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Targa Resources
(NYSE:TRGP)
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Rating:73Outperform
Price Target:
$299.00
▲(6.28% Upside)
Action:Upgraded
Date:08/07/26
TRGP scores well primarily on improving financial performance (stronger margins and solid operating cash flow despite leverage) and a constructive earnings update (top-end EBITDA outlook, record volumes, and ongoing project execution with increased shareholder returns). The score is tempered by a leveraged balance sheet and only mixed near-term technical momentum, alongside a relatively elevated P/E with a modest dividend yield.
Positive Factors
Improving margins & profitability
Margin expansion and materially stronger profitability indicate durable operating leverage in Targa’s integrated midstream model. Sustained higher gross and net margins support internally funded growth, dividends and buybacks, and make cash flows more resilient to moderate commodity swings over the next several quarters.
Negative Factors
High and rising absolute debt
Elevated absolute leverage and a small equity base constrain financial flexibility and heighten sensitivity to rate moves or volume shocks. Large debt loads limit spare capacity for incremental opportunistic capital and increase risk if industry conditions weaken or capital markets tighten over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving margins & profitability
Margin expansion and materially stronger profitability indicate durable operating leverage in Targa’s integrated midstream model. Sustained higher gross and net margins support internally funded growth, dividends and buybacks, and make cash flows more resilient to moderate commodity swings over the next several quarters.
Read all positive factors
Targa Resources Key Performance Indicators (KPIs)
Targa Resources (TRGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.03B
Dividend Yield1.66%
Average Volume (3M)1.24M
Price to Earnings (P/E)27.4
Beta (1Y)0.51
Revenue Growth-1.23%
EPS Growth80.28%
CountryUS
Employees3,570
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)10.53
Shares Outstanding214,643,900
10 Day Avg. Volume1,082,835
30 Day Avg. Volume1,240,318
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
$302.07Price Target Upside7.37% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)10.87
Revenue Forecast (FY)$19.83B
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 | 19.58B | 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 | 580.90M | 584.10M | 683.90M | 826.20M | 1.05B | 1.80B |
| Operating Cash Flow | 5.03B | 3.92B | 3.65B | 3.21B | 2.38B | 2.30B |
| Investing Cash Flow | -7.21B | -5.44B | -3.02B | -2.40B | -4.15B | -473.20M |
| Financing Cash Flow | 2.14B | 1.53B | -612.80M | -888.10M | 1.83B | -1.91B |
Targa Resources Technical Analysis
Negative
281.33
Price Trends
267.75
Negative
258.04
Negative
223.37
Positive
Market Momentum
-2.17
Positive
40.66
Neutral
22.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRGP, the sentiment is Negative. The current price of 281.33 is above the 20-day moving average (MA) of 272.18, above the 50-day MA of 267.75, and above the 200-day MA of 223.37, indicating a neutral trend. The MACD of -2.17 indicates Positive momentum. The RSI at 40.66 is Neutral, neither overbought nor oversold. The STOCH value of 22.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $59.31B | 12.62 | 33.42% | 7.14% | 3.18% | 6.43% | |
75 Outperform | $82.32B | 13.21 | 21.18% | 5.65% | 7.17% | ― | |
73 Outperform | $58.03B | 27.42 | 72.08% | 1.51% | -1.23% | 80.28% | |
69 Neutral | $3.21B | 19.09 | -935.80% | 7.85% | 13.04% | 6.21% | |
68 Neutral | $55.23B | 42.93 | 47.41% | 0.80% | 24.15% | -55.07% | |
67 Neutral | $57.22B | 16.16 | 16.28% | 4.51% | 41.04% | 9.18% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
TRGP
Targa Resources
256.87
94.26
57.96%
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Targa Resources Corporate Events
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 ...
Executive/Board ChangesShareholder Meetings
Targa Resources Shareholders Reelect Directors, Approve Pay, Auditor
Positive
May 22, 2026
Targa Resources Corp. reported the results of its 2026 Annual Meeting of Stockholders held on May 21, 2026, where shareholders voted on board composition, auditor ratification, and executive pay. Four Class I directors, Paul W. Chung, Charles R. C...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresPrivate Placements and Financing
Targa Resources Posts Record Q1 Results, Lifts Outlook
Positive
May 7, 2026
Targa Resources reported record first quarter 2026 results on May 7, 2026, with net income rising to $480 million from $271 million a year earlier and adjusted EBITDA climbing 19 percent to $1.4 billion, driven by record Permian inlet and fraction...
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.