Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of midstream energy assets in North America.
Targa Resources Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$56.77|
|52 Week High||US$15.21|
|52 Week Low||US$57.06|
|1 Month Change||28.67%|
|3 Month Change||32.55%|
|1 Year Change||244.27%|
|3 Year Change||10.23%|
|5 Year Change||21.41%|
|Change since IPO||129.84%|
Recent News & Updates
Why We Believe Targa Resources Is Likely To Outperform Over The Next Several Years
Targa Resources is a midstream C-Corp that was an over-levered midstream player in 2020 that has made a sharp positive turn around in 2021 and raised guidance multiple times. Targa positives include growth, Permian exposure, export exposure, NGL exposure, stock buybacks, benefits from rising oil prices, NGL prices, and natural gas prices, and catalysts. A key catalyst: the balance sheet is already at investment grade levels and given likely further improvement, we believe an upgrade to IG is likely within 18 months. Another catalyst: Targa is in a JV development company and a buy-out is likely at 5.5x-6xEBITDA which could unlock an incremental $150mm EBITDA (though we assume less). But here’s more: Valuation is reasonable too at 9.6x 2021E EBITDA vs mid 9s for peers, 11x for ONEOK, and below its average of last 7 years.
Is Targa Resources Corp. (NYSE:TRGP) Trading At A 25% Discount?
How far off is Targa Resources Corp. ( NYSE:TRGP ) from its intrinsic value? Using the most recent financial data...
Does Targa Resources (NYSE:TRGP) Have A Healthy Balance Sheet?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Targa Resources: Great Finances, Terrible Dividend
Targa Resources operates primarily in the Permian and Bakken regions, which were among the most affected by last year's energy price troubles. The company managed to grow its cash flows despite this, a trend which should continue this year. The company's cash flows are very secure as they are backed by long-term contracts with well-financed customers. The company has a very reasonable debt load and now that it is free cash flow positive, it will likely improve on this. The company can easily afford its dividend, although the yield is incredibly low for a midstream company.
|TRGP||US Oil and Gas||US Market|
Return vs Industry: TRGP exceeded the US Oil and Gas industry which returned 92.2% over the past year.
Return vs Market: TRGP exceeded the US Market which returned 30.5% over the past year.
Stable Share Price: TRGP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: TRGP's weekly volatility (4%) has been stable over the past year.
About the Company
Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of midstream energy assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company engages in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, purchasing, storing, terminaling, and selling crude oil.
Targa Resources Fundamentals Summary
|TRGP fundamental statistics|
Is TRGP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TRGP income statement (TTM)|
|Cost of Revenue||US$8.57b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 04, 2021
|Earnings per share (EPS)||0.85|
|Net Profit Margin||1.66%|
How did TRGP perform over the long term?See historical performance and comparison
0.7%Current Dividend Yield
Does TRGP pay a reliable dividends?See TRGP dividend history and benchmarks
|Targa Resources dividend dates|
|Ex Dividend Date||Oct 28 2021|
|Dividend Pay Date||Nov 15 2021|
|Days until Ex dividend||7 days|
|Days until Dividend pay date||25 days|
Does TRGP pay a reliable dividends?See TRGP dividend history and benchmarks
Is Targa Resources undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TRGP ($56.77) is trading below our estimate of fair value ($68.98)
Significantly Below Fair Value: TRGP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: TRGP is poor value based on its PE Ratio (66.6x) compared to the US Oil and Gas industry average (19.3x).
PE vs Market: TRGP is poor value based on its PE Ratio (66.6x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: TRGP is poor value based on its PEG Ratio (3.8x)
Price to Book Ratio
PB vs Industry: TRGP is overvalued based on its PB Ratio (5.9x) compared to the US Oil and Gas industry average (2x).
How is Targa Resources forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TRGP's forecast earnings growth (17.5% per year) is above the savings rate (2%).
Earnings vs Market: TRGP's earnings (17.5% per year) are forecast to grow faster than the US market (15.1% per year).
High Growth Earnings: TRGP's earnings are forecast to grow, but not significantly.
Revenue vs Market: TRGP's revenue (2.1% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: TRGP's revenue (2.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TRGP's Return on Equity is forecast to be low in 3 years time (11.9%).
How has Targa Resources performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TRGP has high quality earnings.
Growing Profit Margin: TRGP became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: TRGP has become profitable over the past 5 years, growing earnings by -36% per year.
Accelerating Growth: TRGP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: TRGP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-18.6%).
Return on Equity
High ROE: TRGP's Return on Equity (11.4%) is considered low.
How is Targa Resources's financial position?
Financial Position Analysis
Short Term Liabilities: TRGP's short term assets ($1.3B) do not cover its short term liabilities ($2.1B).
Long Term Liabilities: TRGP's short term assets ($1.3B) do not cover its long term liabilities ($7.2B).
Debt to Equity History and Analysis
Debt Level: TRGP's debt to equity ratio (113%) is considered high.
Reducing Debt: TRGP's debt to equity ratio has increased from 84.3% to 113% over the past 5 years.
Debt Coverage: TRGP's debt is well covered by operating cash flow (33.2%).
Interest Coverage: TRGP's interest payments on its debt are well covered by EBIT (3.3x coverage).
What is Targa Resources's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TRGP's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).
High Dividend: TRGP's dividend (0.7%) is low compared to the top 25% of dividend payers in the US market (3.49%).
Stability and Growth of Payments
Stable Dividend: TRGP's dividend payments have been volatile in the past 10 years.
Growing Dividend: TRGP's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.2%), TRGP's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TRGP's dividends in 3 years are forecast to be well covered by earnings (26.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Matt Meloy (43 yo)
Mr. Matthew J. Meloy, also known as Matt, is Chief Executive Officer and Director of Targa Resources GP LLC, the General Partner of Targa Resources Partners LP since March 1, 2020. Mr. Meloy has been Chief...
CEO Compensation Analysis
Compensation vs Market: Matt's total compensation ($USD12.10M) is about average for companies of similar size in the US market ($USD11.17M).
Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.
Experienced Management: TRGP's management team is considered experienced (3.6 years average tenure).
Experienced Board: TRGP's board of directors are considered experienced (9.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Targa Resources Corp.'s employee growth, exchange listings and data sources
- Name: Targa Resources Corp.
- Ticker: TRGP
- Exchange: NYSE
- Founded: 2003
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Market Cap: US$12.981b
- Shares outstanding: 228.66m
- Website: https://www.targaresources.com
Number of Employees
- Targa Resources Corp.
- 811 Louisiana Street
- Suite 2100
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/20 23:23|
|End of Day Share Price||2021/10/20 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.