Targa Resources (NYSE:TRGP) Issues Earnings Results, Misses Expectations By $0.27 EPS

Targa Resources (NYSE:TRGP) released its quarterly earnings results on Thursday. The pipeline company reported $2.21 earnings per share for the quarter, missing analysts’ consensus estimates of $2.48 by ($0.27), FiscalAI reports. The business had revenue of $4.09 billion during the quarter, compared to analyst estimates of $4.68 billion. Targa Resources had a return on equity of 73.16% and a net margin of 12.87%.

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

• Record Q1 adjusted EBITDA of $1.4 billion and management raised 2026 adjusted EBITDA guidance to $5.7–$5.9 billion (midpoint +$300M), citing acquisition contributions and marketing/optimization gains.
• Operational momentum in the Permian with record inlet volumes, ongoing strong producer activity, multiple plants recently brought online or under construction, and two new Delaware plants announced for early‑2028 service.
• Downstream tailwinds: Train 11 is online, Trains 12/13 under construction, and LPG export capacity is being expanded (target >19 million barrels/month with incremental capacity expected Q3‑2027), with elevated global butane demand providing commercialization upside.
• Near‑term headwinds from weak Waha basis and Permian takeaway constraints have led to intermittent producer shut‑ins of roughly 200–400 MMcf/d, leaving volumes and pricing volatile until new egress (GCX expansion, WACOM, Traverse, etc.) comes online late‑2026 into 2027.
• Balance sheet and capital allocation look healthy: ~$3.1 billion liquidity, pro forma leverage ~3.6x (inside 3–4x target), ~ $4.5 billion growth capex planned for 2026, a 25% dividend increase to $1.25/share, and opportunistic buybacks ($55M in Q1).

Targa Resources Trading Down 1.7%

Shares of NYSE TRGP traded down $4.34 during mid-day trading on Friday, reaching $248.10. 1,411,156 shares of the company’s stock were exchanged, compared to its average volume of 1,197,568. The company’s 50-day moving average is $242.08 and its 200-day moving average is $204.25. The company has a debt-to-equity ratio of 5.21, a quick ratio of 0.55 and a current ratio of 0.67. The firm has a market capitalization of $53.29 billion, a price-to-earnings ratio of 25.09, a PEG ratio of 1.60 and a beta of 0.75. Targa Resources has a 52-week low of $144.14 and a 52-week high of $261.95.

Targa Resources Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Thursday, April 30th will be paid a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a yield of 2.0%. This is a positive change from Targa Resources’s previous quarterly dividend of $1.00. The ex-dividend date of this dividend is Thursday, April 30th. Targa Resources’s payout ratio is 58.21%.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Citigroup lifted their target price on shares of Targa Resources from $200.00 to $262.00 and gave the company a “buy” rating in a research report on Tuesday, February 24th. Wells Fargo & Company upped their price target on shares of Targa Resources from $264.00 to $270.00 and gave the stock an “overweight” rating in a research report on Friday. BMO Capital Markets reiterated an “outperform” rating and issued a $241.00 price objective on shares of Targa Resources in a report on Friday, February 20th. Stifel Nicolaus set a $268.00 price objective on Targa Resources in a research note on Friday. Finally, Seaport Research Partners reissued a “neutral” rating on shares of Targa Resources in a report on Monday, May 4th. Fourteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $262.14.

Insider Buying and Selling at Targa Resources

In related news, insider Robert Muraro sold 24,589 shares of Targa Resources stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $241.34, for a total value of $5,934,309.26. Following the completion of the sale, the insider owned 197,401 shares in the company, valued at approximately $47,640,757.34. This trade represents a 11.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Charles R. Crisp sold 1,359 shares of the firm’s stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $229.30, for a total value of $311,618.70. Following the transaction, the director owned 77,094 shares of the company’s stock, valued at approximately $17,677,654.20. This represents a 1.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 104,929 shares of company stock valued at $24,692,134. 1.37% of the stock is currently owned by company insiders.

Institutional Trading of Targa Resources

Several hedge funds have recently made changes to their positions in TRGP. Steward Partners Investment Advisory LLC grew its holdings in shares of Targa Resources by 0.7% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 7,455 shares of the pipeline company’s stock valued at $1,376,000 after purchasing an additional 51 shares in the last quarter. Larson Financial Group LLC lifted its holdings in Targa Resources by 4.1% during the 3rd 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 in the last quarter. Equitable Holdings Inc. boosted its position in Targa Resources by 3.6% in the 3rd quarter. Equitable Holdings Inc. now owns 1,714 shares of the pipeline company’s stock valued at $287,000 after buying an additional 60 shares during the period. State of Wyoming boosted its position in Targa Resources by 3.2% in the 2nd 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 during the period. Finally, Lyell Wealth Management LP grew its stake in shares of Targa Resources by 1.8% in the fourth quarter. Lyell Wealth Management LP now owns 3,803 shares of the pipeline company’s stock worth $702,000 after acquiring an additional 67 shares in the last quarter. Institutional investors and hedge funds own 92.13% of the company’s stock.

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.