EQT vs Targa Resources
This page compares EQT Corporation and Targa Resources Corp., detailing their business models, financial performance, and market context in a neutral, accessible way. It presents how each company operates, revenue drivers, and industry position without making forecasts or guarantees. Educational content, not financial advice.
This page compares EQT Corporation and Targa Resources Corp., detailing their business models, financial performance, and market context in a neutral, accessible way. It presents how each company oper...
Why It's Moving
EQT crushes Q3 expectations with record-low costs and pipeline expansion amid surging gas demand.
- Production soared to 634 Bcfe, near the top of guidance, fueled by exceptional well performance that underscores EQT's efficiency edge.
- Operating costs plunged to $1.00 per Mcfe—7% below guidance midpoint—driving robust free cash flow and balance sheet strength with net debt under $8 billion.
- Mountain Valley Pipeline capacity jumped 20% to 600 MDth/d on strong utility demand, promising 3.0x EBITDA returns and positioning EQT for low-risk growth.
Targa Resources Bolsters Delaware Basin Dominance with $1.25B Stakeholder Midstream Acquisition
- Acquisition includes 460 miles of gathering pipe and 180 MMcf/d processing capacity at 60% utilization, offering leverage for rising production from key operators like Burk Royalty and Hilcorp.
- Brings ~15 Mb/d NGL output plus sour gas treating and carbon-capture assets eligible for 45Q tax credits, enhancing Targa's ability to fill its Speedway system and tap export demand.
- Priced at ~6x 2026 unlevered FCF, the deal creates optionality for non-core asset sales while integrating seamlessly with Targa's existing Permian systems.
EQT crushes Q3 expectations with record-low costs and pipeline expansion amid surging gas demand.
- Production soared to 634 Bcfe, near the top of guidance, fueled by exceptional well performance that underscores EQT's efficiency edge.
- Operating costs plunged to $1.00 per Mcfe—7% below guidance midpoint—driving robust free cash flow and balance sheet strength with net debt under $8 billion.
- Mountain Valley Pipeline capacity jumped 20% to 600 MDth/d on strong utility demand, promising 3.0x EBITDA returns and positioning EQT for low-risk growth.
Targa Resources Bolsters Delaware Basin Dominance with $1.25B Stakeholder Midstream Acquisition
- Acquisition includes 460 miles of gathering pipe and 180 MMcf/d processing capacity at 60% utilization, offering leverage for rising production from key operators like Burk Royalty and Hilcorp.
- Brings ~15 Mb/d NGL output plus sour gas treating and carbon-capture assets eligible for 45Q tax credits, enhancing Targa's ability to fill its Speedway system and tap export demand.
- Priced at ~6x 2026 unlevered FCF, the deal creates optionality for non-core asset sales while integrating seamlessly with Targa's existing Permian systems.
Which Baskets Do They Appear In?
Powering Production: The Oil Services Surge
Exxon Mobil's recent earnings beat, driven by higher production volumes in a low-price environment, highlights a key industry strategy. This creates an investment opportunity in companies that provide essential equipment and services for oil and gas exploration and production.
Published: August 1, 2025
Explore BasketNatural Gas Drilling Revival Play
A carefully selected group of stocks poised to benefit from the recent upturn in U.S. natural gas drilling activity. Our professional analysts have identified companies across the entire natural gas value chain that could see improved performance as drilling rebounds for the first time in twelve weeks.
Published: July 20, 2025
Explore BasketPost-IRA Energy Shift
A carefully selected group of energy companies positioned to benefit from potential U.S. policy changes affecting renewables. These stocks were handpicked by our analysts to give you exposure to nuclear, natural gas, and domestic manufacturers that could gain market share if Chinese-component taxes are implemented.
Published: June 30, 2025
Explore BasketWhich Baskets Do They Appear In?
Powering Production: The Oil Services Surge
Exxon Mobil's recent earnings beat, driven by higher production volumes in a low-price environment, highlights a key industry strategy. This creates an investment opportunity in companies that provide essential equipment and services for oil and gas exploration and production.
Published: August 1, 2025
Explore BasketNatural Gas Drilling Revival Play
A carefully selected group of stocks poised to benefit from the recent upturn in U.S. natural gas drilling activity. Our professional analysts have identified companies across the entire natural gas value chain that could see improved performance as drilling rebounds for the first time in twelve weeks.
Published: July 20, 2025
Explore BasketPost-IRA Energy Shift
A carefully selected group of energy companies positioned to benefit from potential U.S. policy changes affecting renewables. These stocks were handpicked by our analysts to give you exposure to nuclear, natural gas, and domestic manufacturers that could gain market share if Chinese-component taxes are implemented.
Published: June 30, 2025
Explore BasketInvestment Analysis
EQT
EQT
Pros
- EQT has a strong integrated natural gas business model with substantial midstream infrastructure in the Appalachian Basin supporting durable free cash flow.
- The company maintains a low-cost production structure, allowing it to benefit significantly from higher natural gas prices with less financial hedging.
- EQT recently increased its dividend, reflecting confidence in its cash flow and profitability, with a current dividend yield around 1.18%.
Considerations
- EQT’s return on equity is relatively low at approximately 8.29%, significantly less than some peers such as Targa Resources, which shows a higher capital efficiency.
- The stock price forecast indicates a potential decline of around 5% by the end of 2025, reflecting some near-term market or operational concerns.
- EQT's net profit margin, while positive, is moderate at about 23%, which may limit upside compared to other energy companies with higher margins.
Targa Resources
TRGP
Pros
- Targa Resources has an exceptionally high return on equity around 59.74%, indicating strong profitability and efficient use of shareholder capital.
- The company operates in midstream energy infrastructure, which typically offers stable cash flows less sensitive to commodity price volatility.
- Targa benefits from scale and diversification in its operations, helping mitigate execution risks in volatile energy markets.
Considerations
- Exposure to natural gas and oil midstream sectors carries significant regulatory and environmental risks that could impact operational costs or expansion plans.
- Targa’s business depends on volumes transported or processed, so it is sensitive to upstream production declines or demand shifts.
- Commodity price fluctuations indirectly affect cash flow sustainability, posing cyclicality risks despite the midstream focus.
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