Targa Resources Corp.
Targa Resources Corp. (TRGP) is a US midstream energy company that gathers, processes, transports and stores natural gas and natural gas liquids (NGLs), and operates fractionation and marketing businesses. With a market capitalisation of roughly $32.6bn, Targa combines fee‑based contracts and commodity‑linked activities across major US shale basins. Investors should know the company benefits from integrated infrastructure and long‑term agreements that can support steady cash flow, while still carrying exposure to commodity volumes and price cycles. Growth has come from capacity expansions and stronger NGL demand, but the business can be affected by project execution, changes in energy prices, regulation and environmental factors. Key things to watch are contract mix, leverage, capital spending and distribution policy. This is general educational information, not personal financial advice: values can rise or fall and returns are not guaranteed. Consider whether the stock fits your risk profile and seek independent advice where appropriate.
Why It's Moving
Targa Resources Fuels Growth with $1.25B Permian Acquisition and 25% Dividend Hike After Record Q3.
Targa Resources announced a transformative $1.25 billion cash acquisition of Stakeholder Midstream, bolstering its Permian Basin infrastructure with pipelines, processing capacity, and carbon capture assets. The midstream giant also reported record Q3 2025 results, reaffirmed strong EBITDA guidance, and plans a 25% boost to its 2026 dividend, signaling robust cash flow generation and expansion momentum.
- Acquiring 480 miles of gas pipelines and 180 MMcf/d processing capacity across 170,000 acres, valued at ~6x 2026 free cash flow, to supercharge Permian volumes.
- Record Permian and NGL transportation volumes, with key projects like Bull Moose II and Pembrook II online ahead of schedule, supporting $4.65-4.85B 2025 EBITDA guidance.
- Proposing $5.00 annualized 2026 dividend (up 25%), backed by $200M annual cash flow from the deal and $2.3B liquidity, keeping leverage in 3.0-4.0x target.
Targa Resources Fuels Growth with $1.25B Permian Acquisition and 25% Dividend Hike After Record Q3.
Targa Resources announced a transformative $1.25 billion cash acquisition of Stakeholder Midstream, bolstering its Permian Basin infrastructure with pipelines, processing capacity, and carbon capture assets. The midstream giant also reported record Q3 2025 results, reaffirmed strong EBITDA guidance, and plans a 25% boost to its 2026 dividend, signaling robust cash flow generation and expansion momentum.
- Acquiring 480 miles of gas pipelines and 180 MMcf/d processing capacity across 170,000 acres, valued at ~6x 2026 free cash flow, to supercharge Permian volumes.
- Record Permian and NGL transportation volumes, with key projects like Bull Moose II and Pembrook II online ahead of schedule, supporting $4.65-4.85B 2025 EBITDA guidance.
- Proposing $5.00 annualized 2026 dividend (up 25%), backed by $200M annual cash flow from the deal and $2.3B liquidity, keeping leverage in 3.0-4.0x target.
Stock Performance Snapshot
Analyst Rating
Analysts recommend buying Targa Resources stock, as it has a potential price increase ahead.
Financial Health
Targa Resources is showing strong revenue and cash flow, indicating good financial performance.
Dividend
Targa Resources Corp.'s dividend yield of 2.21% offers a modest return for dividend-seeking investors. If you invested $1000 you would be paid $22.10 a year in dividends (based on the last 12 months).
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Baskets Featuring TRGP
Riding The OPEC+ Wave: Midstream Energy Plays
OPEC+ is moving forward with its plan to increase oil production to meet summer demand. This creates an opportunity for companies that transport, store, and process the additional crude oil and natural gas.
Published: July 25, 2025
Explore BasketOPEC+ Opens The Taps: Midstream's Moment
OPEC+ has decided to maintain its policy of gradually increasing oil production to meet rising global demand. This creates an investment opportunity in companies that provide the essential midstream services, such as transportation and storage, which will see increased business from the higher oil supply.
Published: July 25, 2025
Explore BasketWhy You’ll Want to Watch This Stock
NGL demand dynamics
Rising petrochemical feedstock demand can support NGL volumes and margins, though performance varies with broader energy cycles and regional supply.
Integrated infrastructure strength
An asset base spanning gathering, processing and fractionation can provide diversified revenue streams, but capital intensity and execution risk remain important.
Commodity and leverage risk
Fee‑based contracts offer stability, yet exposure to commodity prices and balance‑sheet leverage can amplify returns or losses depending on market conditions.
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