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Targa Resources

TRGP Q4 2025 Earnings

Reported Feb 19, 2026 at 6:15 AM ET · SEC Source

Q4 25 EPS

$N/A

Est. $2.32

Q4 25 Revenue

$4.06B

MISS 9.67%

Est. $4.49B

vs S&P Since Q4 25

+6.9%

BEATING MARKET

TRGP +12.1% vs S&P +5.3%

Full Year 2025 Results

FY 25 Revenue

$17.03B

MISS 3.09%

Est. $17.57B

Market Reaction

Did TRGP Beat Earnings? Q4 2025 Results

Targa Resources delivered a record-setting yet mixed fourth quarter for fiscal 2025, with surging Permian Basin volumes and profitability telling a different story than the top-line revenue figure. Q4 revenue came in at $4.06 billion, falling 9.67% s… Read more Targa Resources delivered a record-setting yet mixed fourth quarter for fiscal 2025, with surging Permian Basin volumes and profitability telling a different story than the top-line revenue figure. Q4 revenue came in at $4.06 billion, falling 9.67% short of the $4.49 billion consensus estimate and sliding 7.9% year-over-year, as lower NGL and natural gas commodity prices weighed on realized values despite strong throughput growth. The key driver behind the gap was commodity price headwinds rather than operational weakness, with record Permian natural gas inlet volumes of 6,650.7 MMcf/d, up 10% year-over-year, underscoring the infrastructure momentum. Net income attributable to Targa rose 55% year-over-year to $545 million in Q4, and full-year adjusted EBITDA reached a record $4.96 billion. Looking ahead, Targa guided 2026 adjusted EBITDA to between $5.40 billion and $5.60 billion and signaled a 25% dividend increase to $5.00 annualized per share, a combination that has drawn considerable investor attention even as elevated capital spending of approximately $4.50 billion keeps some analysts cautious.

Key Takeaways

  • • Record Permian natural gas inlet volumes up 10% YoY in Q4 2025
  • • Record NGL pipeline transportation volumes up 20% YoY in Q4 2025
  • • Record fractionation volumes up 5% YoY in Q4 2025
  • • Higher marketing margin from greater optimization opportunities
  • • Multiple plant additions in the Permian including Bull Moose, Pembrook II, and Bull Moose II
  • • Strong seasonal LPG export loadings
  • • Full year 2025 adjusted EBITDA increased 20% over 2024

TRGP Forward Guidance & Outlook

For 2026, Targa estimates full-year adjusted EBITDA between $5.4 billion and $5.6 billion, an 11% increase over 2025 at the midpoint. The company expects record Permian, NGL pipeline transportation, fractionation, and LPG export volumes. Net growth capital expenditures are estimated at approximately $4.5 billion, including six new Permian plants, three Mont Belvieu fractionators, the Speedway NGL Pipeline, the GPMT LPG Export Expansion, intra-basin residue gas projects, and long-lead items for two additional processing plants. Net maintenance capex is estimated at approximately $250 million. The 2026 outlook assumes Waha natural gas prices averaging $1.00/MMbtu, NGL composite barrel prices averaging $0.60/gallon, and crude oil prices averaging $63.00/barrel. Targa intends to recommend a 25% increase in the annual common dividend to $5.00 per share and expects to continue meaningful capital returns through increasing dividends and opportunistic share repurchases. Estimated 2026 net income attributable to Targa is $2.2 billion.

24/7 Wall St

TRGP YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

“We have a lot of positive momentum in our business, underpinned by the strength of our position in the Permian. The completion of our key large downstream capital projects in the second half of 2027 will provide us with meaningful operating leverage and drive Targa's next transformation, which is an outlook for growing and durable free cash flow supported by our growing fee-based adjusted EBITDA and strong investment grade balance sheet.”

— Matt Meloy, Q4 2025 Earnings Press Release

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