olivLaw · US equity research
Targa Resources Corp. TRGP
Natural Gas Transmission · SIC 4922 · Vertical: Natural Gas Transmission (SIC 4922)
Targa Resources Corp. (TRGP) is one of the largest independent midstream infrastructure companies in North America, active in natural gas gathering and processing and NGL logistics. In the second quarter of 2026 it reported total revenues of 4440.1 million USD and adjusted EBITDA of 1603 million USD, a record for a second quarter. Its 2026 guidance points to adjusted EBITDA toward the top of the 5.7-5.9 billion USD range.
At the close of 04 Nov 2026, Targa Resources Corp. (TRGP) stock was 285.00 USD (−4.54% on the day), with market capitalisation 61.1 bn USD, P/E 27.2 on diluted EPS of 10.48 USD over the last 12 months, dividend yield 1.49%, beta 0.67, 52-week range 162.69–314.99 USD. Latest reported quarter (Q2 2026): revenue of 4.4 bn USD (+4.2% YoY), net income of 764.6 m USD (+21.5% YoY), diluted EPS 3.54 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 43.8
- weak (30–45)
- Bollinger (20, 2)
- 278.81 – 313.08
- in the lower half of the band · %B 0.18 · band width 11.6%
- SMA 50 / 200
- 290.28 / 261.23
- mixed trend
- MACD (12, 26, 9)
- 3.32 / 4.28
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −0.8% | −1.1% | +0.3 pp | — |
| 3 months | +9.6% | −0.5% | +10.0 pp | — |
| 6 months | +14.2% | +4.4% | +9.8 pp | — |
| Year to date | +54.5% | +12.3% | +42.2 pp | — |
| 1 year | +84.4% | +13.5% | +70.8 pp | +12.1% |
| 3 years | +223.4% | +76.4% | +147.0 pp | +42.7% |
| 5 years | +402.8% | +63.7% | +339.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.9 bn | 4.4 bn | 4.6 bn | 4.3 bn | 4.2 bn | 4.1 bn | 4.1 bn | 4.4 bn |
| Cost of revenue | 2.4 bn | 2.9 bn | 3.3 bn | 2.4 bn | 2.5 bn | 2.3 bn | 2.4 bn | 2.3 bn |
| Operating income | 728.2 m | 700.5 m | 543.3 m | 1.0 bn | 836.9 m | 917.4 m | 846.9 m | 1.2 bn |
| Depreciation & amortisation | 355.4 m | 378.5 m | 367.6 m | 373.7 m | 383.5 m | 390.5 m | 426.0 m | 453.1 m |
| Pre-tax income | 545.1 m | 524.4 m | 352.0 m | 821.3 m | 620.9 m | 692.2 m | 611.3 m | 1.0 bn |
| Income tax | 97.0 m | 110.4 m | 72.2 m | 184.1 m | 134.3 m | 139.1 m | 123.9 m | 227.2 m |
| Net income | 387.4 m | 351.0 m | 270.5 m | 629.1 m | 478.4 m | 545.0 m | 479.6 m | 764.6 m |
| Diluted EPS | 1.75 | 1.60 ≈ | 0.91 | 2.87 | 2.20 | 2.53 ≈ | 2.21 | 3.54 |
| Operating cash flow | 540.9 m ≈ | 1.3 bn | 954.4 m | 858.3 m ≈ | 599.2 m ≈ | 1.5 bn | 739.5 m | 1.4 bn ≈ |
| Capex | 828.8 m ≈ | 726.9 m | 792.2 m | 906.1 m ≈ | 671.8 m ≈ | 963.2 m | 899.5 m | 1.0 bn ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 54 percentile of its own 26-quarter history (min 18.9, median 26.4, max 176.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 10.5 bn | 8.7 bn | 8.3 bn | 16.9 bn | 20.9 bn | 16.1 bn | 16.4 bn | 17.0 bn |
| Revenue YoY | +18.9% | −17.3% | −4.7% | +105.2% | +23.5% | −23.3% | +2.0% | +3.9% |
| Net income | 1.6 m | -209.2 m | -1.6 bn | 71.2 m | 1.2 bn | 1.3 bn | 1.3 bn | 1.9 bn |
| Net income YoY | −97.0% | −13,175.0% | unavailable | unavailable | +1,579.1% | +12.6% | −2.5% | +46.6% |
| Diluted EPS | -0.53 | -1.44 | -7.26 | -0.07 | 3.88 | 3.66 | 5.74 | 8.49 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | −5.7% | +56.8% | +47.9% |
| net % | 0.0% | -2.4% | -18.8% | 0.4% | 5.7% | 8.4% | 8.0% | 11.3% |
| Free cash flow | -2.0 bn | -1.5 bn | 792.9 m | 1.8 bn | 1.0 bn | 826.2 m | 683.9 m | 584.1 m |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 166.1 m USD
- Financial debt
- 17.4 bn USD
- Net debt
- 17.3 bn USD
- Equity
- 3.2 bn USD
- Total assets
- 25.2 bn USD
- Debt / equity
- 5.45x
- Current ratio
- 0.67x
- ROE
- 50.5%
- ROA
- 8.0%
- FCF margin
- 3.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 8.3 bn | 16.9 bn | 20.9 bn | 16.1 bn | 16.4 bn | 17.0 bn | SEC (XBRL)· 19 Feb 2026verified |
| Cost of revenue | 5.2 bn | 13.7 bn | 16.9 bn | 10.7 bn | 10.7 bn | 10.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| Gross profit | 3.1 bn ≈ | 3.2 bn ≈ | 4.0 bn ≈ | 5.4 bn ≈ | 5.7 bn ≈ | 6.5 bn ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Operating income | -1.3 bn | 864.8 m | 1.7 bn | 2.6 bn | 2.7 bn | 3.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| Depreciation & amortisation | 865.1 m | 870.6 m | 1.1 bn | 1.3 bn | 1.4 bn | 1.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| EBITDA | -438.6 m ≈ | 1.7 bn ≈ | 2.8 bn ≈ | 4.0 bn ≈ | 4.1 bn ≈ | 4.8 bn ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Pre-tax income | -1.6 bn | 436.9 m | 1.7 bn | 1.9 bn | 1.9 bn | 2.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| Income tax | -248.1 m | 14.8 m | 131.8 m | 363.2 m | 384.5 m | 529.7 m | SEC (XBRL)· 19 Feb 2026verified |
| Net income | -1.6 bn | 71.2 m | 1.2 bn | 1.3 bn | 1.3 bn | 1.9 bn | SEC (XBRL)· 19 Feb 2026verified |
| Diluted EPS | -7.26 | -0.07 | 3.88 | 3.66 | 5.74 | 8.49 | SEC (XBRL)· 19 Feb 2026verified |
| Weighted average diluted shares | 232.2 m | 228.6 m | 231.1 m | 226.0 m | 221.3 m | 216.9 m | SEC (XBRL)· 19 Feb 2026verified |
| Dividend per share | 1.21 | 0.40 | 1.40 | 1.85 | 2.75 | 3.75 | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 242.8 m | 158.5 m | 219.0 m | 141.7 m | 157.3 m | 166.1 m | SEC (XBRL)· 19 Feb 2026verified |
| Receivables | 862.8 m | 1.3 bn | 1.4 bn | 1.5 bn | 1.6 bn | 1.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| Inventories | 181.5 m | 153.4 m | 393.8 m | 371.5 m | 334.3 m | 429.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Current assets | 1.5 bn | 1.8 bn | 2.4 bn | 2.2 bn | 2.3 bn | 2.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Property, plant & equipment, net | 12.2 bn | 11.7 bn | 14.2 bn | 15.8 bn | 18.1 bn | 20.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| Goodwill | 45.2 m | 45.2 m | 45.2 m | 45.2 m | 45.2 m | 112.3 m | SEC (XBRL)· 19 Feb 2026verified |
| Intangibles (excl. goodwill) | 1.4 bn | 1.1 bn | 2.7 bn | 2.4 bn | 2.0 bn | 1.7 bn | SEC (XBRL)· 19 Feb 2026verified |
| Total assets | 15.9 bn | 15.2 bn | 19.6 bn | 20.7 bn | 22.7 bn | 25.2 bn | SEC (XBRL)· 19 Feb 2026verified |
| Accounts payable | 833.8 m | 1.4 bn | 1.4 bn | 1.6 bn | 2.0 bn | 1.9 bn | SEC (XBRL)· 19 Feb 2026verified |
| Short-term debt | 356.5 m | 150.0 m | — | — | — | — | SEC (XBRL)· 24 Feb 2022verified |
| Long-term debt | 7.8 bn | 6.6 bn | 11.5 bn | 13.0 bn | 14.2 bn | 17.4 bn | SEC (XBRL)· 19 Feb 2026verified |
| Current liabilities | 1.8 bn | 2.3 bn | 3.1 bn | 2.8 bn | 3.2 bn | 3.5 bn | SEC (XBRL)· 19 Feb 2026verified |
| Equity | 5.9 bn | 5.2 bn | 5.0 bn | 4.6 bn | 4.4 bn | 3.2 bn | SEC (XBRL)· 19 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.7 bn | 2.3 bn | 2.4 bn | 3.2 bn | 3.6 bn | 3.9 bn | SEC (XBRL)· 19 Feb 2026verified |
| Capex | 951.6 m | 505.1 m | 1.3 bn | 2.4 bn | 3.0 bn | 3.3 bn | SEC (XBRL)· 19 Feb 2026verified |
| Free cash flow | 792.9 m ≈ | 1.8 bn ≈ | 1.0 bn ≈ | 826.2 m ≈ | 683.9 m ≈ | 584.1 m ≈ | SEC (XBRL)· 19 Feb 2026derived |
| Investing cash flow | -738.1 m | -473.2 m | -4.1 bn | -2.4 bn | -3.0 bn | -3.6 bn | SEC (XBRL)· 19 Feb 2026verified |
| Financing cash flow | -1.1 bn | -1.9 bn | 1.8 bn | -888.1 m | -612.8 m | -266.6 m | SEC (XBRL)· 19 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 28 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40 · (margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 61.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet9
- Growth50
- Valuation5
- Quality54
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 49.28 – 226.51 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDA106.20 – 226.51 (Mid 166.82)4 companies used · median multiple 10.1x · quartiles 7.7x – 12.4xET, KMI, WES, WMB
- Peers: P/E132.73 – 204.09 (Mid 142.97)5 companies used · median multiple 13.6x · quartiles 12.7x – 19.5xEPD, ET, KMI, WES, WMB
- Dividend discount (DDM)49.28 – 66.27 (Mid 56.53)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 28/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 14.1% | 93 (on a fixed band) | 13% |
| Net margin · Quality | 13.5% | 40 (vs peers) | 8% |
| FCF conversion · Quality | 32.7% | 4 (on a fixed band) | 8% |
| Revenue CAGR 3Y · Growth | -6.6% | 0 (on a fixed band) | 10% |
| EPS CAGR 3Y · Growth | 29.8% | 100 (on a fixed band) | 10% |
| Net debt / EBITDA · Balance sheet | 3.5x | 13 (on a fixed band) | 13% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 0.8x | 0 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 27.2x | 0 (vs peers) | 13% |
| EV/EBITDA · Valuation | 14.7x | 3 (on a fixed band) | 13% |
| FCF yield · Valuation | 1.2% | 15 (on a fixed band) | 10% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet9/100 · 2/3 factors with a value
- Growth50/100 · 2/2 factors with a value
- Quality54/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation5/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Targa Resources Corp. (TRGP). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 17.0 bn USD in 2025; YoY growth 3.9%; net margin 13.5%; ROE 72.6%; net debt/EBITDA 3.5x.
The estimated value range is 106.20–204.09 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 142.97 USD, the price of 285.00 USD leaves a potential of -49.8% (value / price − 1) and a margin of safety of -99.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 28/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 14.1%
- EPS CAGR 3Y: 29.8%
What contradicts it
- FCF conversion: 32.7%
- Revenue CAGR 3Y: -6.6%
- Net debt / EBITDA: 3.5x
- Current ratio: 0.8x
- P/E (TTM): 27.2x
- EV/EBITDA: 14.7x
- FCF yield: 1.2%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Interest coverage, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Natural Gas Transmission (SIC 4922) · same industry (4-digit SIC) · compared with 5 companies
Only companies with a capitalisation between 7.8 bn and 496.7 bn (within 8× of the company's); 12 of the vertical were left out.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| WMBWilliams Companies, Inc. | 83.0 bn | 27.1 | 24.0% | 25.2% | +13.8% | +11% / +84% |
| EPDEnterprise Products Partners L.P. | 79.2 bn | 12.0 | — | 10.2% | −6.4% | +12% / +37% |
| KMIKinder Morgan, Inc. | 70.2 bn | 19.5 | 11.6% | 19.6% | +12.2% | +15% / +79% |
| ETEnergy Transfer LP | 67.0 bn | 12.7 | — | 4.9% | +3.5% | +16% / +40% |
| TRGPTarga Resources Corp. | 61.1 bn | 27.2 | 72.6% | 13.5% | +3.9% | +84% / +223% |
| WESWestern Midstream Partners, LP | 17.6 bn | 13.6 | — | 28.2% | +6.6% | +8% / +43% |
1- and 3-year price returns: for TRGP from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 153.81 Total return -45% · Per year -45% | 273.29 Total return -3% · Per year -3% | 413.54 Total return 47% · Per year 47% |
| 3 years | 122.13 Total return -54% · Per year -23% | 246.65 Total return -9% · Per year -3% | 413.54 Total return 50% · Per year 15% |
| 5 years | 96.98 Total return -62% · Per year -17% | 222.60 Total return -15% · Per year -3% | 413.54 Total return 54% · Per year 9% |
- Exit P/E± 61.66
- Net margin± 43.16
- Annual revenue growth± 38.98
- Annual dilution± 3.63
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Targa Resources Corp. (TRGP) is one of the largest independent midstream infrastructure companies in North America, active in natural gas gathering and processing and NGL logistics. In the second quarter of 2026 it reported total revenues of 4440.1 million USD and adjusted EBITDA of 1603 million USD, a record for a second quarter 3. Its 2026 guidance points to adjusted EBITDA toward the top of the 5.7-5.9 billion USD range 3.
SWOT
Strengths
- An integrated position from gas gathering through LPG exports allows capture of several stages of the value chain 1.
- Infrastructure in productive basins that is hard to replicate, with connections between gathering systems and Downstream facilities at Mont Belvieu 1.
- A large share of revenue from fee-based contracts reduces sensitivity to commodity prices 12.
Weaknesses
- Exposure to prices remains significant under percent-of-proceeds contracts, and hedges do not fully protect against volatility 1.
- Debt is substantial and could limit financial flexibility, especially if financing costs rise 13.
- Reliance on volumes from a limited number of Permian producers makes the company sensitive to their investment decisions 12.
Opportunities
- New processing, fractionation and pipeline projects planned through 2028 could expand processing and transport capacity 12.
- Expanded LPG export capacity could raise Galena Park revenues if global demand stays strong 1.
- Acquisitions of Permian assets, such as Stakeholder, could add volumes and operating synergies 12.
Risks
- Commodity price exposurehigh
Revenues and cash flows could fall if natural gas, NGL and crude prices deteriorate, particularly on percent-of-proceeds contracts. Hedges reduce but do not eliminate this exposure 1.
- Dependence on Permian productionhigh
Growth depends on Permian volumes. If producers reduce investment or route gas elsewhere, volumes could decline 13.
- Execution of capital projectsmedium
The company has a large growth program. Delays or cost overruns could reduce returns on investment 12.
- Cost of debtmedium
Consolidated debt is large, and rising interest rates could increase financing costs and reduce profitability 13.
- Environmental regulationmedium
Operations are subject to environmental laws and methane emission rules; non-compliance or an accidental release could create significant costs 1.
Investment thesis
What would need to be true (bull case)
- Q2 2026 results were a record and full-year guidance was raised toward the top of the range, showing that the business can generate cash across several lines of activity 3.
- Processing and fractionation projects under construction could add capacity in a growing basin, and the company holds integrated positions that are hard to replicate 12.
- If Permian output keeps growing and demand for LPG exports stays high, revenues in the transport and export segments could continue to rise 13.
What would break the thesis
- EBITDA growth was partly driven by marketing and optimization margins, which can be volatile and are not assured in later periods 3.
- Consolidated debt and high capital spending could limit flexibility and reduce resources available for dividends and buybacks 13.
- If gas prices fall or Permian producers slow down, volumes and margins could decline, and recent investments could earn less than estimated 13.
What to watch
- Start-up of the Copperhead, Yeti and Yeti II plants in Permian DelawareQ3-Q4 2027
- Updated 2026 adjusted EBITDA guidance and growth capital expenditure in the next quarterly reportQ3 2026
- Permian volume trends and Waha price conditions, to see whether production curtailments recurnext 10-Q
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Targa is a Delaware corporation formed in 2005 that operates two main segments: Gathering and Processing and Logistics and Transportation, also called Downstream 1. The gathering and processing segment has assets concentrated in the Permian Basin, along with the Eagle Ford, Barnett, Anadarko and Williston basins 1. The Downstream segment converts mixed NGLs into NGL products and transports, stores and exports them, including through the Galena Park terminal 1.
Between January and June 2026 the company completed the Stakeholder Midstream acquisition for 1.25 billion USD in cash, adding pipelines and processing capacity in the Permian 12. Sources show that the Falcon II, East Pembrook and East Driver processing plants entered service in 2026 2. The company also raised its quarterly dividend to 1.25 USD per share, 25 percent above the level for Q2 2025 3.
Segments
Gathering and Processing
The G&P segment gathers, compresses and processes natural gas and transports condensate and crude oil from the Permian, Eagle Ford and Williston basins. In Q2 2026 Permian inlet volumes rose by more than 450 MMcf/d sequentially, although some producers temporarily curtailed output because of negative Waha prices 3.
Downstream and exports
The Galena Park terminal is being expanded to raise effective LPG export capacity to 19 million barrels per month, with completion expected in the third quarter of 2027 1. The project depends on propane and butane demand and vessel availability, factors the company does not control 1.
Market context
The LPG export and NGL fractionation market is concentrated on the Gulf Coast and at Mont Belvieu, with demand driven by petrochemical industries and global exports 1. The company says its infrastructure is hard to replicate, but competition for assets and development opportunities could limit growth 1.
Trends
- Permian volume growthtailwind
New processing plants and Permian pipeline extensions support rising throughput on Targa systems. If basin production keeps growing, demand for transport and fractionation services could stay high 13.
- Gas and NGL price volatilityheadwind
Gas and NGL prices influence processing margins under percent-of-proceeds contracts. Negative Waha prices led to temporary production cuts in Q2 2026, showing sensitivity to prices 13.
- Predominantly fee-based contractsmixed
Most L&T contracts and part of G&P are fee-based per unit of throughput, which reduces direct exposure to commodity prices. The company also uses hedges for part of its expected volumes 1.
- Cost of capital and debtheadwind
The company has issued bonds and used credit lines to fund acquisitions and growth projects. Higher borrowing costs could reduce returns on investment, and access to capital markets could become more expensive 12.
Competitive position
The SEC sources do not explicitly name Targa's direct competitors. They describe the industry as highly competitive, and competitive pressure is cited as a risk to margins and to hiring 1. Competitors may include other independent midstream operators in the Permian and Gulf Coast, but such names do not appear in the sources provided.
Targa's stated advantage lies in offering integrated services from wellhead to market and in the location of its infrastructure, which is hard to replicate 1. If other operators build similar infrastructure in the same basins, the locational advantage could decline 1.
- Other independent Permian midstream operators
The SEC sources mention general midstream competition without naming specific competitors.
- NGL pipeline and fractionation operators on the Gulf Coast
Competition for NGL transport and fractionation is mentioned only generically in the sources provided.
- LPG export terminal operators
The sources indicate competition in LPG exports without concrete names.
- Gathering service providers for producers
The sources warn that losing customers to competitors could affect volumes.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- S-a ”rupt” în Suedia - România și a fost scos cu targa de pe teren - Sport.roSurge — Google News · 25 Sept 2026 · RO
- Targa Resources (TRGP) Gets a Fresh Vote of Confidence from TD CowenYahoo Finance — News · 20 Sept 2026 · EN
- Targa Resources (TRGP) Set a Record Quarter and Then Raised the BarYahoo Finance — News · 19 Sept 2026 · EN
- Is Targa Resources Stock Outperforming the S&P 500?Yahoo Finance — News · 15 Sept 2026 · EN
- Targa Resources (TRGP) vs. ExxonMobil (XOM): Which Stock Is the Better Energy Bet?Yahoo Finance — News · 28 Aug 2026 · EN
SEC filings
- Current report25 Aug 2026Departure or appointment of officers
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report17 Jul 2026Departure or appointment of officers · Financial statements and exhibits
- Current report06 Jul 2026Material agreement · Financial statements and exhibits
- Current report22 May 2026Shareholder vote
- Quarterly report07 May 2026
- Current report07 May 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Proxy statement26 Mar 2026
- Current report02 Mar 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Targa Resources Corp. · 19 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Targa Resources Corp. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Targa Resources Corp. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.