Targa(TRGP)2025-05-01 16:42Financial Performance - Total revenues for the three months ended March 31, 2025, were $4,561.5 million, a slight decrease of 0.9% compared to $4,562.4 million in the same period of 2024[148]. - Adjusted EBITDA increased by 22% to $1,178.5 million for the three months ended March 31, 2025, compared to $966.2 million for the same period in 2024[148]. - Adjusted cash flow from operations rose by 31% to $970.0 million for the three months ended March 31, 2025, up from $738.4 million in 2024[148]. - Net income attributable to Targa Resources Corp. for the three months ended March 31, 2025, was $270.5 million, a decrease of 2% from $275.2 million in 2024[148]. - Operating expenses increased by 9% to $303.6 million for the three months ended March 31, 2025, compared to $278.0 million in 2024[148]. - Cash flows from operating activities increased to $954.4 million in Q1 2025, up from $876.4 million in Q1 2024, representing a $78.0 million increase[179]. Capital Expenditures and Investments - Capital expenditures for growth projects were $570.7 million in Q1 2025, down from $677.9 million in Q1 2024, primarily due to timing of construction projects[190]. - Net cash used in investing activities rose to $813.3 million in Q1 2025, compared to $677.9 million in Q1 2024, reflecting higher outlays for growth capital projects[182]. - The company completed a public offering resulting in net proceeds of approximately $2.0 billion, used for the Badlands Transaction and general corporate purposes[176]. Dividends and Share Repurchase - The company declared an increase in its quarterly common dividend to $1.00 per share, or $4.00 annualized, effective for Q1 2025[118]. - The company declared dividends of $218.9 million for common stock for the three months ended March 31, 2025, with a dividend per share of $1.00[189]. - Targa Resources Corp. reported a total net cost of $124.9 million for repurchasing 651,163 shares at a weighted average price of $191.86 per share during Q1 2025[121]. Operational Highlights - The adjusted operating margin for the Gathering and Processing segment was $602.2 million for the three months ended March 31, 2025, compared to $556.4 million in 2024[157]. - The adjusted operating margin for the Logistics and Transportation segment was $646.7 million for the three months ended March 31, 2025, compared to $532.1 million in 2024[157]. - The Gathering and Processing segment reported an adjusted operating margin of $810.4 million for Q1 2025, up 9% from $744.5 million in Q1 2024[158]. - The Logistics and Transportation segment achieved an adjusted operating margin of $742.2 million in Q1 2025, a 19% increase from $622.1 million in Q1 2024[162]. - NGL pipeline transportation volumes rose by 18% to 843.5 MBbl/d in Q1 2025, compared to 717.8 MBbl/d in Q1 2024[162]. Debt and Liquidity - Targa entered into a new $3.5 billion revolving credit facility (TRGP Revolver) maturing on February 18, 2030, to support its financial activities[122]. - The company raised approximately $2.0 billion from the issuance of senior unsecured notes due 2035 and 2055 to fund the Badlands Transaction and for general corporate purposes[123]. - The company had $151.4 million in cash and cash equivalents as of March 31, 2025, with total liquidity amounting to $2,722.0 million[169]. - As of March 31, 2025, the company was in compliance with all debt covenants[178]. Future Projects and Expansion - The company announced the construction of three new 275 MMcf/d cryogenic natural gas processing plants in Permian Midland, with expected operational dates in Q3 2025, Q2 2026, and Q3 2026[110]. - Targa's LPG export capacity will increase to up to 19 MMBbl per month following the expansion at Galena Park Marine Terminal, expected to be completed in Q3 2027[114]. - The Blackcomb Joint Venture pipeline is designed to transport up to 2.5 Bcf/d of natural gas and is expected to be operational in the second half of 2026[115]. - Targa completed the acquisition of Blackstone's 45% interest in Targa Badlands LLC for $1.8 billion, resulting in 100% ownership effective January 1, 2025[117]. Market and Pricing - The average realized price for natural gas increased by 49% to $2.24 per MMBtu in Q1 2025, compared to $1.50 per MMBtu in Q1 2024[162]. - Natural gas inlet volumes in the Permian increased by 11% to 6,005.9 MMcf/d in Q1 2025, compared to 5,395.0 MMcf/d in Q1 2024, driven by new plant additions[160].