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Targa Resources

DB:TAR
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TAR
DB
$2B
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of midstream energy assets in North America. The last earnings update was 39 days ago. More info.


Add to Portfolio Compare Print
  • Targa Resources has significant price volatility in the past 3 months.
TAR Share Price and Events
7 Day Returns
-27.1%
DB:TAR
18.1%
DE Oil and Gas
7.3%
DE Market
1 Year Returns
-86.9%
DB:TAR
21.9%
DE Oil and Gas
-17.7%
DE Market
TAR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Targa Resources (TAR) -27.1% -82.7% -86.3% -86.9% -91.1% -94.2%
DE Oil and Gas 18.1% -15.9% -28.7% 21.9% -25.6% 137.4%
DE Market 7.3% -17.9% -25.8% -17.7% -25.6% -29%
1 Year Return vs Industry and Market
  • TAR underperformed the Oil and Gas industry which returned 21.9% over the past year.
  • TAR underperformed the Market in Germany which returned -17.7% over the past year.
Price Volatility
TAR
Industry
5yr Volatility vs Market

TAR Value

 Is Targa Resources undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Targa Resources to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Targa Resources.

DB:TAR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-12-31) in USD $ 2.012589137931
Payout Ratio Company Filings (2019-12-31) -21360.5%
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:TAR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.808 (1 + (1- 21%) (521.49%))
3.102
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (2 * 5.44%)
10.49%

Discounted Cash Flow Calculation for DB:TAR using Dividend Discount Model Model

The calculations below outline how an intrinsic value for Targa Resources is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

DB:TAR Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $2.01 / (10.49% - -0.39%)
$10.66
DB:TAR Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:TAR represents 0.75926x of NYSE:TRGP
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.75926x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 18.50 x 0.75926
€14.04
Value per share (EUR) From above. €14.04
Current discount Discount to share price of €4.92
= -1 x (€4.92 - €14.04) / €14.04
65%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Targa Resources is available for.
Intrinsic value
>50%
Share price is €4.92 vs Future cash flow value of €14.04
Current Discount Checks
For Targa Resources to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Targa Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Targa Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Targa Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Targa Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:TAR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-1.44
NYSE:TRGP Share Price ** NYSE (2020-03-30) in USD $6.48
Europe Oil and Gas Industry PE Ratio Median Figure of 105 Publicly-Listed Oil and Gas Companies 5.67x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Targa Resources.

DB:TAR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TRGP Share Price ÷ EPS (both in USD)

= 6.48 ÷ -1.44

-4.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Targa Resources is loss making, we can't compare its value to the Europe Oil and Gas industry average.
  • Targa Resources is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Targa Resources's expected growth come at a high price?
Raw Data
DB:TAR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -4.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
58.1%per year
Europe Oil and Gas Industry PEG Ratio Median Figure of 65 Publicly-Listed Oil and Gas Companies 0.17x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Targa Resources, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Targa Resources's assets?
Raw Data
DB:TAR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $21.13
NYSE:TRGP Share Price * NYSE (2020-03-30) in USD $6.48
Germany Oil and Gas Industry PB Ratio Median Figure of 6 Publicly-Listed Oil and Gas Companies 0.94x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.43x
DB:TAR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TRGP Share Price ÷ Book Value per Share (both in USD)

= 6.48 ÷ 21.13

0.31x

* Primary Listing of Targa Resources.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Targa Resources is good value based on assets compared to the DE Oil and Gas industry average.
X
Value checks
We assess Targa Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Targa Resources has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TAR Future Performance

 How is Targa Resources expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
58.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Targa Resources expected to grow at an attractive rate?
  • Targa Resources's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Targa Resources's earnings growth is expected to exceed the Germany market average.
  • Targa Resources's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:TAR Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:TAR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 58.1%
DB:TAR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 8.7%
Europe Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:TAR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:TAR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31
2023-12-31 11,709 1,603 1,626 2
2022-12-31 11,918 1,581 165 6
2021-12-31 11,246 1,513 145 10
2020-12-31 10,431 1,353 0 10
2020-03-30
DB:TAR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 8,671 1,390 -334
2019-09-30 8,795 1,148 -327
2019-06-30 9,879 1,153 -302
2019-03-31 10,328 1,097 -182
2018-12-31 10,484 1,144 -119
2018-09-30 10,589 1,322 272
2018-06-30 9,735 1,019 129
2018-03-31 9,158 975 78
2017-12-31 8,815 940 -63
2017-09-30 8,125 809 -497
2017-06-30 7,645 844 -339
2017-03-31 7,361 915 -420

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Targa Resources's earnings are expected to grow significantly at over 20% yearly.
  • Targa Resources's revenue is expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:TAR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Targa Resources Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TAR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 -0.30 -0.30 -0.30 1.00
2023-12-31 1.74 6.29 -0.65 3.00
2022-12-31 -0.08 1.31 -0.81 5.00
2021-12-31 0.35 1.80 -1.06 15.00
2020-12-31 0.00 0.51 -0.63 14.00
2020-03-30
DB:TAR Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -1.44
2019-09-30 -1.41
2019-06-30 -1.31
2019-03-31 -0.80
2018-12-31 -0.53
2018-09-30 1.23
2018-06-30 0.59
2018-03-31 0.36
2017-12-31 -0.31
2017-09-30 -2.51
2017-06-30 -1.82
2017-03-31 -2.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Targa Resources will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Targa Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Targa Resources has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TAR Past Performance

  How has Targa Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Targa Resources's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Targa Resources does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Targa Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Targa Resources's 1-year growth to the Europe Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
Targa Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Targa Resources Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:TAR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 8,671.10 -334.00 1,073.60
2019-09-30 8,794.90 -326.80 1,087.60
2019-06-30 9,878.70 -302.30 1,075.50
2019-03-31 10,327.80 -182.00 1,020.30
2018-12-31 10,484.00 -119.30 978.90
2018-09-30 10,589.10 271.60 929.70
2018-06-30 9,734.60 128.70 877.00
2018-03-31 9,157.90 77.90 855.60
2017-12-31 8,814.90 -63.40 826.30
2017-09-30 8,124.60 -496.60 800.80
2017-06-30 7,645.20 -339.00 784.50
2017-03-31 7,361.10 -419.90 764.10
2016-12-31 6,690.90 -278.10 740.90
2016-09-30 6,325.80 -71.70 707.90
2016-06-30 6,305.50 -19.40 706.30
2016-03-31 6,421.30 48.60 715.40
2015-12-31 6,658.60 58.30 701.70
2015-09-30 7,044.00 56.90 681.10
2015-06-30 7,700.30 74.90 649.30
2015-03-31 8,001.50 85.90 602.50
2014-12-31 8,616.50 102.30 635.30
2014-09-30 8,688.10 97.30 581.60
2014-06-30 7,865.70 82.80 561.20
2014-03-31 7,211.60 71.30 547.70
2013-12-31 6,314.70 65.10 527.80
2013-09-30 5,737.60 55.80 511.50
2013-06-30 5,665.10 48.20 490.20
2013-03-31 5,637.70 41.90 468.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Targa Resources has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Targa Resources used its assets less efficiently than the Europe Oil and Gas industry average last year based on Return on Assets.
  • It is difficult to establish if Targa Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Targa Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Targa Resources has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TAR Health

 How is Targa Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Targa Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Targa Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Targa Resources's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Targa Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Targa Resources Company Filings, last reported 2 months ago.

DB:TAR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 8,721.70 7,784.40 331.10
2019-09-30 9,090.00 7,498.80 326.30
2019-06-30 9,200.80 6,909.90 226.50
2019-03-31 7,590.90 7,398.40 124.90
2018-12-31 7,716.50 6,660.30 232.10
2018-09-30 7,508.20 5,979.20 203.20
2018-06-30 7,480.80 5,573.70 281.60
2018-03-31 7,187.90 5,368.40 219.80
2017-12-31 6,972.50 5,129.20 137.20
2017-09-30 6,755.20 4,977.00 114.10
2017-06-30 7,138.50 4,514.80 98.70
2017-03-31 6,367.80 4,820.10 80.00
2016-12-31 5,915.20 4,949.50 73.50
2016-09-30 6,062.50 5,015.10 141.10
2016-06-30 6,017.00 5,071.60 170.90
2016-03-31 6,054.30 5,135.30 114.50
2015-12-31 6,250.20 6,021.00 140.20
2015-09-30 6,379.90 6,074.30 102.90
2015-06-30 6,492.20 5,920.30 105.70
2015-03-31 6,594.40 6,036.10 170.70
2014-12-31 2,539.50 3,068.20 81.00
2014-09-30 2,349.80 3,137.20 78.80
2014-06-30 2,243.00 3,048.20 75.90
2014-03-31 2,199.00 2,891.70 94.90
2013-12-31 2,091.30 2,989.30 66.70
2013-09-30 1,974.60 2,867.90 83.70
2013-06-30 1,881.30 2,728.00 82.90
2013-03-31 1,803.20 2,522.40 112.70
  • Targa Resources's level of debt (89.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (120% vs 89.3% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Targa Resources has less than a year of cash runway based on current free cash flow.
  • Unable to confirm if Targa Resources has at least 1 year of cash runway based on growing free cash flows without relevant data.
X
Financial health checks
We assess Targa Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Targa Resources has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TAR Dividends

 What is Targa Resources's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
56.17%
Current annual income from Targa Resources dividends. Estimated to be 31.06% next year.
If you bought €2,000 of Targa Resources shares you are expected to receive €1,123 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Targa Resources's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • Targa Resources's dividend is above the markets top 25% of dividend payers in Germany (4.97%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:TAR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 9.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 1%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:TAR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 0.40 1.00
2023-12-31 2.26 4.00
2022-12-31 1.76 11.00
2021-12-31 2.07 21.00
2020-12-31 2.12 21.00
2020-03-30
DB:TAR Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-01-16 3.640 20.752
2019-10-16 3.640 9.331
2019-07-17 3.640 9.638
2019-04-17 3.640 9.173
2019-03-01 3.640 8.962
2019-02-20 3.640 8.748
2018-10-17 3.640 8.212
2018-07-18 3.640 6.675
2018-04-18 3.640 7.508
2018-01-18 3.640 7.794
2017-10-18 3.640 8.084
2017-07-19 3.640 7.943
2017-04-19 3.640 7.674
2017-01-19 3.640 6.268
2016-10-19 3.640 6.995
2016-07-19 3.640 8.230
2016-04-20 3.640 8.781
2016-01-20 3.640 14.630
2015-10-20 3.640 11.408
2015-07-21 3.500 5.307
2015-04-21 3.320 3.517
2015-01-21 3.100 3.252
2014-10-23 2.930 2.755
2014-07-15 2.760 2.058
2014-04-15 2.590 2.169
2014-01-14 2.430 2.537
2013-10-21 2.280 2.803
2013-07-16 2.130 3.031
2013-04-16 1.980 2.982
2013-01-15 1.830 2.928
2012-10-11 1.690 3.336
2012-07-11 1.575 3.398
2012-04-11 1.460 3.276
2012-01-12 1.345 3.071
2011-10-11 1.230 3.446
2011-07-11 1.160 3.716
2011-04-11 1.090 3.292
2011-01-21 1.030 3.169

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Targa Resources has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Targa Resources only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Targa Resources's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.2x coverage).
X
Income/ dividend checks
We assess Targa Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Targa Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Targa Resources has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TAR Management

 What is the CEO of Targa Resources's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Matt Meloy
COMPENSATION $6,452,660
AGE 41
TENURE AS CEO 0 years
CEO Bio

Mr. Matthew J. Meloy, also known as Matt, is Chief Executive Officer and Director of Targa Resources GP LLC, the General Partner of Targa Resources Partners LP since March 1, 2020.Mr. Meloy has been Chief Executive Officer and Director of Targa Resources Corp. since March 1, 2020.He has been the President of Targa Resources Corp. since March 1, 2018. Mr. Meloy served as the President at Targa Resources GP LLC, the General Partner of Targa Resources Partners LP since March 1, 2018 until March 1, 2020. Mr. Meloy was the Chief Financial Officer of Targa Resources GP LLC, the General Partner of Targa Resources Partners LP from December 15, 2010 to March 1, 2018. Mr. Meloy was Executive Vice President of Targa Resources GP LLC since May 2015. He was Chief Financial Officer of Targa Resources Corp. and TRI Resources Inc. since December, 2010 and serves as its Executive Vice President since May 2015. He was Treasurer of Targa Resources Corp., and TRI Resources Inc. since October 25, 2010. He served as Treasurer at Targa Resources GP LLC, the General Partner of Targa Resources Partners LP from March 2008 to December 2015. He served as Senior Vice President of Targa Resources Partners LP from December 15, 2010 to May 2015. He served as Senior Vice President of Targa Resources Corp. since October 25, 2010. His professional experience includes energy investment banking and equity research. He served as Vice President of Finance at Targa Resources Corp. and TRI Resources Inc. from March 2008 to October 2010. He also served as Director of Corporate Development at Targa Resources Corp. from March 2006 to March 2008 and at Targa Resources GP LLC from October 2006 to March 2008. He served as Vice President of Finance at Targa Resources GP LLC since March 2008 until December 2010 and TRI from April 2008 to October 2010. Mr. Meloy joined TRI Resources Inc. in 2006 where he served as Director of Corporate Development. Prior to joining Targa, he served with The Royal Bank of Scotland, in their structured finance group focusing on the energy sector from October 2003 to March 2006, having also served as its Assistant Vice President. He is a Chartered Financial Analyst. He holds a Bachelor's Degree in Finance from the University of Texas at Austin.

CEO Compensation
  • Matt's compensation has increased whilst company is loss making.
  • Matt's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Targa Resources management team in years:

2
Average Tenure
56
Average Age
  • The tenure for the Targa Resources management team is about average.
Management Team

Joe Perkins

TITLE
Executive Chairman
COMPENSATION
$12M
AGE
59

Matt Meloy

TITLE
President
COMPENSATION
$6M
AGE
41

Jennifer Kneale

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
40
TENURE
2 yrs

D. Pryor

TITLE
President of Logistics & Transportation
COMPENSATION
$3M
AGE
56

Pat McDonie

TITLE
President of Gathering & Processing
COMPENSATION
$3M
AGE
58
TENURE
4.3 yrs

Robert Muraro

TITLE
Chief Commercial Officer
COMPENSATION
$3M
AGE
42
TENURE
2 yrs

G. White

TITLE
Executive Vice President of Engineering & Operations
AGE
59
TENURE
4.3 yrs

Julie Boushka

TITLE
Senior VP & Chief Accounting Officer
AGE
56
TENURE
1 yrs

Sanjay Lad

TITLE
Senior Director of Finance & Investor Relations

Regina Gregory

TITLE
Executive VP
AGE
48
Board of Directors Tenure

Average tenure and age of the Targa Resources board of directors in years:

11.6
Average Tenure
68
Average Age
  • The average tenure for the Targa Resources board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Matt Meloy

TITLE
President
COMPENSATION
$6M
AGE
41

Charlie Crisp

TITLE
Independent Director
COMPENSATION
$281K
AGE
71
TENURE
14.4 yrs

Joe Perkins

TITLE
Executive Chairman
COMPENSATION
$12M
AGE
59

Laura Fulton

TITLE
Independent Director
COMPENSATION
$258K
AGE
56
TENURE
7 yrs

Waters Davis

TITLE
Independent Director
COMPENSATION
$266K
AGE
65
TENURE
4.7 yrs

Bobby Evans

TITLE
Independent Director
COMPENSATION
$261K
AGE
71
TENURE
4 yrs

Rene Joyce

TITLE
Independent Director
COMPENSATION
$243K
AGE
71
TENURE
14.4 yrs

Jim Whalen

TITLE
Director
AGE
77
TENURE
14.4 yrs

Chris Tong

TITLE
Independent Director
COMPENSATION
$250K
AGE
62
TENURE
14.2 yrs

Ershel Redd

TITLE
Independent Director
COMPENSATION
$243K
AGE
71
TENURE
9 yrs
Who owns this company?
Recent Insider Trading
  • Targa Resources individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
25. Mar 20 Sell Rene Joyce Individual 23. Mar 20 23. Mar 20 -160,000 €6.52 €-1,042,832
14. May 19 Buy Robert Evans Individual 10. May 19 10. May 19 51,420 €35.33 €1,801,271
X
Management checks
We assess Targa Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Targa Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TAR News

Simply Wall St News

TAR Company Info

Description

Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of midstream energy assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company engages in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; gathering, storing, terminaling, and selling crude oil; and storing, terminaling, and selling refined petroleum products. It is also involved in the purchase and resale of NGL products; and wholesale of propane, as well as provision of related logistics services to multi-state retailers, independent retailers, and other end-users. In addition, the company offers NGL balancing services; and transportation services to refineries and petrochemical companies in the Gulf Coast area, as well as purchases, markets, and resells natural gas. It operates approximately 28,900 miles of natural gas pipelines, including 46 owned and operated processing plants; and owns or operates a total of 34 storage wells with a gross storage capacity of approximately 72 million barrels. As of December 31, 2019, the company leased and managed approximately 698 railcars; 138 transport tractors; and 2 company-owned pressurized NGL barges. Targa Resources Corp. was founded in 2005 and is headquartered in Houston, Texas.

Details
Name: Targa Resources Corp.
TAR
Exchange: DB
Founded: 2005
$1,369,157,129
233,108,650
Website: http://www.targaresources.com
Address: Targa Resources Corp.
811 Louisiana Street,
Suite 2100,
Houston,
Texas, 77002,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TRGP Common Stock New York Stock Exchange US USD 07. Dec 2010
DB TAR Common Stock Deutsche Boerse AG DE EUR 07. Dec 2010
LSE 0LD9 Common Stock London Stock Exchange GB USD 07. Dec 2010
BRSE TAR Common Stock Berne Stock Exchange CH CHF 07. Dec 2010
Number of employees
Current staff
Staff numbers
2,680
Targa Resources employees.
Industry
Oil and Gas Storage and Transportation
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/30 22:50
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/28
Last earnings filing: 2020/02/20
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.