Targa Resources Q2 profit beats estimates on Permian volume growth

Overview

• U.S. midstream energy firm's Q2 revenue rose 4% but missed analyst expectations

• Adjusted EBITDA hit record, beating analyst expectations

Outlook

• Targa now sees 2026 adjusted EBITDA towards the top end of $5.7 bln to $5.9 bln range

• Company continues to estimate 2026 net growth capital expenditures at about $4.5 bln

• Targa expects 2026 net maintenance capital expenditures to remain at about $250 mln

Result Drivers

• PERMIAN VOLUME GROWTH - Higher natural gas inlet volumes in the Permian drove increased fee-based margin, partially offset by lower natural gas prices

• MARKETING AND OPTIMIZATION - Logistics and Transportation segment margin rose due to greater optimization opportunities and higher marketing margin

• INFRASTRUCTURE EXPANSION - New fractionator and pipeline additions boosted NGL transportation, fractionation, and LPG export volumes

Company press release: ID:nGNX2xkTz2

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 4 "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. is $283.00, about 8.8% above its August 5 closing price of $260.11

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads

• Aug 3 - ONEOK boosts 2026 forecast as higher NGL volumes boost quarterly profit

• Aug 3 - Williams to buy Momentum for $5.5 billion, misses quarterly estimates

• Aug 5 - WaterBridge Infrastructure Q2 revenue rises 8% on higher volumes

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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.)