Targa Resources (TRGP) Q1 2025 Earnings Call May 01, 2025 11:00 AM ET Speaker0 Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Tristan Richardson, Vice President, Investor Relations and Fundamentals. Please go ahead. Speaker1 Thanks, Michelle. Good morning, and welcome to the first quarter twenty twenty five earnings call for Target Resources Corp. The first quarter earnings release, along with the first quarter supplement pres ...

First Quarter 2025 Earnings Supplement We use any of the following to comply with our disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. We routinely post important information on our website at www.targaresources.com, including information that may be deemed to be material. We encourage investors and others interested in the company to monitor these distribution channels for material disclosures. Q1 2025 EARNINGS SUPPLEMENT PRESENTATION 2 Finan ...

Exhibit 99.1 811 Louisiana, Suite 2100 Houston, TX 77002 713.584.1000 Targa Resources Corp. Reports Record First Quarter 2025 Financial Results HOUSTON – May 1, 2025 - Targa Resources Corp. (NYSE: TRGP) ("TRGP," the "Company" or "Targa") today reported first quarter 2025 results. First quarter 2025 net income attributable to Targa Resources Corp. was $270.5 million compared to $275.2 million for the first quarter of 2024. The Company reported adjusted earnings before interest, income taxes, depreciation and ...

HOUSTON, May 01, 2025 (GLOBE NEWSWIRE) -- Targa Resources Corp. (NYSE: TRGP) (“TRGP,” the “Company” or “Targa”) today reported first quarter 2025 results. First quarter 2025 net income attributable to Targa Resources Corp. was $270.5 million compared to $275.2 million for the first quarter of 2024. The Company reported adjusted earnings before interest, income taxes, depreciation and amortization, and other non-cash items (“adjusted EBITDA”)(1) of $1,178.5 million for the first quarter of 2025 compared to $ ...

Industry Overview - The oil and energy sector is experiencing significant challenges in Q1 2025, with falling oil prices and slight increases in natural gas prices creating a complex outlook for growth [1][4] - Oil prices have sharply declined, with West Texas Intermediate crude averaging $71.84 per barrel, down from $77.56 a year ago, primarily due to weaker global economic growth and increased supply [2] - Natural gas prices have surged to an average of $4.15 per million British thermal units (MMBtu), up from $2.13 per MMBtu, driven by colder weather and rising LNG exports [3] Earnings Performance - Energy companies in the S&P 500 are projected to see a 12.9% decline in earnings year-over-year, although this is an improvement from the 22.4% decline in Q4 2024 [4][5] - Revenue for energy companies is expected to decline by 0.3%, contrasting with a 3.8% growth forecast for the broader S&P 500 [4] - Excluding the energy sector, the S&P 500's earnings would rise by 8.3%, indicating the significant drag energy is placing on overall results [5] Company-Specific Insights - TC Energy Corporation (TRP) is expected to report earnings of 72 cents per share, reflecting a 21.74% decrease from the previous year, with a low chance of an earnings beat due to an Earnings ESP of -0.35% and a Zacks Rank of 3 [8][10] - Targa Resources Corp. (TRGP) has a Zacks Consensus Estimate of $2.06 per share, indicating a 68.85% increase year-over-year, but also has a low chance of an earnings beat with an Earnings ESP of -4.12% and a Zacks Rank of 3 [10][12] - PBF Energy Inc. (PBF) is projected to report earnings of $3.24 per share, suggesting a significant 476.74% decrease from the prior year, with an Earnings ESP of 0.00% and a Zacks Rank of 3, indicating low chances for an earnings beat [12][13]

Wall Street analysts expect Targa Resources, Inc. (TRGP) to post quarterly earnings of $2.04 per share in its upcoming report, which indicates a year-over-year increase of 67.2%. Revenues are expected to be $5.73 billion, up 25.5% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a co ...

HOUSTON, April 10, 2025 (GLOBE NEWSWIRE) -- Targa Resources Corp. (NYSE: TRGP) ("Targa" or the "Company") announced today that its board of directors has declared an increase to its quarterly cash dividend to $1.00 per common share, or $4.00 per common share on an annualized basis, for the first quarter of 2025, consistent with previously disclosed expectations. This dividend represents a 33 percent increase over the common dividend declared with respect to the first quarter of 2024. This cash dividend will ...

Group 1 - Targa Resources, Inc. (TRGP) shares increased by 8.2% to $173.65, following a significant trading volume, contrasting with an 11.4% loss over the past four weeks [1] - The rise in Targa's stock price is attributed to the increase in natural gas prices, which followed the upward trend in oil prices, and a broader market rally due to President Trump's tariff policy changes [2] - The company is expected to report quarterly earnings of $2.04 per share, reflecting a year-over-year increase of 67.2%, with revenues projected at $5.58 billion, up 22.4% from the previous year [3] Group 2 - The consensus EPS estimate for Targa Resources has been revised 4.1% higher in the last 30 days, indicating a positive trend that typically leads to price appreciation [4] - Targa Resources is classified under the Zacks Oil and Gas - Refining and Marketing - Master Limited Partnerships industry, with a current Zacks Rank of 3 (Hold) [4] - Global Partners LP (GLP), another company in the same industry, saw its stock rise by 8% but has a negative return of -17.9% over the past month [4]

Core Insights - Targa Resources Corp. (TRGP) has seen a significant 29.1% increase in its share price over the past six months, outperforming the broader oil and energy sector, which remained stagnant at 0% [1] - The company has achieved record adjusted EBITDA of $4.1 billion in 2024, reflecting a 17% year-over-year increase, driven by strong operations in its Permian, NGL transportation, fractionation, and LPG export businesses [7] - TRGP's revenue model is predominantly fee-based, with over 90% of expected 2025 revenues coming from contracts that insulate the company from commodity price volatility [9] Company Overview - Targa Resources Corp. specializes in natural gas services, including gathering, processing, compressing, treating, and selling, with a strategic location in Mont Belvieu, TX, which is home to the world's largest natural gas liquids hub [4] - The company operates with a fractionation capacity of approximately 938,000 barrels per day and has advanced LPG export facilities at its Galena Park Marine Terminal [5] Growth Drivers - TRGP is expanding its infrastructure with major projects such as the Delaware Express pipeline expansion and the GPMT LPG Export Expansion, backed by a capital investment of $2.6 billion to $2.8 billion in 2025 [8] - The company is well-positioned to benefit from increasing global demand for U.S. NGLs and LNG, with record pipeline transportation and export volumes in 2024 [10][11] Market Position - Targa's infrastructure, including pipelines and processing plants, is strategically aligned to meet the growing global demand for U.S. natural gas liquids, which are essential for petrochemical and industrial applications [11] - The company’s investments in high-growth regions like the Permian Basin are expected to enhance its market share as energy markets evolve [11] Financial Performance - The record-high financial performance of TRGP showcases its ability to generate stable cash flows, making it an attractive investment in the midstream energy sector [7] - The company's strong demand for NGLs and LNG exports positions it favorably in an expanding global energy market [10] Risks and Challenges - TRGP faces potential regulatory and environmental uncertainties, including new emissions regulations and policies favoring renewable energy, which could impact future expansions [12] - Increasing competition in the NGL export market poses risks to pricing and margins, necessitating the need for long-term contracts to avoid overcapacity [13] - The company's high EV/EBITDA ratio of 14.39 compared to the sub-industry average of 10.95 raises concerns about valuation sustainability [15]

Core Insights - Targa Resources Corp. (TRGP) reported fourth-quarter 2024 adjusted earnings of $1.44 per share, missing the Zacks Consensus Estimate of $1.88, but showing an increase from $1.23 in the same quarter last year, driven by strong NGL sales [1] - Total quarterly revenues rose to $4.4 billion from $4.2 billion year-over-year, exceeding the Zacks Consensus Estimate of $4.1 billion, attributed to higher commodity sales and increased midstream service fees [2] - The company's adjusted EBITDA for the fourth quarter reached $1.1 billion, up from $959.9 million in the prior-year period [3] Financial Performance - Targa declared a quarterly cash dividend of 75 cents per common share for Q4 2024, amounting to approximately $164 million distributed to shareholders [4] - The company repurchased 610,683 shares at an average price of $176.86 per share, spending about $108 million, with over $1 billion remaining in its share repurchase program as of December 31, 2024 [5] - Targa reported record full-year and fourth-quarter volumes in Permian, NGL transportation, fractionation, and LPG exports, with significant new projects completed [6][7] Segment Performance - The Gathering and Processing segment had an operating margin of $598.9 million, up 11.75% year-over-year, but below the consensus estimate of $620 million, with Permian Basin volumes increasing 14.9% to an average of 6,065.2 MMcf/d [8] - The Logistics and Transportation segment's operating margin was $656.2 million, an 18.4% increase year-over-year, surpassing the Zacks Consensus Estimate of $624 million, driven by higher pipeline transportation and fractionation volumes [9] - Fractionation volumes totaled 1,089.5 thousand barrels per day, a 29% increase from the previous year, exceeding the consensus estimate of 1,023 thousand barrels per day [10] Costs and Capital Expenditures - Targa incurred product costs of $2.9 billion in Q4, a marginal increase of 1% year-over-year, while operating expenses rose 13% to $305.8 million [12] - The company spent $819.7 million on growth capital programs, compared to $636 million in the prior-year period [12] - As of December 31, 2024, Targa had cash and cash equivalents of $157.3 million and long-term debt of $13.8 billion, with a debt-to-capitalization ratio of approximately 76.2% [13] 2025 Guidance - For 2025, Targa projects full-year adjusted EBITDA between $4.65 billion and $4.85 billion, reflecting a 15% increase compared to 2024, with expectations of record growth in Permian G&P operations [14] - Estimated net growth capital expenditures for 2025 are projected to be between $2.6 billion and $2.8 billion, with maintenance capital expenditures around $250 million [15] - Targa plans to propose a 33% increase in its quarterly common dividend to $1.00 per share for Q1 2025, pending board approval [16]