Targa Resources Corp. (TRGP) 10-Year Financial Performance & Capital Metrics

TRGP • • Industrial / General

EnergyMidstream Oil & GasProcessing & FractionationGas Processing Specialists

AboutTarga Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of midstream energy assets in North America. The company operates in two segments, Gathering and Processing, and Logistics and Transportation. It engages 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. The company is also involved in the purchase and resale of NGL products; and wholesale of propane, as well as provision of related logistics services to multi-state retailers, independent retailers, and other end-users. In addition, it 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. The company operates approximately 28,400 miles of natural gas pipelines, including 42 owned and operated processing plants; and owns or operates a total of 34 storage wells with a gross storage capacity of approximately 76 million barrels. As of December 31, 2021, it leased and managed approximately 648 railcars; 119 transport tractors; and two company-owned pressurized NGL barges. The company was incorporated in 2005 and is headquartered in Houston, Texas.Show more

Revenue $16.63B +6.5%
EBITDA $4.38B +24.3%
Net Income $1.27B +53.3%
EPS (Diluted) 5.74 +56.6%
Gross Margin 20% +23.2%
EBITDA Margin 26.33% +16.8%
Operating Margin 17.71% +26.5%
Net Margin 7.64% +44.0%
ROE 28.12% +62.9%
ROIC 12.26% +26.4%
Debt/Equity 3.23 +14.4%
Interest Coverage 3.84 +20.7%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 22.6%
✓Strong Piotroski F-Score: 7/9
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 13.9%
✓Share count reduced 2.1% through buybacks

✗Weaknesses

✗High debt to equity ratio of 3.2x

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y6.78%

5Y13.91%

3Y-1.58%

TTM7.28%

Profit (Net Income) CAGR

10Y28.64%

5Y-

3Y161.25%

TTM33.79%

EPS CAGR

10Y8.98%

5Y-

3Y-

TTM34.04%

ROCE

10Y Avg8.05%

5Y Avg13.39%

3Y Avg15.11%

Latest15.71%

Peer Comparison

Gas Processing Specialists

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
TRGPTarga Resources Corp.	39.05B	181.93	31.70	6.45%	9.44%	58.24%	1.75%	3.23

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	6.58B	6.64B	8.86B	10.55B	8.67B	8.27B	17.44B	21.68B	15.62B	16.63B
Revenue Growth %	-0.24%	0.01%	0.33%	0.19%	-0.18%	-0.05%	1.11%	0.24%	-0.28%	0.06%
Cost of Goods Sold+	6.05B	6.23B	8.34B	9.78B	7.18B	6.75B	15.35B	18.89B	13.08B	13.3B
COGS % of Revenue	0.92%	0.94%	0.94%	0.93%	0.83%	0.82%	0.88%	0.87%	0.84%	0.8%
Gross Profit+	523.3M	410.7M	526.1M	778.8M	1.49B	1.52B	2.09B	2.79B	2.54B	3.33B
Gross Margin %	0.08%	0.06%	0.06%	0.07%	0.17%	0.18%	0.12%	0.13%	0.16%	0.2%
Gross Profit Growth %	-0.34%	-0.22%	0.28%	0.48%	0.92%	0.02%	0.37%	0.33%	-0.09%	0.31%
Operating Expenses+	162.8M	187.7M	204.9M	260.5M	1.3B	257.2M	273.3M	309.7M	348.6M	381.4M
OpEx % of Revenue	0.02%	0.03%	0.02%	0.02%	0.15%	0.03%	0.02%	0.01%	0.02%	0.02%
Selling, General & Admin	161.7M	187.2M	203.4M	256.9M	280.7M	254.6M	273.2M	309.7M	348.7M	384.9M
SG&A % of Revenue	0.02%	0.03%	0.02%	0.02%	0.03%	0.03%	0.02%	0.01%	0.02%	0.02%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	1.1M	500K	1.5M	3.6M	1.02B	2.6M	100K	0	-100K	-3.5M
Operating Income+	360.5M	223M	321.2M	518.3M	192.9M	1.27B	1.82B	2.48B	2.19B	2.94B
Operating Margin %	0.05%	0.03%	0.04%	0.05%	0.02%	0.15%	0.1%	0.11%	0.14%	0.18%
Operating Income Growth %	-0.44%	-0.38%	0.44%	0.61%	-0.63%	5.56%	0.44%	0.36%	-0.12%	0.35%
EBITDA+	1.04B	985.3M	1.13B	1.34B	1.16B	2.13B	2.69B	3.58B	3.52B	4.38B
EBITDA Margin %	0.16%	0.15%	0.13%	0.13%	0.13%	0.26%	0.15%	0.17%	0.23%	0.26%
EBITDA Growth %	0.04%	-0.06%	0.15%	0.18%	-0.13%	0.83%	0.26%	0.33%	-0.02%	0.24%
D&A (Non-Cash Add-back)	682.4M	762.3M	813.4M	819.6M	971.6M	868.7M	874.6M	1.1B	1.34B	1.43B
EBIT	120.1M	-5.5M	-59.2M	323.8M	291.1M	-1.18B	824.8M	2.11B	2.63B	2.71B
Net Interest Income+	-231.9M	-254.2M	-233.7M	-257.9M	-337.8M	-391.3M	-387.9M	-446.1M	-687.8M	-767.2M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	231.9M	254.2M	233.7M	257.9M	337.8M	391.3M	387.9M	446.1M	687.8M	767.2M
Other Income/Expense	-472.3M	-482.7M	-614.1M	-452.4M	-239.6M	-2.84B	-1.38B	-820.7M	-244.2M	-1.01B
Pretax Income+	-111.8M	-259.7M	-292.9M	65.9M	-46.7M	-1.57B	436.9M	1.66B	1.94B	1.94B
Pretax Margin %	-0.02%	-0.04%	-0.03%	0.01%	-0.01%	-0.19%	0.03%	0.08%	0.12%	0.12%
Income Tax+	39.6M	-100.6M	-397.1M	5.5M	-87.9M	-248.1M	14.8M	131.8M	363.2M	384.5M
Effective Tax Rate %	-0.52%	0.72%	-0.18%	0.02%	4.48%	0.99%	0.16%	0.69%	0.43%	0.66%
Net Income+	58.3M	-187.3M	54M	1.6M	-209.2M	-1.55B	71.2M	1.14B	828.2M	1.27B
Net Margin %	0.01%	-0.03%	0.01%	0%	-0.02%	-0.19%	0%	0.05%	0.05%	0.08%
Net Income Growth %	-0.43%	-4.21%	1.29%	-0.97%	-131.75%	-6.43%	1.05%	15.04%	-0.27%	0.53%
Net Income (Continuing)	-151.4M	-159.1M	104.2M	60.4M	41.2M	-1.32B	422.1M	1.53B	1.58B	1.55B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	4.79B	475.8M	595.7M	1.39B	3.52B	3.25B	3.17B	2.32B	1.87B	1.83B
EPS (Diluted)+	1.09	-1.80	-0.31	-0.53	-1.44	-7.26	-0.07	3.88	3.66	5.74
EPS Growth %	-0.55%	-2.65%	0.83%	-0.72%	-1.7%	-4.05%	0.99%	56.12%	-0.06%	0.57%
EPS (Basic)	1.09	-1.80	-0.31	-0.53	-1.44	-7.26	-0.07	3.95	3.69	5.77
Diluted Shares Outstanding	53.6M	184.72M	206.9M	224.2M	232.5M	232.2M	228.6M	231.1M	226M	221.3M
Basic Shares Outstanding	53.5M	184.72M	204.52M	224.2M	232.5M	232.2M	228.6M	227.3M	224.6M	220.2M
Dividend Payout Ratio	3.07%	-	15.61%	567.69%	-	-	2.63%	0.33%	0.52%	0.48%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	920M	1.01B	1.27B	1.42B	1.66B	1.46B	1.77B	2.36B	2.19B	2.3B
Cash & Short-Term Investments	140.2M	73.5M	137.2M	232.1M	331.1M	242.8M	158.5M	219M	141.7M	157.3M
Cash Only	140.2M	73.5M	137.2M	232.1M	331.1M	242.8M	158.5M	219M	141.7M	157.3M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	515.8M	742.4M	827.6M	865.5M	855M	862.8M	1.33B	1.41B	1.47B	1.62B
Days Sales Outstanding	28.62	40.78	34.08	29.93	35.99	38.07	27.87	23.71	34.38	35.53
Inventory	141M	137.7M	204.5M	164.7M	161.5M	181.5M	153.4M	393.8M	371.5M	334.3M
Days Inventory Outstanding	8.5	8.06	8.95	6.15	8.21	9.81	3.65	7.61	10.36	9.17
Other Current Assets	123M	53.2M	100.6M	156.6M	310.7M	173.2M	126M	335.4M	210.4M	186.4M
Total Non-Current Assets+	12.33B	11.86B	13.12B	15.52B	17.16B	14.42B	13.44B	17.2B	18.48B	20.44B
Property, Plant & Equipment	9.7B	9.69B	10.43B	12.93B	14.55B	12.17B	11.67B	14.21B	15.81B	18.06B
Fixed Asset Turnover	0.68x	0.69x	0.85x	0.82x	0.60x	0.68x	1.49x	1.53x	0.99x	0.92x
Goodwill	417M	210M	256.6M	46.6M	45.2M	0	0	0	0	0
Intangible Assets	1.81B	1.65B	2.17B	1.98B	1.74B	1.38B	1.09B	2.73B	2.35B	1.98B
Long-Term Investments	258.9M	240.8M	221.6M	490.5M	738.7M	714M	586.5M	131.3M	146.3M	193.3M
Other Non-Current Assets	102.3M	68.6M	44.7M	70.6M	134.6M	145.4M	89.4M	122.9M	173.9M	204.4M
Total Assets+	13.25B	12.87B	14.39B	16.94B	18.82B	15.88B	15.21B	19.56B	20.67B	22.73B
Asset Turnover	0.50x	0.52x	0.62x	0.62x	0.46x	0.52x	1.15x	1.11x	0.76x	0.73x
Asset Growth %	1.05%	-0.03%	0.12%	0.18%	0.11%	-0.16%	-0.04%	0.29%	0.06%	0.1%
Total Current Liabilities+	874.9M	1.17B	1.62B	2.8B	1.87B	1.78B	2.3B	3.07B	2.76B	3.17B
Accounts Payable	521.4M	691.4M	1B	1.2B	954.8M	833.8M	1.4B	1.45B	1.57B	2.01B
Days Payables Outstanding	31.43	40.48	43.83	44.82	48.54	45.09	33.35	27.99	43.93	55.22
Short-Term Debt	219.3M	275M	350M	1.03B	370M	356.5M	150M	800M	575M	330M
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	21.2M	86.3M	132.5M	90.9M	110.5M	142.6M	258.2M	320.1M	54M	167.3M
Current Ratio	1.05x	0.86x	0.79x	0.51x	0.89x	0.82x	0.77x	0.77x	0.79x	0.72x
Quick Ratio	0.89x	0.74x	0.66x	0.45x	0.80x	0.72x	0.70x	0.64x	0.66x	0.62x
Cash Conversion Cycle	5.69	8.36	-0.8	-8.74	-4.34	2.8	-1.83	3.32	0.8	-10.52
Total Non-Current Liabilities+	6.09B	5.98B	6.02B	6.67B	8.5B	8.19B	7.73B	11.51B	13.3B	15.14B
Long-Term Debt	5.72B	4.61B	4.7B	5.63B	7.41B	7.37B	6.42B	10.51B	12.09B	13.55B
Capital Lease Obligations	0	0	0	0	73M	64.9M	48.2M	221.6M	300.6M	330.8M
Deferred Tax Liabilities	177.8M	941.2M	479M	525.2M	434.2M	152.1M	136M	327.7M	535.8M	872.1M
Other Non-Current Liabilities	161.6M	362.2M	697.8M	335.5M	406M	439.2M	954.3M	253.9M	126.6M	274M
Total Liabilities	6.96B	7.15B	7.63B	9.47B	10.37B	9.97B	10.03B	14.58B	16.06B	18.32B
Total Debt+	5.98B	4.88B	5.05B	6.66B	7.87B	7.8B	6.63B	11.56B	13.01B	14.27B
Net Debt	5.84B	4.81B	4.92B	6.43B	7.54B	7.56B	6.47B	11.35B	12.87B	14.11B
Debt / Equity	0.96x	0.85x	0.75x	0.89x	0.93x	1.32x	1.28x	2.32x	2.82x	3.23x
Debt / EBITDA	5.73x	4.95x	4.45x	4.98x	6.76x	3.66x	2.46x	3.23x	3.69x	3.26x
Net Debt / EBITDA	5.60x	4.88x	4.33x	4.80x	6.47x	3.54x	2.40x	3.17x	3.65x	3.22x
Interest Coverage	1.55x	0.88x	1.37x	2.01x	0.57x	3.23x	4.69x	5.57x	3.18x	3.84x
Total Equity+	6.25B	5.72B	6.76B	7.47B	8.44B	5.9B	5.18B	4.98B	4.61B	4.42B
Equity Growth %	1.46%	-0.08%	0.18%	0.11%	0.13%	-0.3%	-0.12%	-0.04%	-0.07%	-0.04%
Book Value per Share	116.61	30.99	32.65	33.32	36.31	25.42	22.65	21.56	20.40	19.96
Total Shareholders' Equity	1.46B	5.25B	6.16B	6.08B	4.92B	2.65B	2.01B	2.67B	2.74B	2.59B
Common Stock	100K	200K	200K	200K	200K	200K	200K	200K	200K	200K
Retained Earnings	26.9M	-187.3M	-77.2M	-130.4M	-339.6M	-1.89B	-1.82B	-626.8M	492M	1.19B
Treasury Stock	-28.7M	-32.2M	-35.6M	-39.6M	-53.5M	-150.9M	-204.1M	-464.7M	-896.9M	-1.71B
Accumulated OCI	5.7M	-38.3M	-29.9M	94.3M	92.5M	-141.8M	-230.9M	54.7M	85.6M	27.5M
Minority Interest	4.79B	475.8M	595.7M	1.39B	3.52B	3.25B	3.17B	2.32B	1.87B	1.83B

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	1.03B	837.4M	939.5M	1.14B	1.39B	1.74B	2.3B	2.38B	3.21B	3.65B
Operating CF Margin %	0.16%	0.13%	0.11%	0.11%	0.16%	0.21%	0.13%	0.11%	0.21%	0.22%
Operating CF Growth %	0.36%	-0.19%	0.12%	0.22%	0.21%	0.26%	0.32%	0.03%	0.35%	0.14%
Net Income	-151.4M	-159.1M	104.2M	60.4M	41.2M	-1.32B	422.1M	1.53B	1.58B	1.55B
Depreciation & Amortization	644.5M	757.7M	809.5M	815.9M	971.6M	865.1M	870.6M	1.1B	1.33B	1.42B
Stock-Based Compensation	25M	29.7M	42.3M	56.3M	60.3M	66.2M	59.2M	57.5M	62.4M	63.2M
Deferred Taxes	24.6M	-37.8M	-392.7M	5.5M	-87.9M	-232.7M	12.1M	125.1M	349.6M	367M
Other Non-Cash Items	400.9M	309.6M	369.3M	168.8M	393.5M	2.31B	719.4M	-65.2M	-248.5M	204.3M
Working Capital Changes	91.1M	-62.7M	6.9M	37.1M	11.1M	59.3M	219.5M	-364M	139.2M	38.7M
Change in Receivables	235.9M	-222.9M	-20.1M	-6.2M	-24.7M	-25.6M	-392.4M	219.7M	-20.6M	-75M
Change in Inventory	41.4M	-15.9M	-73.2M	-13.9M	-45M	-27.7M	40.6M	-236.2M	36M	33.5M
Change in Payables	-186.2M	176.1M	100.2M	31.6M	35M	105.7M	565.4M	-383M	68.2M	40.7M
Cash from Investing+	-2.4B	-558.6M	-1.89B	-3.15B	-3.07B	-738.1M	-473.2M	-4.15B	-2.4B	-3.02B
Capital Expenditures	-817.2M	-562.1M	-1.3B	-3.11B	-2.88B	-951.6M	-505.1M	-1.33B	-2.39B	-2.97B
CapEx % of Revenue	0.12%	0.08%	0.15%	0.3%	0.33%	0.12%	0.03%	0.06%	0.15%	0.18%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	2.5M	-1M	-17.8M	-12.5M	-15.9M	4.3M	12.3M	21.4M	3.7M	1.9M
Cash from Financing+	1.42B	-345.5M	1.02B	2.1B	1.78B	-1.09B	-1.91B	1.83B	-888.1M	-612.8M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-179M	-565.9M	-843.2M	-908.3M	-964.8M	-395.9M	-187.5M	-379.7M	-427.3M	-615.5M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-800K	-95.9M	54.1M	722.4M	1.63B	-407.6M	-493.8M	-1.3B	-1.42B	-402.4M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	217.5M	275.3M	-358M	-1.97B	-1.49B	792.9M	1.8B	1.05B	826.2M	683.9M
FCF Margin %	0.03%	0.04%	-0.04%	-0.19%	-0.17%	0.1%	0.1%	0.05%	0.05%	0.04%
FCF Growth %	544.75%	0.27%	-2.3%	-4.51%	0.24%	1.53%	1.27%	-0.42%	-0.21%	-0.17%
FCF per Share	4.06	1.49	-1.73	-8.79	-6.40	3.41	7.86	4.53	3.66	3.09
FCF Conversion (FCF/Net Income)	17.75x	-4.47x	17.40x	715.00x	-6.64x	-1.12x	32.34x	2.08x	3.88x	2.87x
Interest Paid	214.1M	282M	212.2M	217.2M	0	0	356M	401.3M	618.6M	712.7M
Taxes Paid	12.6M	0	0	0	0	0	1.3M	1.6M	8.5M	16.7M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	1.33%	-3.13%	0.87%	0.02%	-2.63%	-21.66%	1.29%	22.48%	17.27%	28.12%
Return on Invested Capital (ROIC)	3.07%	1.48%	2.17%	3.04%	0.97%	6.45%	10.87%	13.32%	9.7%	12.26%
Gross Margin	7.96%	6.18%	5.93%	7.38%	17.2%	18.4%	12%	12.88%	16.23%	20%
Net Margin	0.89%	-2.82%	0.61%	0.02%	-2.41%	-18.78%	0.41%	5.27%	5.3%	7.64%
Debt / Equity	0.96x	0.85x	0.75x	0.89x	0.93x	1.32x	1.28x	2.32x	2.82x	3.23x
Interest Coverage	1.55x	0.88x	1.37x	2.01x	0.57x	3.23x	4.69x	5.57x	3.18x	3.84x
FCF Conversion	17.75x	-4.47x	17.40x	715.00x	-6.64x	-1.12x	32.34x	2.08x	3.88x	2.87x
Revenue Growth	-23.74%	1.02%	33.4%	19.07%	-17.85%	-4.6%	110.82%	24.33%	-27.97%	6.45%

Revenue by Segment

	2013	2016	2017	2018	2019	2020	2021	2022	2023	2024
Logistics And Transportation	536.9M	-	-	-	-	-	16.16B	19.74B	13.66B	14.03B
Logistics And Transportation Growth	-	-	-	-	-	-	-	22.17%	-30.83%	2.74%
Gathering And Processing	1.52B	445M	523.3M	698.1M	722.4M	476M	7.43B	11.25B	7.23B	6.81B
Gathering And Processing Growth	-	-70.82%	17.60%	33.40%	3.48%	-34.11%	1459.98%	51.46%	-35.70%	-5.85%
Corporate Non And Inter Segment Elimination	-	-	-	-	-	-	-42.1M	-45.8M	-48.3M	-28.1M
Corporate Non And Inter Segment Elimination Growth	-	-	-	-	-	-	-	-8.79%	-5.46%	41.82%

Revenue by Geography

	2013	2016	2017	2018	2019	2020	2021	2022	2023	2024
Logistics And Transportation	-	-	-	-	-	-	16.16B	19.74B	13.66B	14.03B
Logistics And Transportation Growth	-	-	-	-	-	-	-	22.17%	-30.83%	2.74%
Gathering And Processing	-	-	-	-	-	-	7.43B	11.25B	7.23B	6.81B
Gathering And Processing Growth	-	-	-	-	-	-	-	51.46%	-35.70%	-5.85%

Frequently Asked Questions

Valuation & Price

Targa Resources Corp. (TRGP) has a price-to-earnings (P/E) ratio of 31.7x. This suggests investors expect higher future growth.

Growth & Financials

Targa Resources Corp. (TRGP) reported $17.49B in revenue for fiscal year 2024. This represents a 150% increase from $6.99B in 2011.

Targa Resources Corp. (TRGP) grew revenue by 6.5% over the past year. This is steady growth.

Yes, Targa Resources Corp. (TRGP) is profitable, generating $1.65B in net income for fiscal year 2024 (7.6% net margin).

Dividend & Returns

Yes, Targa Resources Corp. (TRGP) pays a dividend with a yield of 1.53%. This makes it attractive for income-focused investors.

Targa Resources Corp. (TRGP) has a return on equity (ROE) of 28.1%. This is excellent, indicating efficient use of shareholder capital.

Targa Resources Corp. (TRGP) generated $642.8M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

US Stock Screener

...