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HOUSTON - Targa Resources Corp. (NYSE: TRGP), a significant player in the midstream energy sector with a market capitalization of $34.8 billion, has priced a sizable public offering of senior notes. The company, which maintains a "GOOD" financial health rating according to InvestingPro, disclosed the pricing of $750 million in 4.900% Senior Notes due in 2030 and an additional $750 million in 5.650% Senior Notes due in 2036. The notes were priced slightly below face value, at 99.870% and 99.700% respectively.
The offering is slated to close on June 18, 2025, contingent upon customary closing conditions. Targa Resources, which has maintained dividend payments for 15 consecutive years and recently doubled its dividend, intends to allocate a portion of the net proceeds to redeem its existing 6.500% Senior Notes due in 2027. The remaining funds are earmarked for general corporate purposes. These may include repaying borrowings under its commercial paper note program, reducing other debts, repurchasing or redeeming securities, or financing capital expenditures and investments in its subsidiaries. InvestingPro analysis reveals 8 additional key financial health indicators for TRGP, available to subscribers.
This capital raise is executed under an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC). The offering is made through a prospectus and prospectus supplement that adhere to the Securities Act of 1933 requirements.
Targa Resources is known for its extensive portfolio of midstream services, including the gathering, compressing, treating, processing, and selling of natural gas and natural gas liquids (NGLs). With annual revenues exceeding $16.3 billion and an EBITDA of $4.06 billion, the company also engages in the transportation and selling of NGL products, services to liquified petroleum gas exporters, and the handling and selling of crude oil. Its infrastructure plays a critical role in the energy supply chain, connecting resources to markets that demand cleaner fuels.
The company’s forward-looking statements in the announcement are subject to various uncertainties and factors that could cause actual outcomes to differ from those projected. These include, but are not limited to, the risks detailed in Targa’s SEC filings, such as its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
This press release statement serves as the source of the information reported, with the company’s principal executive offices located in Houston, Texas. The announcement does not constitute an offer to sell or a solicitation of an offer to buy the securities described, except as required by law. According to InvestingPro’s comprehensive analysis, TRGP is currently trading above its Fair Value. Investors can access the full Pro Research Report, along with detailed financial metrics and expert analysis for TRGP and 1,400+ other US stocks through an InvestingPro subscription.
In other recent news, Targa Resources reported its Q1 2025 earnings, which slightly exceeded expectations with an earnings per share (EPS) of $1.97, compared to the forecasted $1.95. However, revenue fell short, coming in at $4.65 billion against the anticipated $4.93 billion. Despite the revenue miss, the company saw a 22% year-over-year increase in adjusted EBITDA, reaching $1.179 billion. Targa Resources reaffirmed its full-year 2025 adjusted EBITDA guidance of $4.65 to $4.85 billion, anticipating meaningful volume growth driven by strategic projects in the Permian Basin. Stifel analysts adjusted their price target for Targa Resources to $216 from $229 while maintaining a Buy rating, reflecting confidence in the company’s resilience and strategic positioning. Additionally, Targa Resources announced a substantial 33% increase in its dividend and continued its strategic share repurchase program. The company’s management expressed confidence in its operations, emphasizing their integrated asset footprint and strong financial position as key strengths.
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