Latest news with #TargaResourcesCorp
Yahoo
15-07-2025
- Business
- Yahoo
Is Targa Resources (TRGP) Well Positioned to Grow?
Oakmark Funds, advised by Harris Associates, released its 'Oakmark Equity and Income Fund' Q2 2025 investor letter. A copy of the letter can be downloaded here. The equity portfolio returned 4.67% in the second quarter compared to 10.94% for the S&P 500 Index. An underweight in technology stocks and an overweight in value and mid-cap stocks led to the underperformance of the fund. The fixed income portfolio returned 1.97% compared to 1.21% for the Bloomberg U.S. Aggregate Bond Index. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Oakmark Equity and Income Fund highlighted stocks such as Targa Resources Corp. (NYSE:TRGP). Targa Resources Corp. (NYSE:TRGP) owns, operates, acquires, and develops a portfolio of complementary domestic infrastructure assets. The one-month return of Targa Resources Corp. (NYSE:TRGP) was 1.66%, and its shares gained 27.92% of their value over the last 52 weeks. On July 14, 2025, Targa Resources Corp. (NYSE:TRGP) stock closed at $172.46 per share with a market capitalization of $37.412 billion. Oakmark Equity and Income Fund stated the following regarding Targa Resources Corp. (NYSE:TRGP) in its second quarter 2025 investor letter: "Targa Resources Corp. (NYSE:TRGP) is a leading midstream natural gas and natural gas liquids (NGL) company. Targa is a part of a group that controls 90% of the fractionation capacity in the largest hub for NGLs in the world, known as Mont Belvieu. Thanks to the region's unique topography and proximity to the Gulf Coast, Targa benefits from meaningful cost advantages and significant barriers to entry. We like that Targa generates ~90% of its earnings through multi-year fee-based arrangements with its customer base, which provides protection against oversupply or re contracting. Uncertainty around Permian oil pro duction growth has recently weighed on share price. However, in our view, Targa remains well-po sitioned to grow, even if the Permian slows dramatically. We were happy to purchase shares at a dis count to peers based on normalized earnings power and our estimate of intrinsic value." An oil tanker at sunset, symbolizing the company's supply of global crude oil. Targa Resources Corp. (NYSE:TRGP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Targa Resources Corp. (NYSE:TRGP) at the end of the first quarter, which was 61 in the previous quarter. While we acknowledge the potential of TRGP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Targa Resources Corp. (NYSE:TRGP) and shared the list of best high growth dividend stocks. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. 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
Yahoo
09-07-2025
- Business
- Yahoo
Targa Resources (TRGP) PT Lifted to $205 from $191 at RBC Capital
Targa Resources Corp. (NYSE:TRGP) is one of the best high growth stocks. On June 26, RBC Capital lifted its price target from $191 to $205 and maintained an Outperform rating on the stock. The price target was raised following a series of investor engagements with Targa executives, notably President Jennifer Kneale, Logistics & Transportation Head Scott Pryor, and IR and Fundamentals Vice President Tristan Richardson. After the meetings, RBC Capital reported a moderately improved view of Targa Resources and highlighted a perceived misalignment between the firm's market valuation and its robust financial position. An oil tanker at sunset, symbolizing the company's supply of global crude oil. The company's consistent cash distributions to shareholders were identified as a main element supporting the firm's favorable outlook. RBC Capital revised its 2026 projections for Targa Resources Corp. (NYSE:TRGP) upward, citing expected increases in volumes as the primary driver behind both the updated estimates and the elevated price target. The company has exhibited continued growth, with a five-year compound annual revenue growth rate of 14% and a solid EBITDA performance of $4.06 billion over the trailing twelve months. Targa Resources Corp. (NYSE:TRGP) owns and operates a strategically integrated portfolio of midstream infrastructure assets across North America. While we acknowledge the potential of TRGP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None.
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
04-06-2025
- Business
- Yahoo
Targa Resources Corp. Prices $1.5 Billion Offering of Senior Notes
HOUSTON, June 04, 2025 (GLOBE NEWSWIRE) -- Targa Resources Corp. ('Targa' or the 'Company') (NYSE: TRGP) announced today the pricing of an underwritten public offering (the 'Offering') of $750 million aggregate principal amount of its 4.900% Senior Notes due 2030 and $750 million aggregate principal amount of its 5.650% Senior Notes due 2036 at a price to the public of 99.870% and 99.700% of their face value, respectively. The Offering is expected to close on June 18, 2025, subject to the satisfaction of customary closing conditions. The Company expects to use a portion of the net proceeds from the Offering to redeem the 6.500% Senior Notes due 2027 (the '2027 Notes') issued by Targa Resources Partners LP and to use the remaining net proceeds for general corporate purposes, including to repay borrowings under its unsecured commercial paper note program, to repay other indebtedness, to repurchase or redeem securities or to fund capital expenditures, additions to working capital or investments in its subsidiaries. This Offering is being made pursuant to an effective shelf registration statement and prospectus filed by the Company with the U.S. Securities and Exchange Commission (the 'SEC') and may be made only by means of a prospectus and prospectus supplement related to such Offering meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the 'Securities Act'). This announcement shall not constitute an offer to sell or a solicitation of an offer to buy any of these securities, except as required by law. About Targa Resources Corp. Targa Resources Corp. (NYSE: TRGP) is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. The Company owns, operates, acquires, and develops a diversified portfolio of complementary domestic infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company's assets connect natural gas and natural gas liquids ('NGL(s)') to domestic and international markets with growing demand for cleaner fuels and feedstocks. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including services to liquified petroleum gas exporters; and gathering, storing, terminaling, and purchasing and selling crude oil. The principal executive offices of Targa Resources Corp. are located at 811 Louisiana, Suite 2100, Houston, TX 77002 and its telephone number is 713-584-1000. Forward-Looking Statements Certain statements in this release are 'forward-looking statements' within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including the expected closing date and use of proceeds from the Offering, such as the redemption of the 2027 Notes. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company's control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, those described more fully in the Company's filings with the SEC, including its most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Targa Investor RelationsInvestorRelations@ 584-1133Error 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
Yahoo
08-05-2025
- Business
- Yahoo
Why Targa Resources Corp. (TRGP) is Losing This Week
We recently published a list of Energy Stocks that are Losing This Week. In this article, we are going to take a look at where Targa Resources Corp. (NYSE:TRGP) stands against other energy stocks that are declining this week. The energy sector suffered a massive blow this week after the West Texas Intermediate (WTI) crude price plunged even further to just over $57, a level it last hit in 2021 during the COVID-19 pandemic. The sharp decline comes as a result of OPEC+ announcing a larger-than-expected output increase for June. This follows a similar production boost announced for May, meaning that the group is now bringing more than 800,000 bpd of additional supply to the market over the course of two months. Instead of acting like a stabilizing force in global oil markets, Saudi Arabia has now adopted an aggressive strategy aimed at disciplining overproducing members like Kazakhstan and Iraq, and expanding its own market share. This could also be a part of the country's efforts to build good relations with Donald Trump, who has repeatedly called on Riyadh to increase production and bring prices down. Goldman Sachs has now cut its forecast for US crude prices this year by $3 to $56 per barrel. With oil currently hovering around the $58 mark, many US shale producers will struggle to break even, forcing them to potentially stop drilling and cut jobs. In fact, two big American shale producers revealed earlier this week that they are cutting capital expenditure in response to sliding oil prices, prompting industry warnings that US production had peaked and could begin to decline. An oil tanker at sunset, symbolizing the company's supply of global crude oil. To collect data for this article, we have referred to several stock screeners to find energy stocks that have fallen the most between April 30 to May 7, 2025. The following are the Energy Stocks that Lost the Most This Week. The stocks are ranked according to their share price decline during this period. At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here). Share Price Decline Between Apr. 30 – May. 7: 7.03% Targa Resources Corp. (NYSE:TRGP) is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. Targa Resources Corp. (NYSE:TRGP) missed forecasts in its Q1 2025 results reported last week, posting an EPS of $0.97 against expectations of $1.98. The company's revenue of $4.56 billion also fell below estimates by $337.16 million. That said, the firm's adjusted EBITDA rose by 22% YoY to a record $1.18 billion, while it also raised its quarterly dividend by 33% last month to $1 per share. Overall, TRGP ranks 9th on our list of the energy stocks that lost the most this week. While we acknowledge the potential of TRGP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TRGP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
