Episode Details
Back to EpisodesTarga Resources (TRGP) Q4-25 earnings: Record EBITDA, $1B CapEx blitz & a 5-year tax pass
Description
In Q4, Targa Resources hit record earnings despite negative natural gas prices, but a massive ongoing construction bill triggered an abrupt aftermarket sell-off.
In ~10 minutes:
• Why Adjusted EBITDA reached a record $1.34B.
• The massive $1.01B quarter for growth CapEx. 🏗️
• How new legislation wipes out cash taxes for five years.
• Raising the baseline pipeline and plant spending to $2.5B annually.
• Recommending a 25% dividend bump to pacify investors.
Targa is basically building a Fortune 500 company inside its own backlog. By deliberately accelerating spending to secure long-lead supply chain items, they are prioritizing physical dominance in the Permian over immediate free cash flow generation.
Targa Resources (TRGP) | Q4 FY2025
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