Targa Resources (NYSE:TRGP) Issues Quarterly Earnings Results

Targa Resources (NYSE:TRGP) announced its quarterly earnings results on Thursday. The pipeline company reported $3.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.74 by $0.30, FiscalAI reports. The firm had revenue of $5.60 billion during the quarter, compared to analysts’ expectations of $4.77 billion. Targa Resources had a net margin of 13.55% and a return on equity of 69.26%.

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

• Targa raised its 2026 adjusted EBITDA outlook to at least $6 billion, up more than 21% from 2025, citing strong operating performance. Permian volumes reached a record 7.5 Bcf/d, and management expects similar growth in 2027 with multiple years of double-digit Permian growth visible.
• New 20-year, fee-based agreements with ExxonMobil, supported by significant acreage dedications, add to Targa’s growth visibility. Management said the competitive deal is expected to generate attractive returns, though it acknowledged Exxon negotiated firmly on pricing and terms.
• Third-quarter adjusted EBITDA was $1.5 billion, down 6% sequentially as lower marketing and optimization opportunities and LPG exports offset record volumes. Targa raised 2026 growth capital expectations to about $5 billion and said 2027 capital spending is likely to remain elevated, with a meaningful free-cash-flow profile expected in 2028.
• Several major projects are on schedule or ahead of schedule, including the Copperhead processing plant and Train 12 fractionator, while new plants, the Speedway NGL pipeline, and an LPG export expansion are intended to support future growth. Targa also announced Train 14, expected to begin operations in 2029.
• Targa declared a quarterly dividend of $1.25 per share, up 25% year over year, and plans to recommend a 20% increase in the 2027 annual dividend to $6 per share. The company also repurchased about $187 million of stock during the first nine months of 2026.

Targa Resources Trading Down 2.6%

Shares of TRGP traded down $7.17 during trading hours on Friday, hitting $264.65. 2,608,434 shares of the stock were exchanged, compared to its average volume of 1,125,636. Targa Resources has a fifty-two week low of $166.18 and a fifty-two week high of $316.60. The company has a debt-to-equity ratio of 5.01, a current ratio of 0.77 and a quick ratio of 0.68. The business has a 50-day moving average of $289.31 and a 200-day moving average of $261.35. The firm has a market capitalization of $56.75 billion, a P/E ratio of 23.42, a price-to-earnings-growth ratio of 1.22 and a beta of 0.76.

Targa Resources Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 17th. Stockholders of record on Friday, October 30th will be given a dividend of $1.25 per share. The ex-dividend date is Friday, October 30th. This represents a $5.00 annualized dividend and a dividend yield of 1.9%. Targa Resources’s dividend payout ratio is 47.80%.

Key Headlines Impacting Targa Resources

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

• Positive Sentiment: Third-quarter adjusted earnings were $3.04 per share, above analyst estimates of roughly $2.74–$2.81 and up from $2.20 a year earlier. Revenue reached $5.60 billion, also topping estimates. Q3 earnings and revenue beat estimates
• Positive Sentiment: Targa expects its 2027 common dividend to increase 20%, and declared a $1.25 dividend, reinforcing the company’s cash-return outlook. Quarterly results and dividend outlook
• Positive Sentiment: The company ordered equipment for a plant expansion and announced Train 14, a new natural gas liquids fractionator. The projects could add capacity and support future growth. Plant expansion and Train 14 announcement
• Negative Sentiment: Despite the earnings beat and dividend news, TRGP shares declined around the results. One report noted a sharp drop on the SEC filing day, but the coverage provided no clear explanation for the selling. Stock movement around filing day

Insider Activity at Targa Resources

In other Targa Resources news, Director Charles R. Crisp sold 3,000 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $290.23, for a total transaction of $870,690.00. Following the completion of the sale, the director directly owned 62,292 shares in the company, valued at approximately $18,079,007.16. This trade represents a 4.59% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Waters S. Iv Davis sold 2,400 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $299.67, for a total value of $719,208.00. Following the sale, the director owned 1,529 shares of the company’s stock, valued at approximately $458,195.43. The trade was a 61.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 7,216 shares of company stock worth $2,127,634 over the last quarter. Company insiders own 1.37% of the company’s stock.

Wall Street Analysts Forecast Growth

TRGP has been the topic of several analyst reports. Wells Fargo & Company boosted their price objective on shares of Targa Resources from $282.00 to $324.00 and gave the stock an “overweight” rating in a research note on Wednesday, September 2nd. Stifel Nicolaus set a $335.00 target price on Targa Resources in a research report on Friday, October 9th. JPMorgan Chase & Co. lifted their target price on Targa Resources from $315.00 to $351.00 and gave the stock an “overweight” rating in a report on Wednesday, August 19th. Capital One Financial upped their price target on Targa Resources from $310.00 to $335.00 and gave the company an “overweight” rating in a research report on Tuesday, September 22nd. Finally, BMO Capital Markets increased their price target on Targa Resources from $303.00 to $328.00 and gave the company an “outperform” rating in a research note on Wednesday, October 21st. Two research analysts have rated the stock with a Strong Buy rating and twenty have assigned a Buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of $325.58.

About Targa Resources

Targa Resources Corp. is a midstream energy company that gathers, processes, transports and stores natural gas and natural gas liquids (NGLs), and provides services for crude oil. Its infrastructure connects oil and gas producers with pipelines, processing facilities, fractionators, storage sites and domestic and international markets.

The company’s services include natural gas gathering, compression and processing; NGL transportation and fractionation; and crude oil gathering and terminaling.