Latest news with #TargaResources
Yahoo
a day ago
- Business
- Yahoo
Dividends Declared During the Week of July 7
Energy companies are gearing up for second-quarter 2025 earnings season. Here is a compilation of dividends declared during the week of July 7 from select midstream and service and supply companies. Targa Resources Targa Resources Corp. declared a quarterly cash dividend of $1 per common share, $4 per share annualized, for the second quarter of 2025. The cash dividend will be paid Aug. 15 on all outstanding common shares to holders of record as of the close of business on July 31. Pembina Pipeline Pembina Pipeline Corp. declared quarterly dividends for a series of preferred shares—Series 1, 3, 5, 7, 9, 15, 17, 21 and 25. Series 1, 3, 5, 7, 9 and 21 preferred share dividends are payable on Sept. 2 to shareholders of record on Aug. 1. Series 15 and 17 are payable on Oct. 1 to shareholders of record on Sept. 15. Series 25 preferred share dividends are payable on Aug. 15 to shareholders of record on July 31. NW Natural Energy infrastructure company Northwest Natural Holding Co. declared a quarterly dividend of $0.49 per share on July 10. The dividend will be paid on Aug. 15 to shareholders of record on July 31. NW Natural said its annual dividend rate is $1.96 per share. Phillips 66 Phillips 66 declared a quarterly dividend on July 10 for $1.20 per share on its common stock. The dividend is payable on Sept. 2 to shareholders of record as of Aug. 19. Emera North American energy services provider Emera Inc. declared quarterly dividends on July 11 on its common shares and first preferred shares. The common share dividend will be paid out as approximately $0.73 per share. The preferred share dividends will be paid out as follows: $0.1364 per Series A first preferred share; $0.2789 per Series B first preferred share; $0.40213 per Series C first preferred share; $0.28125 per Series E first preferred share; $0.35931 per Series F first preferred share; $0.39525 per Series H first preferred share; $0.265625 per Series J first preferred share; and $0.2875 per Series L first preferred share. The dividends are payable on and after Aug. 15 to shareholders of record as of Aug. 1.
Yahoo
01-07-2025
- Business
- Yahoo
Wolfe Research refreshes high-conviction ideas heading into H2
-- Wolfe Research has updated its Alpha List, adding Targa Resources (NYSE:TRGP), M&T Bank (NYSE:MTB), and Warner Music Group (NASDAQ:WMG), while removing Energy Transfer (NYSE:ET), Kinsale Capital, and Netflix (NASDAQ:NFLX) in a strategic rotation based on near-term catalysts and valuation. Wolfe analysts added Targa as the firm's preferred way to play U.S. liquids-focused infrastructure. 'We expect continued well above average growth now at a discount valuation,' they said, replacing Energy Transfer, which has seen less relative upside. The firm also swapped out Kinsale Capital for M&T Bank, citing near-term growth headwinds for KNSL. 'We continue to see meaningful long-term value [in KNSL], but believe persistent decelerating top-line growth headwinds may add NT pressure.' Meanwhile, M&T Bank is expected to benefit from 'low-single digit revenue growth, better-than-expected operating efficiency, top-of-the-class credit, and capital optionality.' Warner Music Group replaces Netflix on the list, as Wolfe sees WMG poised to ease investor concerns in 2026 and benefit from a robust music industry outlook. 'Music industry growth and labels' share remain robust, and WMG looks set to accelerate,' the note said. With shares trading at a steep discount to rival Universal Music Group (AS:UMG), Wolfe estimates 12-month upside of +21% and a +24% total shareholder return. Among existing Alpha List names, Wolfe continues to favor Amazon (NASDAQ:AMZN), Micron (NASDAQ:MU), Twilio (NYSE:TWLO), and Walmart (NYSE:WMT). Overall, Wolfe favors a mix of growth and value as the second half of 2025 begins. Related articles Wolfe Research refreshes high-conviction ideas heading into H2 Nuclear microreactor stocks fall after DOE selects Westinghouse, Radiant for tests Citi sees upside for Trade Desk into Q2 results, adds on a catalyst watch Sign in to access your portfolio
Yahoo
24-06-2025
- Business
- Yahoo
Is There An Opportunity With Targa Resources Corp.'s (NYSE:TRGP) 32% Undervaluation?
The projected fair value for Targa Resources is US$244 based on 2 Stage Free Cash Flow to Equity Targa Resources is estimated to be 32% undervalued based on current share price of US$165 Analyst price target for TRGP is US$201 which is 17% below our fair value estimate Today we will run through one way of estimating the intrinsic value of Targa Resources Corp. (NYSE:TRGP) by taking the expected future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$824.9m US$1.44b US$2.13b US$2.59b US$2.58b US$2.59b US$2.62b US$2.67b US$2.73b US$2.79b Growth Rate Estimate Source Analyst x6 Analyst x6 Analyst x5 Analyst x2 Analyst x1 Est @ 0.58% Est @ 1.29% Est @ 1.78% Est @ 2.13% Est @ 2.37% Present Value ($, Millions) Discounted @ 6.9% US$772 US$1.3k US$1.7k US$2.0k US$1.8k US$1.7k US$1.6k US$1.6k US$1.5k US$1.4k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$15b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 6.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$2.8b× (1 + 2.9%) ÷ (6.9%– 2.9%) = US$73b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$73b÷ ( 1 + 6.9%)10= US$37b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$53b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of US$165, the company appears quite good value at a 32% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Targa Resources as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.9%, which is based on a levered beta of 0.913. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Targa Resources Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Weakness Earnings growth over the past year is below its 5-year average. Dividend is low compared to the top 25% of dividend payers in the Oil and Gas market. Opportunity Annual earnings are forecast to grow faster than the American market. Trading below our estimate of fair value by more than 20%. Threat Dividends are not covered by cash flow. Revenue is forecast to grow slower than 20% per year. Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. What is the reason for the share price sitting below the intrinsic value? For Targa Resources, we've compiled three further items you should further examine: Risks: For instance, we've identified 3 warning signs for Targa Resources that you should be aware of. Future Earnings: How does TRGP's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
21-05-2025
- Business
- Yahoo
Targa Resources price target lowered to $193 from $199 at Scotiabank
Scotiabank analyst Brandon Bingham lowered the firm's price target on Targa Resources (TRGP) to $193 from $199 and keeps an Outperform rating on the shares. The firm is refreshing its valuation analysis for U.S. Midstream stocks under its coverage to incorporate Q1 results, the analyst tells investors. While not much has changed overall since the firm's last iteration, dislocations between current price, implied values, and price targets persist in certain names. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on TRGP: Disclaimer & DisclosureReport an Issue Targa Resources price target lowered to $212 from $218 at Mizuho Targa Resources price target lowered to $178 from $206 at Barclays Targa Resources price target lowered to $190 from $250 at Argus Targa Resources price target lowered to $228 from $259 at UBS Targa Resources: Buy Rating Affirmed Amid Growth Potential and Strategic Capital Management Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Targa Resources Corp. (TRGP) Price Target Lowered at Argus
The price target of Targa Resources Corp. (NYSE:TRGP) was recently lowered by Argus Research. Let's shed some light on the development. An oil tanker at sunset, symbolizing the company's supply of global crude oil. Targa Resources Corp. (NYSE:TRGP) is one of the largest independent midstream infrastructure companies in North America. It was recently revealed that Argus Research, a New York-based investment research firm, lowered the price target for Targa Resources Corp. (NYSE:TRGP) from $250 to $190, while maintaining a Buy rating on the stock. The analyst has blamed Targa's unimpressive performance in Q1 2025 for the move. However, it still projects the energy company's 2025 EBITDA to exceed management's $4.65 billion-$4.85 billion guidance, assisted by strong production in the Permian basin. Targa Resources Corp. (NYSE:TRGP) recently reported lower-than-expected results for its Q1 2025, posting an EPS of $0.91 against expectations of $1.98. The company's revenue of $4.56 billion also missed forecasts by over $337 million. However, TRGP's adjusted EBITDA rose by 22% YoY to a record $1.18 billion, while it also raised its quarterly dividend by 33% in April to $1 per share. Moreover, the company repurchased $124.9 million worth of shares in the first quarter, with $890.5 million still remaining under its stock buyback program. While we acknowledge the potential of TRGP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TRGP and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
