Summary
Targa Resources Corp. (TRGP) operates as a leading independent midstream energy company in North America, providing essential services for natural gas, NGLs, and crude oil. The company's operations are primarily divided into two segments: Gathering and Processing, and Logistics and Transportation. In 2019, TRGP continued to expand its asset base through significant organic growth projects, particularly in the Permian Basin, with the completion and ongoing construction of new processing plants and pipeline expansions. The Logistics and Transportation segment also saw growth with expansions in fractionation capacity and LPG export capabilities. Financially, the company managed its debt levels through strategic debt issuances and the use of proceeds for debt repayment and capital programs. While facing a dynamic commodity price environment, Targa's focus on fee-based contracts, particularly in its Downstream Business, and its hedging strategies aimed to mitigate commodity price exposure and ensure stable cash flows. The company's outlook involves continued investment in organic growth projects and a strategic approach to acquisitions, leveraging its integrated midstream platform to capture value across the energy supply chain. Investors should note the company's substantial debt, which, while managed, remains a key financial consideration.
Financial Highlights
48 data points| Revenue | $8.67B |
| Cost of Revenue | $6.21B |
| Gross Profit | $2.55B |
| Operating Income | $192.90M |
| Net Income | -$209.20M |
| EPS (Basic) | $-1.44 |
| EPS (Diluted) | $-1.44 |
| Shares Outstanding (Basic) | 232.50M |
| Shares Outstanding (Diluted) | 232.50M |
Key Highlights
- 1Targa Resources operates two primary segments: Gathering and Processing, and Logistics and Transportation, offering integrated midstream services.
- 2The company made significant investments in growth capital expenditures in 2019, totaling approximately $2.6 billion, with an estimated $1.2 to $1.3 billion planned for 2020.
- 3Key expansions in 2019 included new cryogenic natural gas processing plants in the Permian Basin and progress on the Grand Prix NGL Pipeline.
- 4Targa Resources actively manages its debt, issuing $1.75 billion in Senior Notes in January 2019 and $1.0 billion in November 2019, primarily to refinance existing debt and fund operations.
- 5A substantial portion of Targa's revenue is derived from fee-based contracts, especially in its Logistics and Transportation segment, which helps to mitigate commodity price volatility.
- 6The company sold a 45% interest in Targa Badlands in April 2019 for $1.6 billion, using the proceeds for debt reduction and capital programs.
- 7Despite lower commodity prices in 2019 compared to 2018, Targa reported an increase in operating margin and Adjusted EBITDA, driven by higher volumes and fee-based services.