperform | $84.09B | 13.48 | 21.21% | 5.68% | 7.38% | 7.45% | |
73 Outperform | $74.03B | 13.36 | 16.77% | 6.25% | 33.27% | 12.55% | |
73 Outperform | $60.16B | 16.78 | 16.28% | 4.35% | 41.83% | 12.74% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $90.70B | 30.09 | 23.86% | 2.70% | 8.70% | 26.28% |
* Energy Sector Average
TRGP
Targa Resources
294.29
136.41
86.40%
ET
Energy Transfer
21.51
5.54
34.66%
EPD
Enterprise Products Partners
38.83
9.20
31.05%
OKE
Oneok
97.51
29.37
43.10%
WMB
Williams Co
75.83
20.03
35.90%
MPLX
MPLX
59.83
13.55
29.27%
Targa Resources Corporate Events
Business Operations and StrategyExecutive/Board Changes
Targa Resources Announces Executive Leadership and CFO Transition
Positive
Aug 25, 2026
On August 20, 2026, Targa Resources’ board appointed Brent B. Secrest as President – Logistics and Transportation, effective September 1, 2026, bringing extensive leadership experience in crude oil, refined products, liquid hydrocarbon...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Targa Resources Reports Record Q2 Results, Raises Guidance
Positive
Aug 6, 2026
Targa Resources reported record second quarter 2026 results on August 6, with net income rising to $765 million from $629 million a year earlier and adjusted EBITDA jumping 38% year-on-year to $1.6 billion, supported by record Permian inlet, NGL t...
Executive/Board ChangesRegulatory Filings and Compliance
Targa Resources Adds Experienced Director to Board
Positive
Jul 17, 2026
On July 16, 2026, Targa Resources Corp. appointed former ConocoPhillips executive Thomas Mathiasmeier as a Class II director, with his term running until the 2027 annual meeting, and named him to the Board’s Audit Committee. His extensive le...
Business Operations and StrategyPrivate Placements and Financing
Targa Resources Expands Receivables Securitization Facility Agreement
Positive
Jul 6, 2026
On July 1, 2026, Targa Resources Partners LP and its bankruptcy‑remote subsidiary Targa Receivables LLC amended their long‑standing receivables purchase agreement governing an accounts receivable securitization facility. The amendment ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.