Targa Resources, Inc. (TRGP) Stock

Targa Resources, Inc. (TRGP) is a Utilities stock trading at $285.77 (as of 2026-09-15), with a market capitalization of $61.34B and a trailing P/E of 27.1. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Targa Resources Corp. and its subsidiary own, operate, acquire, and develop midstream energy assets in North America. It operates in Gathering and Processing and Logistics and Transportation, providing services and selling natural gas, natural gas liquids and related products, and crude oil through gathering, processing, storage, terminaling, and transportation for customers including retailers, refineries, petrochemical companies, and other end users.

Understand Targa Resources, Inc.: how it makes money

Targa operates midstream energy infrastructure (gathering, processing, and transportation) for natural gas and NGLs across North America, earning contracted fees and commodity-linked revenues from oil and gas producers. The Permian Basin anchors the volume base, with fee floors protecting downside and marketing upside layering on cyclicality during commodity spikes.

Contracted fee floors on gas and NGL throughput convert producer capex into predictable company revenue, so the asset base earns a steady per-unit fee while volume growth (not price) drives the top line.

Business quality (Strong): Strong operating profile (28% operating margin, 48% gross margin) with a defensive fee-based model, but the 34% valuation premium to the Utilities sector average prices in years of clean execution.

Valuation: At 27× earnings, TRGP trades 34% above the Utilities average (20×).

Bull case

  • Permian volumes extend the growth runway: Management expects strong Permian producer activity to support continued volume growth through 2026 and into 2027, building on quarterly revenue of $4.4 billion (+4% YoY) and more gas flowing through Targa's processing plants.
  • LPG exports locked in for years: Management confirmed LPG exports remain highly contracted through LEP4 startup and for years afterward, and the Speedway line can expand from 500,000 to 1 million barrels per day with incremental pumps, giving the export business multi-year revenue visibility.
  • Fee structure supports margin durability: A 48% gross margin reflects the contracted per-unit fee model that captures value at each gathering, processing, and transportation step without full commodity price exposure, a structural advantage over pure-play marketers.

Bear case

  • Marketing tailwind is temporary: Management flagged that second-half marketing gains will moderate after substantial first-half outperformance, meaning the 28% operating margin likely embeds commodity spikes that will reverse in later quarters and compress earnings toward run-rate levels.
  • Fee floor not yet cushioning: Management expects the portfolio to remain below 50% of fee-floor levels in aggregate during Q3, meaning the contracted downside protection is not yet fully engaged and volumes sit at historically low utilization within the fee range.
  • 34% premium leaves little room: At 27.2x earnings versus the 20x Utilities industry average (a 34% premium), the stock already prices in sustained Permian growth; any slowdown in producer activity or slip on plant construction (with extended electrical and component lead times) compresses that multiple quickly.
Valuation — source: SEC EDGAR (first-party)
Price$285.77
Market Cap$61.34B
P/E Ratio27.1
EV / EBITDA14.7
Price / Book16.16
Price / Sales3.66
FCF Yield1.2%
DCF Value (model)$109.89
DCF Upside vs Price-61.5%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$17.03B
Net Margin11.3%
Return on Equity59.7%
Debt / Equity5.16
Current Ratio0.77
Revenue Growth (YoY)4.2%
EPS Growth (YoY)22.9%
FCF Growth (YoY)-1002.1%
Financial Health — source: SEC EDGAR
Altman Z-Score2.86 (grey)
Piotroski F-Score6/9 (moderate)
Valuation vs Sector & Industry
Stock P/E27.1
Sector P/E (Utilities)20.6
Industry P/E (Utilities)20.4
vs Sector31.2%
vs Industry32.4%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderBlackRock, Inc. ($5.59B)
Institutional Holders Tracked10
Congressional Trades (recent)8
Company
SectorUtilities
IndustryUtilities
CEOMatthew J. Meloy
Employees3,370
CountryUS
IPO Date2010-12-07

Targa Resources, Inc. earnings call transcripts

  • TRGP Q2 FY26 earnings call transcript (reported 2026-08-06) · analysis
  • TRGP Q1 FY26 earnings call transcript (reported 2026-05-07) · analysis
  • TRGP Q4 FY25 earnings call transcript (reported 2026-02-19) · analysis
  • TRGP Q3 FY25 earnings call transcript (reported 2025-11-05) · analysis
  • TRGP Q2 FY25 earnings call transcript (reported 2025-08-07) · analysis

All TRGP earnings calls

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TRGP earnings history · TRGP institutional & insider holders · TRGP KPIs & operating metrics · TRGP financials · TRGP filings, presentations & press releases · TRGP investor presentations & press releases · TRGP SEC filings · TRGP peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-09-15.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.