Overview
Midstream services provider's Q4 revenue missed analyst expectations
Adjusted EBITDA for Q4 beat analyst expectations
Company completed acquisition of Stakeholder Midstream and announced new Permian projects
Outlook
Targa estimates 2026 adjusted EBITDA between $5.4 bln and $5.6 bln
Company plans 2026 net growth capital expenditures of $4.5 bln
Targa expects 2026 annual dividend per share to be $5.00
Result Drivers
PERMIAN VOLUMES - Record Permian natural gas inlet volumes and Bull Moose II plant contributed to increased adjusted EBITDA
ACQUISITIONS - Completed acquisition of Stakeholder Midstream and bolt-on transactions in Permian Basin enhanced operational capacity
LPG EXPORTS - Higher LPG export volumes driven by strong seasonal loadings supported Q4 performance
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $4.06 bln | $4.66 bln (5 Analysts) |
Q4 Net Income | $553.10 mln | ||
Q4 Adjusted EBITDA | Beat | $1.34 bln | $1.27 bln (18 Analysts) |
Q4 Adjusted Free Cash Flow | $1.12 bln | ||
Q4 Operating Expenses | $337.60 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "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 $213.50, about 6.2% below its February 18 closing price of $227.62
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 16 three months ago
Press Release: ID:nGNX1fb70P
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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.)