Targa Resources reported record NGL transportation and fractionation volumes in the Permian Basin in third-quarter 2024, where associated natural gas production continues to rise. (Source: Shutterstock)
Targa Resources Corp.’s gas processing and NGL segment saw its strongest three-month quarter, driving the midstream company’s adjusted EBITDA to a record $1.07 billion, according to its Nov. 5. earnings report.
“We were expecting growth this year, but not that level of growth,” said Matt Meloy, Targa CEO and director. “So, we think that really just puts us in a good position as we go forward.”
Targa’s adjusted core profit hit $1.07 billion in the reported quarter, compared to analysts’ estimate of $1.01 billion.
Targa plans to continue developing its gas processing and transport infrastructure. The company reported record NGL transportation and fractionation volumes in the Permian Basin, where associated natural gas production continues to rise as E&Ps focus on crude.
In September, the company completed its Daytona NGL Pipeline expansion. The 400,000-bbl/d line transports products from gas processing plants in the Permian to Targa’s Grand Prix pipeline in North Texas.
The company also said it completed the 275 MMcf/d Greenwood II natural gas processing plant in the Midland Basin and placed in service its 120,000 bbl/d Train 10 fractionator in Mont Belvieu, in the Houston area.
Executives are moving forward with plans for two new gas processing plants in the Permian with a capacity of 275 MMcf/d each.
“Given the anticipated growth in our Permian G&P business and corresponding plant additions, our outlook for NGL supply growth is robust, and our downstream system expansions are very much needed to handle growth from our systems,” said Jen Kneale, Targa’s president of finance and administration.
For the quarter, Truist Securities rated Targa stock as a “buy” in a quick analysis of the report.
“Continued record Permian production volumes means continued record Targa NGL transportation and fractionation volumes,” Truist analysts said. “The company’s low double-digit Permian volume not only sets up for strong end to the year but also positions 2025 better than most were previously forecasting.”
The company declared a quarterly cash dividend of $0.75 per common share, or $3 per common share on an annualized basis, for the third quarter. Targa repurchased 1.15 million shares of its common stock during the period at a weighted average per share price of $146.02 for a total net cost of $167.9 million, executives reported.
Recommended Reading
Pembina Closes $290MM Deal for Stake in Whitecap’s NatGas Facility
2025-01-02 - Pembina Gas Infrastructure closed a CA$420 million transaction to acquire interests in Whitecap Resources’ natural gas processing facility in Alberta, Canada.
One Equity Partners Completes Acquisition of EthosEnergy
2025-01-02 - Private equity firm One Equity Partners said it purchased EthosEnergy to meet the growing maintenance needs of the gas power market.
EQT Closes $1.25B Non-Op Appalachia Divesture to Equinor
2024-12-31 - EQT Corp. said the proceeds of the sale to Equinor were used to repay outstanding borrowings under its revolving credit facility related to its acquisition of Equitrans Midstream Corp.
Coterra Notches Year-End Permian Deal for $43MM
2024-12-31 - Coterra Energy will buy an additional 1,650 net royalty acres from Sandia Minerals LLC, the interests of which are owned by Franklin Mountain Royalty Investments, for $43 million.
PE Firm Northleaf to Divest Interests in Spanish Solar Farm
2025-01-02 - Private equity firm Northleaf Capital Partners acquired a controlling interest in the NCP Solar Mula farm in 2018.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.