Targa Resources Corp. (TRGP)

In Q3 2025, Targa Resources surpassed Wall Street's estimates for third-quarter core profit, driven by increased volumes of natural gas and NGLs, reporting a record quarterly adjusted EBITDA of $1.275 billion. Targa announced plans to build two new natural gas processing plants in the Permian Basin and is constructing five new gas processing plants in the Permian, which will add an aggregate inlet capacity of 1.4 billion cubic feet per day over the next two years. Targa agreed to acquire Stakeholder Midstream for $1.25 billion in cash, a deal that closed in January 2026. Targa Resources priced a $1.5 billion offering of senior notes. The company's Board of Directors authorized a new $1 billion common share repurchase program. Targa announced its intention to recommend a 25% increase in its annual common dividend to $5 per share, effective for the first quarter of 2026. Analyst ratings have generally been positive, with a consensus of "Moderate Buy", but there has been some insider selling. Targa's stock has shown strong performance over the past five years, but experienced some underperformance relative to the broader market in certain periods.

While specific detailed seasonal patterns for Targa Resources' products and services are not extensively elaborated, there are indications of demand fluctuations. An earnings call from August 2023 mentioned "overall seasonal demand that we came off of from the first quarter," suggesting some level of seasonality in their business. The company's operations are also subject to external factors such as weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, which can influence demand.

Targa Resources Corp. is a midstream energy company based in Houston, Texas, operating in the oil and gas transportation services industry. The company is involved in gathering, compressing, treating, processing, transporting, storing, and marketing natural gas, NGLs, and condensate streams. Targa also provides services related to LPG exporters and is involved in gathering, storing, terminaling, and purchasing and selling crude oil. Its operations are divided into Gathering and Processing, and Logistics and Transportation.

Targa Resources has a significant operational footprint across major energy-producing regions in the United States. Its assets are largely concentrated in the Permian Basin, spanning West Texas and Southeast New Mexico. The company also has substantial infrastructure along the Gulf Coast, particularly in Texas and Louisiana, and maintains some operations in Oklahoma and the Badlands region of North Dakota.

Targa Resources maintains a generally positive brand reputation, particularly in its commitment to sustainability and operational excellence. In October 2024, the company released its 2023 Sustainability Report, highlighting a 19% decrease in Gathering & Boosting sector methane intensity and exceeding its original methane intensity goals. Analyst sentiment towards Targa Resources is largely positive, with a "Moderate Buy" consensus.

Targa Resources Corp. is predominantly owned by institutional investors, who hold over 94% of the common stock. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., Wellington Management Group Llp, and State Street Corp. Mutual funds and ETFs hold a significant portion, with Vanguard Index Funds - Vanguard Total Stock Market ETF and Vanguard Index Funds - Vanguard S&P 500 ETF being among the top mutual fund holders.