Is Targa Resources Corp. (TRGP) A Good Stock To Buy Now?

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Targa Resources (TRGP) is simply a starring integrated midstream relation successful the Permian Basin, with its concern lawsuit driven by a structural displacement successful earthy state and NGL volumes alternatively than commodity cyclicality. The institution benefits from accelerating Permian output, with state volumes up 11% successful 2025 and a grounds 6.65 Bcf/d successful Q4, supported by rising gas-oil ratios and deeper drilling that structurally summation state intensity.

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Targa Resources delivered grounds EBITDA of $4.96 billion, up 20% twelvemonth implicit year, and guided 2026 EBITDA of $5.4–5.6 billion, with visibility supra $6 cardinal post-Speedway enlargement successful 2027. The institution is expanding aggressively with 8 caller processing plants, 2.2 Bcf/d of incremental capacity, and the Speedway system, strengthening its wellhead-to-water integration. With implicit 90% fee-based currency flows and contractual protections, Targa Resources has beardown downside insulation and minimal commodity sensitivity of nether 2% of EBITDA adjacent successful ±30% terms moves. The concern is evolving into a high-throughput “free-flow machine,” converting Permian maturation straight into unchangeable currency generation.

EBITDA is expected to emergence different 11% successful 2026 adjacent nether blimpish assumptions, portion post-2027 capex normalization drives a meaningful escaped currency travel inflection. Leverage remains unchangeable astatine ~3.5x, with nary currency taxes expected for 5 years, enhancing equity compounding.

While risks see Permian enactment slowdown oregon task delays, Targa Resources remains good positioned wrong a structurally supportive LNG export-driven state cycle. Overall, TRGP offers a highly disposable multi-year maturation communicative with beardown net momentum, resilient currency flow, and a bullish setup into 2027.

Previously, we covered a bullish thesis connected Kinder Morgan, Inc. (KMI) by Gregg Jahnke successful October 2024, which highlighted backlog-driven growth, regulatory approvals, and macro tailwinds from AI-linked request and U.S. reshoring. KMI’s banal terms has appreciated by astir 27.93% since our coverage. Cristobal Botanch shares a akin presumption but emphasizes Permian-led structural state measurement enlargement and fee-based currency travel compounding.