Core Viewpoint - A severe winter storm has impacted the entire United States, leading to significant reductions in oil and gas production, with a peak daily decrease of 2 million barrels, representing a 15% drop in national output [2][11]. Oil Production Impact - The Energy Aspects consultancy reported that the peak reduction in U.S. oil production occurred on Saturday, with an average daily decrease of 2 million barrels, primarily from the Permian Basin, which accounted for approximately 1.5 million barrels of the reduction [2][11]. - By Monday, the reduction eased, with the Permian Basin's shutdown scale dropping to an average of 700,000 barrels per day, and full recovery is expected by January 30 [2][11]. - ConocoPhillips reported a reduction of 175,000 barrels per day in the Permian Basin due to the severe weather [2][11]. Operational Challenges - Chevron reported issues at its Midland, Texas facility due to frozen equipment, and the Texas Oil and Gas Association noted significant challenges in third-party transportation, particularly in water transport and technician scheduling [3][11]. - Over twenty companies, including Western Oil and Targa Resources, reported operational failures at their natural gas processing plants and compressor stations in Texas, although the number of failures was significantly lower than during the severe winter storm in 2021 [3][11]. Natural Gas Production - North Dakota's oil production is expected to decrease by 80,000 to 110,000 barrels per day, with associated natural gas production dropping by 240 to 330 million cubic feet [4][12]. - The average daily natural gas production in the U.S. has fallen to 10.69 billion cubic feet, down from a historical high of 10.97 billion cubic feet in December [5][13]. Refinery Operations - Several refineries along the Gulf Coast faced operational issues due to the freezing weather, including ExxonMobil, which closed parts of its facility in Baytown, Texas [5][13]. - The IIR reported that the Suncor refinery in Lima, Ohio, with a capacity of 172,000 barrels per day, experienced mechanical failures, delaying full restart until later in the week [6][14]. Electricity Supply and Demand - The winter storm has caused power outages for over 1 million households and businesses, with approximately 810,000 customers still without power as of Monday [7][16]. - The PJM Interconnection expects a generation interruption of 22.4 gigawatts, about 16% of its total committed capacity, primarily affecting the Mid-Atlantic region [8][17]. - Electricity prices surged, with wholesale prices reaching around $200 per megawatt-hour, having previously exceeded $3,000 [8][17]. Prices in New England spiked by approximately 82% to $313 per megawatt-hour, while prices in Pennsylvania and Maryland surged by about 360% to around $413 per megawatt-hour, the highest since January 2014 [8][17].

Core Viewpoint - Targa Resources Corp. is set to release its Q4 2025 earnings, with analysts projecting significant growth in earnings per share (EPS) compared to the previous year [1][2]. Financial Performance - Analysts expect Targa Resources to report a profit of $2.35 per share on a diluted basis for Q4 2025, representing a 63.2% increase from $1.44 per share in the same quarter last year [2]. - For the current fiscal year, the projected EPS is $8.36, which is a 45.6% increase from $5.74 in fiscal 2024. The EPS is anticipated to rise by approximately 19.1% year over year to $9.96 in fiscal 2026 [3]. Stock Performance - Over the past 52 weeks, Targa Resources' shares have declined by 13%, underperforming the S&P 500 Index's increase of 16.9% and the State Street Energy Select Sector SPDR ETF's return of 2.3% [4]. - Despite the decline, shares saw a slight increase on December 1 following the announcement of a $1.25 billion cash acquisition of Stakeholder Midstream, LLC, which enhances Targa's operations in natural gas and crude services in the Permian Basin [5]. Analyst Ratings - The stock has a "Strong Buy" rating overall, with 18 out of 22 analysts recommending a "Strong Buy," one suggesting a "Moderate Buy," and three advising a "Hold." The average analyst price target is $207.91, indicating a potential upside of 12.2% from current levels [6].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Targa Resources Corp. has declared a quarterly cash dividend of $1.00 per common share for the fourth quarter of 2025, with plans to recommend an increase to $1.25 per share for the first quarter of 2026 [2][3]. Dividend Announcement - The quarterly cash dividend of $1.00 per common share will be paid on February 13, 2026, to shareholders of record as of January 30, 2026 [2]. - The annualized dividend based on the fourth quarter payment is $4.00 per common share [2]. Future Dividend Plans - For the first quarter of 2026, Targa intends to recommend an increase in the common dividend to $1.25 per share, which would annualize to $5.00 per share if approved [3]. Financial Reporting - Targa will report its fourth quarter 2025 financial results before the market opens on February 19, 2026, and will host a live webcast at 10:00 a.m. Central Time to discuss these results [4][5]. Company Overview - Targa Resources Corp. is a leading provider of midstream services and one of the largest independent infrastructure companies in North America, focusing on the delivery of energy across the United States and to international markets [7]. - The company connects natural gas and natural gas liquids (NGLs) to markets with growing demand for cleaner fuels [7]. - Targa is a FORTUNE 500 company and is included in the S&P 500 [8].

Core Insights - Oakmark Select Fund outperformed the S&P 500 Index in Q4 2025, returning 8.42% compared to the index's 2.66% [1] - The fund's performance was driven by strong contributions from the communication services and financial sectors, while industrials negatively impacted performance [1] Company Overview: Targa Resources Corp. (NYSE:TRGP) - Targa Resources Corp. is a leading midstream natural gas and natural gas liquids (NGL) company, controlling 90% of the fractionation capacity in Mont Belvieu, the largest hub for NGLs globally [3] - The company generates approximately 90% of its earnings through multi-year fee-based arrangements, providing stability against market fluctuations [3] - As of January 13, 2026, Targa's stock closed at $180.28 with a market capitalization of $38.795 billion [2] Performance Metrics - Targa Resources Corp. experienced a one-month return of -1.15% and a 52-week decline of 12.27% [2] - Despite recent pressures from uncertainty around Permian oil production growth, Targa is viewed as well-positioned for future growth [3] Investment Sentiment - Targa Resources Corp. was held by 50 hedge fund portfolios at the end of Q3 2025, an increase from 48 in the previous quarter, indicating growing interest [4] - However, there are opinions suggesting that certain AI stocks may offer greater upside potential compared to Targa Resources Corp. [4]

Group 1 - Targa Resources Corp. has completed the acquisition of Stakeholder Midstream, LLC for $1.25 billion in cash, effective January 1, 2026 [1] - Targa is a leading provider of midstream services and one of the largest independent infrastructure companies in North America, focusing on the delivery of energy across the United States and globally [2] - The company's operations are essential for connecting natural gas and natural gas liquids (NGLs) to both domestic and international markets, catering to the increasing demand for cleaner fuels [2] Group 2 - Targa Resources is a FORTUNE 500 company and is included in the S&P 500 index, indicating its significant presence in the market [3]

Core Insights - The global energy landscape is undergoing a significant transformation since the beginning of 2026, which is making bullish predictions on the XLE ETF more plausible [1]. Group 1: Market Trends - The XLE ETF has shown an upward trend, indicating a positive outlook for energy investments [1]. Group 2: Analyst Expertise - Daniel Sereda, a chief investment analyst, emphasizes the importance of filtering vast amounts of information to identify critical investment ideas [1]. - The investing group Beyond the Wall Investing provides insights similar to those prioritized by institutional market participants [1].

Core Viewpoint - ExxonMobil's updated 2030 corporate plan significantly benefits the midstream sector, particularly Targa Resources Corp, due to increased production targets in the Permian Basin [1][3]. Group 1: ExxonMobil's Production Targets - Exxon raised its 2030 Permian production guidance by 200,000 barrels of oil equivalent per day (boepd), now targeting a total of 2.5 million boepd [3]. - This increase in production is particularly advantageous for Targa, which has a strong presence on Pioneer Natural Resources acreage, recently acquired by Exxon [3]. Group 2: Targa Resources' Strategic Position - Targa Resources has a 5.7% weighting in the Alerian Energy Infrastructure ETF, making it a top-ten holding as of December 17 [2]. - The anticipated volume increase aligns with Targa's expansion efforts, including the $1.6 billion Speedway NGL Pipeline, which will transport 500,000 barrels per day from the Permian to Mont Belvieu [4]. Group 3: Market Response - Following Exxon's announcement, Targa's stock gained 2.6% on December 9, outperforming the Alerian Midstream Energy Select Index, which was down 0.5% on the same day [4].

Core Viewpoint - ExxonMobil's updated 2030 corporate plan significantly benefits the midstream sector, particularly Targa Resources Corp, due to increased production targets in the Permian Basin [1][3]. Group 1: ExxonMobil's Production Targets - Exxon raised its 2030 Permian production guidance by 200,000 barrels of oil equivalent per day (boepd), now targeting a total of 2.5 million boepd [3]. - This increase in production is particularly advantageous for Targa, which has a strong position on Pioneer Natural Resources acreage, recently acquired by Exxon [3]. Group 2: Targa Resources' Strategic Position - Targa Resources has a 5.7% weighting in the Alerian Energy Infrastructure ETF, making it a top-ten holding as of December 17 [2]. - The anticipated volume increase aligns with Targa's expansion efforts, including the $1.6 billion Speedway NGL Pipeline, which will transport 500,000 barrels per day from the Permian to Mont Belvieu [4]. Group 3: Market Response - Following Exxon's announcement, Targa's stock gained 2.6% on December 9, outperforming the Alerian Midstream Energy Select Index, which was down 0.5% on the same day [4].

Core Insights - Targa Resources Corp. is a significant player in the North American midstream energy sector, with a market capitalization of approximately $38.8 billion [1][2] - The company's stock has shown volatility, reaching an all-time high of $218.51 on January 22, and is currently trading 18% below that peak, while experiencing an 11.6% increase over the past three months [3][4] Financial Performance - Targa Resources reported a 7.8% year-over-year increase in net revenues for Q3, totaling $4.2 billion, driven by growth in commodity sales and midstream service fees [5] - Adjusted EBITDA rose by 19.2% year-over-year to $1.3 billion, and net income surged 23.5% year-over-year to $478.4 million, indicating robust overall performance despite missing market expectations [5] Market Position - Targa has outperformed its peer Cheniere Energy, which saw a 6.6% decline year-to-date and a 9.5% drop over the past 52 weeks [6] - Among 22 analysts covering Targa's stock, the consensus rating is a "Strong Buy," with a mean price target of $206.18, suggesting a 15.1% upside potential from current levels [6]