Targa beats second-quarter profit estimates on record Permian volumes
TRGP•Full-year outlook moved to the top end
Targa said it now expects full-year adjusted EBITDA at the top end of its previous forecast of $5.7 billion to $5.9 billion, driven by stronger marketing margins in the first half of the year and continued growth in volumes across its integrated asset network.
Dividend raised and EBITDA hits a record
- Targa increased its quarterly dividend by 25% from a year earlier to $1.25 per share.
- The Houston, Texas-based company reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.60 billion for the quarter ended June 30, above analysts' average estimate of about $1.44 billion, according to data compiled by LSEG.
- Targa said second-quarter adjusted EBITDA rose 38% from a year earlier to a record $1.60 billion.
- The increase was driven by higher marketing margins, record Permian gathering volumes and record natural gas liquids transportation, processing and LPG export volumes.
Second-quarter profit beats estimates on record volumes
U.S. pipeline operator Targa Resources beat Wall Street estimates for second-quarter core profit on Thursday, as record Permian natural gas volumes and higher demand for its transportation and export services boosted earnings.
Midstream companies have remained largely insulated from commodity price swings as record Permian oil and gas production drives higher fee-based earnings from gathering, processing, transportation and export services.
