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Mar 31

Targa Resources Q1 2025 Earnings Report

Expected Revenue:$4.9B
+14.0% YoY
Expected EPS:$2.05
+57.7% YoY

Key Takeaways

Targa Resources Corp. reported record adjusted EBITDA of $1,178.5 million for the first quarter of 2025, a 22% increase compared to the prior year period, driven by growth in the Permian Basin and higher marketing margin. Net income attributable to Targa Resources Corp. slightly decreased to $270.5 million compared to $275.2 million in the first quarter of 2024. Volumes were negatively impacted by winter weather events and planned maintenance.

Record first quarter 2025 adjusted EBITDA of $1.2 billion, a 22% increase year over year

Repurchased $214 million of common shares through April 2025

Declared an annual common dividend of $4.00 per share for 2025, a 33% increase year over year

Continue to estimate full year 2025 adjusted EBITDA between $4.65 billion and $4.85 billion

Total Revenue
$4.56B
Previous year: $4.6B
-0.8%
Adjusted EBITDA
$1.18B
Previous year: $966M
+22.0%
Adjusted Free Cash Flow
$328M
Previous year: $2.8M
+11621.4%
Total Consolidated Liquidity
$2.7B
Gross Profit
$633M
Previous year: $761M
-16.9%
Cash and Equivalents
$151M
Previous year: $183M
-17.0%
Free Cash Flow
$162M
Previous year: $207M
-21.5%

Targa Resources

Targa Resources

Forward Guidance

Targa continues to estimate full year 2025 adjusted EBITDA between $4.65 billion and $4.85 billion and net growth capital expenditures between $2.6 billion and $2.8 billion. This outlook is supported by forecasted growth across the Permian G&P footprint, expected to drive record volumes in 2025.

Positive Outlook

  • Full year 2025 adjusted EBITDA estimate maintained at $4.65 billion to $4.85 billion.
  • Forecasted growth across the Permian Gathering and Processing footprint.
  • Expected record Permian, NGL pipeline transportation, fractionation, and LPG export volumes in 2025.
  • Growth is weighted to the second half of 2025.
  • Current and expected producer activity levels support meaningfully increasing volumes through 2026.