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Targa Resources

TRGP
59
Oil & Gas Midstream · Energy
Also trades as: 0LD9.L GBP 2.89 (-2.48%)
Price
$289.54
-6.06 (-2.05%)
Market Cap
$62.09B
Winston Score
59
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 23, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Strong
21/30
Growth
Strong
14/20
Cash Flow
Strong
7/10
Stability
Mixed
3/10
Valuation
Strong
7/10
Ownership
Mixed
4/15
Dividends
Good
3/5

59 of 100 counted points = Winston Score 59.

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Share count falling — buybacks

−5.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 228.6M (2021) → 215.0M (2025)

§Winston Score History

The full picture

Targa Resources is a midstream energy company, meaning it moves and processes natural gas and natural liquid fuels after they are pulled out of the ground but before they reach end customers. The company operates pipelines, processing plants, and storage facilities, primarily serving oil and gas producers in major U.S. basins like the Permian Basin in Texas and the Midcontinent region. It does not drill for oil or gas itself — it handles the transportation and treatment of what others produce.

Targa makes money by charging fees to producers who use its pipelines and processing infrastructure, which provides relatively steady revenue even when energy prices fluctuate. The company operates almost entirely within the United States and, with a market cap above $55 billion, is one of the larger midstream operators in the country. Its extensive pipeline network creates a geographic moat since building competing infrastructure is expensive and slow, but its growth depends heavily on continued drilling activity by producers in the basins it serves.

Politician Trades

7 trades / 12mo

5 Congressional buys and 2 sells on TRGP in the last 12 months.

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Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
48.2%
Healthy — 48.2% gross margin
Profit after running costs
Operating Margin
27.8%
Excellent — 27.8% operating margin
Return on the money invested
ROCE
16.3%
Strong — 16.3% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
-2.2%
Shrinking sales (-2.2% YoY)
Profit growth
EPS YoY
+50.2%
Earnings growing fast (+50.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
189%
Turns 189% of profit into real cash
Spare cash per sale
FCF Margin
4.4%
Thin free cash flow (4.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
5.51
Heavy debt load (5.51)
Covers its interest
Interest Cover
5.76x
Adequate interest coverage (5.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
27.5x
Growth-priced — P/E 27.5

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+8.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (27.5 → 19.2)

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Dividends

Dividend
Dividend Yield
1.74%
Small dividend — 1.74% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+28.6%
Dividend growing fast (28.6% YoY)
Payout Ratio
41%
no trend
Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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