Targa Resources Corp
TRGP
Market Cap$37.98B
Close$
Earnings Call Q4 2024
February 20, 2025 - AI Summary
Strong Financial Performance: Targa Resources reported a record adjusted EBITDA of $4.1 billion for 2024, up 17% year-over-year, demonstrating robust operational strength despite weak natural gas and NGL prices. The company anticipates a further increase in adjusted EBITDA by $600 million in 2025, projecting a range of $4.65 billion to $4.85 billion.
Volume Growth and Infrastructure Expansion: The company achieved 14% year-over-year growth in Permian gathering and processing (GMP) volumes, exceeding previous expectations. Targa is set to further enhance its capacity with the addition of two new Permian processing plants and multiple new downstream projects in 2025 and 2026, positioning it well for rising demand.
Dividend and Buyback Strategy: Targa plans a 33% year-over-year increase in its annual dividend per share for 2025, following a 50% increase in 2024. Additionally, the company opportunistically repurchased $755 million in common shares in 2024, reflecting its commitment to returning capital to shareholders.
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$101.79
40.4% downside
Current Fair Value
40.4% downsideOvervalued by 40.4% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $37.98 Billion |
|---|---|
| Enterprise Value | $52.09 Billion |
| Dividend Yield | $3 (1.71850833476542%) |
| Earnings per Share | $5.77 |
| Beta | 1.75 |
| Outstanding Shares | 220,200,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 29.3 |
|---|---|
| PEG | 170.76 |
| Price to Sales | 2.31 |
| Price to Book Ratio | 8.55 |
| Enterprise Value to Revenue | 3.17 |
| Enterprise Value to EBIT | 34.49 |
| Enterprise Value to Net Income | 39 |
| Total Debt to Enterprise | 0.27 |
| Debt to Equity | 5.5 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Targa Resources Corp
CEO: Matthew Meloy