Latest news with #TRGP
Reuters
07-08-2025
- Business
- Reuters
Targa Resources beats profit estimates on record gas volumes, boosts share buyback program
Aug 7(Reuters) - Pipeline operator Targa Resources (TRGP.N), opens new tab beat second-quarter adjusted core profit estimates, driven by record-high volumes of natural gas and natural gas liquids transported through its system. The company also announced a new $1.0 billion share repurchase program in addition to its previous $1 billion plan. Shares were up 2.6% at $167.32 in premarket trading. Demand for natural gas has risen in recent quarters, driven by surging power demand from energy-hungry data centers and growing domestic consumption, helping firms like Targa, which transport natural gas. In April, the U.S. Energy Information Administration said U.S. power consumption will hit new record highs in 2025 and 2026, on the back of data centers dedicated to AI and cryptocurrency. The company's quarterly Permian natural gas inlet volumes rose about 11% to a record 6.28 billion cubic feet per day from a year earlier, while NGL pipeline transportation volumes surged about 23% also to a record 961,200 barrels per day. The Houston, Texas-based company's adjusted core profit rose 18% to $1.16 billion for the quarter ended June 30, from a year earlier, beating analysts' average estimate of $1.14 billion, according to LSEG data. Total revenue rose 20% to $4.26 billion, helped by higher NGL volumes and natural gas prices, though partially offset by lower NGL prices. Targa supplies natural gas and NGLs to key markets through its network of gathering and processing assets across the Permian Basin, Eagle Ford Shale, Bakken Shale and other major U.S. oil and gas regions. The company transports, processes and fractionates NGLs into component products like ethane, propane and butane.
Yahoo
21-07-2025
- Business
- Yahoo
Targa Resources Earnings Preview: What to Expect
Houston, Texas-based Targa Resources Corp. (TRGP) owns, operates, acquires, and develops a portfolio of complementary domestic infrastructure assets. Valued at a market cap of $37.1 billion, the company primarily generates revenue from gathering, compressing, treating, processing, transporting, and selling natural gas and natural gas liquids (NGLs). It is expected to announce its fiscal Q2 earnings for 2025 before the market opens on Thursday, Aug. 7. Ahead of this event, analysts expect this energy company to report a profit of $1.93 per share, up 45.1% from $1.33 per share in the year-ago quarter. The company has topped Wall Street's earnings estimates in two of the last four quarters, while missing on two other occasions. In Q1, TRGP's EPS of $0.91 fell short of the forecasted figure by 55.4%. More News from Barchart Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. For fiscal 2025, analysts expect TRGP to report a profit of $7.19 per share, representing a 25.3% increase from $5.74 per share in fiscal 2024. Furthermore, its EPS is expected to grow 35.5% year-over-year to $9.74 in fiscal 2026. Shares of TRGP have rallied 25.7% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 13.6% return and the Energy Select Sector SPDR Fund's (XLE) 8% decline over the same time frame. On May 1, TRGP's shares closed down 5% following its Q1 earnings release. The company's revenue declined marginally year-over-year to $4.6 billion, primarily due to lower commodities sales and fell short of the consensus estimates by 13.2%. However, on the brighter side, its adjusted EBITDA advanced 22% year-over-year to a Q1 record of $1.2 billion. Moreover, its adjusted cash flow from operations improved 31.4% from the same period last year, reaching $970 million. Looking ahead, TRGP reaffirmed its fiscal 2025 adjusted EBITDA guidance of $4.7 billion to $4.9 billion. Wall Street analysts are highly optimistic about TRGP's stock, with an overall "Strong Buy" rating. Among 19 analysts covering the stock, 17 recommend "Strong Buy," one indicates a "Moderate Buy,' and one suggests a "Hold' rating. The mean price target for TRGP is $206.95, indicating a 20.9% potential upside from the current levels. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
13-07-2025
- Business
- Business Insider
UBS Sticks to Its Buy Rating for Targa Resources (TRGP)
In a report released on July 10, Manav Gupta from UBS reiterated a Buy rating on Targa Resources, with a price target of $228.00. The company's shares closed last Friday at $171.90. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Gupta covers the Energy sector, focusing on stocks such as DT Midstream, Cheniere Energy, and Imperial Oil. According to TipRanks, Gupta has an average return of 1.4% and a 60.43% success rate on recommended stocks. In addition to UBS, Targa Resources also received a Buy from Barclays's Theresa Chen in a report issued on July 10. However, on July 7, TD Cowen initiated coverage with a Hold rating on Targa Resources (NYSE: TRGP). TRGP market cap is currently $37.29B and has a P/E ratio of 31.59. Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TRGP in relation to earlier this year. Most recently, in May 2025, D. Scott Pryor, the President – Logistics and Transportation of TRGP sold 20,000.00 shares for a total of $3,232,750.00.
Yahoo
24-06-2025
- Business
- Yahoo
Is There An Opportunity With Targa Resources Corp.'s (NYSE:TRGP) 32% Undervaluation?
The projected fair value for Targa Resources is US$244 based on 2 Stage Free Cash Flow to Equity Targa Resources is estimated to be 32% undervalued based on current share price of US$165 Analyst price target for TRGP is US$201 which is 17% below our fair value estimate Today we will run through one way of estimating the intrinsic value of Targa Resources Corp. (NYSE:TRGP) by taking the expected future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$824.9m US$1.44b US$2.13b US$2.59b US$2.58b US$2.59b US$2.62b US$2.67b US$2.73b US$2.79b Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x5 Analyst x2 Analyst x1 Est @ 0.58% Est @ 1.29% Est @ 1.78% Est @ 2.13% Est @ 2.37% Present Value ($, Millions) Discounted @ 6.9% US$772 US$1.3k US$1.7k US$2.0k US$1.8k US$1.7k US$1.6k US$1.6k US$1.5k US$1.4k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$15b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 6.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$2.8b× (1 + 2.9%) ÷ (6.9%– 2.9%) = US$73b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$73b÷ ( 1 + 6.9%)10= US$37b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$53b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of US$165, the company appears quite good value at a 32% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Targa Resources as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.9%, which is based on a levered beta of 0.913. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Targa Resources Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Weakness Earnings growth over the past year is below its 5-year average. Dividend is low compared to the top 25% of dividend payers in the Oil and Gas market. Opportunity Annual earnings are forecast to grow faster than the American market. Trading below our estimate of fair value by more than 20%. Threat Dividends are not covered by cash flow. Revenue is forecast to grow slower than 20% per year. Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. What is the reason for the share price sitting below the intrinsic value? For Targa Resources, we've compiled three further items you should further examine: Risks: For instance, we've identified 3 warning signs for Targa Resources that you should be aware of. Future Earnings: How does TRGP's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
21-05-2025
- Business
- Yahoo
Targa Resources price target lowered to $193 from $199 at Scotiabank
Scotiabank analyst Brandon Bingham lowered the firm's price target on Targa Resources (TRGP) to $193 from $199 and keeps an Outperform rating on the shares. The firm is refreshing its valuation analysis for U.S. Midstream stocks under its coverage to incorporate Q1 results, the analyst tells investors. While not much has changed overall since the firm's last iteration, dislocations between current price, implied values, and price targets persist in certain names. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on TRGP: Disclaimer & DisclosureReport an Issue Targa Resources price target lowered to $212 from $218 at Mizuho Targa Resources price target lowered to $178 from $206 at Barclays Targa Resources price target lowered to $190 from $250 at Argus Targa Resources price target lowered to $228 from $259 at UBS Targa Resources: Buy Rating Affirmed Amid Growth Potential and Strategic Capital Management Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
