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Targa Resources Q3 revenue jumps 35%, beats estimates

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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