Targa Resources Reports Record Q2 EBITDA Amid Strong Permian Basin Volumes
On August 6, Targa Resources Corp (NYSE:TRGP) reported a record second-quarter adjusted EBITDA of $1.6 billion, reflecting a 38% year-over-year increase and a 14% rise from the first quarter. The growth was driven by increased volumes in natural gas processing and NGL pipelines rather than just higher prices. New infrastructure projects like Train 11 at Mont Belvieu contributed to record throughput levels. Despite strong performance, Targa is funding its $4.5 billion net capital spending plan with debt, as consolidated debt reached $19.6 billion by June 30. The company also raised its dividend and executed a share buyback program during the quarter. While marketing margin optimization boosted results in Q2, such gains can be inconsistent. The stock trades at 23.26 times forward earnings, suggesting growth expectations are already priced in. Hedge fund ownership increased slightly to 54%, while short interest remains low at just 2.93% of the float.
Tickers: $TRGP
Topics: capital_expenditure dividend_increase energy natural_gas_processing