Targa Resources Reports Strong 2025 Financial Results with Record EBITDA
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 19 2026
0mins
Should l Buy TRGP?
Source: Newsfilter
- Significant Net Income Growth: Targa Resources reported a net income of $545 million for Q4 2025, a 55% increase from $351 million in Q4 2024, demonstrating the company's strong performance and enhanced profitability in the market.
- Record Adjusted EBITDA: The full-year adjusted EBITDA for 2025 reached $4.957 billion, a 20% increase from $4.142 billion in 2024, reflecting robust growth in the company's transportation and processing operations in the Permian Basin.
- Ongoing Stock Buyback Program: In 2025, Targa repurchased 3.765 million shares of common stock at a total cost of $642 million, showcasing the company's confidence in its stock value and creating additional value for shareholders.
- Optimistic Future Outlook: The company estimates adjusted EBITDA for 2026 to be between $5.4 billion and $5.6 billion, an 11% increase over 2025, and plans to raise the annual dividend per share by 25% to $5.00, further enhancing shareholder returns.
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Analyst Views on TRGP
Wall Street analysts forecast TRGP stock price to fall
8 Analyst Rating
8 Buy
0 Hold
0 Sell
Strong Buy
Current: 259.720
Low
188.00
Averages
214.75
High
266.00
Current: 259.720
Low
188.00
Averages
214.75
High
266.00
About TRGP
Targa Resources Corp. is a provider of midstream services in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic midstream infrastructure assets and delivers energy across the United States. The Company is engaged in the business of gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling natural gas liquids (NGLs) and NGL products, including services to liquefied petroleum gas (LPG) exporters; and gathering, storing, terminaling, and purchasing and selling crude oil. Its segments are Gathering and Processing, and Logistics and Transportation. Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells. Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Forecast Adjustments: Over the past three months, Targa's EPS estimates have seen two upward revisions and one downward revision, while revenue estimates have experienced two upward and two downward revisions, reflecting analyst divergence and market uncertainty regarding the company's future performance.
- Market Performance Analysis: Although Targa Resources' stock has performed well, analysts believe there is still potential for further growth, particularly in the current energy market environment, which could drive stock price increases.
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- Earnings Forecast Adjustments: Over the past three months, Targa's EPS estimates have seen two upward revisions and one downward revision, while revenue estimates have experienced two upward and two downward revisions, reflecting analyst divergence and market uncertainty regarding the company's future performance.
- Market Performance Analysis: Although Targa Resources' stock has performed well, analysts believe there is still potential for further growth, particularly in the current energy market environment, which could drive stock price increases.
- Industry Positioning: Morgan Stanley has identified Targa Resources as a top midstream pick, underscoring its strong position in the industry and confidence in future growth, especially in the performance of its liquefied petroleum gas (LPG) export operations.
See More
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- Earnings Growth Drivers: Although Energy Transfer does not produce oil, approximately 10% of its earnings are commodity price-linked, which are expected to rise with oil prices, while increased volumes through its liquids pipelines and marine export terminals will further boost revenue.
- LNG Project Restart Possibility: The closure of the Strait of Hormuz has disrupted global LNG supplies, prompting Energy Transfer to reconsider its Lake Charles LNG project, with potential discussions with partners that could add long-term value to its gas pipeline business.
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See More
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- Oil Price Growth Catalyst: Energy Transfer (ET) is projected to achieve earnings growth of 9% to 11.5% this year, driven by rising oil prices, particularly as potential U.S. military actions against Iran could lead to significant price spikes, enhancing the company's profitability.
- LNG Project Restart Potential: Although the Lake Charles LNG project was suspended last year, the closure of the Strait of Hormuz, disrupting 20% of global LNG supplies, may prompt Energy Transfer to find a new partner to restart the project, adding long-term value to its gas pipeline business.
- Increased Pipeline Volumes: With U.S. energy exports surging due to geopolitical tensions, Energy Transfer expects significant increases in volumes across its liquids pipelines and marine export terminals, which will drive higher fee-based income and further boost unit prices.
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- Value Decline: The quarter-end value of Hess Midstream's position dropped by $46.82 million due to both the sale and stock price changes, suggesting a less optimistic market outlook that impacts its standing in Cushing's portfolio.
- Portfolio Restructuring: Cushing's top five holdings are large, diversified pipeline operators, and the concentrated asset base of Hess Midstream, which relies heavily on a single core customer (Chevron), led to its removal from the portfolio, indicating a preference for broader risk diversification.
- Market Performance: As of April 27, 2026, Hess Midstream shares were priced at $37.02, reflecting a 3.2% increase over the past year, yet underperforming the S&P 500 by 26.34 percentage points, highlighting its competitive challenges in the market.
See More
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See More
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- Yield Overview: With the new dividend, the forward yield stands at 2.08%, not only attracting income-seeking investors but also potentially enhancing the stock's market appeal, which could drive the share price higher.
- Payment Details: The new dividend will be payable on May 15, with a record date of April 30 and an ex-dividend date also on April 30, ensuring shareholders receive their earnings promptly and further solidifying the relationship between the company and its investors.
- Market Performance: Targa Resources' stock has performed well in the past, and while the current dividend increase indicates financial health, there remains potential for further growth, which may attract more long-term investors to the stock.
See More
