TRGP US S&P 500Russell 1000 Earnings call

Targa Resources (TRGP) · Q2 2026 results and valuation

Share price: $291.78 · 2026-11-11

Targa Resources provides midstream services, including the gathering, processing, and transportation of natural gas, NGLs, and crude oil. The company operates infrastructure assets across North America, serving customers in regions such as the Permian Basin, the Gulf Coast, and the Williston Basin. Source: 10-K annual report (2026-02-19)

Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 7 May 2026

Net income up 59.4% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.

1 · Numbers

+59.4%

Net income vs Q1 2026

Outlook given

Net income 764.6M vs 479.6M

Revenue +8.4%

Against the same quarter last year (Q2 2025) it is +21.5% — part of the move on last quarter is seasonal.

Why The company expects higher equity earnings when certain projects come online because it holds a 17.5% interest in those projects.

2 · How management spoke

Upbeat

More upbeat than 88% of company calls

Answers to analysts: upbeat, but clearly less so than the script.

Last call it was different: script and answers matched.

3 · What stood out

Targa Resources raised its full year 2026 adjusted EBITDA forecast to the top end of the $5.7 billion to $5.9 billion range.

Valuation

Is Targa Resources undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.

Current price

$291.78

close of 2026-11-11

Market implies growth of i

+32.2% for 10 yrs

Fair value / share

$-7.83

Buy below

$-5.87

Price vs fair value

n/a

Price vs buy-below price

n/a

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Website

Read between the lines

Guidance

TRGP raised its full year 2026 adjusted EBITDA forecast to the top end of the $5.7 billion to $5.9 billion range due to performance so far this year.
Key theme

The constrained gas egress environment across the past several quarters has created increased marketing opportunities for Targa with Targa Resources' marketing businesses outperforming its expectations by approximately $250 million…

Source quote
“The constrained gas egress environment across the past several quarters has created increased marketing opportunities for Targa with our marketing businesses outperforming our expectations by approximately $250 million in the first half of the year, much of which occurred in the second quarter.”
Figure

Permian volumes reached record levels, increasing by more than 900 million cubic feet per day from a year ago and 450 million cubic feet per day compared to Q1.

Source quote
“We reported record volumes again in the Permian, up more than 900 million cubic feet per day from a year ago and up 450 million cubic feet per day compared to Q1.”
Figure

Targa Resources continues to estimate net growth capital for 2026 of approximately $4.5 billion, it also continues to estimate 2026 net maintenance capital spending of $250 million.
Figure

The company declared a second quarter common dividend of $1.25 per share, which is a 25% increase relative to the second quarter common dividend for 2025.

Source quote
“We declared a second quarter common dividend of $1.25 per share, which is a 25% increase relative to the second quarter common dividend for 2025.”

2 more

Figure

Weaker marketing benefits in the second quarter will create a headwind for the third quarter.

Source quote
“Jason, I'd say that, that will be a headwind for us third quarter versus second quarter in terms of just the strength of marketing benefits that we had in the second quarter.”
Key theme

Management expects gas prices to potentially increase due to demand for volumes out of the Permian.

Source quote
“We do have an expectation that gas prices will continue to potentially increase with the demand pull that we are seeing for volumes out of the Permian.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Upbeat (was typical)

Answers to analysts Upbeat (was typical)

Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 82% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“We expect to benefit from critical long lead demand catalysts, including expanding LNG export capacity, growing power generation needs, increasing global demand for hydrocarbons and increasing recognition of the strategic...”

“Improved Permian takeaway capacity and stronger Waha pricing are benefiting our customers and supporting continued growth in liquids-rich natural gas volumes across our integrated system.”

“Shifting to Logistics & Transportation, the growth we are experiencing in the Permian is flowing through our integrated footprint, contributing to record NGL transportation volumes of 1.1 million barrels per...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	4.44B	4.09B	+8.4%	4.26B	+4.2%
Gross profit	2.14B	1.70B	+25.8%	1.82B	+17.2%
Operating income	1.23B	846.9M	+45.8%	1.03B	+19.4%
Net income	764.6M	479.6M	+59.4%	629.1M	+21.5%
EPS	3.54	2.21	+60.2%	2.87	+23.3%
P/E today 23.4	25.6	25.6	+0.0	25.0	+0.6

Topics

Most discussed now

This strong performance underscores the value of the organic growth projects that Targa Resources continues to invest in and positions…
Improved Permian takeaway capacity and stronger Waha pricing are benefiting Targa Resources' customers and supporting continued growth in…
As has long been its practice, Targa Resources does not forecast material marketing optimization margin when it provides its financial…
Targa Resources' gas marketing team does a really good job of that quarter in and quarter out.
A really strong quarter for Targa Resources' G&P, but I'd say it's largely commodity price, which was a slight offset...

Faded since Q1 2026

Dropped Of course, Targa Resources came into the year, as it alwayses do, very well contracted across the dock, but that ultimately,...
Dropped I'd say that part of what Targa Resources does is it gets to a final investment decision on a new plant...
Dropped Creating white space for Targa Resources' producers
Fading With growing cost-advantaged natural gas and NGL supply from the Permian Basin and significant expansions underway across Targa Resources'…

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-11-05 Results of operations; Regulation FD disclosure · SEC 8-K
2026-08-25 Director or officer change · SEC 8-K
Benjamin J. Branstetter was appointed Chief Financial Officer effective September 1, 2026, with an approved annual base salary of $600,000 and a long-term incentive award of 400% of his base salary.
2026-08-06 Results of operations; Regulation FD disclosure · SEC 8-K
Targa Resources Corp. reported second quarter 2026 net income of $765 million, up from $629 million in the second quarter of 2025, and adjusted EBITDA of $1,603 million, up 38% year-over-year.
2026-07-17 Director or officer change · SEC 8-K
The Company appointed Mr. Mathiasmeier as a non-employee director and expects to grant him a pro-rated restricted stock award of 477 shares.
2026-07-06 Material agreement · SEC 8-K
On July 1, 2026, Targa Resources Partners LP and Targa Receivables LLC entered into a Seventeenth Amendment to the Receivables Purchase Agreement to extend the Facility Termination Date.
2026-05-22 Shareholder vote results · SEC 8-K · routine
2026-05-07 Results of operations; Regulation FD disclosure · SEC 8-K
Targa Resources Corp. reported first quarter 2026 net income of $480 million, up from $271 million in the first quarter of 2025, and adjusted EBITDA of $1,403 million, an increase of 19% year-over-year.
2026-03-02 Material agreement; New financial obligation · SEC 8-K
Targa Resources Corp. entered into a Thirteenth Supplemental Indenture dated March 2, 2026, regarding a new financial obligation.

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

July

return of price-driven producer shut-ins to the system

Source quote
“With Hugh Brinson Phase 1 and the GCX expansion now online, we have seen most of the price-driven producer shut-ins return to our system in July, and we continue to see a lot of activity behind our systems, positioning us really well for strong growth in Permian volumes across 2026 that are tracking higher than what we were expecting in February.”
2027

continued momentum

Source quote
“This will position us well with continued momentum heading into 2027.”
first half of the year

marketing businesses outperforming expectations

Source quote
“The constrained gas egress environment across the past several quarters has created increased marketing opportunities for Targa with our marketing businesses outperforming our expectations by approximately $250 million in the first half of the year, much of which occurred in the second quarter.”
2026

year of significant execution for Targa

Source quote
“In addition to the strong growth we are seeing from our customers, 2026 is a year of significant execution for Targa as we continue to progress the major projects along our integrated system.”
fourth quarter of 2026

Blackcomb and Traverse pipelines on track

Source quote
“Blackcomb and Traverse, two natural gas pipelines in which we have an equity interest, remain on track for the fourth quarter of 2026 and mid-2027, contributing to continued improving natural gas egress in the Permian for the near to medium term.”