Targa Resources (NYSE:TRGP) Releases Earnings Results

Key Points

• Targa Resources reported quarterly EPS of $3.04, beating the $2.74 consensus, while revenue of $5.60 billion also exceeded analyst expectations of $4.77 billion.
• Management raised its 2026 adjusted EBITDA outlook to at least $6 billion, citing strong operating performance and record Permian volumes; new projects and long-term ExxonMobil agreements support future growth.
• The company declared a $1.25 quarterly dividend and expects to recommend a 20% increase in its 2027 annual dividend to $6 per share. Shares nevertheless fell about $7.17 on Friday.

Targa Resources (NYSE:TRGP - Get Free Report) posted its earnings results on Thursday. The pipeline company reported $3.04 EPS for the quarter, topping analysts' consensus estimates of $2.74 by $0.30, FiscalAI reports. Targa Resources had a return on equity of 69.26% and a net margin of 13.55%. The business had revenue of $5.60 billion during the quarter, compared to analyst estimates of $4.77 billion.

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 Stock Performance

Shares of NYSE:TRGP traded down $7.17 during trading on Friday, hitting $264.65. The stock had a trading volume of 2,608,434 shares, compared to its average volume of 1,125,636. The stock has a 50-day simple moving average of $289.31 and a two-hundred day simple moving average of $261.35. The stock has a market capitalization of $56.75 billion, a price-to-earnings ratio of 28.18, a price-to-earnings-growth ratio of 1.22 and a beta of 0.76. Targa Resources has a 12-month low of $166.18 and a 12-month high of $316.60. The company has a quick ratio of 0.68, a current ratio of 0.77 and a debt-to-equity ratio of 5.01.

Targa Resources Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 17th. Investors of record on Friday, October 30th will be paid a $1.25 dividend. The ex-dividend date is Friday, October 30th. This represents a $5.00 dividend on an annualized basis and a yield of 1.9%. Targa Resources's dividend payout ratio (DPR) is 47.80%.

Targa Resources News Roundup

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

Insiders Place Their Bets

In other Targa Resources news, Director Charles R. Crisp sold 3,000 shares of the company's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $290.23, for a total transaction of $870,690.00. Following the completion of the transaction, the director directly owned 62,292 shares in the company, valued at approximately $18,079,007.16. This represents a 4.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Waters S. Iv Davis sold 2,400 shares of the company's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $299.67, for a total transaction of $719,208.00. Following the transaction, the director owned 1,529 shares of the company's stock, valued at approximately $458,195.43. This trade represents a 61.08% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 7,216 shares of company stock valued at $2,127,634. Company insiders own 1.37% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on TRGP. BMO Capital Markets increased their price objective on shares of Targa Resources from $303.00 to $328.00 and gave the stock an "outperform" rating in a research note on Wednesday, October 21st. TD Cowen raised Targa Resources from a "hold" rating to a "buy" rating and lifted their target price for the stock from $275.00 to $350.00 in a report on Friday, September 18th. Wells Fargo & Company raised their price target on Targa Resources from $282.00 to $324.00 and gave the company an "overweight" rating in a report on Wednesday, September 2nd. Weiss Ratings upgraded Targa Resources from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Thursday, October 29th. Finally, The Goldman Sachs Group reissued a "buy" rating and issued a $322.00 price objective on shares of Targa Resources in a research note on Tuesday, October 13th. Two research analysts have rated the stock with a Strong Buy rating and twenty have assigned a Buy rating to the company's stock. According to MarketBeat.com, Targa Resources presently has an average rating of "Buy" and a consensus target price of $325.58.

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.

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