Targa Resources Corp.: A Strong Player in Energy Infrastructure
With a market cap of $40.3 billion, Houston, Texas-based Targa Resources Corp. (TRGP) stands out as a major energy infrastructure provider in North America. The company offers a wide range of midstream services, including gathering, processing, transporting, and storing natural gas and NGLs, along with logistics services aimed at refiners, petrochemical firms, and exporters.
Large-Cap Status and Market Influence
Being valued at $10 billion or more places Targa Resources in the “large-cap” category. The company’s significant assets in the Permian Basin and the Mont Belvieu NGL hub affirm its integral role in the U.S. energy landscape. Targa’s Grand Prix NGL pipeline and advanced LPG export facilities at Galena Park Marine Terminal enhance its operational capabilities.
Recent Stock Performance
Recently, Targa Resources shares have experienced a 12.3% decline from their 52-week high of $209.87. However, it is notable that the stock has bounced back, with shares of TRGP rising 22.3% over the past three months, significantly outpacing the Energy Select Sector SPDR Fund’s (XLE) modest 2.3% increase during the same period.
On a year-to-date basis, TRGP has soared nearly 112%, while XLE has managed only a 5.6% gain. Furthermore, Targa Resources has seen its shares surge 115.6% over the past year, far exceeding XLE’s 5% growth.
To further affirm this positive trend, TRGP has consistently traded above its 50-day and 200-day moving averages since last year.
Q3 Earnings Report Boosts Stocks
On Nov. 5, shares of Targa Resources jumped 4.9% following a stronger-than-expected Q3 2024 earnings report, which showed an EPS of $1.75, surpassing forecasts. The Logistics and Transportation segment particularly impressed investors, with operating margins increasing 35% year-over-year to $619.2 million due to higher NGL pipeline transportation and LPG export margins. The announcement of plans to build two new 275 MMcf/d gas processing plants in the Permian Basin also contributed to the positive sentiment.
Targa is also increasing its dividend by 33% to $4 per share in 2025 and has ongoing share repurchases. These moves highlight the company’s commitment to delivering shareholder value.
Competition and Analyst Outlook
For comparison, Cheniere Energy, Inc. (LNG) has seen its shares rise 24.7% over the past 52 weeks and is up 24.3% year-to-date, but it still lags behind TRGP stock.
Given the stock’s favorable performance, analysts are optimistic about its future. TRGP has garnered a consensus “Strong Buy” rating from the 19 analysts monitoring the stock, with a mean price target of $201.65, indicating a potential upside of 9.3% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
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