On August 1, 2024, Targa Resources Corp (TRGP, Financial) released its 8-K filing reporting its second quarter 2024 results. Targa Resources is a midstream firm that primarily operates gathering and processing assets with substantial positions in the Permian, Stack, Scoop, and Bakken plays. It has fractionation capacity at Mont Belvieu and operates a liquefied petroleum gas export terminal. The Grand Prix natural gas liquids pipeline is another important asset.
Performance Overview
Targa Resources Corp (TRGP, Financial) reported a net income attributable to the company of $298.5 million for Q2 2024, down from $329.3 million in Q2 2023. However, the company achieved a record adjusted EBITDA of $984.3 million, a significant increase from $789.1 million in the same quarter last year. This performance is crucial as it highlights the company's ability to generate substantial cash flow, which is essential for funding operations, paying dividends, and repurchasing shares.
Financial Achievements
Key financial achievements for Targa Resources Corp (TRGP, Financial) in Q2 2024 include:
- Record adjusted EBITDA of $984.3 million
- Record Permian, NGL transportation, and fractionation volumes
- Repurchased $355.1 million of common stock
- Announced a new $1.0 billion common share repurchase program
- Estimated 2024 adjusted EBITDA to be $3.95 billion to $4.05 billion, a 5% increase over the previous estimate
- Announced two new 275 million cubic feet per day gas plants in the Permian Basin
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Total Revenues | $3,562.0 million | $3,403.7 million | 5% |
| Net Income Attributable to TRGP | $298.5 million | $329.3 million | -9% |
| Adjusted EBITDA | $984.3 million | $789.1 million | 25% |
Balance Sheet and Cash Flow
As of June 30, 2024, Targa Resources Corp (TRGP, Financial) reported total consolidated debt of $13,567.0 million and total consolidated liquidity of approximately $1.6 billion. The company repaid $500.0 million outstanding under its unsecured term loan facility and announced a new share repurchase program for up to $1.0 billion of its outstanding common stock.
Growth Projects and Outlook
During Q2 2024, Targa commenced operations at its new 230 MMcf/d Roadrunner II plant in Permian Delaware and its new 120 MBbl/d Train 9 fractionator in Mont Belvieu, TX. The company also announced the construction of two new 275 MMcf/d cryogenic natural gas processing plants in the Permian Basin, expected to begin operations in 2026.
Given the strength of volume growth across Targa’s integrated assets, the company now expects to generate full-year 2024 adjusted EBITDA of $3.95 billion to $4.05 billion, a 5% increase over its previous estimate. Targa continues to estimate net maintenance capital expenditures for 2024 to be approximately $225 million.
Conclusion
Targa Resources Corp (TRGP, Financial) has demonstrated robust financial performance in Q2 2024, with record adjusted EBITDA and significant growth in key operational metrics. The company's strategic investments and share repurchase programs underscore its commitment to enhancing shareholder value. For more detailed financial information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Targa Resources Corp for further details.
