10-KPeriod: FY2025

Targa Resources Corp. Annual Report, Year Ended Dec 31, 2025

Filed February 19, 2026For Securities:TRGP

Summary

Targa Resources Corp. (TRGP) reported strong financial performance in its 2025 10-K filing, showcasing significant growth driven by expansions in its Gathering and Processing segment, particularly in the Permian Basin. The company successfully integrated acquisitions, including the full acquisition of Targa Badlands and the recent Stakeholder Midstream acquisition, enhancing its infrastructure footprint and service capabilities. Financially, TRGP demonstrated robust revenue and Adjusted EBITDA growth, supported by increased volumes and a growing proportion of fee-based contracts, which help mitigate commodity price volatility. The company also maintained a strong balance sheet by executing strategic debt financings and actively managing its capital structure. Dividends were increased, and share repurchases continued, reflecting a commitment to returning capital to shareholders. Looking ahead, TRGP is well-positioned with a pipeline of growth projects aimed at expanding its processing, fractionation, and transportation capacities to meet anticipated producer demand.

Financial Highlights

50 data points
Beta

Revenue

$17.03B

38.3% Gross Margin

Net Income

$1.85B

10.9% Net Margin

EPS (Diluted)

$8.49

Total Assets

$25.22B

Cash & Equivalents

$166.10M

Free Cash Flow

$584.10M

Financial Statements
Beta
Revenue$17.03B
Cost of Revenue$10.51B
Gross Profit$6.52B
Operating Income$3.33B
Net Income$1.85B
EPS (Basic)$8.52
EPS (Diluted)$8.49
Shares Outstanding (Basic)216.10M
Shares Outstanding (Diluted)216.90M

Key Highlights

  • 1TRGP reported significant increases in revenues and Adjusted EBITDA for the year ended December 31, 2025, driven by higher volumes and expanded operations.
  • 2The company completed strategic acquisitions, including the full ownership of Targa Badlands and the acquisition of Stakeholder Midstream, strengthening its Permian Basin infrastructure.
  • 3Targa Resources saw substantial growth in its Gathering and Processing segment, with new processing plant additions in the Permian Basin contributing significantly to increased inlet volumes and NGL production.
  • 4The Logistics and Transportation segment also performed well, with increased pipeline transportation and fractionation volumes, benefiting from enhanced supply from the Permian and expansion projects.
  • 5TRGP maintained financial flexibility through strategic debt financings, issuing several tranches of senior unsecured notes and managing its credit facilities effectively.
  • 6The company increased its quarterly common dividend and continued its share repurchase programs, demonstrating a focus on capital return to shareholders.
  • 7TRGP has a robust pipeline of growth projects underway, including multiple new processing plants and pipeline expansions scheduled to commence operations in 2026 and beyond, positioning the company for future growth.

Frequently Asked Questions

For the year ended December 31, 2025, Targa Resources reported increased revenues of $17,028.3 million, up 4% from the prior year. Adjusted EBITDA also saw a significant rise to $4,957.4 million, an increase of 20% year-over-year, reflecting strong operational performance and expanded asset utilization.

Targa Resources expanded its operations through several key developments. This included the commencement of operations for multiple new cryogenic natural gas processing plants in the Permian Basin, such as the Bull Moose and Pembrook II plants. The company also completed the acquisition of Blackstone’s interest in Targa Badlands and announced the acquisition of Stakeholder Midstream, LLC. Additionally, significant NGL pipeline and fractionation expansions were in progress, with several projects expected to come online in 2026 and beyond.

Targa Resources primarily manages commodity price volatility through a combination of fee-based contracts and a commodity hedging program. A significant portion of its revenue is derived from fee-based arrangements, which are less exposed to commodity price fluctuations. For its 'equity volumes' derived from percent-of-proceeds contracts, the company enters into derivative transactions, including swaps and options, to hedge price risk, aiming to reduce the variability of its cash flows.

Targa Resources prioritizes returning capital to shareholders through dividends and share repurchases, alongside investing in growth capital expenditures to expand its infrastructure. In April 2025, the company declared an increased quarterly common dividend to $1.00 per share. It also continued its share repurchase programs, demonstrating a balanced approach to capital allocation between growth investments and shareholder returns.