Targa Resources Corp. delivered record third‑quarter 2025 results, reporting net income attributable to the company of $478.4 million—an increase of 23% from $387.4 million in the same quarter of 2024. Adjusted EBITDA rose to $1.2748 billion, up 19% from $1.0697 billion in Q3 2024 and 10% from $1.158 billion in Q2 2025, driven by higher volumes and fee growth across its midstream portfolio. Revenue, however, fell to $4.15 billion, missing consensus estimates of $4.56 billion. The shortfall is attributable to pricing pressure in the Permian Basin and a modest decline in natural‑gas inlet volumes, which offset the gains from increased throughput in the Gathering and Processing (G&P) segment.
The G&P system posted a 12% increase in adjusted operating margin, largely due to record Permian natural‑gas inlet volumes and the in‑service of the Pembrook II plant, which added capacity and improved throughput economics. The Logistics and Transportation (L&T) segment also contributed to the EBITDA lift, with higher fee growth from expanded pipeline services. Despite these gains, the company’s revenue miss reflects a 4% decline in the L&T segment’s transportation fees, a consequence of fluctuating commodity prices and competitive pricing in the market.
Management maintained its full‑year 2025 adjusted EBITDA guidance near the top end of the $4.65–$4.85 billion range, unchanged from the prior guidance. The company reiterated confidence in sustaining high operating margins through continued volume growth and fee optimization, while acknowledging that commodity price volatility remains a headwind. The guidance signals management’s belief that the current operational momentum will translate into robust full‑year performance.
Targa also announced a quarterly cash dividend of $1.00 per common share, or $4.00 annualized, payable on November 17, 2025. In addition, the company repurchased 932,023 shares at an average price of $166.95, costing $155.6 million net. These actions underscore the company’s commitment to returning value to shareholders while maintaining a strong capital structure.
Liquidity remains robust, with $2.3 billion available, including $2.2 billion under its revolving credit facility and $124.1 million in cash. The strong liquidity position provides flexibility for ongoing infrastructure investments, such as the Bull Moose II and Yeti plants, and supports the company’s dividend and share‑repurchase programs.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.