Targa Resources Q4 revenue misses, EBITDA beats estimates

Targa Resources

19/02/2026 11:10

Overview

Midstream services provider's Q4 revenue missed analyst expectations

Adjusted EBITDA for Q4 beat analyst expectations

Company completed acquisition of Stakeholder Midstream and announced new Permian projects

Outlook

Targa estimates 2026 adjusted EBITDA between $5.4 bln and $5.6 bln

Company plans 2026 net growth capital expenditures of $4.5 bln

Targa expects 2026 annual dividend per share to be $5.00

Result Drivers

PERMIAN VOLUMES - Record Permian natural gas inlet volumes and Bull Moose II plant contributed to increased adjusted EBITDA

ACQUISITIONS - Completed acquisition of Stakeholder Midstream and bolt-on transactions in Permian Basin enhanced operational capacity

LPG EXPORTS - Higher LPG export volumes driven by strong seasonal loadings supported Q4 performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$4.06 bln
$4.66 bln (5 Analysts)
Q4 Net Income
$553.10 mln
Q4 Adjusted EBITDA
Beat
$1.34 bln
$1.27 bln (18 Analysts)
Q4 Adjusted Free Cash Flow
$1.12 bln
Q4 Operating Expenses
$337.60 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 $213.50, about 6.2% below its February 18 closing price of $227.62

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX1fb70P

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.)