Targa Resources (NYSE:TRGP) Issues Earnings Results

Key Points

• Targa Resources missed quarterly expectations, reporting EPS of $2.21 versus the $2.48 consensus and revenue of $4.09 billion versus the expected $4.68 billion.
• Management turned more upbeat on the outlook, citing record Q1 adjusted EBITDA of $1.4 billion and lifting 2026 adjusted EBITDA guidance to $5.7 billion–$5.9 billion.
• The company boosted its dividend to $1.25 per quarter from $1.00, while also maintaining a healthy balance sheet with about $3.1 billion in liquidity and leverage around 3.6x.

Targa Resources (NYSE:TRGP - Get Free Report) issued its quarterly earnings results on Thursday. The pipeline company reported $2.21 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.48 by ($0.27), FiscalAI reports. Targa Resources had a return on equity of 73.16% and a net margin of 12.87%.The business had revenue of $4.09 billion during the quarter, compared to analyst estimates of $4.68 billion.

Here are the key takeaways from Targa Resources' conference call:

• Record Q1 adjusted EBITDA of $1.4 billion and management raised 2026 adjusted EBITDA guidance to $5.7–$5.9 billion (midpoint +$300M), citing acquisition contributions and marketing/optimization gains.
• Operational momentum in the Permian with record inlet volumes, ongoing strong producer activity, multiple plants recently brought online or under construction, and two new Delaware plants announced for early‑2028 service.
• Downstream tailwinds: Train 11 is online, Trains 12/13 under construction, and LPG export capacity is being expanded (target >19 million barrels/month with incremental capacity expected Q3‑2027), with elevated global butane demand providing commercialization upside.
• Near‑term headwinds from weak Waha basis and Permian takeaway constraints have led to intermittent producer shut‑ins of roughly 200–400 MMcf/d, leaving volumes and pricing volatile until new egress (GCX expansion, WACOM, Traverse, etc.) comes online late‑2026 into 2027.
• Balance sheet and capital allocation look healthy: ~$3.1 billion liquidity, pro forma leverage ~3.6x (inside 3–4x target), ~ $4.5 billion growth capex planned for 2026, a 25% dividend increase to $1.25/share, and opportunistic buybacks ($55M in Q1).

Targa Resources Trading Down 1.7%

Shares of NYSE TRGP traded down $4.34 during midday trading on Friday, hitting $248.10. The stock had a trading volume of 1,411,156 shares, compared to its average volume of 1,197,568. The company has a market capitalization of $53.29 billion, a price-to-earnings ratio of 25.09, a PEG ratio of 1.60 and a beta of 0.75. Targa Resources has a 1-year low of $144.14 and a 1-year high of $261.95. The company has a quick ratio of 0.55, a current ratio of 0.67 and a debt-to-equity ratio of 5.21. The company has a fifty day moving average price of $242.08 and a 200 day moving average price of $204.25.

Targa Resources Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Thursday, April 30th will be paid a $1.25 dividend. The ex-dividend date of this dividend is Thursday, April 30th. This represents a $5.00 annualized dividend and a dividend yield of 2.0%. This is an increase from Targa Resources's previous quarterly dividend of $1.00. Targa Resources's dividend payout ratio is presently 58.21%.

Analysts Set New Price Targets

A number of analysts have issued reports on the company. Royal Bank Of Canada raised their price target on Targa Resources from $260.00 to $270.00 and gave the stock an "outperform" rating in a research note on Monday, April 13th. Wells Fargo & Company raised their price target on Targa Resources from $264.00 to $270.00 and gave the stock an "overweight" rating in a research note on Friday. Weiss Ratings raised Targa Resources from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, January 29th. Truist Financial raised their price target on Targa Resources from $279.00 to $285.00 and gave the stock a "buy" rating in a research note on Monday, April 13th. Finally, The Goldman Sachs Group lifted their price objective on Targa Resources from $242.00 to $268.00 and gave the company a "buy" rating in a research note on Monday, April 20th. Fourteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $262.14.

Insider Activity

In related news, Director Charles R. Crisp sold 1,359 shares of the business's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $229.30, for a total transaction of $311,618.70. Following the transaction, the director directly owned 77,094 shares of the company's stock, valued at approximately $17,677,654.20. The trade was a 1.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Robert Muraro sold 24,589 shares of the business's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $241.34, for a total value of $5,934,309.26. Following the transaction, the insider directly owned 197,401 shares in the company, valued at $47,640,757.34. This trade represents a 11.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 104,929 shares of company stock worth $24,692,134 in the last ninety days. 1.37% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Targa Resources

Several hedge funds and other institutional investors have recently bought and sold shares of TRGP. Adams Wealth Management purchased a new stake in Targa Resources during the 4th quarter worth approximately $214,000. Evolve Private Wealth LLC bought a new stake in shares of Targa Resources in the 4th quarter valued at approximately $210,000. Arete Wealth Advisors LLC bought a new stake in shares of Targa Resources in the 4th quarter valued at approximately $213,000. Parkside Financial Bank & Trust increased its holdings in shares of Targa Resources by 12.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 855 shares of the pipeline company's stock valued at $158,000 after acquiring an additional 95 shares during the last quarter. Finally, Principal Securities Inc. increased its holdings in shares of Targa Resources by 41.4% in the 4th quarter. Principal Securities Inc. now owns 1,169 shares of the pipeline company's stock valued at $216,000 after acquiring an additional 342 shares during the last quarter. 92.13% of the stock is owned by institutional investors and hedge funds.

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.

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