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Jun 30, 2025
Targa Resources Q2 2025 Earnings Report
Targa Resources Corp. reported its second quarter 2025 financial results, highlighting increased net income and adjusted EBITDA compared to the same period last year.
Key Takeaways
Targa Resources Corp. delivered a strong second quarter in 2025, with net income attributable to Targa Resources Corp. more than doubling year-over-year to $629.1 million. Adjusted EBITDA also saw a significant increase, rising 18% to $1,163.0 million, driven by record Permian and NGL transportation volumes. The company continued its share repurchase program and provided an updated outlook for full-year 2025 adjusted EBITDA and growth capital expenditures.
Net income attributable to Targa Resources Corp. for Q2 2025 was $629.1 million, a significant increase from $298.5 million in Q2 2024.
Adjusted EBITDA reached $1,163.0 million in Q2 2025, an 18% increase compared to $984.3 million in Q2 2024, driven by record Permian and NGL transportation volumes.
The company repurchased $324.3 million of common shares during the second quarter and approved a new $1.0 billion share repurchase program.
Targa expects early completion of several key growth projects, including the Pembrook II plant in Permian Midland and the Bull Moose II plant in Permian Delaware, and increased its full-year 2025 net growth capital expenditures estimate to approximately $3.0 billion.
Revenue by Segment
Forward Guidance
Targa continues to estimate full year 2025 adjusted EBITDA between $4.65 billion and $4.85 billion, supported by forecasted growth across its Permian G&P footprint. The company also increased its estimate for total net growth capital expenditures for 2025 to approximately $3.0 billion due to accelerated project completions and new initiatives.
Positive Outlook
- Full year 2025 adjusted EBITDA is estimated to be between $4.65 billion and $4.85 billion.
- Forecasted growth across Permian G&P footprint is expected to drive record Permian, NGL pipeline transportation, fractionation, and LPG export volumes in 2025.
- Early completion expected for Pembrook II plant in Permian Midland (August 2025).
- Early completion expected for Bull Moose II plant in Permian Delaware (Q4 2025).
- Early completion expected for Delaware Express Pipeline and Train 11 fractionator (Q2 2026).
Challenges Ahead
- Total net growth capital expenditures for 2025 are now estimated at approximately $3.0 billion, an increase from previous estimates.
- The Bull Run Extension pipeline is expected to begin operations in Q1 2027, indicating a longer-term return on investment.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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