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HOUSTON - Targa Resources Corp. (NYSE: NYSE:TRGP), a major player in midstream energy services, has declared a quarterly cash dividend of $0.75 per share for the third quarter of 2024. The dividend, which annualizes to $3.00 per share, will be payable on November 15, 2024, to shareholders of record as of October 31, 2024.
The announcement comes as Targa prepares to report its third-quarter financial results for 2024. The company has scheduled a live webcast for 11:00 a.m. Eastern Time on Tuesday, November 5, 2024, to discuss the earnings results. The webcast will be accessible through Targa's website, where a replay will also be available shortly after the event concludes.
Targa Resources, recognized as one of the largest independent midstream infrastructure firms in North America, is engaged in a variety of services. These include the gathering, compressing, treating, processing, and transporting of natural gas; the transportation, storage, and selling of natural gas liquids (NGLs); and the handling and selling of crude oil. Its operations facilitate the delivery of energy within the U.S. and to international markets. The company's infrastructure is essential for meeting the increasing demand for cleaner fuels.
The quarterly dividend reflects Targa's ongoing commitment to providing returns to its shareholders. It also underscores the company's financial position and its ability to generate cash flow in a complex energy market marked by fluctuating commodity prices and various geopolitical factors.
Investors are advised to note that this information is based on a press release statement from Targa Resources Corp. The company is included in the S&P 500 and is a FORTUNE 500 entity, with its corporate filings available through the Securities and Exchange Commission for those seeking detailed financial and operational data.
As the market anticipates the upcoming earnings report, Targa's management has not provided further guidance on future dividends or financial strategies. The company's past performance and strategic initiatives, however, reflect a focus on growth and resilience in a competitive energy sector.
In other recent news, Targa Resources has been making significant financial strides. Barclays recently raised its price target on Targa Resources, citing expected growth in the company's Gathering & Processing (G&P) segment, which is projected to post an adjusted EBIT of $578 million for the third quarter of 2024. The company is also set to commence operations of its Greenwood II plant in the fourth quarter of 2024, significantly increasing G&P volumes.
Further financial developments include the issuance of $1 billion in 5.5% Senior Notes due in 2035, with proceeds designated for various corporate purposes including debt repayment. In addition, Citi and RBC Capital have maintained their positive ratings on Targa Resources, highlighting the company's growth strategy and robust financial health.
Operational advancements for Targa Resources include a record second quarter for 2024, with an adjusted EBITDA of $984 million, largely driven by increased volumes in the Permian assets. Additionally, the company has announced the appointment of Will Byers as the new Chief Financial Officer and its participation in the Blackcomb pipeline joint venture. These are recent developments that underline Targa Resources' commitment to enhancing its operations and financial health.
InvestingPro Insights
Targa Resources Corp.'s (NYSE: TRGP) recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company has maintained dividend payments for 14 consecutive years and has raised its dividend for 3 consecutive years. This consistency in dividend policy is particularly noteworthy given the volatile nature of the energy sector.
The company's financial performance has been robust, with a market capitalization of $35.6 billion and a revenue of $16.26 billion over the last twelve months as of Q2 2024. Targa's profitability is evident, with an EBITDA of $3.77 billion during the same period. These figures underscore the company's strong position in the midstream energy services market.
InvestingPro Tips highlight that Targa has seen a remarkable price performance, with a 101.12% total return over the past year. The stock is currently trading near its 52-week high, reflecting investor confidence in the company's prospects. This positive momentum is further supported by the fact that two analysts have revised their earnings upwards for the upcoming period.
However, investors should note that Targa is trading at a high P/E ratio of 34, which may indicate that the stock is priced at a premium compared to its earnings. The PEG ratio of 1.16 suggests that the stock's price may be slightly high relative to its expected earnings growth.
For those interested in a deeper analysis, InvestingPro offers 17 additional tips for Targa Resources Corp., providing a comprehensive view of the company's financial health and market position.
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