Summary
Targa Resources Corp. (TRGP) operates as a leading provider of midstream energy services, with a diversified portfolio of assets primarily focused on natural gas and NGL gathering, processing, and logistics. The company is strategically positioned in key North American basins, including the Permian Basin, Eagle Ford Shale, and the Williston Basin. For the fiscal year ended December 31, 2017, TRGP reported significant growth in its Gathering and Processing segment, driven by acquisitions, particularly the Permian Acquisition, and organic growth projects. The Logistics and Marketing segment also saw strategic developments with ongoing construction of major projects like Grand Prix NGL Pipeline and involvement in the Gulf Coast Express Pipeline. The company's financial performance was impacted by higher commodity prices in 2017 compared to 2016, with a notable increase in revenues and gross margin. However, it also incurred substantial impairment charges and increased operating expenses related to growth initiatives and acquisitions.
Financial Highlights
52 data points| Revenue | $8.81B |
| Cost of Revenue | $6.91B |
| Gross Profit | $1.91B |
| Operating Income | -$122.40M |
| Net Income | $54.00M |
| EPS (Basic) | $-0.31 |
| EPS (Diluted) | $-0.31 |
| Shares Outstanding (Basic) | 206.90M |
| Shares Outstanding (Diluted) | 206.90M |
Key Highlights
- 1Targa Resources Corp. is a significant independent midstream energy company with a diversified asset base across key North American basins.
- 2The company completed a substantial Permian Acquisition in March 2017, expanding its gathering and processing footprint in West Texas and Southeast New Mexico.
- 3Significant investments were made in organic growth projects across both Gathering and Processing and Logistics and Marketing segments, with a notable capital expenditure budget for 2018.
- 4Key projects underway include the Grand Prix NGL Pipeline and participation in the Gulf Coast Express Pipeline, aimed at enhancing NGL transportation and natural gas takeaway capacity.
- 5The company's revenue and gross margin increased in 2017 compared to 2016, driven by higher commodity prices and increased volumes, partly due to acquisitions.
- 6TRGP experienced impairment charges in 2017 related to North Texas operations, impacting its income from operations.
- 7The company maintained compliance with its debt covenants and managed its liquidity effectively throughout the year, supported by access to credit facilities and capital markets.