Targa Resources Corp. (TRGP)
NYSE:TRGP
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Targa Resources
(NYSE:TRGP)
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Rating:74Outperform
Price Target:
$303.00
â–²(28.66% Upside)
Action:Reiterated
Date:05/23/26
TRGP scores well on technical strength and a positive earnings update (raised 2026 EBITDA guidance with strong operating momentum). The overall score is held back by balance-sheet risk from elevated leverage and a less attractive valuation (P/E ~28 with a modest ~1.57% dividend yield).
Positive Factors
Strategic Permian & Gulf Coast footprint
Targa's integrated assets—gathering/processing, NGL pipelines, fractionators, storage and marine export capacity—drive fee-based and throughput revenues. Record Permian inlet and fractionation volumes indicate durable utilization gains that support predictable midstream cash flows over the next 2–6 months.
Negative Factors
High leverage elevating financial risk
Elevated leverage—debt-to-equity materially higher than peers—amplifies returns but narrows balance-sheet flexibility. A thin equity base increases downside exposure to commodity shocks or project delays, limiting capacity to fund growth or withstand cycles without refinancing or deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic Permian & Gulf Coast footprint
Targa's integrated assets—gathering/processing, NGL pipelines, fractionators, storage and marine export capacity—drive fee-based and throughput revenues. Record Permian inlet and fractionation volumes indicate durable utilization gains that support predictable midstream cash flows over the next 2–6 months.
Read all positive factors
Targa Resources Key Performance Indicators (KPIs)
Targa Resources (TRGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.52B
Dividend Yield2.03%
Average Volume (3M)1.22M
Price to Earnings (P/E)26.6
Beta (1Y)0.61
Revenue Growth-1.23%
EPS Growth80.28%
CountryUS
Employees3,370
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)9.86
Shares Outstanding214,643,900
10 Day Avg. Volume1,202,614
30 Day Avg. Volume1,222,033
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 Cap1.31
Enterprise Value/Revenue4.50
Enterprise Value/Gross Profit15.08
Enterprise Value/Ebitda14.16
Forecast
1Y Price Target
$280.73Price Target Upside19.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)10.8
Revenue Forecast (FY)$19.74B
Targa Resources Business Overview & Revenue Model
Company Description
Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of midstream energy assets in North America. The company operates in two segments, Gathering and Processing, and L...
How the Company Makes Money
Targa makes money by charging fees and earning margins for midstream services across the natural gas and NGL value chain. Key revenue and earnings drivers typically include: (1) Gathering and processing: Targa connects producer wells to its system...
Targa Resources Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and financial strengths—record Q1 adjusted EBITDA, raised full-year guidance, record fractionation and Permian volumes, strong liquidity, continued large-scale project execution and increased shareholder returns—while acknowledging near-term headwinds from severe winter weather, Waha-basis driven shut-ins (200–400 MMcf/d), and a partial LPG export outage. Management expects egress capacity additions (GCX expansion, Blackcomb, Traverse) and ongoing downstream expansions to alleviate constraints and support growth in the back half of 2026 and into 2027. Overall, positives (record results, guidance raise, strong balance sheet, and project progress) materially outweigh the cited short-term operational challenges.Positive Updates
Record Adjusted EBITDA and Raised Full-Year Guidance
Q1 adjusted EBITDA of $1.4 billion, a 5% increase sequentially. 2026 adjusted EBITDA guidance raised to $5.7–$5.9 billion with a midpoint $300 million higher than the February guide.
Negative Updates
Weather-Related and Price-Induced Production Disruptions
Severe winter weather (Winter Storm Fern) and periodic producer shut-ins driven by weak Waha natural gas prices negatively impacted G&P and L&T volumes in Q1.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Adjusted EBITDA and Raised Full-Year Guidance
Q1 adjusted EBITDA of $1.4 billion, a 5% increase sequentially. 2026 adjusted EBITDA guidance raised to $5.7–$5.9 billion with a midpoint $300 million higher than the February guide.
Read all positive updates
Company Guidance
Targa raised 2026 adjusted EBITDA guidance to $5.7–$5.9 billion (new midpoint $300 million above the February guide) after reporting Q1 adjusted EBITDA of $1.4 billion (up 5% sequentially); management still expects roughly $4.5 billion of net growth capex and about $250 million of net maintenance capex for 2026. At quarter end Targa had $3.1 billion of available liquidity, a pro forma consolidated leverage of ~3.6x (target 3–4x) and completed a $1.5 billion debt offering (4.35% notes due 2031 and 6.05% notes due 2056). Capital returned to shareholders included a Q1 common dividend of $1.25 per share (up 25% y/y) and $55 million of buybacks at an average $241.43/share. Operational drivers supporting the guide include record Permian inlet volumes (current volumes ~250 MMcf/d above Q1 average despite 200–400 MMcf/d of temporary shut‑ins), NGL pipeline volumes of 1.02 million bpd, record fractionation of 1.145 million bpd, Q1 LPG loadings of 13.1 million barrels/month, an export expansion to >19 million barrels/month targeted by Q3 2027, Speedway (500,000 bpd) on track for Q3 2027, Train 11 online with Trains 12 and 13 on track for Q1‑27 and Q1‑28, and >1.5 Bcf/d of new processing capacity coming by early 2028.Targa Resources Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.38B | 17.14B | 16.63B | 15.62B | 21.68B | 17.44B |
| Gross Profit | 4.89B | 4.54B | 3.33B | 2.54B | 2.79B | 2.09B |
| EBITDA | 5.21B | 4.85B | 4.14B | 3.97B | 3.21B | 1.70B |
| Net Income | 2.13B | 1.84B | 1.27B | 828.20M | 1.14B | 71.20M |
Balance Sheet | ||||||
| Total Assets | 27.11B | 25.22B | 22.73B | 20.67B | 19.56B | 15.21B |
| Cash, Cash Equivalents and Short-Term Investments | 100.10M | 166.10M | 157.30M | 141.70M | 219.00M | 158.50M |
| Total Debt | 19.13B | 17.55B | 14.27B | 13.01B | 11.56B | 6.63B |
| Total Liabilities | 23.84B | 22.02B | 18.32B | 16.06B | 14.58B | 10.03B |
| Stockholders Equity | 3.14B | 3.07B | 2.59B | 2.74B | 2.67B | 2.01B |
Cash Flow | ||||||
| Free Cash Flow | 261.90M | 584.10M | 683.90M | 826.20M | 1.05B | 1.80B |
| Operating Cash Flow | 3.70B | 3.92B | 3.65B | 3.21B | 2.38B | 2.30B |
| Investing Cash Flow | -4.99B | -5.44B | -3.02B | -2.40B | -4.15B | -473.20M |
| Financing Cash Flow | 1.24B | 1.53B | -612.80M | -888.10M | 1.83B | -1.91B |
Targa Resources Technical Analysis
Positive
235.50
Price Trends
251.82
Positive
233.62
Positive
199.73
Positive
Market Momentum
3.46
Positive
52.99
Neutral
33.76
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 235.5 is below the 20-day moving average (MA) of 263.28, below the 50-day MA of 251.82, and above the 200-day MA of 199.73, indicating a neutral trend. The MACD of 3.46 indicates Positive momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 33.76 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $56.52B | 26.58 | 73.92% | 2.03% | -1.23% | 80.28% | |
73 Outperform | $81.59B | 14.11 | 20.04% | 6.72% | -9.49% | 1.01% | |
73 Outperform | $54.64B | 15.49 | 15.92% | 5.61% | 41.04% | 9.18% | |
73 Outperform | $56.50B | 11.96 | 33.27% | 7.31% | 3.18% | 6.43% | |
69 Neutral | $49.46B | 33.59 | 23.48% | 1.07% | 24.15% | -55.07% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $2.76B | 16.12 | 1917.10% | 9.78% | 13.04% | 6.21% |
* Energy Sector Average
TRGP
Targa Resources
262.69
105.60
67.22%
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EPD
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OKE
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DKL
Delek Logistics
51.14
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MPLX
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55.26
8.09
17.14%
Targa Resources Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Targa Resources Completes $1.5 Billion Senior Notes Offering
Positive
Mar 2, 2026
On March 2, 2026, Targa Resources Corp. and certain subsidiaries completed an underwritten public offering of $1.5 billion in senior unsecured notes, split evenly between 4.350% notes due 2031 and 6.050% notes due 2056, fully and unconditionally g...
Business Operations and StrategyPrivate Placements and Financing
Targa Resources Prices $1.5 Billion Senior Notes Offering
Positive
Feb 26, 2026
On February 25, 2026, Targa Resources Corp. priced an underwritten public offering of $1.5 billion in senior notes, split evenly between 4.350% notes due 2031 and 6.050% notes due 2056, with the securities sold slightly below face value. The notes...
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.