Targa Resources Corp. Announces Quarterly Dividend and Timing of Fourth Quarter 2024 Earnings Webcast

Rhea-AI Summary

Targa Resources Corp. (NYSE: TRGP) has announced its quarterly dividend for Q4 2024, declaring a cash dividend of $0.75 per common share ($3.00 annualized), payable on February 14, 2025, to shareholders of record as of January 31, 2025.

The company plans to recommend to its Board of Directors an increase in the common dividend to $1.00 per share ($4.00 annualized) for Q1 2025, effective for payment in May 2025.

Targa will release its Q4 2024 financial results before market opening on February 20, 2025, followed by a live webcast at 11:00 a.m. Eastern Time to discuss the results.

Positive

• Quarterly dividend maintained at $0.75 per share for Q4 2024
• Planned 33% dividend increase to $1.00 per share for Q1 2025
• Annual dividend to potentially increase from $3.00 to $4.00 per share

Negative

• None.

Insights

Financial Analyst

The announced $0.75 quarterly dividend represents continuity from previous quarters, but the real story is the planned 33.3% dividend increase to $1.00 per share starting Q1 2025. This substantial boost signals strong management confidence in TRGP's cash flow generation and financial health. At current share prices, the new annualized dividend of $4.00 would yield approximately 4.2%, positioning TRGP competitively in the midstream energy sector.

The timing of this announcement, coming ahead of Q4 earnings, suggests robust performance and positive forward guidance. Midstream companies typically maintain conservative dividend policies, so a 33.3% increase is particularly noteworthy. The sector's focus on stable, fee-based revenues makes such dividend commitments more reliable compared to upstream operators.

For context, this move aligns with the broader energy infrastructure trend of returning more capital to shareholders, driven by strong free cash flow generation and completed growth projects entering service. TRGP's strategic assets in key basins, particularly the Permian, support this aggressive capital return strategy while maintaining investment-grade metrics.

Market Research Analyst

This dividend increase announcement carries strategic timing and competitive implications within the midstream sector. Looking at peer comparisons, TRGP's new dividend policy positions it among the more generous midstream operators, potentially attracting yield-focused investors who have traditionally favored MLPs. The move could trigger a positive rerating of the stock as income-oriented investors reassess TRGP's value proposition.

The market's appetite for energy infrastructure stocks with growing dividends remains strong, particularly given the sector's inflation-protection characteristics and essential role in energy security. TRGP's decision to substantially raise its dividend could influence sector-wide capital allocation policies, potentially pressuring peers to follow suit.

The timing ahead of Q4 earnings suggests management is positioning for a strong operational update, likely featuring robust volume growth and margin expansion. This confidence in raising the dividend by such a significant amount indicates sustained growth in distributable cash flow, which typically translates to multiple expansion in the midstream space.

HOUSTON, Jan. 16, 2025 (GLOBE NEWSWIRE) -- Targa Resources Corp. (NYSE: TRGP) ("Targa" or the "Company") announced its quarterly dividend on common shares with respect to the fourth quarter of 2024.

Targa announced today that its board of directors has declared a quarterly cash dividend of $0.75 per common share, or $3.00 per common share on an annualized basis, for the fourth quarter of 2024. This cash dividend will be paid February 14, 2025, on all outstanding common shares to holders of record as of the close of business on January 31, 2025.

For the first quarter of 2025, Targa intends to recommend to its Board of Directors an increase to its common dividend to $1.00 per common share or $4.00 per common share annualized. The recommended common dividend per share increase, if approved, would be effective for the first quarter of 2025 and payable in May 2025.

The Company will report its fourth quarter 2024 financial results before the market opens for trading on Thursday, February 20, 2025, and will host a live webcast over the internet at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss its 2024 fourth quarter financial results.

Event Information
Event: Targa Resources Corp. Fourth Quarter 2024 Earnings Webcast and Presentation
Date: Thursday, February 20, 2025
Time: 11:00 a.m. Eastern Time
Webcast: https://www.targaresources.com/investors/events or directly at https://edge.media-server.com/mmc/p/qgzvcwi7

Replay Information 
A webcast replay will be available at the link above approximately two hours after the conclusion of the event. A quarterly earnings supplement presentation and updated investor presentation will also be available at https://www.targaresources.com/investors/events.

About Targa Resources Corp.

Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent midstream infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic midstream infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company’s assets connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuels and feedstocks. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including services to LPG exporters; and gathering, storing, terminaling, and purchasing and selling crude oil.

Targa is a FORTUNE 500 company and is included in the S&P 500.

For more information, please visit the Company’s website at www.targaresources.com.

Forward-Looking Statements

Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding our projected financial performance and capital spending. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the impact of pandemics or any other public health crises, commodity price volatility due to ongoing or new global conflicts, actions by the Organization of the Petroleum Exporting Countries (“OPEC”) and non-OPEC oil producing countries, the impact of disruptions in the bank and capital markets, including those resulting from lack of access to liquidity for banking and financial services firms, the timing and success of business development efforts and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Targa Investor Relations
InvestorRelations@targaresources.com
(713) 584-1133

FAQ

What is Targa Resources' (TRGP) Q4 2024 dividend amount?

Targa Resources declared a quarterly dividend of $0.75 per common share ($3.00 annualized) for Q4 2024.

When will TRGP pay its Q4 2024 dividend?

The Q4 2024 dividend will be paid on February 14, 2025, to shareholders of record as of January 31, 2025.

What is TRGP's proposed dividend increase for Q1 2025?

Targa plans to recommend increasing its quarterly dividend to $1.00 per share ($4.00 annualized) for Q1 2025.

When will Targa Resources (TRGP) report Q4 2024 earnings?

Targa will report Q4 2024 earnings before market opens on Thursday, February 20, 2025, with a webcast at 11:00 a.m. Eastern Time.

How much will TRGP's annual dividend increase in 2025?

If approved, TRGP's annual dividend will increase from $3.00 to $4.00 per share, representing a 33% increase.