Targa Resources Corp

Record Quarterly Adjusted EBITDA: Targa Resources reported a record adjusted EBITDA of $1.179 billion for Q1 2025, a 22% increase year-over-year, driven primarily by higher Permian volumes and contributions from the Badlands assets acquisition. This strong performance showcases Targa's resilience amidst headwinds from winter weather impacts.

Volume Growth Outlook: Despite some impacts from winter weather in Q1, Targa expects significant volume growth going forward, particularly in the Permian Basin. Their natural gas inlet volumes in the region averaged over 6 billion cubic feet per day, with a forecast for increased well completions, supporting the expectation of higher back-half volumes for 2025.

Capital Expenditure and Financial Position: The company anticipates 2025 net growth capital spending in the range of $2.6 billion to $2.8 billion with significant investments in projects like the Pembrook II plant and new fractionation facilities. Targa maintains a strong investment-grade balance sheet, with a pro forma consolidated leverage ratio of approximately 3.6x EBITDA, indicating financial flexibility for growth or buybacks.