Targa’s Q4 Delivers Strong Growth, and 2023 Guidance Delivers More of the Same

Targa's aggressive investments continue to pay off in this robust oil and gas market as full-year 2022 EBITDA of $2.9 billion was up 41% over 2021 levels, and 2023 guidance calls for more growth with another 24% increase. 2023 EBITDA guidance at a midpoint of $3.6 billion is slightly above our $3.5 billion forecast. Targa hasn't been shy about putting capital to work with at least $6 billion in capital investment since 2018, which is sizable compared to the $14 billion of property, plant, and equipment on its balance sheet in the third quarter. At first glance, we maintain our $64 per share fair value estimate and no-moat rating.