Oil and gas company Targa's Q2 net income more than doubles
Overview
Targa Resources Q2 net income rises 111% yr/yr to $629.1 mln
Adjusted EBITDA for Q2 up 18% yr/yr, beating analyst expectations, per LSEG data
Co repurchased $324 mln of common shares in Q2, announces new $1 bln buyback program
Outlook
Targa estimates 2025 adjusted EBITDA between $4.65 bln and $4.85 bln
Company expects 2025 net growth capital expenditures of $3.0 bln
Targa anticipates record Permian and NGL volumes in 2025
Result Drivers
RECORD VOLUMES - Record Permian and NGL transportation volumes drove Q2 results, despite lower commodity prices
PROJECT ACCELERATION - Early completion of several projects in Permian Midland and Delaware contributed to growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $4.26 bln | $4.84 bln (5 Analysts) |
Q2 Net Income | $629.10 mln | ||
Q2 Adjusted EBITDA | Beat | $1.16 bln | $1.15 bln (15 Analysts) |
Q2 Adjusted Free Cash Flow | $934.40 mln | ||
Q2 Operating Expenses | $323.60 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas transportation services peer group is "buy"
Wall Street's median 12-month price target for Targa Resources Corp is $201.50, about 19.1% above its August 6 closing price of $163.05
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago
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