Targa Resources (NYSE:TRGP) Issues Quarterly Earnings Results, Beats Estimates By $0.16 EPS

Targa Resources (NYSE:TRGP) issued its quarterly earnings results on Thursday. The pipeline company reported $2.51 EPS for the quarter, beating analysts’ consensus estimates of $2.35 by $0.16, FiscalAI reports. The company had revenue of $4.06 billion during the quarter, compared to the consensus estimate of $4.12 billion. Targa Resources had a return on equity of 68.46% and a net margin of 10.88%.

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 Stock Performance

NYSE:TRGP opened at $230.96 on Friday. The company has a debt-to-equity ratio of 5.91, a quick ratio of 0.61 and a current ratio of 0.77. Targa Resources has a fifty-two week low of $144.14 and a fifty-two week high of $232.86. The firm has a market cap of $49.58 billion, a PE ratio of 26.89, a price-to-earnings-growth ratio of 0.95 and a beta of 0.88. The business has a 50 day moving average price of $194.48 and a 200-day moving average price of $175.50.

Targa Resources Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were given a $1.00 dividend. The ex-dividend date was Friday, January 30th. This represents a $4.00 annualized dividend and a yield of 1.7%. Targa Resources’s payout ratio is presently 46.57%.

Insider Buying and Selling

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

Hedge Funds Weigh In On Targa Resources

Hedge funds have recently modified their holdings of the company. Woodline Partners LP increased its holdings in Targa Resources by 40.7% during the 1st quarter. Woodline Partners LP now owns 18,423 shares of the pipeline company’s stock valued at $3,693,000 after purchasing an additional 5,327 shares during the period. Focus Partners Wealth grew its position in shares of Targa Resources by 157.4% in the 1st quarter. Focus Partners Wealth now owns 3,931 shares of the pipeline company’s stock worth $788,000 after buying an additional 2,404 shares during the last quarter. Baird Financial Group Inc. grew its position in shares of Targa Resources by 6.3% in the 2nd quarter. Baird Financial Group Inc. now owns 3,697 shares of the pipeline company’s stock worth $644,000 after buying an additional 219 shares during the last quarter. Brown Advisory Inc. increased its stake in shares of Targa Resources by 13.1% during the second quarter. Brown Advisory Inc. now owns 4,521 shares of the pipeline company’s stock valued at $787,000 after buying an additional 524 shares during the period. Finally, Cerity Partners LLC raised its holdings in shares of Targa Resources by 11.0% during the second quarter. Cerity Partners LLC now owns 31,881 shares of the pipeline company’s stock valued at $5,550,000 after acquiring an additional 3,163 shares in the last quarter. Hedge funds and other institutional investors own 92.13% of the company’s stock.

Key Headlines Impacting Targa Resources

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

• Positive Sentiment: Q4 EPS beat expectations — TRGP reported $2.51 EPS vs. consensus $2.35, and management highlighted record fourth-quarter and full‑year 2025 results; positive earnings surprise and record results support the rally. MarketBeat Earnings
• Positive Sentiment: Broker upgrade and big price-target lift — Wells Fargo moved TRGP to “Overweight” and raised its target from $207 to $248 (now implying additional upside), which likely boosted buying interest. Benzinga
• Positive Sentiment: Operational strength — Reuters and company releases cited higher gas and NGL transport volumes and beat on adjusted core profit, supporting forward growth expectations. Reuters
• Positive Sentiment: Record results and dividend increase — Company press release and coverage note record 2025 results and a dividend hike, which can attract income and quality-oriented investors. GlobeNewswire Results
• Neutral Sentiment: SEC filing available — TRGP filed its Form 10‑K for 2025; important for due diligence but not a near‑term catalyst by itself. Form 10-K
• Neutral Sentiment: Earnings materials and call transcripts published — Slide deck, press release and call transcript are available for investors to review guidance and management commentary (useful for due diligence). Press Release / Slides Earnings Transcript
• Neutral Sentiment: Analyst writeups and metrics reviews — Coverage from Zacks and others digs into key metrics versus estimates; useful context but typically less immediate market-moving power than the above items. Zacks Analysis
• Negative Sentiment: Revenue slightly missed estimates — Q4 revenue came in a bit below consensus ($4.06B vs. ~$4.12B), which tempers the beat and is the main negative data point investors should monitor. Investing.com

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on TRGP shares. Wall Street Zen downgraded Targa Resources from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. BMO Capital Markets reaffirmed an “outperform” rating and set a $241.00 price objective on shares of Targa Resources in a report on Friday. The Goldman Sachs Group reiterated a “buy” rating and set a $242.00 target price on shares of Targa Resources in a research report on Friday. Morgan Stanley reiterated an “overweight” rating and issued a $266.00 target price on shares of Targa Resources in a research note on Wednesday, January 28th. Finally, Stifel Nicolaus raised their target price on Targa Resources from $213.00 to $243.00 and gave the stock a “buy” rating in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $227.29.

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.