NYSE$TRGP

Targa Resources Corp · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Reported record fourth quarter and full year financial results and provided growth outlook for 2025.

Targa Resources Corp. reported a net income attributable to Targa Resources Corp. of $351.0 million for Q4 2024, compared to $299.6 million for Q4 2023. The company's adjusted EBITDA for the fourth quarter of 2024 was $1,122.2 million, compared to $959.9 million for the fourth quarter of 2023. The company announced refinancing of Badlands Preferred Equity.

  • Record fourth quarter 2024 adjusted EBITDA of $1.1 billion
  • Record fourth quarter 2024 Permian, NGL transportation, fractionation, and LPG export volumes
  • Completed its new 275 million cubic feet per day Greenwood II plant in Permian Midland and its new 120 thousand barrels per day Train 10 fractionator in Mont Belvieu
  • Announced a new expansion of LPG export capabilities at Targa’s Galena Park Marine Terminal which will increase capacity to approximately 19 million barrels per month

Headline financials

Total Revenue

$4.41B

Previous: $4.24B+3.9%
EPS (adj)

$1.44

Previous: $1.23+17.1%
Adjusted EBITDA

$780M

No prior period
Adjusted Cash Flow from Operations

$540M

No prior period
Adjusted Free Cash Flow

$350M

No prior period
Total Consolidated Liquidity

$3.2B

No prior period
Total Consolidated Debt

$12.5B

No prior period
Capital Expenditures

-$727M

Previous: -$720M-1.0%
Net Income

$414M

Previous: $280M+47.8%
Operating Income

$701M

Previous: $635M+10.3%
Gross Profit

$1.1B

Previous: $730M+51.2%

Revenue & EPS history

Targa Resources · Revenue · Quarterly

$4.41B

Q4 2024+3.9%vs Q4 2023
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Targa Resources · $4.47B total across 3 segments · Q2 2023

  • Logistics and Transportation
    $2.76B-51.6%
  • Gathering and Processing
    $1.57B-50.6%
  • Other
    $152M+3475.6%

Forward guidance

Targa estimates full year adjusted EBITDA to be between $4.65 billion and $4.85 billion for 2025.

Tailwinds

  • Targa expects to continue to benefit from meaningful growth across its Permian G&P footprint
  • Expected record Permian, NGL pipeline transportation, fractionation, and LPG export volumes in 2025 relative to the records set in 2024.
  • Targa intends to recommend an annual common dividend of $4.00 per share for 2025 beginning with the first quarter payment in May of 2025.
  • Targa expects to be in position to continue to meaningfully increase the capital returned to shareholders through increasing common dividends per share
  • Targa expects to be in position to continue to meaningfully increase the capital returned to shareholders through opportunistic repurchases of its common stock.

Headwinds

  • Waha natural gas prices average $1.55 per million British Thermal Units
  • Natural gas liquids composite barrel prices average $0.65 per gallon
  • Crude oil prices average $70 per barrel
  • Net maintenance capital expenditures for 2025 are estimated to be approximately $250 million
  • Estimates 2025 net growth capital expenditures of $2.6 billion to $2.8 billion

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.7%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+4.8%

Avg return

30 days after

53%

34 / 64 earnings

Positive

+18.4%

Q1 2020

Best reaction

-13.9%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+0.3%+5.8%
Q4 2025-0.6%+1.8%+4.3%
Q3 2025+5.2%+9.6%+16.9%
Q2 2025+2.4%+3.1%-0.4%
Q1 2025-5.0%-7.9%-7.6%
Q4 2024-2.7%-7.3%-6.1%
Q3 2024+10.0%+13.6%+17.2%
Q2 2024-3.5%-2.7%+8.6%
Q1 2024-0.1%+0.4%+5.2%
Q4 2023+9.7%+9.1%+20.0%
Q3 2023+4.7%+1.6%+7.1%
Q2 2023+1.6%+2.0%+7.8%
Q1 2023+0.7%-0.3%+0.1%
Q4 2022+4.3%+2.7%-7.9%
Q3 2022+5.0%+7.7%+12.2%
Q2 2022-5.7%-0.9%+3.0%
Q1 2022-3.3%-12.8%-0.9%
Q4 2021+4.3%+7.2%+23.7%
Q3 2021+3.1%+4.1%-6.8%
Q2 2021+3.5%+7.2%+8.8%
Q1 2021+4.9%+3.1%+27.0%
Q4 2020-3.3%+1.1%+4.7%
Q3 2020+1.4%+21.1%+58.6%
Q2 2020-2.7%-2.7%-18.9%
Q1 2020+18.4%+23.7%+100.8%
Q4 2019+5.9%-3.5%-80.2%
Q3 2019+1.1%-1.7%-9.2%
Q2 2019+5.1%+4.2%+9.9%
Q1 2019-1.3%+1.2%-2.2%
Q4 2018-12.2%-13.6%-15.0%
Q3 2018-4.6%-9.7%-15.9%
Q2 2018+1.5%+0.5%+1.5%
Q1 2018-3.0%-0.1%+2.9%
Q4 2017+0.2%-0.1%-0.2%
Q3 2017+4.5%+5.4%+5.2%
Q2 2017-0.4%-4.8%-3.2%
Q1 2017-8.4%-10.4%-17.3%
Q4 2016-1.3%-1.0%-4.8%
Q3 2016+5.4%+4.2%+19.8%
Q2 2016+8.2%+12.5%+17.9%
Q1 2016+0.5%
Q4 2015+15.5%
Q3 2015-13.9%
Q2 2015-7.3%
Q1 2015-3.6%
Q4 2014+6.2%
Q3 2014-6.2%
Q2 2014+4.5%
Q1 2014-1.5%
Q4 2013+2.2%
Q3 2013-0.3%
Q2 2013+1.4%
Q1 2013+3.4%
Q4 2012+2.1%
Q3 2012-2.3%
Q2 2012+1.2%
Q4 2011-0.0%
Q1 2012-0.0%
Q1 2011-1.6%
Q3 2010+1.8%
Q3 2011+1.8%
Q4 2010-5.0%
Q2 2011-5.0%
Q2 2010-5.0%
Q1 2010

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