TRGP Earnings Prediction
The chart below shows how TRGP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TRGP sees a -2.56% change in stock price 10 days leading up to the earnings, and a +3.74% change 10 days following the report. On the earnings day itself, the stock moves by +1.84%. This data can give you a slight idea of what to expect for the next quarter's release.
TRGP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.89B
0.12%
7.39%
Gross Margin
29.99%
35.33%
1.18%
Operating Margin
19.77%
53.73%
4.66%
Net Margin
11.53%
60.36%
16.23%
EPS
1.75
80.41%
31.58%
No Data Available
TRGP Earnings Analysis
Targa Resources Corp. Corporation (TRGP.N) Earnings Conference Call
Positive
Record Adjusted EBITDA Growth: 1. Record Adjusted EBITDA: Targa Resources reported a record adjusted EBITDA of $1.07 billion for Q3 2024, marking a 9% increase from the previous quarter, driven by higher Permian volumes and natural gas optimization.
Record Natural Gas Volume Growth: 2. Significant Volume Growth: Natural gas inlet volumes in the Permian averaged a record 6 billion cubic feet per day, an 18% increase year-over-year, contributing to record NGL transportation and fractionation volumes.
Share Repurchase Surge: 3. Increased Share Repurchases: Targa repurchased $168 million of common shares in Q3 2024, bringing the total for the year to nearly $650 million, significantly higher than the $347 million repurchased in all of 2023.
Dividend Increase Proposal: 4. Dividend Increase Announcement: The company plans to recommend a 33% increase in the annual common dividend to $4 per share for 2025, reflecting strong financial performance and commitment to returning capital to shareholders.
Credit Ratings and Leverage Ratio: 5. Strong Balance Sheet and Credit Ratings: Targa has achieved investment-grade credit ratings from all three major agencies, with a net consolidated leverage ratio of approximately 3.6 times, well within its long-term target range.
Negative
Capital Expenditure Surge: 1. Increased Capital Expenditures: Targa's net growth capital spending for the quarter was approximately $700 million, with expectations to exceed $2.7 billion for the full year, indicating a significant increase in capital allocation amidst rising operational costs.
Lower Margin Contract Effects: 2. Lower Margin Contract Impact: The company anticipates a reduction in volumes for Q4 due to a lower margin contract rolling over in the Gathering and Processing segment, which will negatively affect quarter-over-quarter growth.
Leverage Ratio Analysis: 3. High Leverage Ratio: Targa's net consolidated leverage ratio was approximately 3.6 times at the end of Q3, which is at the higher end of their long-term target range of 3 to 4 times, indicating potential financial strain.
Declining Ethane Prices Impact: 4. Declining Ethane Prices: Ethane prices have recently weakened to around $0.18, which may lead to reduced recovery rates and impact overall profitability in the NGL pipeline segment.
Free Cash Flow Concerns: 5. Delayed Free Cash Flow Inflection: While Targa expects significant free cash flow in 2025, there are concerns that potential acquisitions could delay this inflection, adding uncertainty to future financial performance.
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TRGP Earning Call Sentiment
Targa Resources Corp (TRGP) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
TRGP.N
-4.7%Positive
The earnings call summary highlights strong financial performance, including record operating margins and increased share repurchases. The Q&A session reveals optimism about future growth and capital spending, despite some lack of clarity on specifics. The 33% dividend increase and commitment to shareholder returns further bolster positive sentiment. While management didn't provide exact future figures, the overall tone remains optimistic, suggesting a positive stock price movement in the short term.