Energy · NYSE/NASDAQ: TRGP
Targa Resources Corp.
Oil & Gas Midstream
Market Cap $56.31B
Verdict: Average
Quality Scores
Multi-Bagger
64/100
Compounder Quality
69/100
Management Credibility
78/100
Governance
70/100
Cash Flow Quality
88/100
AI Summary
Targa Resources (TRGP) has undergone a significant transformation from a struggling midstream player in 2015-2020 to a more stable cash-flow generator in the post-2021 era. The company historically suffered from heavy capital requirements and equity dilution, evidenced by a massive -1.55B net loss in 2020 followed by a pivot Toward Permian Basin gathering and processing. Recent years show a decoupling of Operating Cash Flow (OCF) from Net Income, indicating high depreciation charges but a steady underlying cash engine. However, the massive expansion in long-term debt from $6B to over $17.4B…
Top Opportunities
- Consistent growth in Cash Flow from Operations
- Dominant position in the Permian Basin midstream
- High ROE (>50%) in recent fiscal years
Top Risks
- High absolute level of Long-Term Debt ($17.4B)
- High sensitivity to commodity price fluctuations
- Massive net loss recorded in 2020 via impairments
Latest report: Read the annual report summary →
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