Skip to Content
Morningstar

Targa Resources Corp TRGP

Morningstar Rating
Unlock
Stock XNYS Rating as of
$113.81 +0.89 (0.79%)
View Full Chart
As of Delayed Price Closed
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Fee Floors Support Substantial Fair Value Estimate Increase for Targa

Stephen Ellis

Targa Resources is primarily a gatherer and processor of natural gas. Seventy percent of its gathering and processing, or G&P, assets are in the Permian, which generates about 80% of its volumes. The firm has historically outgrown Permian production growth, given its leverage to growth-oriented customers and robust gas/oil ratios. It has aggressively made acquisitions, with Lucid in 2022 for $3.5 billion its biggest deal yet. To date, it has contributed to very healthy near-term growth. Fee floors provided protection for Targa downside for 10 out of 12 months in 2023, and we expect a similar outcome for 2024 given the delay in LNG projects and demand uplift.

Read Full Report

Price vs Fair Value

View History
TRGP is trading at a 15% premium.
Price
$113.81
Fair Value
$48.00
Uncertainty
Medium
1-Star Price
$558.29
5-Star Price
$42.60
Economic Moat
Fljp
Capital Allocation
Hnyvgsjy

Bulls Say, Bears Say

Bulls

Targa is leveraged to the high-growth Permian, and its Grand Prix pipeline has been an important growth engine.

Bears

G&P assets face a constant capital expenditures treadmill, given rapid well decline rates to maintain flows.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if TRGP is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$112.92
Day Range
$111.61–114.83
52-Week Range
$67.36–117.61
Bid/Ask
$108.18 / $119.50
Market Cap
$25.33 Bil
Volume/Avg
1.6 Mil / 1.9 Mil

Key Statistics

Price/Earnings (Normalized)
22.37
Price/Sales
1.60
Dividend Yield (Trailing)
1.76%
Dividend Yield (Forward)
2.64%
Total Yield
3.52%

Company Profile

Targa Resources is a midstream firm that primarily operates gathering and processing assets with substantial positions in the Permian, Stack, Scoop, and Bakken plays. It has fractionation capacity at Mont Belvieu and operates a liquefied petroleum gas export terminal. The Grand Prix natural gas liquids pipeline is another important asset.
Sector
Energy
Industry
Oil & Gas Midstream
Stock Style Box
Mid Core
Total Number of Employees
3,186
Website
https://www.targaresources.com

Competitors

Valuation

View More
Metric
TRGP
ET
PAA
Price/Earnings (Normalized)
 22.3712.5112.50
Price/Book Value
 9.251.731.54
Price/Sales
 1.600.630.26
Price/Cash Flow
 8.374.934.94
Price/Earnings
TRGP
ET
PAA

Financial Strength

Metric
TRGP
ET
PAA
Quick Ratio
 0.580.830.84
Current Ratio
 0.791.100.98
Interest Coverage
 3.823.175.20
Quick Ratio
TRGP
ET
PAA

Profitability

Metric
TRGP
ET
PAA
Return on Assets (Normalized)
 7.11%5.62%3.63%
Return on Equity (Normalized)
 53.57%21.72%12.48%
Return on Invested Capital (Normalized)
 11.56%9.25%6.19%
Return on Assets
TRGP
ET
PAA
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Oil & Gas Midstream Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ENB
Enbridge IncNmqqftsgrKrvbnt$74.9 Bil
EPD
Enterprise Products Partners LPYfmrtcbmwXxmql$61.7 Bil
ET
Energy Transfer LPHzmWnt$53.3 Bil
WMB
Williams Companies IncBjgvvdgjRrlknz$47.1 Bil
OKE
ONEOK IncGbzltzgBzcyfp$45.5 Bil
MPLX
MPLX LP Partnership UnitsJbzlllqPlqpmkb$41.6 Bil
KMI
Kinder Morgan Inc Class PFrwpgcvglFgprpjg$40.4 Bil
TRP
TC Energy CorpCxgbssjfgWmfjfv$37.1 Bil
LNG
Cheniere Energy IncJmbntpnFvkll$37.0 Bil

Sponsor Center