A Business at a Glance
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Targa Resources Corp.
TRGP
$61.4B
Mkt Cap
$281.33
-1.49%
Targa Resources Corp. (TRGP) has a current P/E ratio of 33.1, compared to its historical median P/E of 21.9. The stock is currently considered Expensive based on its historical valuation range.
Targa Resources Corp. (TRGP) has a 5-year average return on invested capital (ROIC) of 4.7%. This is below average and may indicate limited pricing power.
Targa Resources Corp. (TRGP) has a market capitalization of $60.4B. It is classified as a large-cap stock.
Yes, Targa Resources Corp. (TRGP) pays a dividend with a trailing twelve-month yield of 1.33%. The company also returns capital through share buybacks, with a buyback yield of 0.95%.
Based on historical P/E analysis, Targa Resources Corp. (TRGP) appears expensive. The current P/E of 33.1 is 51% above its historical median of 21.9. The estimated fair value CAGR (P/E method) is 48.3%.
Targa Resources Corp. (TRGP) operates in the Natural Gas Transmission industry, within the Utilities sector.
Targa Resources Corp. (TRGP) reported annual revenue of $17.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
Targa Resources Corp. is a leading independent midstream infrastructure company operating two primary segments: Gathering and Processing, and Logistics and Transportation. The Gathering and Processing segment gathers, compresses, treats, and processes natural gas from oil and gas wells across major U.S. basins including the Permian Basin, Eagle Ford Shale, Barnett Shale, and Williston Basin, while also gathering and terminaling crude oil; it generates revenue through fee-based contracts and commodity-linked arrangements. The Logistics and Transportation segment converts mixed NGLs into finished products and operates an integrated NGL pipeline system connecting Permian production to fractionation and export facilities in Mont Belvieu, Texas and Lake Charles, Louisiana, with services including fractionation, storage, terminaling, marketing, and LPG export capabilities. Targa's business model is predominantly fee-based with long-term acreage dedications from major and independent producers, providing stable cash flows with limited commodity price exposure; the company earns margins through processing spreads, fractionation fees, transportation tariffs, and marketing optimization. The company's competitive moat derives from its integrated wellhead-to-water infrastructure footprint, long-term producer relationships, operational scale, and strategic positioning in high-growth basins, particularly the Permian where it serves as a critical midstream provider for major producers. Targa's geographic footprint spans onshore North America with significant concentrations in the Permian Basin, South Texas, North Texas, Oklahoma, North Dakota, and the Louisiana Gulf Coast, serving a customer base of major integrated oil and gas companies, large independents, and smaller producers.
【Permian-driven growth acceleration】 Management expects continued strong low double-digit Permian volume growth in 2026 and beyond, supported by robust producer activity, rising gas-to-oil ratios, and multiple long-term acreage dedications announced in 2024 and 2025. The company is executing a multi-year capital program to expand processing, fractionation, and transportation capacity across the Permian, with nine new processing plants, three new fractionation trains, and major NGL and natural gas pipeline projects expected to come online through 2028, positioning Targa to reach run-rate adjusted EBITDA exceeding $6 billion following Speedway completion. Marketing opportunities from natural gas and LPG export optimization are expected to persist through 2026 as Permian egress constraints remain tight, with incremental pipeline capacity coming online in late 2026 and 2027 providing tailwinds for sustained higher Waha prices and improved market connectivity. Following the completion of major downstream projects in late 2027, the company expects significantly lower downstream capital spending while adjusted EBITDA grows meaningfully, driving a strong and durable free cash flow profile that will support continued dividend growth, opportunistic share repurchases, and balance sheet strength.
| Metric | Target | Period |
|---|---|---|
| Adjusted EBITDA | $5.7 billion–$5.9 billion | FY2026 |
| Net growth capital spending | approximately $4.5 billion | FY2026 |
Adjusted EBITDA (FY2026): “We are increasing our estimate for full year 2026 adjusted EBITDA to be in a range of $5.7 billion-$5.9 billion.”
Net growth capital spending (FY2026): “We continue to estimate net growth capital for 2026 of approximately $4.5 billion, with no change despite announcing two new Permian gas plants today.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 16.6B | 17.0B | 16.4B | 16.1B | 20.9B | 16.9B |
| Net Income | 2.1B | 1.9B | 1.3B | 836M | 897M | 71M |
| EPS | $9.92 | $8.49 | $5.74 | $3.66 | $3.88 | $0.31 |
| Free Cash Flow | 262M | 584M | 684M | 826M | 1.0B | 1.8B |
| ROIC | 5.4% | 2.3% | 2.5% | 3.6% | 6.2% | 9.1% |
| Gross Margin | - | 38.3% | 34.7% | 33.5% | 19.3% | 19.0% |
| Debt/Equity | 15.96 | 41.52 | 37.97 | 26.39 | 15.11 | 3.30 |
| Dividends/Share | $0.00 | $3.75 | $2.75 | $1.85 | $1.40 | $0.40 |
| Operating Income | 3.6B | 3.3B | 2.7B | 2.6B | 1.7B | 865M |
| Operating Margin | 21.9% | 19.6% | 16.5% | 16.4% | 8.3% | 5.1% |
| ROE | 68.0% | 65.5% | 48.0% | 30.9% | 38.3% | 3.1% |
| Shares Outstanding | 215M | 218M | 223M | 228M | 231M | 228M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | -147M | -232M | 5.6B | 8.8B | 10.5B | 8.7B | 8.3B | 16.9B | 20.9B | 16.1B | 16.4B | 17.0B | 16.6B |
| Gross Margin | -1067.0% | -785.3% | 31.6% | 21.7% | 21.4% | 29.4% | 37.2% | 19.0% | 19.3% | 33.5% | 34.7% | 38.3% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 148M | 162M | 187M | 203M | 257M | 281M | 255M | 273M | 310M | 349M | 385M | 406M | 419M |
| EBIT | 491M | -112M | 56M | -122M | 238M | 193M | -1.3B | 865M | 1.7B | 2.6B | 2.7B | 3.3B | 3.6B |
| Op. Margin | -333.8% | 48.2% | 1.0% | -1.4% | 2.3% | 2.2% | -15.8% | 5.1% | 8.3% | 16.4% | 16.5% | 19.6% | 21.9% |
| Net Income | 102M | 58M | -278M | -63M | -119M | -334M | -1.7B | 71M | 897M | 836M | 1.3B | 1.9B | 2.1B |
| Net Margin | -69.5% | -25.1% | -5.0% | -0.7% | -1.1% | -3.9% | -20.4% | 0.4% | 4.3% | 5.2% | 7.8% | 10.9% | 12.9% |
| Non-Recurring | 0 | 290M | 201M | -16M | 210M | -71M | 2.4B | 450M | 9.6M | 5.3M | 3.1M | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 14.0% | 1.1% | 0.7% | -0.6% | 1.8% | 1.6% | -15.0% | 9.1% | 6.2% | 3.6% | 2.5% | 2.3% | 5.4% |
| ROE | 64.2% | 7.1% | -8.3% | -1.1% | -1.9% | -6.1% | -44.5% | 3.1% | 38.3% | 30.9% | 48.0% | 65.5% | 68.0% |
| ROA | 1.6% | 0.6% | -2.1% | -0.5% | -0.8% | -1.9% | -9.7% | 0.5% | 5.2% | 4.2% | 5.9% | 7.7% | 7.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 762M | 1.0B | 837M | 940M | 1.1B | 1.4B | 1.7B | 2.3B | 2.4B | 3.2B | 3.6B | 3.9B | 3.7B |
| Free Cash Flow | -400K | 218M | 275M | -358M | -2.0B | -1.5B | 793M | 1.8B | 1.0B | 826M | 684M | 584M | 262M |
| Owner Earnings | 397M | 365M | 50M | 88M | 272M | 358M | 813M | 1.4B | 1.2B | 1.8B | 2.2B | 2.3B | 2.1B |
| CapEx | 762M | 817M | 562M | 1.3B | 3.1B | 2.9B | 952M | 505M | 1.3B | 2.4B | 3.0B | 3.3B | 3.4B |
| Maint. CapEx | 351M | 645M | 758M | 810M | 816M | 972M | 865M | 871M | 1.1B | 1.3B | 1.4B | 1.5B | 1.6B |
| Growth CapEx | 411M | 173M | 0 | 488M | 2.3B | 1.9B | 87M | 0 | 238M | 1.1B | 1.5B | 1.8B | 1.9B |
| D&A | 351M | 645M | 758M | 810M | 816M | 972M | 865M | 871M | 1.1B | 1.3B | 1.4B | 1.5B | 1.6B |
| CapEx/OCF | 100.1% | 79.0% | 67.1% | 138.1% | 272.3% | 207.1% | 54.5% | 21.9% | 56.0% | 74.3% | 81.3% | 85.1% | 92.9% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 113M | 179M | 566M | 843M | 908M | 11M | 15M | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | 1.3% | 2.4% | 14.3% | 11.8% | 10.7% | 0.1% | 0.4% | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 2.6M | 3.3M | 0 | 0 | 4.0M | 14M | 97M | 53M | 225M | 374M | 755M | 642M | 572M |
| Buyback Yield | 0.1% | 0.1% | N/A | N/A | 0.1% | 0.2% | 1.8% | 0.5% | 1.7% | 2.0% | 2.0% | 1.6% | 0.9% |
| Stock-Based Comp | 14M | 25M | 30M | 42M | 56M | 60M | 66M | 59M | 58M | 62M | 63M | 70M | 75M |
| Debt Repayment | 14M | 54M | 71M | 0 | 0 | 0 | 0 | 0 | 46M | 36M | 9.9M | 57M | 57M |
| Balance Sheet | |||||||||||||
| Net Debt | 2.8B | 5.6B | 4.5B | 4.9B | 6.4B | 7.5B | 7.6B | 6.5B | 40.1B | 72.2B | 98.3B | 127.2B | 50.0B |
| Cash & Equiv. | 81M | 140M | 74M | 137M | 232M | 331M | 243M | 159M | 219M | 142M | 157M | 166M | 100M |
| Long-Term Debt | 2.9B | 5.7B | 4.6B | 4.7B | 5.6B | 7.4B | 7.4B | 6.4B | 10.7B | 12.3B | 13.8B | 16.7B | 18.4B |
| Debt/Equity | 16.99 | 3.91 | 0.88 | 0.82 | 1.10 | 1.60 | 2.94 | 3.30 | 15.11 | 26.39 | 37.97 | 41.52 | 15.96 |
| Interest Coverage | 39.6 | -11.1 | 0.2 | -0.5 | 158.3 | 120.6 | -931.2 | 786.2 | 494.0 | 187.6 | 185.9 | 206.9 | 206.9 |
| Equity | 170M | 1.5B | 5.2B | 6.2B | 6.1B | 4.9B | 2.7B | 2.0B | 2.7B | 2.7B | 2.6B | 3.1B | 3.1B |
| Total Assets | 6.4B | 13.2B | 12.9B | 14.4B | 16.9B | 18.8B | 15.9B | 15.2B | 19.6B | 20.7B | 22.7B | 25.2B | 27.1B |
| Total Liabilities | 3.9B | 7.0B | 7.1B | 7.6B | 9.5B | 10.4B | 10.0B | 10.0B | 14.6B | 16.1B | 18.3B | 22.0B | 243M |
| Intangibles | 592M | 1.8B | 1.7B | 2.2B | 2.0B | 1.7B | 1.4B | 1.1B | 2.7B | 2.4B | 2.0B | 1.7B | 2.2B |
| Retained Earnings | 26M | 27M | -187M | -77M | -130M | -340M | -1.9B | -1.8B | -627M | 492M | 1.2B | 2.3B | 2.6B |
| Working Capital | 56M | 45M | -161M | -347M | -1.4B | -214M | -319M | -529M | -710M | -566M | -876M | -1.2B | -958M |
| Current Assets | 883M | 920M | 1.0B | 1.3B | 1.4B | 1.7B | 1.5B | 1.8B | 2.4B | 2.2B | 2.3B | 2.4B | 2.4B |
| Current Liabilities | 827M | 875M | 1.2B | 1.6B | 2.8B | 1.9B | 1.8B | 2.3B | 3.1B | 2.8B | 3.2B | 3.5B | 3.4B |
| Per Share Data | |||||||||||||
| EPS | 0.81 | 0.36 | -1.80 | -0.31 | -0.53 | -1.44 | -7.26 | 0.31 | 3.88 | 3.66 | 5.74 | 8.49 | 9.92 |
| Owner EPS | 3.14 | 2.28 | 0.32 | 0.43 | 1.21 | 1.54 | 3.50 | 6.02 | 5.31 | 7.97 | 9.71 | 10.69 | 9.56 |
| Book Value | 1.34 | 9.11 | 33.97 | 30.12 | 27.01 | 21.22 | 11.44 | 8.82 | 11.53 | 12.00 | 11.63 | 14.06 | 14.61 |
| Cash Flow/Share | 6.03 | 6.45 | 5.42 | 4.59 | 5.08 | 5.99 | 7.52 | 10.09 | 10.30 | 14.06 | 16.38 | 17.95 | 17.26 |
| Dividends/Share | 0.89 | 1.13 | 3.64 | 3.64 | 3.64 | 0.05 | 0.07 | 0.40 | 1.40 | 1.85 | 2.75 | 3.75 | 0.00 |
| Shares Out. | 126.3M | 160.5M | 154.5M | 204.5M | 225.1M | 231.9M | 232.1M | 228.2M | 231.1M | 228.4M | 222.8M | 218.2M | 214.7M |
| Valuation | |||||||||||||
| P/E Ratio | 25.1 | 42.1 | N/A | N/A | N/A | N/A | N/A | 151.7 | 17.2 | 22.5 | 30.1 | 21.4 | 28.4 |
| P/FCF | N/A | 11.7 | 21.8 | N/A | N/A | N/A | 6.8 | 6.0 | 14.8 | 22.7 | 56.3 | 68.0 | 230.7 |
| EV/EBIT | 8.3 | 53.5 | 192.3 | N/A | 52.2 | 79.2 | N/A | 19.7 | 15.4 | 12.0 | 19.4 | 17.1 | 30.4 |
| Price/Book | 15.1 | 2.1 | 1.1 | 1.2 | 1.0 | 1.6 | 2.0 | 5.4 | 5.8 | 6.9 | 14.8 | 12.9 | 19.3 |
| Price/Sales | 2.8 | 7.5 | 0.7 | 0.8 | 0.8 | 0.9 | 0.5 | 0.5 | 0.7 | 1.1 | 1.7 | 2.2 | 3.6 |
| FCF Yield | -0.0% | 7.0% | 4.6% | -5.0% | -31.7% | -18.3% | 14.7% | 16.6% | 6.8% | 4.4% | 1.8% | 1.5% | 0.4% |
| Market Cap | 2.6B | 3.1B | 6.0B | 7.2B | 6.2B | 8.1B | 5.4B | 10.8B | 15.5B | 18.8B | 38.5B | 39.7B | 60.4B |
| Avg. Price | 66.93 | 46.33 | 25.68 | 35.00 | 37.57 | 32.70 | 18.58 | 37.72 | 62.01 | 74.13 | 128.28 | 172.10 | 281.33 |
| Year-End Price | 60.94 | 15.91 | 38.82 | 35.26 | 27.59 | 35.00 | 23.17 | 47.64 | 66.90 | 82.20 | 172.66 | 181.99 | 281.33 |
Targa Resources Corp. passes 5 of 9 quality checks, suggesting mixed fundamentals.
Targa Resources Corp. trades at 33.1x trailing earnings, compared to its 15-year median P/E of 21.9x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 105.1x vs a median of 21.8x. The company's 5-year average ROIC is 4.7% with a gross margin of 29.0%. Total shareholder yield (dividends + buybacks) is 2.3%. At current prices, the estimated annualized return to fair value is +5.8%.
Targa Resources Corp. (TRGP) has a net profit margin of 10.9%. This is a healthy margin.
Targa Resources Corp. (TRGP) generated $584 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Targa Resources Corp. (TRGP) has a debt-to-equity ratio of 41.52. This indicates higher leverage, which may increase financial risk.
Targa Resources Corp. (TRGP) reported earnings per share (EPS) of $8.49 in its most recent fiscal year.
Targa Resources Corp. (TRGP) has a return on equity (ROE) of 65.5%. This indicates the company generates strong returns for shareholders.
Targa Resources Corp. (TRGP) has a 5-year average gross margin of 29.0%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 17 years of financial data for Targa Resources Corp. (TRGP), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Targa Resources Corp. (TRGP) has a book value per share of $14.06, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong low double-digit Permian volume growth in 2026 and beyond, supported by robust producer activity, rising gas-to-oil ratios, and multiple long-term acreage dedications announced in 2024 and 2025. The company is executing a multi-year capital program to expand processing, fractionation, and transportation capacity across the Permian, with nine new processing plants, three new fractionation trains, and major NGL and natural gas pipeline projects expected to come online through 2028, positioning Targa to reach run-rate adjusted EBITDA exceeding $6 billion following Speedway completion. Marketing opportunities from natural gas and LPG export optimization are expected to persist through 2026 as Permian egress constraints remain tight, with incremental pipeline capacity coming online in late 2026 and 2027 providing tailwinds for sustained higher Waha prices and improved market connectivity. Following the completion of major downstream projects in late 2027, the company expects significantly lower downstream capital spending while adjusted EBITDA grows meaningfully, driving a strong and durable free cash flow profile that will support continued dividend growth, opportunistic share repurchases, and balance sheet strength.
Based on recent SEC filings and earnings calls, Targa Resources Corp. (TRGP) has provided the following forward guidance: Adjusted EBITDA: $5.7 billion–$5.9 billion (FY2026); Net growth capital spending: approximately $4.5 billion (FY2026).