Targa(TRGP) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net income attributable to Targa Resources Corp. was $351.0 million, up from$299.6 million in Q4 2023, while full year 2024 net income was $1,312.0 million, down from$1,345.9 million in 2023[2]. - Full year 2024 adjusted EBITDA reached a record $4.1 billion, a 17$1.1 billion[6]. - Revenues for Q4 2024 were $4,405.2 million, a 4$4,239.5 million in Q4 2023, driven by higher commodity sales and midstream service fees[21]. - Adjusted EBITDA for Q4 2024 was $1,122.2 million, a 17$959.9 million in Q4 2023[21]. - Net income attributable to common shareholders for Q4 2024 was $318.1 million, a 14$280.2 million in Q4 2023[21]. - For the year ended December 31, 2024, commodity sales were relatively flat, reflecting lower natural gas and condensate prices of $1,242.8 million and unfavorable hedging impacts of$686.5 million[27]. - The total operating margin for the year ended December 31, 2024, was $2,312.4 million, an increase of 11$2,082.2 million in 2023[35]. - Operating margin for the year ended December 31, 2024, reached $2,355.1 million, reflecting a 21$1,948.7 million in 2023[44]. - Adjusted Cash Flow from Operations for the year ended December 31, 2024, was $3,372.4 million, compared to$2,840.6 million in 2023, reflecting an 18.7% increase[62]. Dividends and Share Repurchases - Targa declared a quarterly cash dividend of $0.75 per common share for Q4 2024, totaling approximately$164 million, and intends to recommend an annual dividend of $4.00 per share for 2025[4]. - The company repurchased 610,683 shares in Q4 2024 at a total cost of$108.0 million, and 5,933,050 shares for $754.7 million throughout 2024[5]. - Targa expects to increase its quarterly common dividend to$1.00 per share in Q1 2025, a 33% increase if approved[18]. Capital Expenditures and Growth Plans - The company plans net growth capital expenditures of $2.6 billion to$2.8 billion for 2025, including expansions in the Delaware Basin and Mont Belvieu[17]. - New projects include the Delaware Express pipeline expansion and a new 150 MBbl/d fractionator (Train 12) in Mont Belvieu, expected to commence operations in 2026 and 2027 respectively[13][14]. - Estimated net income for 2025 is projected at $1,765.0 million, with estimated Adjusted EBITDA expected to be$4,750.0 million[64]. - Growth capital expenditures for the year ended December 31, 2024, totaled $3,000.4 million, compared to$2,224.5 million in 2023, marking a 34.9% increase[62]. Debt and Liquidity - Targa's total consolidated debt as of December 31, 2024, was $14.2 billion, with total consolidated liquidity of approximately$2.0 billion[8][9]. - Targa announced a refinancing of preferred equity in Targa Badlands LLC for $1.8 billion, expected to close in Q1 2025, resulting in cash savings[11]. - Interest expense for the year ended December 31, 2024, was$752.4 million, up from $675.8 million in 2023, which is an increase of 11.3%[62]. Operational Highlights - The Gathering and Processing segment includes assets located in key regions such as the Permian Basin, Eagle Ford Shale, and Williston Basin, focusing on natural gas and crude oil operations[34]. - Natural gas inlet volumes in the Permian increased by 15% to 6,065.2 MMcf/d in Q4 2024 from 5,280.8 MMcf/d in Q4 2023, driven by new plant additions[35]. - The total NGL production increased by 14% to 959.8 MBbl/d in Q4 2024 compared to 838.5 MBbl/d in Q4 2023[35]. - NGL pipeline transportation volumes increased by 21% to 871.5 MBbl/d in Q4 2024, compared to 722.0 MBbl/d in Q4 2023[44]. - Fractionation volumes rose by 29% to 1,089.5 MBbl/d in Q4 2024, up from 844.8 MBbl/d in Q4 2023[44]. - Export volumes for Q4 2024 were 457.1 MBbl/d, a 5% increase from 434.5 MBbl/d in Q4 2023[44]. Market Conditions and Future Outlook - The company anticipates continued growth in volumes on its systems, influenced by market conditions and capital project completions[67]. - Targa Resources emphasizes the importance of monitoring market conditions and uncertainties that could impact future performance, including commodity price volatility and economic factors[67].