Targa Resources TRGP
Targa Resources is an energy infrastructure (midstream) company that owns and operates natural gas pipelines, processing plants, and LNG facilities in major US shale basins, primarily the Permian, earning fees for transporting and processing natural gas and NGLs. Targa Resources shows solid growth (earnings +23.3%) and excellent profitability (ROE 70.84%), but its valuation is demanding (P/E 26.59, P/B 16.29) and its debt is high (ND/EBITDA 3.54), making it sensitive to rising rates.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Targa Resources is an energy infrastructure (midstream) company that owns and operates natural gas pipelines, processing plants, and LNG facilities in major US shale basins, primarily the Permian, earning fees for transporting and processing natural gas and NGLs. Targa Resources shows solid growth (earnings +23.3%) and excellent profitability (ROE 70.84%), but its valuation is demanding (P/E 26.59, P/B 16.29) and its debt is high (ND/EBITDA 3.54), making it sensitive to rising rates.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.6 |
| Quality / Moat | 6.3 |
| Valuation | 2.3 |
| Growth | 6.9 |
| Dividend | 6.3 |
| Momentum | 9.3 |
| Risk & Context | 7.1 |
OVERALL SCORE: 5.6/10
Context and risks
The surge in crude oil and tensions in the Middle East (Strait of Hormuz) benefit gas/NGL midstream due to increased production activity, but the high dependence on the Permian basin concentrates operational and growth risk in a single region.
News considered in the analysis
- Truist Adds Fresh Fuel to Targa’s (TRGP) Growth Story. Is There More Upside Ahead? — Análisis positivo de un bróker que refuerza la narrativa de crecimiento, pero sin catalizadores concretos nuevos.
- Targa Resources (TRGP) Stock May Be 48% Undervalued Despite Permian Power Deal — Artículo de valoración que sugiere un descuento significativo, pero es una opinión de análisis, no un hecho material.
- Targa Resources (TRGP) Secures 230 Megawatts Of Long Term Power Capacity — Asegurar 230 MW de capacidad eléctrica a largo plazo es un hecho material que garantiza energía para sus operaciones de procesamiento y GNL, un insumo crítico.
- ProPetro's PROPWR Expands Power Footprint With Targa Deal — Acuerdo con ProPetro para expandir el suministro eléctrico, refuerza la seguridad energética de sus operaciones.
- Sector Update: Energy Stocks Fall Pre-Bell Tuesday — Ruido de mercado intradía sin información específica sobre la empresa.
Verdict: Hold; operational strength and power supply agreements support growth, but valuation and leverage limit near-term upside.
Main risk: High leverage (ND/EBITDA 3.54) combined with rising long-term interest rates makes refinancing its debt more expensive and pressures its financial health.
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