Targa Resources beats 2Q core profit estimates, announces $1-B buyback program
Targa Resources has beat estimates for its 2Q core profit, helped by higher volumes of natural gas and natural gas liquids (NGL) across its pipelines.
The company raised its adjusted core profit estimates for the year by 5% to between $3.95 B and $4.05 B, while also announcing a $1-B share repurchase program.
The U.S. is the world's largest exporter of LNG and a key supplier to Europe and Asia, and demand for the chilled fuel is expected to grow 50% by 2030 globally.
Targa Resources saw its pipelines transport higher volumes primarily through its systems in the Permian Basin.
The company saw a 6% rise in inflow of natural gas despite realized prices for the fuel standing at $0.10/MMBtu, compared to $1.29 MMBtu in the same quarter last year.
Its NGL business saw gains across the board, with a 9.9% rise in production, a 26% jump in transportation volumes, a 15.4% gain in sales, and a 7.3% increase in prices.
Targa also said it was setting up two new 275-MMft3d natural gas processing plants in the Permian Basin. The Bull Moose II plant is expected to begin operations in 1Q 2026, while the East Pembrook plant is likely to begin operations in 3Q 2026.
On an adjusted basis, the Houston, Texas-based company's core profit was $984.3 MM in the quarter ended June 30, compared with analysts' expectations of $936.2 MM per LSEG data.
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