Snapshot
Targa Resources Corp. reported $4.26B of revenue in Q2 2025, up 19.6% year over year, with diluted EPS of $2.87 and an operating margin of 24.3%.
- Revenue
- $4.26B
- YoY growth
- +19.6%
- Diluted EPS
- $2.87
- Operating margin
- 24.3%
$4.26B
Revenue
+19.6%
YoY growth
$2.87
Diluted EPS
24.3%
Operating margin
01 Key takeaways
What management said
- •The second quarter earnings release, along with a supplemental presentation that accompanies our call, are available on our website at targaresources.com.
- •We have also added some new material to our investor presentation, which lends support for our continued growth outlook.
- •Over the past five years, Permian gas production has grown at a higher rate than crude production due to the general increase in gas-to-oil ratios across the basin over time.
- •While year-over-year growth in crude production from the Permian has averaged 8% per year over the past five years, associated gas growth has averaged 13% per year.
- •Targa's volume growth has outperformed crude and gas production over that timeframe.
- •Our year-over-year volume growth has averaged 17%, 4% higher than associated gas and 9% higher than crude per year.
- •Looking forward, third-party forecasts call for 7% growth in Permian associated gas over the next five years.
- •With this strong outlook, coupled with Targa's footprint across the best rock in the basin and world-class producers, we are well positioned for meaningful growth over the long term.
- •We move a lot of natural gas to end markets, and the demand for natural gas is expected to continue to increase.
- •We transport and fractionate a lot of natural gas liquids to domestic and international end markets, and the demand for NGLs is expected to continue to increase.
- •Our customers across our value chain are very good at what they do, and we think we'll continue to create meaningful growth opportunities for our company.
- •Our focus continues to be on increasing adjusted EBITDA and increasing common dividend per share and declining share count while maintaining our strong investment-grade balance sheet.
SourcesCompany financials · earnings call
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