Targa Resources Corp. shares advanced more than 5% in early trading on Friday after the Houston-based natural gas processor posted adjusted earnings that exceeded market expectations for the second quarter.
The company reported adjusted earnings of $1.42 per share, surpassing the $1.30 per share average estimate from analysts surveyed by Refinitiv. Revenue totaled $2.8 billion, slightly above the $2.7 billion forecast. Targa attributed the outperformance to higher natural gas and NGL (natural gas liquids) volumes and improved pricing across its operations.
Targa also raised its full-year adjusted EBITDA guidance to a range of $2.6 billion to $2.8 billion, up from the prior guidance of $2.4 billion to $2.6 billion. The company cited stronger-than-expected demand for natural gas and NGLs, as well as favorable market conditions, as key drivers behind the upward revision.
Analysts at Jefferies and Goldman Sachs maintained their buy ratings on the stock following the results, with Jefferies raising its price target to $160 from $145. The stock last traded at $152.30, up 5.2% on the day.
Targa Resources operates one of the largest integrated natural gas processing and NGL logistics networks in the U.S., serving key producing regions including the Permian Basin and the Marcellus Shale. The company’s assets include pipelines, processing plants, and storage facilities, positioning it to benefit from rising domestic energy production and export demand.
