Targa Resources reports Q3 revenue miss, raises 2024 outlook

HOUSTON - Targa Resources Corp. (NYSE:TRGP ) reported third quarter revenue of $3.85 billion, falling short of analyst estimates of $4.31 billion. However, the company raised its full-year 2024 adjusted EBITDA outlook above the previous guidance range.

Targa now expects 2024 adjusted EBITDA to exceed the top end of its prior $3.95 billion to $4.05 billion range. The company cited accelerated infrastructure spending to handle higher volumes as driving the improved outlook.

"We delivered record third quarter adjusted EBITDA of $1.07 billion, representing a 9 percent increase compared to the second quarter of 2024," said Matt Meloy, Chief Executive Officer of Targa. "The sequential increase was driven by higher volumes across our Gathering and Processing and Logistics and Transportation systems."

For the third quarter, Targa reported net income attributable to shareholders of $387.4 million, up from $220.0 million in Q3 2023. Adjusted EBITDA rose to $1.07 billion from $840.2 million a year earlier.

The company's stock was little changed following the earnings release. Targa continues to expect a "meaningful inflection" in 2025 adjusted free cash flow generation compared to 2024 levels.

Looking ahead, Targa plans to provide its full year 2025 operational and financial outlook in February 2025 when it reports fourth quarter 2024 results.

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Source: Investing.com