Baker Hughes vs Targa Resources

This page compares Baker Hughes Company and Targa Resources Corp to examine business models, financial performance, and market context in a neutral, accessible way. It outlines how each company operates within its sector and the factors shaping their strategies. Educational content, not financial advice.

This page compares Baker Hughes Company and Targa Resources Corp to examine business models, financial performance, and market context in a neutral, accessible way. It outlines how each company operat...

Comparison Snapshot

Key Financial Metrics

BKR

Metric

TRGP

$58.23B

Market Cap

$45.39B

-9.75%

Potential Profit

-1.12%

Buy

Analyst Rating

Buy

Why It's Moving

BKR Faces Downside Warnings Despite Dividend Boost and Analyst Optimism

Board declared $0.23 per share quarterly dividend payable Feb. 27, reinforcing cash flow confidence from operations amid stable energy demand.
Analysts lifted average price target 10.75% to $60.20, driven by upward earnings revisions and a track record of beating estimates by 12.7%.
Modest insider selling of 18,023 shares at $57.29 tempers enthusiasm, as shares hit a 12-month high near $59 amid LNG partnership news.

Sentiment:

🌋Volatile

Targa Resources Boosts Dividend to $5.00 Annualized Amid Robust Growth Outlook for 2026

Announced $1.00 quarterly cash dividend for Q4 2025, implying $5.00 annualized for 2026—a 25% jump—bolstering shareholder returns from elevated EBITDA.
Record Q3 2025 adjusted EBITDA hit $1.275 billion, up 19% year-over-year, fueled by Permian volume surges and key assets like Bull Moose II coming online.
Growth pipeline shines with $3.3 billion capex, new 275 MMcf/d plants, and 2026-2028 project starts, maintaining leverage in the 3.0-4.0x target amid $2.3 billion liquidity.

Sentiment:

🐃Bullish

BKR Faces Downside Warnings Despite Dividend Boost and Analyst Optimism

Board declared $0.23 per share quarterly dividend payable Feb. 27, reinforcing cash flow confidence from operations amid stable energy demand.
Analysts lifted average price target 10.75% to $60.20, driven by upward earnings revisions and a track record of beating estimates by 12.7%.
Modest insider selling of 18,023 shares at $57.29 tempers enthusiasm, as shares hit a 12-month high near $59 amid LNG partnership news.

Sentiment:

🌋Volatile

Targa Resources Boosts Dividend to $5.00 Annualized Amid Robust Growth Outlook for 2026

Announced $1.00 quarterly cash dividend for Q4 2025, implying $5.00 annualized for 2026—a 25% jump—bolstering shareholder returns from elevated EBITDA.
Record Q3 2025 adjusted EBITDA hit $1.275 billion, up 19% year-over-year, fueled by Permian volume surges and key assets like Bull Moose II coming online.
Growth pipeline shines with $3.3 billion capex, new 275 MMcf/d plants, and 2026-2028 project starts, maintaining leverage in the 3.0-4.0x target amid $2.3 billion liquidity.

Sentiment:

🐃Bullish

Investment Analysis

Baker Hughes

BKR

Pros

Baker Hughes has secured significant subsea contract wins, particularly in deepwater regions, supporting international revenue stability.
The company maintains a strong return on equity and invested capital, outperforming many peers in the energy equipment sector.
Strategic portfolio moves, including acquisitions and divestitures, are helping Baker Hughes focus on higher-margin gas and digital technologies.

Considerations

Baker Hughes remains highly exposed to oil price volatility, with any sustained drop likely to reduce demand for its oilfield services.
Rising material costs, especially from tariffs on steel and aluminum, are pressuring margins in both equipment and services segments.
Long-cycle LNG projects carry risks of delays and cost overruns, which could impact the timing and profitability of major contracts.

Targa Resources

TRGP

Pros

Targa Resources benefits from a diversified portfolio of midstream assets, providing stable cash flows from gathering, processing, and logistics.
The company has secured long-term contracts with major producers, supporting predictable revenue and high utilisation rates.
Targa Resources maintains a strong balance sheet with manageable leverage and solid interest coverage ratios.

Considerations

Targa Resources is exposed to commodity price swings, which can affect producer activity and volumes flowing through its infrastructure.
Regulatory scrutiny and environmental risks in the midstream sector could increase compliance costs and delay expansion projects.
The company faces competition from other midstream operators, which may pressure fee structures and limit pricing power.

Related Market Insights

Nigeria's Gas Revolution: Why These Energy Giants Could Benefit

Explore Nigeria's 'Decade of Gas' initiative. Discover how global energy giants like Exxon Mobil, Chevron, and Equinor could benefit from Africa's largest natural gas reserves. Invest with Nemo.