Targa Resources Q2 Net Income Tops $629M, Revenue at $4.26B, Missing Estimates

Targa Resources reported Q2 net income of $629.1M, revenue of $4.26B, missing the expected revenue by $630M. The company continues to estimate full-year 2025 adjusted EBITDA to be between $4.65B and $4.85B, driven by growth in the Permian region.

Targa Resources Corp. (NYSE: TRGP) reported its second quarter 2025 financial results, with a net income of $629.1 million and revenue of $4.26 billion. While the net income exceeded expectations, the company missed its revenue target by $630 million. Despite this, Targa Resources maintains an optimistic outlook for the remainder of the year, with a projected full-year 2025 adjusted EBITDA between $4.65 billion and $4.85 billion, driven primarily by growth in the Permian region.

The company's second quarter 2025 net income of $629.1 million was a significant increase from the same period last year, when it stood at $298.5 million. This growth was supported by record Permian and NGL transportation volumes, offset by lower marketing margins and higher operating expenses. Targa Resources also announced a quarterly cash dividend of $1.00 per common share, amounting to $4.00 annually, and repurchased 1.96 million shares of its common stock at an average price of $165.86 per share for a total net cost of $324.3 million.

Targa Resources' adjusted EBITDA for the second quarter 2025 was $1,163.0 million, up from $984.3 million in the same period last year. The company's total consolidated debt as of June 30, 2025, was $16,850.5 million, with $16,034.4 million of outstanding senior unsecured notes and $667.0 million under the Commercial Paper Program. Targa Resources also completed an underwritten public offering of 4.900% Notes due 2030 and 5.650% Notes due 2036, resulting in net proceeds of approximately $1.5 billion.

The company's growth projects, including the early completion of the Pembrook II plant in Permian Midland and the Delaware Express Pipeline expansion, are expected to contribute to the growth in adjusted EBITDA. Targa Resources estimates total net growth capital expenditures for 2025 of approximately $3.0 billion, with 2025 net maintenance capital expenditures remaining unchanged at approximately $250 million.

Targa Resources will host a conference call on August 7, 2025, to discuss its second quarter results. The conference call can be accessed via webcast under Events and Presentations in the Investors section of the Company’s website at [Targa Resources Investor Relations](https://www.targaresources.com/investors/events).

References:
[1] https://seekingalpha.com/news/4481081-targa-resources-net-income-of-6291m-revenue-of-426b-misses-by-630m
[2] https://www.stocktitan.net/news/TRGP/targa-resources-corp-reports-second-quarter-2025-financial-v0hzvtvqfzak.html