Targa Resources Earnings Preview: Analysts Expect $1.95 EPS, Guidance Hopes High

Targa Resources is set to release its quarterly earnings report on Thursday, August 7. Analysts estimate an EPS of $1.95, and the market expects upbeat guidance for the next quarter. Historical earnings performance shows that the company missed EPS by $1.07 in the previous release, leading to a 0.29% drop in share price. Shares are up 20.68% over the last 52 weeks. Analysts favor an Outperform trajectory for ONEOK, MPLX, and Cheniere Energy, with average 1-year price targets ranging from a 41.25% downside to a 64.88% upside.

Targa Resources (TRGP) is set to release its quarterly earnings report on Thursday, August 7. Analysts estimate an earnings per share (EPS) of $1.95, with high hopes for upbeat guidance for the next quarter. The company's historical earnings performance shows it missed EPS by $1.07 in the previous release, leading to a 0.29% drop in share price. Despite this, shares are up 20.68% over the last 52 weeks [1].

Analysts favor an Outperform trajectory for Targa Resources, with an average one-year price target of $200.92, implying a potential 22.79% upside. Among its peers, analysts currently favor an Outperform trajectory for ONEOK, MPLX, and Cheniere Energy, with average 1-year price targets ranging from a 41.25% downside to a 64.88% upside [2].

Targa Resources is a midstream firm with significant positions in the Permian, Stack, Scoop, and Bakken plays. It operates gathering and processing assets, a fractionation capacity at Mont Belvieu, and a liquefied petroleum gas export terminal. The company's market capitalization is above industry standards, emphasizing its robust market position [2].

Key Metrics and Performance

- Market Capitalization: Exceeds industry standards.
- Revenue Growth: Revenue growth over the last 3 months faced challenges, with a decline of approximately -0.02%.
- Net Margin: Falls below industry averages.
- Return on Equity (ROE): Exceeds industry averages, showcasing effective utilization of equity capital.
- Return on Assets (ROA): Falls below industry averages.
- Debt Management: Debt-to-equity ratio is notably higher than the industry average, indicating a higher level of financial risk.

Analyst Views

Analysts anticipate that Targa Resources will report an EPS of $1.95, with the consensus rating for Targa Resources being Outperform [1]. The company's peers, ONEOK, MPLX, and Cheniere Energy, also have favorable analyst ratings, with ONEOK and MPLX showing potential downside and Cheniere Energy showing significant upside potential [2].

Outlook and Risks

Targa Resources maintains a positive outlook for the full year 2025, with adjusted EBITDA guidance between $4.65 billion and $4.85 billion. However, the company faces potential challenges such as market demand or pricing pressures, dependence on Permian Basin growth, regulatory changes, environmental policies, global economic conditions, and infrastructure project delays [3].

References

[1] https://www.benzinga.com/insights/earnings/25/08/46902320/targa-resources-earnings-preview
[2] https://seekingalpha.com/news/4480005-targa-resources-q2-2025-earnings-preview
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-targa-resources-q2-2025-earnings-beat-eps-forecast-93CH-4178196