Targa Resources

TRGP

Market cap $51.3B

Targa Resources (TRGP) is positioned for continued growth, leveraging its dominant Permian Basin midstream footprint and volume-driven business model. TRGP's forward growth is underpinned by multiple new gas processing plants and the Speedway NGL Pipeline, with major impacts expected in 2027–2028. Despite a low 1.63% yield and a premium valuation, TRGP's consistent cash flow growth and project-backed expansion support a strong Hold or weak Buy rating.

Q1 2026 was an exceptional quarter for energy stocks thanks to war in the Middle East, but Q2 2026 is not guaranteed to step in its footsteps. Energy prices can go higher and push the sector higher, but they do not have to if the U.S. can neutralize Iran's ability to project force. While energy stocks are benefiting from the fighting in the short term, it may actually come back to hurt them in the long run.

TRGP stock rallies 40% in 3 months, backed by fee-based cash flows, Permian growth and expansion projects, but premium valuation and risks cloud upside.

Within the mid-cap universe, growth and value stocks returned -3.70% and 1.42%, as gauged by the Russell Midcap Growth and Russell Midcap Value indices, respectively. Carpenter posted earnings beats and raised guidance throughout 2025, which was the most profitable year in its history. MongoDB's shares moved sharply higher over the last few months, as it became clear that the flexibility offered by its product is relevant to AI applications.

Though relatively flat for the fourth quarter, the Fund outperformed the -1.6% return of the Alerian Midstream Energy Select Index. MPLX's high yield and compelling dividend growth above many peers continue to attract investors in a choppy market. DT Midstream benefits from increasing power demand and despite recent macro events, the call on natural gas remains unchanged.

TRGP gains momentum with strong Q4 results, Permian growth and a planned 25% dividend hike by 2026, though heavy capex and basin risks cloud the outlook.

Twenty-nine midstream energy companies were evaluated on a relative favorability matrix with factors representing yield, yield coverage, valuation, profitability, growth, and leverage. Based on this analysis, UGP, HESM, and USAC are the most favorable prospects in the midstream industry. I recommend investors who own TRP, GEL, or DKL carefully review their position, as these midstreams compare unfavorably to peers.

HOUSTON, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Targa Resources Corp. (“Targa” or the “Company”) (NYSE: TRGP) announced today the pricing of an underwritten public offering (the “Offering”) of $750 million aggregate principal amount of its 4.350% Senior Notes due 2031 and $750 million aggregate principal amount of its 6.050% Senior Notes due 2056 at a price to the public of 99.812% and 99.975% of their face value, respectively. The Offering is expected to close on March 2, 2026, subject to the satisfaction of customary closing conditions.

TRGP tops Q4 earnings estimates on stronger margins, but revenues fall short as commodity sales decline.

The headline numbers for Targa Resources (TRGP) give insight into how the company performed in the quarter ended December 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.