Targa Resources Corp. (TRGP) has solidified its position as the second-best performing Oil/Energy stock on the S&P 500 in 2024, delivering a remarkable return of more than 100%. Only Texas Pacific Land Corporation (TPL) has surpassed it, surging 123%. TRGP’s meteoric growth far outshines leading energy stocks like ExxonMobil (XOM) , up a modest 10.1%, and Chevron (CVX) , which edged up 0.7%.TRGP, TPL, XOM, CVX Year-to-Date Stock PerformanceImage Source: Zacks Investment ResearchThis extraordinary rally rais ...

Shares of Targa Resources (TRGP -0.30%) were blistering hot in 2024. The midstream company was up more than 105% heading into the final trading days of the year. Add in its dividend, and the total return was even higher. That absolutely crushed the S&P 500, which had a very strong year by delivering a total return of almost 30%. Here's a look at what fueled the energy stock's rally this year, and whether it has the power to continue producing market-crushing returns in 2025.A record-breaking yearTarga Resou ...

Core Viewpoint - Targa Resources, Inc. (TRGP) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimate Revisions - Analysts have been consistently raising their earnings estimates for Targa Resources, with the Zacks Consensus Estimate increasing by 6.5% over the past three months [7]. - For the fiscal year ending December 2024, Targa Resources is expected to earn $6.26 per share, reflecting a 71% increase from the previous year's reported number [11]. Impact on Stock Price - The upgrade in Zacks Rank indicates a positive outlook on Targa Resources' earnings, which is likely to have a favorable impact on its stock price [3][5]. - The correlation between earnings estimate revisions and near-term stock movements suggests that tracking these revisions can be beneficial for investment decisions [6][4]. Zacks Rating System - The Zacks rating system maintains a balanced approach, with an equal proportion of 'buy' and 'sell' ratings across its universe of over 4,000 stocks, ensuring that only the top 20% receive a Zacks Rank 2 or better [8][14]. - The Zacks Rank stock-rating system has a strong track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [10].

The price trend for Targa Resources, Inc. (TRGP) has been bearish lately and the stock has lost 7.5% over the past two weeks. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support.While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall S ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Core Viewpoint - Targa Resources Corp. (TRGP) reported strong third-quarter earnings driven by robust volumes in the Permian Basin, increased NGL sales, and lower product costs, despite a slight decline in revenues due to lower natural gas prices and hedging impacts [1][2]. Financial Performance - Earnings per share for Q3 2024 were $1.75, exceeding the Zacks Consensus Estimate of $1.58 and up from $0.97 in the same quarter last year [1]. - Total revenues reached $3.9 billion, a decrease of 1.1% year-over-year, and fell short of the Zacks Consensus Estimate of $4.2 billion [2]. - Adjusted EBITDA for the quarter was $1.1 billion, an increase from $840.2 million in the prior year [2]. Dividend and Share Repurchase - Targa declared a quarterly cash dividend of $0.75 per share, amounting to an annualized $3, with total cash dividends of approximately $164 million to be distributed on November 15 [3]. - The company repurchased over 1.1 million shares for approximately $167.9 million at an average price of $146.02 per share, with $1.1 billion remaining in its share repurchase program as of September 30 [4]. Operational Highlights - Significant volumes were recorded in the Permian Basin, with the new Greenwood II plant achieving high utilization [5]. - The Gathering and Processing segment reported an operating margin of $584.3 million, up 16% year-over-year, although it missed the consensus estimate [6]. - The Logistics and Transportation segment saw an operating margin of $619.2 million, a 35% increase year-over-year, surpassing the consensus estimate [7]. Volume and Cost Metrics - Fractionation volumes increased by 20% year-over-year to 953.8 thousand barrels per day, while NGL pipeline transportation volumes rose by 26% [8]. - Product costs were $2.4 billion, down 12% from the previous year, while operating expenses increased by 8% to $301 million [9]. Balance Sheet and Debt - As of September 30, Targa had cash and cash equivalents of $127.2 million and long-term debt of $13.6 billion, resulting in a debt-to-capitalization ratio of approximately 76.2% [10]. Future Guidance - For 2024, Targa anticipates adjusted EBITDA to exceed the upper end of its guidance range of $3.95 billion to $4.05 billion, driven by increased infrastructure spending [11]. - The company plans to increase its common dividend to $1.00 per share for Q1 2025, pending approval [12]. - The East Pembrook plant is expected to be completed ahead of schedule in Q2 2026, with new gas processing plants in the Permian expected to commence operations in 2026 [13].

Targa Resources, Inc. (TRGP) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Since ...

Industry Analysis - The oil and gas industry is described as a cyclical, boom-bust sector, requiring patience and experience to navigate effectively [2] - Long-term focus and expertise are emphasized as critical for success in this volatile industry [2] Company Analysis (Targa Resources) - Targa Resources (NYSE: TRGP) demonstrated resilience during challenging times, as evidenced by its survival strategy in 2020 [2] - The company implemented a dividend cut to $0.10 per share in 2020 to prioritize debt repayment, showcasing a focus on financial stability [2] Research Methodology - The analysis of oil and gas companies involves a comprehensive examination of balance sheets, competitive positioning, and development prospects [1] - The research service provides exclusive, in-depth analysis on select companies not available on free platforms [1] Analyst Background - The analyst has extensive experience in the oil and gas industry, with a professional background as a retired CPA and holding both an MBA and MA degree [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-34991 TARGA RESOURCES CORP. (Exact name of registrant as specified in its charter) Delaware 20-3701075 (State or other jur ...

Financial Data and Key Metrics Changes - Targa Resources reported record adjusted EBITDA of $1.07 billion for Q3 2024, a 9% increase from Q2 2024, driven by higher Permian volumes and optimization in the marketing business [22][23] - The adjusted operating margin for the Gathering and Processing segment reached a record $788 million, supported by strong volume growth and fee-based contracts [22] - The Logistics and Transportation segment also set a record with an adjusted operating margin of $717 million, backed by record NGL transportation and fractionation throughput [23] Business Line Data and Key Metrics Changes - In the Permian, natural gas inlet volumes averaged a record 6 billion cubic feet per day in Q3 2024, a 5% increase from Q2 2024 and an 18% increase year-over-year [14][15] - NGL pipeline transportation volumes averaged a record 829,000 barrels per day, and fractionation volumes averaged 954,000 barrels per day, both reflecting a 6% sequential increase [17] - The LPG export business at Galena Park averaged 12.4 million barrels per month, despite a temporary reduction in loading capability due to inspections [19] Market Data and Key Metrics Changes - The company anticipates robust NGL supply growth due to the expected increase in Permian G&P business and corresponding plant additions [18] - Global demand for U.S.-sourced LPGs remains strong, with plans to expand loading capacity by an additional 650,000 barrels per month by the second half of 2025 [19] Company Strategy and Development Direction - Targa is focusing on maintaining a strong investment-grade balance sheet while investing in high-return integrated projects and returning capital to shareholders [20][21] - The company is moving forward with two new Permian plants in response to anticipated growth, enhancing its sour gas treating position in the Delaware Basin [10][11] - Targa aims to capture and sequester CO2 in the Permian, accruing 45Q tax credits, which will enhance its sustainability efforts [11][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's short-, medium-, and long-term outlook, particularly regarding the Permian position and the expected growth in volumes [10][12] - The company expects to exceed the high end of its previously provided adjusted EBITDA range for 2024, projecting more than $500 million year-over-year growth [7][23] - Management noted that the current operational success and market conditions position Targa well for continued growth and shareholder returns [9][20] Other Important Information - Targa has repurchased nearly $650 million of common shares year-to-date, with plans to return 40% to 50% of adjusted cash flow from operations to shareholders [20] - The company has achieved upgrades from all three rating agencies in 2024, reflecting its improved credit profile and outlook [27] Q&A Session Summary Question: Can you provide more color on 2025 CapEx and capital allocation plans? - Management indicated excitement about the overall performance and expects continued growth in capital spending, particularly in Gathering and Processing [30][31] Question: How do you expect downstream throughput to trend? - Management anticipates continued strength in volumes moving into Q4, benefiting from increased refrigeration capacity [33][34] Question: Can you share insights on producer activity and Targa's position in New Mexico? - Management noted strong growth in gas volumes and a favorable position in the Delaware Basin due to the Lucid acquisition [39][40] Question: What is the outlook for future gas egress needs in the basin? - Management expressed optimism about the need for additional gas pipelines and Targa's involvement in upcoming projects [41][42] Question: What is the long-term trend for growth CapEx? - Management confirmed that while a typical year might see $1.7 billion in growth capital, higher growth rates could necessitate increased spending [45][46] Question: How are share buybacks being approached? - Management stated that share repurchases will continue to be opportunistic, reflecting strong conviction in the company's future [49][50] Question: What are the plans for NGL pipeline spending? - Management indicated that NGL pipeline spending may be accelerated due to increased transportation volumes and operational leverage [52][54]