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 -2.33% change in stock price 10 days leading up to the earnings, and a +1.67% change 10 days following the report. On the earnings day itself, the stock moves by +2.12%. This data can give you a slight idea of what to expect for the next quarter's release.
TRGP Key Earning Data
TRGP Earnings Analysis
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.
TRGP FAQs
How does TRGP typically perform around its earnings report dates?
TRGP's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -2.33% change leading up to the report and a +1.67% change in the 10 days following the release.
Is Targa Resources Corp (TRGP) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
TRGP Earning Call Sentiment
Targa Resources Corp (TRGP) Q3 2024 Earnings Call Transcript
TRGP.N
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