Pipeline operator Targa Resources forecasts 2024 profit growth
Feb 15 (Reuters) - Pipeline operator Targa Resources said on Thursday it expects higher core profit for full-year 2024, helped by its natural gas processing facilities in the Permian, LPG exports and high transport volumes of natural gas liquids (NGL).
The company expects adjusted core profit between $3.7 billion and $3.9 billion in the current year, an about 8% rise from the previous year at midpoint.
The International Energy Agency (IEA), which advises industrialized countries, last month predicted global oil consumption will rise by 1.24 million barrels per day (bpd) in 2024.
Houston-based Targa also reported an adjusted core profit of $959.9 million for the fourth quarter ended Dec. 31, beating analysts' estimates of $936.8 million, according to LSEG data.
The results were primarily driven by performance at its logistics and transportation segment, which includes the activities and assets necessary to convert mixed NGLs into NGL products.
The NGL pipeline transportation volumes were up about 44% to 722,000 barrels per day (Bbl/d) and NGL sales were up about 31% at 1.12 million Bbl/d in the quarter, from the previous year.
NGLs are hydrocarbon liquids like ethane, propane and butane among others which are used as fuels for heating, refrigeration and gasoline blending among others.
Total U.S. oil demand rose 3.4% in October versus the prior year according to U.S. Energy Information Administration (EIA)data, helping oil and gas transportation firms like Targa Resources. (Reporting by Tanay Dhumal in Bengaluru; Editing by Shailesh Kuber)
