Overview

* Targa ResourcesQ2 net income rises 111% yr/yr to $629.1 mln

* Adjusted EBITDA for Q2 up 18% yr/yr, beating analyst expectations, per LSEG data

* Co repurchased $324 mln of common shares in Q2, announces new $1 bln buyback program

Outlook

* Targa estimates 2025 adjusted EBITDA between $4.65 bln and $4.85 bln

* Company expects 2025 net growth capital expenditures of $3.0 bln

* Targa anticipates record Permian and NGL volumes in 2025

Result Drivers

* RECORD VOLUMES - Record Permian and NGL transportation volumes drove Q2 results, despite lower commodity prices

* PROJECT ACCELERATION - Early completion of several projects in Permian Midland and Delaware contributed to growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $4.26 $4.84

Revenue bln bln (5

Analysts

)

Q2 Net $629.10

Income mln

Q2 Beat $1.16 $1.15

Adjusted bln bln (15

EBITDA Analysts

)

Q2 $934.40

Adjusted mln

Free

Cash

Flow

Q2 $323.60

Operatin mln

g

Expenses

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 ( TRGP ) is $201.50, about 19.1% above its August 6 closing price of $163.05

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

(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.)