Snapshot
Targa Resources Corp. reported $4.15B of revenue in Q3 2025, up 7.8% year over year, with diluted EPS of $2.20 and an operating margin of 20.2%.
- Revenue
- $4.15B
- YoY growth
- +7.8%
- Diluted EPS
- $2.20
- Operating margin
- 20.2%
$4.15B
Revenue
+7.8%
YoY growth
$2.20
Diluted EPS
20.2%
Operating margin
01 Key takeaways
What management said
- •The third quarter earnings release and a supplement presentation that accompany our call are available on our website at targaresources.com.
- •We had another outstanding quarter with record adjusted EBITDA driven by record volumes across our footprint.
- •With three quarters completed, we now expect our full year 2025 adjusted EBITDA will be around the top end of our previously provided guidance range.
- •Our Permian volumes grew more than 340 million cu ft per day and nearly 700 million cu ft per day compared to this time last year.
- •Our Permian growth is driving additional NGL volumes through our integrated system, as NGL volumes increased about 180,000 bbl per day compared to this time last year.
- •Incrementally, the customer success we achieved in 2024 has started to show up in our volumes, some this year, but really adding to our longer-term confidence of continued Permian volume growth.
- •Also, our previously announced Forza natural gas pipeline in the Delaware had a successful open season, and we are moving ahead with that project.
- •We continue to expect meaningful long-term growth in Permian gas and NGL volumes across our footprint.
- •We have a lot of projects in progress, which means growth capital is elevated in 2025 and 2026, and these attractive investments will drive significant increases in adjusted EBITDA.
- •Once these projects are online, we expect our downstream capital spending will be significantly lower for years to come, driving a substantial increase in free cash flow.
- •This expected increase in free cash flow will be durable, meaning even if we are in a stronger growth environment driving elevated spending on the G&P side, our downstream spending should still be modest.
- •So in late 2027, our downstream NGL capital is expected to be significantly lower than today's, and our adjusted EBITDA is expected to be much higher than today's.
SourcesCompany financials · earnings call
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