Analyst Note| Stephen Ellis |
Targa reported a solid third quarter in our view, as EBITDA improved 19% sequentially to $419 million. Gathering and processing volumes recovered as producers ended curtailments, while LPG export volumes hit a record 9.5 million barrels per month, up 22% sequentially. After updating our model, our fair value estimate of $19.50 and no-moat rating remain unchanged. We are concerned by Targa's capital allocation priorities, though.