Targa Resources beats earnings, raises capital spending on early project completions

Published 07/08/2025, 11:18
 Targa Resources beats earnings, raises capital spending on early project completions

HOUSTON - On Thursday, Targa Resources Corp. (NYSE:TRGP) reported second quarter 2025 net income of $629.1 million, more than doubling from $298.5 million in the same period last year, as the company benefited from record Permian Basin and NGL transportation volumes. Adjusted EBITDA rose 18% YoY to $1.16 billion.

The company’s shares rose 1.20% in after hours trading following the earnings announcement.

The midstream energy company reported quarterly revenue of $4.26 billion, falling short of analyst expectations of $4.77 billion. Despite the revenue miss, Targa saw strong operational performance with record volumes in key segments.

The company now expects several major projects to be completed ahead of schedule, including its Pembrook II plant in Permian Midland in August and its Bull Moose II plant in Permian Delaware.

Targa maintained its full-year 2025 adjusted EBITDA guidance of $4.65 billion to $4.85 billion but increased its capital expenditure forecast to approximately $3.0 billion due to accelerated project timelines and a newly announced 43-mile extension of its Bull Run natural gas pipeline. The pipeline extension will enhance natural gas connectivity from Targa’s Permian Delaware system to WAHA.

During the quarter, Targa repurchased 1.96 million shares at a weighted average price of $165.86 for a total of $324.3 million. The company also announced a new $1.0 billion share repurchase program, in addition to the $566.2 million remaining under its existing program. Targa declared a quarterly cash dividend of $1.00 per share.

The company’s Gathering and Processing segment saw an 11% increase in Permian natural gas inlet volumes compared to the same period last year, while NGL production in the Permian rose 9%. In the Logistics and Transportation segment, NGL pipeline transportation volumes increased 23% YoY to 961.2 MBbl/d.

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