Targa Resources Tumbles 0.77% as Mixed Q2 Results and High Debt Weigh on 393rd-Ranked Stock

Targa Resources (TRGP) fell 0.77% on August 13, 2025, with a trading volume of $0.30 billion, ranking 393rd in market activity for the day. The stock’s performance followed mixed second-quarter earnings results, where the Houston-based midstream energy firm reported earnings per share of $2.87—surpassing estimates—while revenue of $4.3 billion fell short of expectations. Operating margins in the Gathering and Processing segment rose 3% year-over-year to $588 million, driven by record Permian Basin volumes and new plant startups. Meanwhile, the Logistics and Transportation segment delivered a 15% year-over-year margin increase to $632 million, supported by higher pipeline and fractionation throughput.

The company declared a $1 per share quarterly dividend, totaling $217 million, and repurchased 651,000 shares for $124.9 million during the quarter. Capital expenditures for growth programs reached $885.1 million, with plans to expand its Bull Run pipeline and advance Permian gas processing projects. Targa reiterated 2025 adjusted EBITDA guidance of $4.65–$4.85 billion, citing expected gains from Permian operations and logistics infrastructure. However, its debt-to-capitalization ratio remains high at 85.6%, with long-term debt of $16.1 billion as of June 30.

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