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Targa Resources Inc (TRGP)



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Upturn Advisory Summary
08/14/2025: TRGP (4-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $205.83
1 Year Target Price $205.83
14 | Strong Buy |
7 | Buy |
1 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 51.43% | Avg. Invested days 50 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 35.62B USD | Price to earnings Ratio 23.75 | 1Y Target Price 205.83 |
Price to earnings Ratio 23.75 | 1Y Target Price 205.83 | ||
Volume (30-day avg) 22 | Beta 1.13 | 52 Weeks Range 138.14 - 215.20 | Updated Date 08/15/2025 |
52 Weeks Range 138.14 - 215.20 | Updated Date 08/15/2025 | ||
Dividends yield (FY) 2.10% | Basic EPS (TTM) 6.97 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-08-07 | When - | Estimate 1.88 | Actual 1.9 |
Profitability
Profit Margin 9.59% | Operating Margin (TTM) 24.26% |
Management Effectiveness
Return on Assets (TTM) 8.39% | Return on Equity (TTM) 50.39% |
Valuation
Trailing PE 23.75 | Forward PE 18.59 | Enterprise Value 52353803424 | Price to Sales(TTM) 2.09 |
Enterprise Value 52353803424 | Price to Sales(TTM) 2.09 | ||
Enterprise Value to Revenue 3.07 | Enterprise Value to EBITDA 11.64 | Shares Outstanding 215192000 | Shares Floating 211570173 |
Shares Outstanding 215192000 | Shares Floating 211570173 | ||
Percent Insiders 1.41 | Percent Institutions 90.92 |
Upturn AI SWOT
Targa Resources Inc
Company Overview
History and Background
Targa Resources Inc. was formed in 2005 through the combination of Dynegy Inc.'s natural gas liquids (NGL) business and private equity-backed Targa Resources, LLC. It has grown through acquisitions and organic projects to become a major midstream infrastructure company.
Core Business Areas
- Gathering and Processing: Gathers raw natural gas from wells and processes it to remove impurities, resulting in marketable natural gas and NGLs.
- Logistics and Transportation: Transports, stores, and fractionates NGLs, and provides other logistics services for crude oil and refined products. Includes pipelines, terminals, and fractionation facilities.
Leadership and Structure
The company is led by CEO Matt Meloy. The organizational structure consists of executive leadership overseeing various operational and support departments.
Top Products and Market Share
Key Offerings
- Natural Gas Gathering and Processing: Gathers and processes natural gas, separating valuable NGLs. Targa is a major player in key shale plays. Market share data is not readily available as it varies by region and specific processing facility. Competitors include Energy Transfer, Kinder Morgan, and MPLX.
- NGL Fractionation: Separates mixed NGL streams into individual components like ethane, propane, and butane. Competitors include Enterprise Products Partners, ONEOK and Phillips 66.
- Crude Oil Logistics: Provides crude oil logistics services including transportation, storage, and handling. Market share is region-specific and not easily quantifiable. Competitors include Plains All American, Energy Transfer, and Magellan Midstream Partners.
Market Dynamics
Industry Overview
The midstream energy industry is crucial for connecting producers with end-users. It is influenced by commodity prices, regulatory changes, and infrastructure development.
Positioning
Targa Resources Inc. is a key player in the midstream sector, with a strong presence in key shale plays. Its integrated infrastructure provides a competitive advantage.
Total Addressable Market (TAM)
The TAM for midstream services is estimated to be in the hundreds of billions of dollars annually. Targa is positioned to capture a significant portion of this market through its assets and strategic locations.
Upturn SWOT Analysis
Strengths
- Strategic asset locations in key shale plays
- Integrated infrastructure network
- Strong relationships with producers
- Experienced management team
Weaknesses
- Exposure to commodity price volatility
- Dependence on producer activity
- High capital expenditures
- Susceptibility to regulatory changes
Opportunities
- Expansion of existing infrastructure
- Acquisitions of complementary assets
- Increased demand for NGL exports
- Development of new markets
Threats
- Decline in commodity prices
- Increased competition
- Regulatory constraints
- Geopolitical instability
Competitors and Market Share
Key Competitors
- ET
- KMI
- MPLX
- EPD
- WMB
- OKE
Competitive Landscape
Targa benefits from its strategic asset locations and integrated infrastructure. However, it faces competition from larger players with more diversified operations.
Major Acquisitions
Lucid Energy Group
- Year: 2022
- Acquisition Price (USD millions): 3550
- Strategic Rationale: Expanded Targa's Permian Basin footprint and processing capacity, enhancing its position in a key growth region.
Growth Trajectory and Initiatives
Historical Growth: Historical growth requires financial data and past stock performance.
Future Projections: Future projections would be based on analyst estimates and require external research.
Recent Initiatives: Requires recent initiatives undertaken by Targa.
Summary
Targa Resources is a significant player in the midstream energy sector with a strong asset base. While commodity price volatility poses a risk, strategic acquisitions and infrastructure expansions support growth. Monitoring regulatory changes and maintaining strong producer relationships are crucial. Overall, Targa appears to be a relatively healthy company positioned for continued growth with some risks from the external environment.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Analyst estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market share data is based on estimates and may vary.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Targa Resources Inc
Exchange NYSE | Headquaters Houston, TX, United States | ||
IPO Launch date 2010-12-07 | CEO & Director Mr. Matthew J. Meloy | ||
Sector Energy | Industry Oil & Gas Midstream | Full time employees 3370 | Website https://www.targaresources.com |
Full time employees 3370 | Website https://www.targaresources.com |
Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of complementary domestic infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil. It is also involved in the purchase and resale of NGL products; and sale of propane, as well as provision of related logistics services to multi-state retailers, independent retailers, and other end-users. In addition, the company offers NGL balancing services; and transportation services to refineries and petrochemical companies in the Gulf Coast area, as well as purchases, markets, and resells natural gas. As of December 31, 2024, it leased and managed approximately 531 railcars; 131 tractors; and 6 vacuum trucks and 2 pressurized NGL barges, as well as owns 8 tractors. Targa Resources Corp. was incorporated in 2005 and is headquartered in Houston, Texas.

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