Targa Earnings: A 50% Dividend Increase for 2024 Demonstrates High Confidence in Future Growth

Targa’s third-quarter results were fairly good, and it boosted its planned dividend for 2024 by 50% to $3 per share. After re-assessing Targa’s growth portfolio across 2024 and 2025, including 1 million cubic feet per day of Permian gathering and processing plants, 240,000 barrels per day of planned fractionation capacity, and the 400,000 barrels per day Daytona expansion, we are boosting our fair value estimate to $79 per share from $72. Our no moat rating remains unchanged.