Oil and gas company Targa's Q2 net income more than doubles

Targa Resources

07/08/2025 11:18

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

Press Release: ID:nGNX6zB0tG

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)