Targa Resources (NYSE:TRGP) Releases Earnings Results, Beats Expectations By $0.16 EPS

Targa Resources (NYSE:TRGP) released its quarterly earnings data on Thursday. The pipeline company reported $2.51 earnings per share for the quarter, topping the consensus estimate of $2.35 by $0.16, FiscalAI reports. Targa Resources had a net margin of 9.35% and a return on equity of 51.87%. The firm had revenue of $4.06 billion for the quarter, compared to analyst estimates of $4.12 billion.

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

• Targa reported a record 2025 operational and financial year with Permian volumes up ~11% and Adjusted EBITDA of $4.96 billion, ~ $800 million higher year‑over‑year.
• Management expects continued momentum — 2026 guidance of $5.4–$5.6 billion Adjusted EBITDA, low‑double‑digit Permian volume growth, and announced projects (Yeti Two, Frac Train 13 and long‑lead orders for two 2028 plants) that provide line‑of‑sight to ~2.2 Bcf/d incremental processing capacity and ~320k bpd gross NGL production.
• Capital intensity is rising: ~$4.5 billion of growth capex planned for 2026 and a post‑Speedway multi‑year growth capex run‑rate ≈$2.5 billion (up from prior ~$1.7 billion) as Targa assumes ~3 plants/year, raising near‑term spending and execution risk.
• Balance sheet and returns: net leverage ~3.5x (within 3–4x target), ~$1.9 billion liquidity, $642 million of share repurchases in 2025, and management expects strong free cash flow and minimal cash taxes for ~five years due to bonus depreciation.
• Targa says >90% of cash flow is fee‑based and most non‑fee exposure is hedged (a 30% commodity move implies <2% change to 2026 EBITDA midpoint), but cautions that Waha basis volatility and marketing upside are uncertain and could create volatile short‑term outcomes.

Targa Resources Price Performance

NYSE TRGP traded up $3.89 on Friday, reaching $228.05. 726,347 shares of the stock traded hands, compared to its average volume of 1,342,312. Targa Resources has a 12 month low of $144.14 and a 12 month high of $232.86. The company has a market cap of $48.95 billion, a price-to-earnings ratio of 30.31, a P/E/G ratio of 0.98 and a beta of 0.88. The firm’s fifty day simple moving average is $193.52 and its 200 day simple moving average is $175.04. The company has a quick ratio of 0.61, a current ratio of 0.77 and a debt-to-equity ratio of 5.91.

Targa Resources Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were given a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date was Friday, January 30th. Targa Resources’s dividend payout ratio is 53.19%.

Analyst Ratings Changes

A number of analysts have recently weighed in on TRGP shares. Wall Street Zen cut Targa Resources from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. UBS Group reiterated a “buy” rating on shares of Targa Resources in a research note on Friday, January 9th. Weiss Ratings raised shares of Targa Resources from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, January 29th. BMO Capital Markets reaffirmed an “outperform” rating and issued a $241.00 price objective on shares of Targa Resources in a report on Friday. Finally, Morgan Stanley reissued an “overweight” rating and set a $266.00 target price on shares of Targa Resources in a research note on Wednesday, January 28th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $221.07.

Insider Activity at Targa Resources

In other news, insider Gerald R. Shrader sold 2,750 shares of the company’s stock in a transaction on Friday, December 5th. The stock was sold at an average price of $181.21, for a total value of $498,327.50. Following the completion of the sale, the insider owned 29,561 shares in the company, valued at $5,356,748.81. This represents a 8.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 1.34% of the company’s stock.

Institutional Investors Weigh In On Targa Resources

Institutional investors and hedge funds have recently bought and sold shares of the business. Steward Partners Investment Advisory LLC grew its stake in shares of Targa Resources by 0.7% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 7,455 shares of the pipeline company’s stock worth $1,376,000 after purchasing an additional 51 shares during the last quarter. Larson Financial Group LLC grew its position in Targa Resources by 4.1% in the third quarter. Larson Financial Group LLC now owns 1,508 shares of the pipeline company’s stock worth $253,000 after buying an additional 60 shares during the last quarter. Equitable Holdings Inc. grew its position in Targa Resources by 3.6% in the third quarter. Equitable Holdings Inc. now owns 1,714 shares of the pipeline company’s stock worth $287,000 after buying an additional 60 shares during the last quarter. State of Wyoming increased its holdings in shares of Targa Resources by 3.2% in the second quarter. State of Wyoming now owns 2,076 shares of the pipeline company’s stock valued at $361,000 after buying an additional 64 shares in the last quarter. Finally, Lyell Wealth Management LP lifted its position in shares of Targa Resources by 1.8% during the 4th quarter. Lyell Wealth Management LP now owns 3,803 shares of the pipeline company’s stock valued at $702,000 after acquiring an additional 67 shares during the last quarter. 92.13% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Targa Resources

Here are the key news stories impacting Targa Resources this week:

• Positive Sentiment: Q4 EPS beat — Targa reported $2.51 EPS vs. consensus $2.35, with strong return on equity (51.9%) and improved margins, which supports higher valuation multiple and investor optimism. View Press Release
• Positive Sentiment: Record results and bullish 2026 outlook — Company announced record Q4 and full‑year 2025 results and provided guidance targeting a record 2026, which likely lifted investor forward expectations. GlobeNewswire Results Release
• Positive Sentiment: Dividend hike announced alongside record results — The dividend increase reinforces cash generation and shareholder return priorities, supporting sentiment among income-focused investors. TipRanks Dividend Article
• Positive Sentiment: Core profit and volume strength — Reuters notes adjusted core profit beat estimates driven by higher gas and NGL transport volumes, supporting operating leverage. Reuters Coverage
• Neutral Sentiment: Form 10‑K filed — 2025 Form 10‑K is now available, providing full disclosures (useful for fundamental review but not an immediate catalyst). 10-K Filing Notice
• Neutral Sentiment: Earnings call materials and transcript available — Management commentary and the slide deck are posted (important for color on 2026 guidance and capex but informational). View Slide Deck Listen to Conference Call
• Neutral Sentiment: Analyst notes and metric deep dives — Coverage (Zacks, Seeking Alpha) breaks down key metrics vs. estimates; useful for modeling but not an immediate market mover. Zacks Analysis
• Negative Sentiment: Revenue slightly missed — Revenue came in at $4.06B vs. Street ~$4.12B, a small topline miss that tempers the beat and could concern growth-focused investors. Investing.com Revenue Coverage

Targa Resources Company Profile

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.