Overview

* Targa Q3 adjusted EBITDA beats analyst expectations, rising 19% year-over-year

* Company Q3 revenue misses analyst expectations despite increase in net income

* Targa repurchased $156 mln of common stock in Q3, continuing share buyback strategy

Outlook

* Targa estimates full-year 2025 adjusted EBITDA at top end of $4.65 bln to $4.85 bln range

* Company plans to recommend $5.00 annual dividend per share in 2026, a 25% increase

* Targa moving forward with new gas plants and pipelines in Permian Basin

Result Drivers

* PERMIAN VOLUMES - Record natural gas inlet volumes in the Permian Basin contributed to higher adjusted operating margins

* NGL TRANSPORTATION - Record NGL pipeline transportation and fractionation volumes drove increased segment margins

* NEW FACILITIES - Commencement of operations at new plants like Bull Moose II enhanced capacity and supported growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $4.15 $4.56

Revenue bln bln (6

Analysts

)

Q3 Net $486.60

Income mln

Q3 Beat $1.27 $1.20

Adjusted bln bln (17

EBITDA Analysts

)

Q3 $1.08

Adjusted bln

Free

Cash

Flow

Q3 $333.50

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 $200.00, about 22.7% above its November 4 closing price of $154.57

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

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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.)