Targa Resources Corp.
- Open
- 274.26
- Day high
- 274.46
- Day low
- 271.33
- Prev close
- 272.61
- Volume
- 191K
- Mkt cap
- $56.0B
- P/E (TTM)
- 26.5
- EPS (TTM)
- $10.33
- P/B
- 17.8
- P/S
- 3.4
- Yield
- 0.48%
- Per share
- $1.25
- ▼Insiders net selling -$2.7M over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions accumulating (13F)
Targa Resources Corp. (TRGP) is a Energy company listed on NYSE. The stock is up 56% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Targa Resources Corp. (TRGP) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 11 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TRGP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $2.48 | $2.21 | -10.9% | $4.1B | -12.4% |
| Feb 19, 2026 | $2.30 | $2.51 | +9.1% | $4.1B | -14.3% |
| Nov 5, 2025 | $2.11 | $2.20 | +4.3% | $4.2B | -7.9% |
| Aug 7, 2025 | $1.86 | $2.87 | +54.3% | $4.0B | -17.6% |
| May 1, 2025 | $1.98 | $0.91 | -54.0% | $4.6B | -6.9% |
| Feb 20, 2025 | $1.92 | $1.44 | -25.0% | $4.4B | -1.6% |
| Aug 1, 2024 | $1.27 | $1.33 | +4.7% | $3.6B | -19.1% |
| May 2, 2024 | $1.30 | $1.22 | -6.2% | $4.6B | +6.9% |
| Feb 15, 2024 | $1.46 | $1.26 | -13.7% | $4.2B | +9.9% |
| Nov 2, 2023 | $1.20 | $0.97 | -19.2% | $3.9B | -14.7% |
| Aug 3, 2023 | $1.24 | $1.44 | +16.1% | $3.4B | -22.0% |
| May 4, 2023 | $1.40 | $0.03 | -97.9% | $4.5B | -14.7% |
TRGP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 13, 2026 | CRISP CHARLES Rdirector | Sell | 10,602 | $255.96 |
| Mar 6, 2026 | Muraro Robertofficer: Chief Commercial Officer | Sell | 24,589 | $241.34 |
| Mar 4, 2026 | McDonie Patrick J.officer: See Remarks | Sell | 30,421 | $239.33 |
| Mar 4, 2026 | McDonie Patrick J.officer: See Remarks | Sell | 1,116 | $240.25 |
| Feb 27, 2026 | Cooksen Lindseydirector | Sell | 435 | $231.72 |
| Feb 27, 2026 | Pryor D. Scottofficer: See Remarks | Sell | 3,870 | $228.34 |
| Feb 27, 2026 | Pryor D. Scottofficer: See Remarks | Sell | 2,798 | $227.28 |
| Feb 27, 2026 | Pryor D. Scottofficer: See Remarks | Sell | 9,134 | $229.44 |
| Feb 27, 2026 | Pryor D. Scottofficer: See Remarks | Sell | 1,698 | $230.10 |
| Feb 25, 2026 | Kneale Jennifer R.officer: President | Sell | 1,525 | $230.43 |
| Feb 25, 2026 | CRISP CHARLES Rdirector | Sell | 1,359 | $229.30 |
| Feb 25, 2026 | Kneale Jennifer R.officer: President | Sell | 27,984 | $230.10 |
| Jan 26, 2026 | Byers William A.officer: Chief Financial Officer | Grant | 7,237 | — |
| Jan 20, 2026 | JOYCE RENE Rdirector | Grant | 1,030 | — |
| Jan 20, 2026 | Pryor D. Scottofficer: See Remarks | Tax | 12,600 | $185.35 |
Source: TRGP SEC Form 4 filings, latest May 13, 2026. For informational purposes only — not investment advice.
See the full TRGP insider & 13F page →Targa Resources Corp. company profile
Overview
Targa Resources Corp. (NYSE:TRGP) is a leading North American midstream energy company founded in 2005 and headquartered in Houston, Texas. The company went public in December 2010 and has grown through strategic acquisitions and organic expansion to become one of the largest midstream operators in the United States. Targa owns and operates an extensive network of natural gas gathering, processing, and transportation infrastructure, with a particular focus on the prolific Permian Basin. The company has achieved investment-grade credit ratings across all three major rating agencies and was added to the S&P 500 index, reflecting its position as a major player in the energy midstream sector.
Business
Targa Resources operates in the oil and gas midstream sector, which serves as the critical link between upstream energy producers (who drill and extract oil and gas) and downstream consumers (refineries, petrochemical plants, and end users). The midstream sector involves gathering raw natural gas and crude oil from wellheads, processing these commodities into marketable products, and transporting them to end markets. The company operates through two primary business segments: Gathering and Processing Segment (approximately 50% of operating margin): This segment involves collecting raw natural gas from wellheads through an extensive pipeline network, then processing it at specialized facilities to separate valuable components. The raw natural gas is treated to remove impurities like hydrogen sulfide and carbon dioxide, then processed to extract natural gas liquids (NGLs) such as propane, butane, and ethane. These NGLs are more valuable than raw natural gas and serve as feedstock for petrochemical manufacturing. The remaining "dry" natural gas is then ready for pipeline transportation to power plants and other consumers. Logistics and Transportation Segment (approximately 50% of operating margin): This segment focuses on moving processed products to market through pipelines, rail, and marine transportation. The company operates NGL pipelines that transport liquid products to fractionation facilities, where different NGL components are separated into individual products. Targa also operates major fractionation complexes, particularly at Mont Belvieu, Texas, which is a key NGL trading hub. Additionally, the company has significant liquefied petroleum gas (LPG) export capabilities, loading propane and butane onto ships for international markets. The company operates approximately 28,400 miles of natural gas pipelines, 42 processing plants, and 34 storage wells with 76 million barrels of capacity. Targa's infrastructure is heavily concentrated in high-growth shale basins, particularly the Permian Basin of West Texas, which accounts for the majority of its volumes.
Revenue model
Targa generates revenue through multiple complementary business models centered around fee-based services rather than commodity speculation. Approximately 90% of the company's margins are now fee-based or supported by fee-floor contracts, providing stable cash flows regardless of commodity price volatility. Primary Revenue Streams: 1. Gathering and Processing Fees: Targa charges producers fees for gathering natural gas from wellheads and processing it to extract valuable NGLs. These fees are typically based on volume throughput and are contracted on a long-term basis with creditworthy producers. 2. Transportation and Storage Fees: The company earns transportation tariffs for moving NGLs through its pipeline network and storage fees for providing temporary storage capacity. These are typically regulated utility-style returns. 3. Fractionation Services: Targa charges fees for separating mixed NGLs into individual products like propane, butane, and ethane at its fractionation facilities. 4. Product Sales and Marketing: While primarily fee-based, the company also generates revenue from buying and reselling NGL products and natural gas, though this represents a smaller portion of overall margins. Margin Drivers and Risks: Factors that increase margins include growing natural gas production in the Permian Basin, increased demand for NGL exports (particularly to Asia), operational efficiency improvements, and the company's integrated asset base that captures value across the entire midstream chain. The company benefits from long-term contracts with high-quality producers who have multi-year drilling programs. Factors that could pressure margins include reduced drilling activity in key basins, increased competition from other midstream operators, regulatory changes affecting pipeline operations, and potential trade disruptions affecting LPG exports. However, the company's predominantly fee-based model provides significant insulation from commodity price volatility that affects many energy companies.
Competitive moat
Targa Resources possesses a moderate to strong competitive moat built primarily around its integrated infrastructure network and strategic positioning in high-growth basins. The company's moat derives from several key factors: Geographic Monopoly Power: Targa has established dominant positions in key production areas, particularly the Permian Basin, where its extensive gathering network creates natural monopolies. Once producers connect to Targa's system, the high cost and complexity of building alternative infrastructure creates significant switching costs. Integrated Asset Base: The company's end-to-end infrastructure from wellhead gathering to export terminals creates operational synergies and multiple revenue streams from the same molecules. This integration is difficult for competitors to replicate and provides Targa with flexibility in optimizing operations across its system. Long-term Contracts: Targa has secured long-term agreements with high-quality producers, many of whom have multi-year drilling programs and significant acreage positions. These relationships, combined with acreage dedications, provide predictable cash flows and high barriers to customer switching. Scale Advantages: The company's size enables it to invest in large-scale projects that smaller competitors cannot finance, and its operational scale provides cost advantages in construction and operations. However, the moat faces potential challenges from new pipeline projects that could provide alternative takeaway capacity, technological changes in energy production, and the long-term energy transition away from fossil fuels. Additionally, large integrated oil companies and other well-capitalized midstream operators represent formidable competition for new projects and acquisitions. The regulatory environment and potential changes in trade policies, particularly regarding LPG exports, could also impact the company's competitive position.
Risks & safety
Targa Resources presents a moderate margin of safety with some areas of concern around leverage and working capital management. • Leverage and Solvency: Debt-to-equity ratio of 6.6x is elevated, though the company maintains a 3.6x net leverage ratio (debt/EBITDA) within its target range of 3-4x. Strong cash flow generation of $954 million from operations provides adequate debt service coverage. • Liquidity Position: Current ratio of 0.65 indicates potential working capital strain, with current liabilities exceeding current assets. However, the company maintains access to significant credit facilities and generates strong operating cash flows. • Valuation Metrics: Trading at 40x P/E ratio appears expensive, though EV/EBITDA of 16.4x is more reasonable for a growing infrastructure company. Price-to-book ratio of 17.8x reflects significant intangible asset value in pipeline networks. • Cash Generation: Free cash flow of $162 million in Q1 2025 shows improvement from negative free cash flow in Q3 2024, indicating the company is moving past its heavy capital investment phase. • Other Considerations: Investment-grade credit ratings provide access to capital markets, and 90% fee-based revenue model reduces commodity exposure. However, high capital intensity and cyclical end markets present ongoing risks.
Recent development
Over the past few years, Targa has executed a comprehensive growth strategy focused on expanding its integrated midstream platform, particularly in the Permian Basin. The company has invested heavily in new processing capacity, bringing multiple plants online including the Pembrook II plant (expected Q3 2025) and announcing four additional Permian processing plants scheduled for 2026. Key strategic developments include the Delaware Express NGL pipeline project, a 100-mile expansion expected to be completed in Q3 2026, and the construction of Train 12 fractionator with 150,000 barrel per day capacity. The company has also significantly expanded its LPG export capabilities, with debottleneck projects increasing loading capacity and a major expansion planned to reach 19 million barrels per month by Q3 2027. Targa has strengthened its financial position through strategic transactions, including the repurchase of Blackstone's preferred equity in Badlands assets and the acquisition of BP's 12% interest in Cedar Bayou Fractionators. The company has also participated in the Blackcomb natural gas pipeline project with a 17.5% ownership stake to address growing gas takeaway needs from the Permian Basin. The company has evolved its business model toward greater fee-based revenue, now achieving 90% fee-based or fee-floor supported margins, which provides more predictable cash flows. Capital allocation has become increasingly shareholder-friendly, with the company returning 40-50% of cash flow from operations to shareholders through dividend increases (33% increase for 2025) and opportunistic share repurchases totaling over $1 billion in recent years.
TRGP company profile · for informational purposes only — not investment advice.
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