Targa Resources (TRGP)
NYSEEnergyOil & Gas MidstreamSnapshot 2026-07-07
$273.84+3.92%
Close 2026-07-07 · 1-day change
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Track TRGP free→Targa Resources aims to grow adjusted EBITDA to $5.7-$5.9 billion in 2026. The company plans to maintain net growth capital spending near $4.5 billion. It also targets a $5.00 annual dividend per share in 2026, a 25% increase. These show steady cash flow and shareholder returns.
Targa has missed recent earnings with a 49.6% EPS miss in Q1 2026. Capital spending pressures cash flow, which turned negative in late 2025. The stock trades at a high price-to-earnings ratio of 27.5, above peers, risking overvaluation.
The market expects about 24% revenue growth and prices the stock roughly 51% above our valuation model's level. Our model is below the Street median estimates, indicating the market may be optimistic on growth and profitability.
Breaks if: adjusted EBITDA falls below $5.7 billion in FY26
Targa aims to increase its full year 2026 adjusted EBITDA estimate to between $5.7 billion and $5.9 billion.
Stated in 2 of last 2 quarters. Adjusted EBITDA increased from $1,179 million in 2025-Q1 to $1,403 million in 2026-Q1, a 19% increase. The trajectory is delivering on the stated priority.
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“Increasing full year 2026 adjusted EBITDA estimate to $5.7 billion to $5.9 billion.”
“Increasing full year 2026 adjusted EBITDA estimate to $5.7 billion to $5.9 billion.”
Breaks if: annual dividend falls below $5.00 in 2026
Targa plans to recommend an annual common dividend per share of $5.00 in 2026, a 25% increase from 2025.
Stated in 2 of last 2 quarters. Management plans to recommend a $5.00 annual dividend per share in 2026, a 25% increase from 2025. The financials show a dividend per share of $1.0 in 2025-Q3, indicating the target is on track.
“Expect to recommend to Targa’s Board of Directors an annual common dividend per share of $5.00 in 2026.”
“Expect to recommend to Targa’s Board of Directors an annual common dividend per share of $5.00 in 2026.”
Breaks if: net growth capex significantly exceeds $4.5 billion in FY26
Targa plans to maintain its 2026 net growth capital expenditures at approximately $4.5 billion.
Stated in 2 of last 2 quarters. Management has consistently estimated 2026 net growth capital expenditures at $4.5 billion. Despite this, cash from operating activities showed a significant decline from $2.41 billion in 2025-Q3 to -$1.45 billion in 2025-Q4, indicating mixed progress.
“We continue to estimate 2026 net growth capital expenditures of approximately $4.5 billion.”
“Estimates 2026 net growth capital expenditures of approximately $4.5 billion.”