At a glance
Targa Resources Inc is worth $63.20B, about 35 times its fiscal 2025 earnings. Revenue grew 3.9% to $17.03B in fiscal 2025, with 11.3% kept as profit; over 5 years it has grown 15.6% a year. It pays a 1.61% dividend yield, raised every year for at least 4 years, and returned $4.30B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +94.9% over the past year with dividends reinvested and +42.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 83.8% in the 2020 crash (S&P 500: 33.7%) and 30.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 14 months and 8 months after the lows.
The business in plain English
Targa Resources is a midstream energy company. It owns the pipelines, plants and storage that link oil and gas wells to the chemical makers, refiners, fuel buyers and exporters that use their output. It gathers natural gas and crude oil from wells, cleans the gas and extracts natural gas liquids (NGLs) such as ethane, propane and butane. Its gathering systems span the Permian Basin of West Texas and Southeast New Mexico, plus South and North Texas, Oklahoma, Kansas, North Dakota and Louisiana.
Of its two segments, Logistics and Transportation (the Downstream Business) produced 84.2% of its $17.0 billion revenue in the year ended December 31, 2025. NGL pipelines carry mixed liquids to Mont Belvieu, Texas, where fractionators split them into separate products. Targa then stores and sells them and serves liquefied petroleum gas (LPG) exporters at its Galena Park, Texas, terminal. Gathering and Processing produced the other 15.8%.
Targa earns money two ways: service fees for gathering, processing, storage and export, and sales of gas, NGLs and crude oil it buys and resells. NGL sales alone were about 71% of 2025 revenue, and gathering and processing fees about 11%. Because most revenue comes from commodity sales, it moves with energy prices. Revenue fell from $20.9 billion in 2022 to $16.1 billion in 2023.
Price history
The interactive chart needs JavaScript.
TRGP +94.9% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Natural Gas Liquids Reserves | $12.08B | 70.9% |
| Natural Gas Reserves | $2.04B | 12% |
| Gathering And Processing Fees | $1.79B | 10.5% |
| Storage Terminaling And Export | $496.8M | 2.9% |
| Oil And Condensate | $448.3M | 2.6% |
| NGLTransportation Fractionation And Services | $311.6M | 1.8% |
| Midstream Services Other | $23.2M | 0.1% |
By business segment
| Logistics And Transportation | $14.34B | 84.2% |
| Gathering And Processing | $2.69B | 15.8% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $4.44B, up 4.2% from a year earlier, and net income was $764.6M (+21.5%).
- For fiscal 2025, revenue was $17.03B (+3.9% year over year; +15.6% a year from FY2020 to FY2025) with a 11.3% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +15.6% good |
|---|---|
| Operating margin | 19.6% good |
| Free cash flow margin | 3.4% watch |
| Return on equity (FY2025) | 62.7% (lifted by a small equity base, often the result of years of buybacks) good |
| Return on assets (FY2025) | 7.6% watch |
| Net cash (cash minus debt) | $-19.45B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $8.26B | $-1.55B | $792.9M |
| FY2021 | $16.95B | $71.2M | $1.80B |
| FY2022 | $20.93B | $1.20B | $1.05B |
| FY2023 | $16.06B | $1.35B | $826.2M |
| FY2024 | $16.38B | $1.31B | $683.9M |
| FY2025 | $17.03B | $1.92B | $584.1M |
Valuation snapshot
| Market value | $63.20B |
|---|---|
| P/E ratio | 34.7 |
| Dividend yield | 1.61% |
Rank among 1514 US companies
Market value at each year end
Targa Resources’s market value went from $10.14B at the end of 2016 to $63.20B on Nov 2, 2026, about 6.2 times as much; since the end of 2025 it is up 60%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $63.20B | +59.6% |
| 2025 | $39.60B | +1.7% |
| 2024 | $38.92B | +101.0% |
| 2023 | $19.37B | +16.4% |
| 2022 | $16.64B | +39.1% |
| 2021 | $11.96B | +98.0% |
| 2020 | $6.04B | -36.4% |
| 2019 | $9.50B | +15.1% |
| 2018 | $8.26B | -20.9% |
| 2017 | $10.44B | +3.0% |
| 2016 | $10.14B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| TRGP price data to Nov 2, 2026 | +62.7% | +94.9% | +51.5% | +42.6% | +25.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +62.7% |
| 2025 | +5.7% |
| 2024 | +110.1% |
| 2023 | +21.0% |
| 2022 | +43.7% |
| 2021 | +100.2% |
| 2020 | -32.5% |
| 2019 | +24.0% |
| 2018 | -19.9% |
| 2017 | -7.1% |
| 2016 | +130.5% |
| 2015 | -73.4% |
| 2014 | +23.2% |
| 2013 | +72.0% |
| 2012 | +34.2% |
| 2011 | +56.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 80.8% over that stretch · deepest drop along the way 83.8%, back to its old high 13.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 23.7% over that stretch · deepest drop along the way 30%, back to its old high 7.9 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 23 sales ($30.3M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Mar 2, 2026 | Patrick J. McDonie See Remarks | sell | $7.3M |
| Feb 24, 2026 | Jennifer R. Kneale President | sell | $6.4M |
| Mar 5, 2026 | Robert Muraro Chief Commercial Officer | sell | $5.9M |
| May 12, 2026 | Charles R Crisp Director | sell | $2.7M |
| Feb 25, 2026 | D. Scott Pryor See Remarks | sell | $2.1M |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.54% | Mar 31, 2026 |
| Wellington Management Group LLP | 7% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.54% | Mar 31, 2026 |
ETFs with the most weight in TRGP
| NBET Neuberger Berman Energy Transition & Infrastructure ETF | 7.99% |
| PXI Invesco Dorsey Wright Energy Momentum ETF | 7.58% |
| ENFR Alerian Energy Infrastructure ETF | 4.99% |
| UMI USCF Midstream Energy Income Fund ETF | 4.74% |
| MDST Westwood Salient Enhanced Midstream Income ETF | 4.74% |
| EINC VanEck Energy Income ETF | 4.73% |
| RSPG Invesco S&P 500 Equal Weight Energy ETF | 4.6% |
| SMIG Bahl & Gaynor Small/Mid Cap Income Growth ETF | 4.4% |
What could go wrong
- Weaker demand for natural gas liquids. Petrochemical plants, refiners, fuel buyers and exporters use the NGLs Targa handles, and NGLs made up about 71% of 2025 revenue. A drop in their demand, or a supply glut, could hurt results.
- Results hinge on energy prices and drilling. Targa's cash flow depends on supply, demand and prices for natural gas, NGLs and crude oil. Lower prices or less drilling by its producer customers could hurt its results and financial condition.
- Natural well declines require new supply. Output from existing wells falls naturally over time, so Targa needs a steady flow of new supply. That depends on producers' drilling, which it does not control. State limits on fracking could reduce volumes.
- Big building program may fall short. Targa is building processing plants, fractionation trains and pipelines, such as the roughly 500-mile Speedway NGL line expected in 2027. Regulatory, legal or economic setbacks could mean the projects don't lift revenue as planned.
- Heavy debt and interest rate exposure. Targa reported about $19.6 billion of total debt and $132.3 million of cash as of June 30, 2026. Higher interest rates could raise funding costs, and debt agreements may restrict actions such as paying dividends.
- Relies on other companies' connecting pipelines. Targa's gathering systems, plants, NGL pipelines and fractionators connect to pipelines and facilities owned by others. If those become partly or fully unavailable to carry gas, NGLs or crude, Targa's revenue could suffer.
Recent events
- Executive or board change
- Quarterly results released; Investor presentation or announcement
- Executive or board change
- Major agreement signed
- Shareholder vote results
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation
- Investor presentation or announcement; Other company announcement
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation
For income and retirement investors
Targa has raised its regular dividend for 4 straight years, but the record includes a cut: dividends per share fell from $1.21 in 2020 to $0.40 in 2021, then climbed to $3.75 in 2025. In April 2025 the quarterly dividend rose to $1.00 a share. Dividends in 2025 used 42% of earnings but 140% of free cash flow (cash left after capital spending), while Targa spends heavily on new plants and pipelines. The yield was 1.47% as of October 28, 2026. Targa repurchased $641.8 million of stock in 2025, and its share count fell 6.4% from October 2021 to July 2026.
In the 2020 COVID crash, the shares dropped 84% in under a month and took nearly 14 months to recover. In the 2022 bear market they fell 30% between June and July 2022 and recovered by March 2023. Over the market's January-to-October slide, they still gained 23.7%. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Targa Resources make money?
Targa makes most of its money buying, moving, processing and selling natural gas liquids (NGLs) and natural gas. In the year ended December 31, 2025, its Logistics and Transportation segment produced 84.2% of its $17.0 billion revenue, and NGL sales alone made up about 71%. Gathering and processing fees added about 10.5%, and storage, terminal and export services about 2.9%. Its gathering systems include the Permian Basin of West Texas and Southeast New Mexico and reach from North Dakota to Louisiana.
Does Targa Resources raise its dividend every year?
Not every year. Targa had raised its regular dividend 4 years in a row through 2025, but before that streak it cut the payout: dividends per share fell from $1.21 in 2020 to $0.40 in 2021. They have since grown to $3.75 in 2025. In April 2025, Targa raised the quarterly dividend to $1.00 a share, or $4.00 a year. Its annual report warns that dividend amounts may vary from what is expected.
What is Targa Resources' dividend yield?
The dividend yield was 1.47% as of October 28, 2026. A fast-rising share price keeps the yield lower: the price rose 104.8% in the year to that date. In 2025, dividends took 42.4% of earnings but 139.5% of free cash flow (cash left after capital spending). In other words, Targa paid out more than its business had left over that year while funding a large building program of new plants and pipelines.
How much debt does Targa Resources have?
About $19.6 billion of total debt as of June 30, 2026, against $132.3 million of cash and investments and about $3.7 billion of shareholders' equity. Targa sold several batches of senior notes in 2025 and has a $3.5 billion revolving credit facility, a borrowing line it can draw on as needed, that matures in February 2030. Its annual report warns that higher interest rates could raise funding costs and that debt terms may limit actions such as paying dividends.
How volatile is Targa Resources stock?
Very volatile at times. In the 2020 COVID crash the shares fell 83.8% between February 20 and March 19, 2020, and took about 14 months to recover. By calendar year, the price dropped 73.4% in 2015 and 32.5% in 2020 but more than doubled in 2021 and 2024. Over about 16 years of price history, its deepest fall was 94%. In the year to October 28, 2026, its biggest decline was a milder 10.6%.