Houston, Texas-based Targa Resources Corp. (TRGP) owns, operates, acquires, and develops a portfolio of complementary domestic midstream infrastructure assets in North America. With a market cap of $33.7 billion, Targa Resources operates through Gathering & Processing, and Logistics & Transportation segments.
Companies worth $10 billion or more are generally considered "large-cap" stocks, and Targa Resources exemplifies this category, signifying its substantial size, stability, and influence in the oil & gas midstream industry.
Targa Resources leverages a strategically located infrastructure network across key regions like the Permian, Stack, Scoop, and Bakken plays. Assets such as the Grand Prix NGL Pipeline and Mont Belvieu's fractionation capacity bolster its midstream dominance. TRGP's strong financial performance, driven by increased commodity sales and midstream service fees, is further supported by growth initiatives, including new capital projects to expand processing capabilities.
TRGP shares touched its 52-week high of $154.87 in the last trading session. Over the past three months, TRGP's shares have surged 23.3%, outperforming the broader Dow Jones Industrial Average Index’s ($DOWI) 8.2% return over the same time frame.
In the long term, TRGP is up 75.2% on a YTD basis, and the shares have climbed 78.8% over the past 52 weeks. In comparison, the DOWI is up 11.5% in 2024 and 21.8% over the past year.
To confirm the long-term bullish price trend, TRGP has been trading above its 200-day moving average since the past year and over its 50-day moving average since early February, despite minor fluctuations.
Targa Resources' strong momentum in 2024 can be attributed to its extensive infrastructure network and strategically positioned assets, giving the company a clear competitive advantage. In August 2024, Targa Resources announced the construction of two new 275 MMcf/d cryogenic natural gas processing plants, Bull Moose II in Permian Delaware and East Pembrook in Permian Midland, to address growing demand and expanding production, ensuring they meet the increasing infrastructure needs of their customers.
Shares of Targa Resources rose marginally after the release of its Q2 earnings on Aug. 1. The company's total revenues grew 4.7% year over year to $3.6 billion, but its net income dropped 9.4% to $298.5 million.
Highlighting the contrast in performance, rival Kinder Morgan, Incorporated (KMI) has underperformed TRGP, gaining 22.4% on a YTD basis and 27.5% over the past year.
Analysts are highly optimistic about TRGP's prospects, given its solid market momentum over the past year. The stock has a consensus rating of "Strong Buy" from 19 analysts in coverage, and it currently trades above its mean price target of $151.63.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
