Targa Resources Q3 revenue jumps 35%, beats estimates
Overview
US midstream operator's Q3 revenue rose 35% yr/yr, beating analyst expectations
Adjusted EBITDA beat analyst expectations, up 18% yr/yr
Growth driven by higher prices, volumes, and Permian system expansions
Outlook
Targa now expects full-year 2026 adjusted EBITDA to be at least $6.0 bln
Company continues to estimate 2026 net growth capital expenditures at about $5.0 bln
Targa intends to recommend a 2027 annual common dividend per share of $6.00, up 20% from 2026
Result Drivers
PERMIAN VOLUME GROWTH - Higher natural gas inlet volumes in the Permian, driven by new plant additions, strong producer activity and asset acquisitions, boosted fee-based margins in Gathering and Processing
HIGHER COMMODITY PRICES - Increased NGL, natural gas, and condensate prices contributed to higher commodity sales
LOGISTICS AND TRANSPORTATION EXPANSION - Record NGL pipeline transportation and fractionation volumes, supported by supply from Permian systems and new infrastructure, lifted segment margins
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $5.60 bln | $4.75 bln (5 Analysts) |
Q3 Net Income | $676.10 mln | ||
Q3 Adjusted EBITDA | Beat | $1.50 bln | $1.47 bln (17 Analysts) |
Q3 Operating Expenses | $372.30 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas transportation services peer group is "buy"
Wall Street's median 12-month price target for Targa Resources Corp. is $325.00, about 14% above its November 4 closing price of $285.00
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 23 three months ago
Reuters Recommended Reads
Nov 4 - Western Midstream Q3 adjusted EBITDA rises 12% on record gas throughput
Nov 3 - MPLX Q3 adjusted EBITDA slightly beats estimates on natgas, NGL growth
Nov 2 - Williams Q3 adjusted EPS misses estimates
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)