TRGPNYSENatural Gas TransmissionUS GAAP · USD

Targa Resources Corp.

Targa Resources Corp. owns and operates a domestic midstream infrastructure network in the United States. Its assets gather, process, transport, store, fractionate, treat, and terminal natural gas, natural gas liquids, crude oil, and related products through an integrated system of pipelines and facilities.

Revenue17.0bn USD
+3.9 %y/y
Operating profit (EBIT)3,331m USD
+23.6 %y/y
EBIT margin19.6%
+3.1 ppy/y
Net income1,923m USD
+46.6 %y/y
Free cash flow584m USD
−14.6 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-50510152025bn USD2020: 8.3 bn USD2020: EBIT -1.3 bn USD20202021: 16.9 bn USD2021: EBIT 0.86 bn USD20212022: 20.9 bn USD2022: EBIT 1.7 bn USD20222023: 16.1 bn USD2023: EBIT 2.6 bn USD20232024: 16.4 bn USD2024: EBIT 2.7 bn USD20242025: 17.0 bn USD2025: EBIT 3.3 bn USD202517.03.3
RevenueOperating profit (EBIT)

Business

Share of revenue
Gathering and Processing55 %

Natural gas gathering, compression, treating, and processing services and related commodity handling.

Logistics and Transportation35 %

Downstream NGL and crude logistics, including transportation, storage, fractionation, and terminaling.

Commodity Sales10 %

Sales of natural gas, NGLs, condensate, and crude oil tied to operating assets.

Products

Reported · share of revenue
71.0%15.4%10.5%FY2025100 %
  • Natural Gas Liquids Reserves71.0 %
  • Services15.4 %
  • Gathering and Processing Fees10.5 %
  • Storage Terminaling and Export2.9 %
  • Midstream Services Other0.1 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Targa serves producers and shippers that need takeaway, processing, and market access for natural gas, NGLs, and crude oil. It also serves downstream counterparties such as LPG exporters, refiners, petrochemical users, and other market participants that rely on fractionation, storage, and terminaling capacity.

Upstream natural gas producers

Buy gathering, compression, treating, and processing capacity to move gas from the wellhead to market.

NGL producers and shippers

Use fractionation, storage, transportation, and terminaling to separate and move NGLs and NGL products.

LPG exporters

Use export-related logistics and terminal services to load and move LPG products to overseas markets.

Refinery and petrochemical customers

Buy NGL products and related logistics services for fuel, feedstock, and processing needs.

Crude oil shippers and marketers

Use crude gathering, storage, and terminaling assets to aggregate and move crude oil.

Strategy

Targa’s strategy centers on owning integrated midstream assets that connect production basins to downstream demand and export markets. It also pursues growth projects and acquisitions to expand its network, while using hedging and commercial arrangements to manage commodity exposure and support asset utilization.

Grow the domestic infrastructure networkMedium term

More connected assets can increase throughput, utilization, and customer reach.

Preserve basin and market connectivityMedium term

Integrated gathering-to-export infrastructure strengthens customer retention and pricing power.

Manage commodity and counterparty exposureShort term

Commodity-linked sales and supply contracts can create earnings volatility without hedging and credit controls.

Geography

Targa’s business is concentrated in the United States, where it owns and operates domestic infrastructure assets. Its operating footprint is tied to major U.S. producing basins and Gulf Coast-linked logistics corridors that connect supply areas to processing, storage, and export markets.

Risks

Targa’s results depend on commodity prices, producer activity, and demand for NGL products, crude oil, and natural gas services. Its asset-heavy business also faces operational, regulatory, environmental, cybersecurity, and competitive risks, while growth depends on access to capital and successful project execution.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Commodity price and activity sensitivity1NGL demand and supply imbalance2Regulatory, safety, and environmental exposure3Cybersecurity and operational disruption4Reserve and basin decline risk5Capital access and project execution6
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Commodity price and activity sensitivityImpact: HighLikelihood: Medium

    Lower natural gas, NGL, crude oil, or condensate prices can reduce drilling and volumes moving through the system.

    ExposureGatheringProcessingCommodity sales
  2. NGL demand and supply imbalanceImpact: HighLikelihood: Medium

    Weak demand from petrochemical, refinery, fuel, or export markets, or excess NGL supply, can pressure utilization and margins.

    ExposureNGL fractionationStorageTerminaling
  3. Regulatory, safety, and environmental exposureImpact: HighLikelihood: Medium

    Pipelines and processing facilities face permitting, safety, integrity-testing, and environmental compliance obligations.

    ExposurePipelinesPlantsTerminal assets
  4. Cybersecurity and operational disruptionImpact: HighLikelihood: Medium

    A cyber incident could interrupt operations, compromise data, or affect financial transfers and customer service.

    Exposure: Enterprise systems and operating technology

  5. Reserve and basin decline riskImpact: MediumLikelihood: Medium

    Natural production decline in source basins can reduce the feedstock available to Targa’s systems over time.

    ExposurePermianBadlandsOther sourcing areas
  6. Capital access and project executionImpact: MediumLikelihood: Medium

    Growth projects and acquisitions require financing and disciplined execution in a competitive capital market.

    Exposure: Growth capital and M&A

Accounting

Judgemental items
Revenue recognition for commodity and service contracts

Some arrangements are treated as customer revenue while others are treated as supply contracts and netted against purchases, affecting reported top line.

Impact: Gross revenue and product purchases

Derivative and hedge accounting

Swaps, collars, puts, and caps create mark-to-market volatility and hedge-related adjustments in earnings and OCI.

Impact: Net income, comprehensive income, and adjusted EBITDA

Deferred revenue and contributions in aid of construction

Customer-funded construction and contract amendments create deferred revenue balances recognized over time.

Impact: Revenue timing and liabilities

Goodwill impairment

Reporting unit values are sensitive to crude oil, natural gas, and NGL prices, which can trigger impairment charges.

Impact: Balance sheet goodwill and operating income

Fair value estimates for long-lived assets and reporting units

Valuation relies on Level 3 assumptions that are highly sensitive to commodity and market conditions.

Impact: Asset carrying values and impairment risk

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026