Targa(US:TRGP)2025-11-05 11:15Financial Performance - Third quarter 2025 net income attributable to Targa Resources Corp. was $478.4 million, a 23.5% increase from $387.4 million in the third quarter of 2024[3]. - Adjusted EBITDA for the third quarter of 2025 reached a record $1,274.8 million, representing a 19% year-over-year increase and a 10% increase compared to the second quarter of 2025[7][8]. - Targa estimates full year 2025 adjusted EBITDA to be around the top end of the $4.65 billion to $4.85 billion range[16]. - Total revenues rose by $299.4 million (8%) to $4,151.2 million for the three months ended September 30, 2025, compared to $3,851.8 million in 2024[23]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $3,616.3 million, compared to $3,020.3 million in 2024[67]. - Estimated net income attributable to Targa Resources Corp. for 2025 is projected at $1,825 million[70]. - Estimated Adjusted EBITDA for 2025 is projected to be $4,850 million, reflecting significant contributions from interest expense, depreciation, and other adjustments[70]. Shareholder Returns - Targa repurchased 932,023 shares of common stock at a total cost of $155.6 million during the third quarter of 2025, with $1,410.6 million remaining under the Share Repurchase Programs as of September 30, 2025[6][19]. - The company expects to recommend a 25% increase in the annual common dividend per share to $5.00 for 2026, up from $4.00 in 2025[7][17]. - For the nine months ended September 30, 2025, Targa repurchased 3,538,285 shares at a total cost of $604.8 million[18]. Operational Developments - The company commenced operations at its new 275 MMcf/d Bull Moose II plant in the Permian Delaware in October 2025[7][11]. - Targa announced plans to construct the Speedway NGL Pipeline and Buffalo Run, enhancing connectivity in the Permian region, with expected completion dates in 2027 and 2028 respectively[14][15]. - The company plans to detail its full year 2026 operational and financial outlook in February 2026[20]. - The company added multiple plants in the Permian, including the Pembrook II plant in Q3 2025, contributing to increased natural gas inlet volumes[45]. Revenue Drivers - Commodity sales increased by $252.9 million (8%) to $3,469.9 million for the three months ended September 30, 2025, compared to $3,217.0 million in 2024, driven by higher natural gas prices and NGL volumes[23][24]. - The increase in fees from midstream services was primarily due to higher gas gathering and processing fees, contributing to overall revenue growth[24][31]. - The average realized price for natural gas increased significantly to $1.20 per MMBtu, compared to $0.09 per MMBtu in the same quarter of 2024, marking a 169% increase[40]. Cost and Expenses - Operating expenses increased by $32.5 million (11%) to $333.5 million for the three months ended September 30, 2025, primarily due to higher maintenance, taxes, and labor costs[26][32]. - Interest expense, net, rose by $36.4 million (20%) to $221.3 million for the three months ended September 30, 2025, due to higher borrowings[28][34]. - Operating expenses for the nine months ended September 30, 2025, increased by $26.0 million, or 10%, to $299.5 million compared to $273.5 million in 2024[50]. Production and Volumes - Natural gas inlet volumes in the Permian increased by 677.2 MMcf/d, representing an 11% increase compared to the same period in 2024[40]. - The total NGL production for the three months ended September 30, 2025, was 1,095.1 MBbl/d, a 12% increase from 978.2 MBbl/d in 2024[40]. - Pipeline transportation volumes rose by 23% to 1,017.0 MBbl/d in Q3 2025, up from 829.2 MBbl/d in Q3 2024[50]. - Fractionation volumes increased by 19% to 1,134.3 MBbl/d in Q3 2025, compared to 953.8 MBbl/d in Q3 2024[50]. Forward-Looking Statements and Risks - Forward-looking statements indicate potential risks including commodity price volatility and changes in market conditions[72]. - The company does not undertake an obligation to update or revise any forward-looking statements[72]. - The company emphasizes the importance of monitoring its website for material disclosures and updates[71].