Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of complementary domestic midstream infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil. It is also involved in the purchase and resale of NGL products; and sale of propane, as well as provision of related logistics services to multi-state retailers, independent retailers, and other end-users. In addition, the company offers NGL balancing services; and transportation services to refineries and petrochemical companies in the Gulf Coast area, as well as purchases, markets, and resells natural gas. As of December 31, 2023, it leased and managed approximately 605 railcars; 137 tractors; and 6 vacuum trucks and 2 pressurized NGL barges. Targa Resources Corp. was incorporated in 2005 and is headquartered in Houston, Texas.

Targa Resources, Inc.

The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Targa Resources is now the #19 analyst pick, moving up by 5 spots.
This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values.
Looking at the stock price movement year to date, Targa Resources is lower by about 8.6%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

S&P 500 Analyst Moves: TRGP

Looking at the sectors faring worst as of midday Wednesday, shares of Utilities companies are underperforming other sectors, showing a 0.2% loss. Within the sector, Constellation Energy Corp (Symbol: CEG) and Vistra Corp (Symbol: VST) are two of the day's laggards, showing a loss of 3.6% and 2.6%, respectively. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is down 0.4% on the day, and up 14.96% year-to-date. Constellation Energy Corp, meanwhile, is up 46.25% year-to-date, and Vistra Corp is up 48.41% year-to-date. Combined, CEG and VST make up approximately 13.5% of the underlying holdings of XLU.
The next worst performing sector is the Energy sector, not showing much of a gain. Among large Energy stocks, Trane Technologies plc (Symbol: TT) and Targa Resources Corp (Symbol: TRGP) are the most notable, showing a loss of 1.8% and 1.6%, respectively. One ETF closely tracking Energy stocks is the Energy Select Sector SPDR ETF (XLE), which is up 0.2% in midday trading, and up 0.68% on a year-to-date basis. Trane Technologies plc, meanwhile, is up 17.20% year-to-date, and Targa Resources Corp, is down 5.84% year-to-date. TRGP makes up approximately 2.7% of the underlying holdings of XLE.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Wednesday. As you can see, seven sectors are up on the day, while one sector is down.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wednesday Sector Laggards: Utilities, Energy

Wall Street analysts expect Targa Resources, Inc. (TRGP) to post quarterly earnings of $1.91 per share in its upcoming report, which indicates a year-over-year increase of 43.6%. Revenues are expected to be $4.85 billion, up 36.2% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 2% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific Targa Resources metrics that are routinely monitored and predicted by Wall Street analysts.
Based on the collective assessment of analysts, 'Gathering and Processing - NGL sales per day' should arrive at 591.25 thousands of barrels of oil. The estimate is in contrast to the year-ago figure of 569.70 thousands of barrels of oil.
Analysts expect 'Gathering and Processing - Gross NGL production - Coastal' to come in at 32.03 thousands of barrels of oil per day. The estimate is in contrast to the year-ago figure of 34.40 thousands of barrels of oil per day.
The collective assessment of analysts points to an estimated 'Gathering and Processing - Condensate sales per day' of 19.31 thousands of barrels of oil. The estimate is in contrast to the year-ago figure of 21.20 thousands of barrels of oil.
It is projected by analysts that the 'Logistics and Marketing - NGL sales' will reach 1,093.79 thousands of barrels of oil per day. Compared to the current estimate, the company reported 1,018.40 thousands of barrels of oil per day in the same quarter of the previous year.
Analysts predict that the 'Logistics and Marketing - Export volumes' will reach 443.45 thousands of barrels of oil per day. The estimate is in contrast to the year-ago figure of 394.10 thousands of barrels of oil per day.
The combined assessment of analysts suggests that 'Logistics and Marketing - Fractionation volumes' will likely reach 1,106.38 thousands of barrels of oil per day. The estimate compares to the year-ago value of 902.20 thousands of barrels of oil per day.
Analysts' assessment points toward 'Gathering and Processing - Total Plant natural gas inlet volumes' reaching . The estimate compares to the year-ago value of .
The consensus among analysts is that 'Gathering and Processing - Total Gross NGL production' will reach 990.94 thousands of barrels of oil per day. Compared to the present estimate, the company reported 965.70 thousands of barrels of oil per day in the same quarter last year.
The consensus estimate for 'Gathering and Processing - Average realized prices - Condensate' stands at $62.47 . Compared to the present estimate, the company reported $72.83 in the same quarter last year.
The average prediction of analysts places 'Gathering and Processing - Plant natural gas inlet volumes - Badlands' at . Compared to the current estimate, the company reported in the same quarter of the previous year.
Analysts forecast 'Gathering and Processing - Plant natural gas inlet volumes - Coastal' to reach . The estimate is in contrast to the year-ago figure of .
According to the collective judgment of analysts, 'Gathering and Processing - Plant natural gas inlet volumes - North Texas' should come in at . The estimate compares to the year-ago value of .
View all Key Company Metrics for Targa Resources here>>>
Shares of Targa Resources have demonstrated returns of -6.1% over the past month compared to the Zacks S&P 500 composite's +0.6% change. With a Zacks Rank #3 (Hold), TRGP is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Insights Into Targa Resources (TRGP) Q2: Wall Street Projections for Key Metrics

The Board of Directors of Ryder System (R) declared a regular quarterly cash dividend of $0.91 per share of common stock to be paid on September 19, 2025 to shareholders of record on August 18, 2025. This dividend reflects a 12% or $0.10 increase from the $0.81 cash dividend that Ryder had been paying quarterly since July 2024.
Thermo Fisher Scientific (TMO) authorized a quarterly cash dividend of $0.43 per common share, payable on October 15, 2025, to shareholders of record as of September 15, 2025.
Phillips 66 (PSX) has declared a quarterly dividend of $1.20 per share on Phillips 66 common stock. The dividend is payable on Sept. 2, 2025, to shareholders of record as of the close of business on Aug. 19, 2025.
Targa Resources Corp. (TRGP) has declared a quarterly cash dividend of $1.00 per common share, or $4.00 per common share on an annualized basis, for the second quarter of 2025. This cash dividend will be paid August 15, 2025 on all outstanding common shares to holders of record as of the close of business on July 31, 2025.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Daily Dividend Report: R, TMO, PSX, TRGP

Targa Resources declared a quarterly dividend of $1.00 per share, payable August 15, 2025, and will report Q2 results on August 7.
Quiver AI Summary
Targa Resources Corp. has declared a quarterly cash dividend of $1.00 per common share, amounting to an annualized rate of $4.00 per share, for the second quarter of 2025. This dividend is set to be paid on August 15, 2025, to holders of record by July 31, 2025. The company will also release its second quarter 2025 financial results on August 7, 2025, before markets open, followed by a live webcast to discuss these results at 11:00 a.m. Eastern Time. Targa is recognized as a significant player in the midstream services sector, connecting natural gas and NGLs to domestic and international markets while operating critical infrastructure across the United States.
Potential Positives
The declaration of a quarterly cash dividend of $1.00 per common share represents a strong return to shareholders and indicates financial stability.
This quarterly dividend translates to an annualized dividend of $4.00 per common share, reflecting a commitment to ongoing shareholder value.
The scheduled webcast for the second quarter earnings results provides transparency and opens the door for investor engagement and communication.
Targa Resources Corp. being listed in the FORTUNE 500 and S&P 500 reinforces its position as a leading company in the midstream services sector in North America.
Potential Negatives
The press release contains numerous forward-looking statements that highlight uncertainties and risks, which may lead to concerns among investors regarding future performance and stability.
The reliance on a range of assumptions about future events may cause apprehension among shareholders about the sustainability of dividends and overall financial health.
The acknowledgment of potential impacts from market volatility and global conflicts could negatively affect investor confidence in the company's operations and stock performance.
What is Targa Resources' latest dividend announcement?
Targa Resources declared a quarterly cash dividend of $1.00 per common share for Q2 2025.
When will the dividend be paid?
The dividend will be paid on August 15, 2025, to shareholders of record as of July 31, 2025.
When is the Q2 2025 earnings report scheduled?
Targa's second quarter 2025 financial results will be reported on August 7, 2025, before market open.
How can investors access the earnings webcast?
Investors can access the live earnings webcast on Targa's investor events page or directly at their provided link.
What services does Targa Resources provide?
Targa Resources provides midstream services including gathering, processing, and transporting natural gas and NGLs.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$TRGP Insider Trading Activity
$TRGP insiders have traded $TRGP stock on the open market 13 times in the past 6 months. Of those trades, 0 have been purchases and 13 have been sales.
Here’s a breakdown of recent trading of $TRGP stock by insiders over the last 6 months:
D. SCOTT PRYOR (See Remarks) has made 0 purchases and 3 sales selling 55,000 shares for an estimated $10,138,403.
MATTHEW J MELOY (Chief Executive Officer) has made 0 purchases and 3 sales selling 48,837 shares for an estimated $9,527,064.
JENNIFER R. KNEALE (See Remarks) has made 0 purchases and 5 sales selling 29,887 shares for an estimated $5,750,806.
WATERS S IV DAVIS sold 2,190 shares for an estimated $429,802
$TRGP Hedge Fund Activity
We have seen 480 institutional investors add shares of $TRGP stock to their portfolio, and 421 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
GQG PARTNERS LLC added 1,410,747 shares (+64.0%) to their portfolio in Q1 2025, for an estimated $282,812,451
WELLINGTON MANAGEMENT GROUP LLP added 962,631 shares (+7.5%) to their portfolio in Q1 2025, for an estimated $192,978,636
GOLDMAN SACHS GROUP INC added 834,666 shares (+43.6%) to their portfolio in Q1 2025, for an estimated $167,325,493
BALYASNY ASSET MANAGEMENT L.P. removed 792,397 shares (-99.6%) from their portfolio in Q1 2025, for an estimated $158,851,826
DEUTSCHE BANK AG\ removed 675,520 shares (-30.8%) from their portfolio in Q1 2025, for an estimated $135,421,494
ALLSPRING GLOBAL INVESTMENTS HOLDINGS, LLC removed 651,282 shares (-73.8%) from their portfolio in Q1 2025, for an estimated $130,562,502
MITSUBISHI UFJ TRUST & BANKING CORP removed 626,131 shares (-83.4%) from their portfolio in Q1 2025, for an estimated $125,520,481
$TRGP Analyst Ratings
Wall Street analysts have issued reports on $TRGP in the last several months. We have seen 10 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
RBC Capital issued a "Outperform" rating on 06/26/2025
Scotiabank issued a "Sector Outperform" rating on 06/05/2025
Mizuho issued a "Outperform" rating on 05/20/2025
Barclays issued a "Overweight" rating on 05/20/2025
UBS issued a "Buy" rating on 05/15/2025
Citigroup issued a "Buy" rating on 05/09/2025
Goldman Sachs issued a "Buy" rating on 05/05/2025
To track analyst ratings and price targets for $TRGP, check out Quiver Quantitative's $TRGP forecast page.
Multiple analysts have issued price targets for $TRGP recently. We have seen 12 analysts offer price targets for $TRGP in the last 6 months, with a median target of $207.0.
Here are some recent targets:
Jeremy Tonet from JP Morgan set a target price of $209.0 on 07/10/2025
Theresa Chen from Barclays set a target price of $195.0 on 07/10/2025
Elvira Scotto from RBC Capital set a target price of $205.0 on 06/26/2025
Brandon Bingham from Scotiabank set a target price of $197.0 on 06/05/2025
Gabriel Moreen from Mizuho set a target price of $212.0 on 05/20/2025
Shneur Gershuni from UBS set a target price of $228.0 on 05/15/2025
Spiro Dounis from Citigroup set a target price of $197.0 on 05/09/2025
Full Release
HOUSTON, July 10, 2025 (GLOBE NEWSWIRE) -- Targa Resources Corp. (NYSE: TRGP) ("Targa" or the "Company") announced today that its board of directors has declared a quarterly cash dividend of $1.00 per common share, or $4.00 per common share on an annualized basis, for the second quarter of 2025. This cash dividend will be paid August 15, 2025 on all outstanding common shares to holders of record as of the close of business on July 31, 2025.
The Company will report its second quarter 2025 financial results before the market opens for trading on Thursday, August 7, 2025, and will host a live webcast at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss its 2025 second quarter financial results.
Event Information
Event: Targa Resources Corp. Second Quarter 2025 Earnings Webcast and Presentation
Date: Thursday, August 7, 2025
Time: 11:00 a.m. Eastern Time
Webcast:
https://www.targaresources.com/investors/events
or directly at
https://edge.media-server.com/mmc/p/vkst8uaw
Replay Information
A webcast replay will be available at the link above approximately two hours after the conclusion of the event. A quarterly earnings supplement presentation and updated investor presentation will also be available at
https://www.targaresources.com/investors/events
.
About Targa Resources Corp.
Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company’s assets connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuels and feedstocks. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including services to LPG exporters; and gathering, storing, terminaling, and purchasing and selling crude oil.
Targa is a FORTUNE 500 company and is included in the S&P 500.
For more information, please visit the Company’s website at
www.targaresources.com
.
Forward-Looking Statements
Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding our projected financial performance, capital spending and payment of future dividends. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, actions taken by other countries with significant hydrocarbon production, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of our completion of capital projects and business development efforts, the expected growth of volumes on our systems, the impact of significant public health crises, commodity price volatility due to ongoing or new global conflicts, the impact of disruptions in the bank and capital markets, including those resulting from lack of access to liquidity for banking and financial services firms, changes in laws and regulations, particularly with regard to taxes, tariffs and international trade, and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Targa Resources Corp. Declares Quarterly Cash Dividend of $1.00 per Share for Q2 2025

The best performing sector as of midday Thursday is the Energy sector, higher by 1.3%. Within that group, APA Corp (Symbol: APA) and Targa Resources Corp (Symbol: TRGP) are two large stocks leading the way, showing a gain of 4.1% and 3.1%, respectively. Among energy ETFs, one ETF following the sector is the Energy Select Sector SPDR ETF (Symbol: XLE), which is up 1.2% on the day, and up 1.51% year-to-date. APA Corp, meanwhile, is down 17.61% year-to-date, and Targa Resources Corp, is down 0.55% year-to-date. Combined, APA and TRGP make up approximately 3.2% of the underlying holdings of XLE.
The next best performing sector is the Materials sector, higher by 1.1%. Among large Materials stocks, Freeport-McMoran Copper & Gold (Symbol: FCX) and Albemarle Corp. (Symbol: ALB) are the most notable, showing a gain of 7.2% and 6.8%, respectively. One ETF closely tracking Materials stocks is the Materials Select Sector SPDR ETF (XLB), which is up 1.1% in midday trading, and up 5.35% on a year-to-date basis. Freeport-McMoran Copper & Gold, meanwhile, is up 17.94% year-to-date, and Albemarle Corp., is down 24.15% year-to-date. Combined, FCX and ALB make up approximately 5.9% of the underlying holdings of XLB.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Thursday. As you can see, nine sectors are up on the day, while none of the sectors are down.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Thursday Sector Leaders: Energy, Materials

Below is Validea's guru fundamental report for TARGA RESOURCES CORP (TRGP). Of the 22 guru strategies we follow, TRGP rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
TARGA RESOURCES CORP (TRGP) is a large-cap growth stock in the Natural Gas Utilities industry. The rating using this strategy is 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of TARGA RESOURCES CORP
More Information on Dashan Huang
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

TRGP Quantitative Stock Analysis

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Targa Resources, Inc. In Focus
Headquartered in Houston, Targa Resources, Inc. (TRGP) is an Oils-Energy stock that has seen a price change of -5.14% so far this year. The company is paying out a dividend of $1 per share at the moment, with a dividend yield of 2.36% compared to the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry's yield of 6.06% and the S&P 500's yield of 1.59%.
In terms of dividend growth, the company's current annualized dividend of $4 is up 45.5% from last year. In the past five-year period, Targa Resources, Inc. has increased its dividend 3 times on a year-over-year basis for an average annual increase of 68.86%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Right now, Targa Resources's payout ratio is 55%, which means it paid out 55% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, TRGP expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $7.78 per share, with earnings expected to increase 35.54% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, TRGP is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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Targa Resources, Inc. (TRGP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Targa Resources, Inc. (TRGP) Could Be a Great Choice

Below is Validea's guru fundamental report for TARGA RESOURCES CORP (TRGP). Of the 22 guru strategies we follow, TRGP rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
TARGA RESOURCES CORP (TRGP) is a large-cap growth stock in the Natural Gas Utilities industry. The rating using this strategy is 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM:
PASS
TWELVE MINUS ONE MOMENTUM:
PASS
FINAL RANK:
PASS
Detailed Analysis of TARGA RESOURCES CORP
TRGP Guru Analysis
TRGP Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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Harry Browne Permanent Portfolio
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Targa Resources Corp. TRGP has seen its shares climb an impressive 43.9% over the past year, far outpacing the broader Oils-Energy sector, which rose just 7.2%. Within the Oil Refining & Marketing sub-industry, up 28% during the same period, TRGP still stands out as a top performer. In comparison, Western Midstream Partners WES gained 11.6%, Sunoco SUN rose 3.4% and NGL Energy Partners NGL fell 21.1%. With such a strong track record over the last year, investors are now considering whether this is the right time to buy or if it is wiser to wait for a better opportunity.
1-Year Price Performance Comparison
Image Source: Zacks Investment Research
Targa Resources, headquartered in Houston, TX, plays a significant role in the energy infrastructure industry. The company focuses on various natural gas operations, including collection, processing, compression, treatment and distribution. TRGP’s operations are divided into two primary segments: Gathering and Processing, and Logistics and Transportation. The company makes revenues by charging fees for services such as moving, processing and storing natural gas, NGLs and crude oil.
So, what is fueling Targa’s impressive growth? Let us explore the core factors contributing to its strong performance and consider whether this growth trend is sustainable.
TRGP's Strategic Advantages
Strong Financial Performance and Record EBITDA: TRGP reported a record adjusted EBITDA of $1.18 billion in first-quarter 2025, a 22% increase year over year, driven by higher Permian volumes and improved marketing margins. The company reaffirmed its full-year 2025 adjusted EBITDA guidance of $4.65-$4.85 billion, signaling confidence in sustained growth. This robust financial performance underscores Targa's ability to capitalize on market opportunities and operational efficiency, making it an attractive investment.
The growth is supported by fee-based contracts, which provide stability even in volatile commodity price environments. Competitors like Western Midstream Partners and NGL Energy Partners also benefit from similar contract structures, but Targa’s scale offers a significant edge.
Strategic Position in the Permian Basin: Targa has a dominant footprint in the Permian Basin, the most prolific oil and gas region in the United States, with natural gas inlet volumes up 11% year over year. The company’s integrated infrastructure, including processing plants and pipelines, ensures flow assurance and captures value across the midstream chain. New projects like Pembrook II (third-quarter 2025) and Bull Moose II (first-quarter 2026) will further enhance capacity.
Targa’s exposure to high-quality producers with multi-year drilling programs provides resilience against short-term market fluctuations. Peer operators such as Sunoco and Western Midstream Partners are also investing in the Permian, but Targa’s diversified project pipeline distinguishes its long-term growth strategy.
Growing LPG Export Business: Targa’s LPG export volumes averaged 13.4 million barrels per month in first-quarter 2025, with strong global demand for U.S. propane and butane. The company is expanding its Galena Park terminal, increasing capacity to 19 million barrels per month by third-quarter 2027. Long-term contracts and cost-advantaged U.S. supply position Targa to benefit from rising international demand, particularly in Asia. Despite trade tensions, management remains confident in the growth trajectory of the business.
Sunoco, which is more retail and downstream-focused, does not directly compete in this segment, offering investors a unique exposure through Targa. In contrast, NGL Energy Partners maintains a smaller export footprint.
Shareholder-Friendly Capital Allocation: Targa repurchased $214 million in shares through April 2025 and increased its quarterly dividend by 33% to $1 per share ($4 annualized). The company’s disciplined capital return strategy, combined with a strong balance sheet (3.6x leverage ratio), highlights its commitment to rewarding shareholders. Opportunistic buybacks during market dislocations (e.g., April 2025 purchases at $167.28 per share) demonstrate prudent capital deployment.
Hedging Program Mitigates Commodity Risk: Targa has hedged more than 90% of its exposed volumes through 2026, reducing earnings volatility from fluctuating natural gas and NGL prices. This strategy protects cash flows, ensuring stable dividends and growth investments even in low-price environments. The company’s fee-based contracts and floor protections further insulate it from commodity downturns, providing predictable revenue streams. This approach compares favorably with Sunoco, which remains more exposed to fuel price cycles.
Expansion Projects Driving Growth: Targa is executing $2.6-$2.8 billion in growth capex for 2025, focusing on high-return projects like fractionation trains (Trains 11 & 12) and the Delaware Express pipeline. These expansions will support volume growth and enhance system integration. Management’s ability to accelerate project timelines (e.g., Pembrook II moving to third-quarter 2025) reflects operational efficiency and strong execution. While NGL Energy Partners has smaller-scale investments in logistics and storage, Targa’s growth outlook remains more aggressive and diversified.
Risks and Headwinds Facing Targa
Macroeconomic and Trade Risks: Global trade tensions, particularly U.S.-China tariffs on LPG, pose risks to Targa’s export business. While ethane was exempted, LPG remains subject to tariffs, potentially redirecting cargoes and squeezing margins. Management acknowledged "low-single-digit" cost impacts from tariffs, but prolonged disputes could dampen growth.
High Capital Expenditures and Debt Levels: Targa’s aggressive growth strategy requires significant capex ($2.6-$2.8 billion in 2025), funded partly by debt. Total consolidated debt was $16.2 billion as of first-quarter 2025, with interest expense of $197 million. While leverage (3.6x) is within target, rising rates or project delays could strain cash flows and limit financial flexibility.
Permian Volume Growth Uncertainty: Targa’s outlook assumes robust Permian production growth, but prolonged sub-$50 WTI oil prices could lead producers to curtail drilling. While major customers have multi-year programs, smaller operators may cut activity, slowing volume growth. The company noted a 1% sequential decline in first-quarter 2025 Permian volumes due to weather, highlighting operational vulnerabilities.Western Midstream Partners, which also operates in the Permian, faces similar uncertainties, though it benefits from a higher percentage of fixed-fee revenues.
Competition in Midstream Sector: Targa faces intense competition from peers like Enterprise Products and Energy Transfer in fractionation, pipelines and exports. New LPG export projects (e.g., Enterprise’s expansions) could pressure terminal fees. The company’s reliance on organic growth (vs. M&A) may limit market share gains in a crowded sector. NGL Energy Partners is actively pursuing consolidation opportunities, which could increase pressure on Targa’s organic strategy.
Regulatory and Environmental Risks: Midstream operators face increasing scrutiny over emissions and pipeline permits. Targa’s growth projects (e.g., Traverse Pipeline) could encounter delays from regulatory hurdles. Stricter environmental policies or carbon taxes may raise compliance costs, impacting profitability. Unlike Sunoco, which operates under different regulatory frameworks due to its retail operations, Targa’s infrastructure-intensive model may face more environmental opposition.
Final Thoughts for TRGP Stock
Targa’s strong financial performance, strategic footprint in the Permian Basin and growing LPG export business position it well for continued growth, supported by solid hedging and shareholder-friendly capital returns. The company’s significant investment in expansion projects further drives future capacity and integration benefits. However, high capital expenditures and debt, trade tensions impacting export margins and potential slowdowns in Permian production create risks. Additionally, regulatory hurdles and fierce competition in the midstream sector may challenge profitability and growth timelines.
Given this mix of strengths and potential challenges, investors should wait for a more opportune entry point instead of adding this Zacks Rank #3 (Hold) stock to their portfolios. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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