# Targa Resources Corp. (TRGP) — Stock CV

Targa Resources Corp. is a $61.5B utility company. Revenue shrank 2.0% over the last year, it keeps 14¢ of every dollar of sales as profit, and its net debt equals ~22.3 years of free cash flow. It trades at 27.1× earnings — in the cheapest third of its own history.

> Targa Resources Corp is a midstream firm that mainly 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.

## Identity

- **Ticker**: TRGP
- **Sector**: Utilities
- **Industry**: Natural Gas Transmission
- **Headquarters**: HOUSTON, TX
- **Employees**: 3 570
- **Website**: https://www.targaresources.com
- **Market cap**: $61.5B
- **Last price**: $286.70
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $16.7B
- **Net income**: $2.27B
- **Free cash flow**: $741M
- **Net debt**: $16.5B
- **P/E**: 27.1
- **Revenue growth (YoY)**: -2.0%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 65 |
| Growth | 43 |
| Profitability | 77 |
| Health | 16 |
| Quality | 54 |
| Moat | 23 |

## Qualifications (beginner checklist) — 8 of 11 passed

- [ ] Revenue growing — -2.0% YoY
- [x] Profitable — $2.27B TTM
- [x] Profit growing — +19.6% YoY
- [x] Generates cash — $741M TTM
- [ ] Debt under control — ~22.3y of cash flow to repay
- [x] Established company — $61.5B market cap
- [x] Not printing shares — -6.6% shares over ~5y
- [x] Proven track record — 7/10 profitable years
- [ ] Financially stable — health score 16/100
- [x] Pays a dividend — yield 1.50%
- [x] Valuation not extreme — P/E 27.1

## Experience (career milestones)

- **FY2025** — Best year on record: $1.92B net income
- **2022** — Targa acquired Southcross Energy Operating LLC for $200 million
- **FY2020** — Positive free cash flow every year since: 6-year streak
- **FY2018** — Revenue crossed $1B: $10.5B for the year
- **FY2018** — Revenue crossed $10B: $10.5B for the year
- **FY2017** — Turned profitable: $54.0M net income after a loss year
- **2017** — Targa acquired Outrigger Delaware Operating, LLC, Outrigger Southern Delaware Operating, LLC and Outrigger…
- **2015** — Targa Resources acquired Oklahoma-based Atlas Pipeline Partners LP and Atlas Energy LP
- **Oct 27, 2005** — Targa Resources was founded on October 27, 2005, and is headquartered in Houston, Texas

## Strengths

- High gross margin (43.2%)

## Watch-outs

- Revenue shrinking 2.0% year over year
- Loss-making in 3 of the recent years
- Net debt equals ~22.3 years of free cash flow

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $16.9B | $71.2M | $1.80B |
| FY2022 | $20.9B | $897M | $1.05B |
| FY2023 | $16.1B | $828M | $826M |
| FY2024 | $16.4B | $1.31B | $684M |
| FY2025 | $17.0B | $1.92B | $584M |

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Source: https://stockcv.com/TRGP — derived from company filings; may be delayed or incomplete. Information, not investment advice.