Targa Resources Q1 revenue falls 10%, misses estimates

Targa Resources

07/05/2026 11:13

Overview

U.S. midstream energy firm's Q1 revenue fell 10% and missed analyst expectations

Adjusted EBITDA for Q1 rose 19% and beat analyst estimates

Company raised full-year adjusted EBITDA outlook and hiked dividend by 25%

Outlook

Targa now estimates 2026 adjusted EBITDA between $5.7 bln and $5.9 bln

Company continues to estimate 2026 net growth capital expenditures at about $4.5 bln

Second-quarter Permian inlet volumes are trending significantly higher versus first quarter

Result Drivers

PERMIAN VOLUME GROWTH - Higher natural gas inlet volumes in the Permian, driven by new plant additions, asset acquisitions, and strong producer activity, boosted fee-based margins

LOWER COMMODITY PRICES - Revenue declined as lower NGL, natural gas, and condensate prices outweighed higher volumes and favorable hedges

HIGHER MARKETING MARGIN - Logistics and Transportation segment benefited from increased marketing margin due to greater optimization opportunities

Company press release: ID:nGNX4JKsxR

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$4.09 bln
$4.69 bln (6 Analysts)
Q1 Net Income
$487.40 mln
Q1 Adjusted EBITDA
Beat
$1.40 bln
$1.35 bln (18 Analysts)
Q1 Adjusted Free Cash Flow
$227.90 mln
Q1 Operating Expenses
$333.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 3 "hold" and 1 "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 $261.50, about 4.8% above its May 6 closing price of $249.50

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)