Targa Resources Posts 2025 Adjusted EBITDA of $4.96B, Boosts Dividend to $1.25
Targa reported 2025 full-year adjusted EBITDA of $4.96B, up $800M year-over-year, with Q4 net income of $545M versus $351M and Q4 adjusted EBITDA of $1.34B. It plans ~$2.5B annual growth capex through 2027, targets a >$6B EBITDA run rate post-projects and will raise its quarterly dividend to $1.25.
1. Record 2025 Financial Results
Targa Resources delivered full-year 2025 adjusted EBITDA of $4.96 billion, marking an $800 million increase year-over-year, driven by Permian volume growth and commercial successes. Fourth-quarter net income attributable to Targa reached $545 million, up from $351 million in Q4 2024, with Q4 adjusted EBITDA of $1.34 billion.
2. Growth Capex and Project Pipeline
Management plans approximately $2.5 billion in annual growth capital spending through 2027, underpinning projects such as the Yeti II processing plant and Mont Belvieu’s 13th fractionator. These investments support expanded NGL transport volumes—up by nearly 170,000 barrels per day—and position Targa for a targeted run-rate adjusted EBITDA exceeding $6 billion following project completions.
3. 2026 Guidance and Dividend Increase
For full-year 2026, Targa forecasts adjusted EBITDA between $5.4 billion and $5.6 billion and intends to increase its quarterly common dividend to $1.25 per share. The dividend hike reflects confidence in free cash flow generation and commitment to enhancing shareholder returns.