10-KPeriod: FY2022

Targa Resources Corp. Annual Report, Year Ended Dec 31, 2022

Filed February 22, 2023For Securities:TRGP

Summary

Targa Resources Corp. (TRGP) reported strong financial performance for the fiscal year ended December 31, 2022, driven by higher commodity prices and increased volumes across its midstream infrastructure. The company experienced significant growth in its Gathering and Processing segment, particularly in the Permian Basin, fueled by strategic acquisitions and ongoing expansions. The Logistics and Transportation segment also demonstrated robust growth, supported by increased pipeline transportation and fractionation volumes. TRGP made substantial capital investments in expansion projects, including new processing plants and NGL pipelines, positioning the company for future growth. Financially, TRGP improved its credit ratings and managed its debt effectively, refinancing and issuing new senior notes. The company's outlook remains positive, with continued investments in infrastructure development aimed at meeting producer needs and capturing market growth opportunities. Targa Resources remains focused on operational efficiency, fee-based contracts, and maintaining financial flexibility.

Financial Highlights

50 data points
Beta

Revenue

$20.93B

19.3% Gross Margin

Net Income

$1.20B

5.7% Net Margin

EPS (Diluted)

$3.88

Total Assets

$19.56B

Cash & Equivalents

$219.00M

Free Cash Flow

$1.05B

Financial Statements
Beta
Revenue$20.93B
Cost of Revenue$16.88B
Gross Profit$4.05B
Operating Income$1.73B
Net Income$1.20B
EPS (Basic)$3.95
EPS (Diluted)$3.88
Shares Outstanding (Basic)227.30M
Shares Outstanding (Diluted)231.10M

Key Highlights

  • 1Strong financial performance driven by higher commodity prices and increased volumes across both Gathering and Processing and Logistics and Transportation segments.
  • 2Significant capital investments in expansion projects, including new cryogenic natural gas processing plants in the Permian Basin and the development of the Daytona NGL Pipeline, indicating a focus on future growth.
  • 3Completed the substantial Delaware Basin Acquisition for approximately $3.5 billion, enhancing its Permian Delaware operations.
  • 4Achieved investment-grade credit ratings from S&P, Fitch, and Moody's, strengthening its financial profile.
  • 5Successfully managed debt through refinancing and issuance of senior notes, improving its capital structure.
  • 6Returned capital to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder value.
  • 7Increased its dividend per share from $0.10 to $0.35 in January 2022.

Frequently Asked Questions

Targa Resources reported significant financial growth in 2022, with total revenues increasing by 23% to $20,929.8 million. Adjusted EBITDA grew by 41% to $2,901.1 million, and Distributable Cash Flow increased by 48% to $2,278.7 million, reflecting strong operational performance and favorable market conditions.

Targa Resources' growth is primarily driven by its extensive midstream infrastructure, particularly in the Permian Basin. Key growth initiatives include the construction of new natural gas processing plants in the Permian Midland and Delaware regions, the expansion of NGL pipelines like the Daytona NGL Pipeline, and investments in fractionation capacity. The company's strategy focuses on securing fee-based contracts and leveraging its integrated asset base to serve growing producer needs.

Targa Resources actively managed its capital structure in 2022 by refinancing debt and issuing new senior notes, including $750 million in 4.200% Senior Notes due 2033 and $750 million in 4.950% Senior Notes due 2052, and later $750 million in 5.200% Senior Notes due 2027 and $500 million in 6.250% Senior Notes due 2052. The company also secured a $1.5 billion unsecured term loan facility and established a commercial paper note program. These actions, along with improved credit ratings, strengthened the company's financial flexibility.