Targa Resources Corp (TRGP) Reports Q3 2023 Earnings, Announces 50% Dividend Increase for 2024
TRGP's Q3 2023 net income rose to $220 million, up from $193.1 million in Q3 2022.
Adjusted EBITDA for Q3 2023 was reported at $840 million, a 6% sequential increase.
The company completed a 1 million barrel per month LPG export expansion at Galena Park and a new 275 million cubic feet per day Greenwood plant in Permian Midland.
TRGP repurchased $132 million of common stock during Q3 2023 and $333 million for the nine months ended September 30, 2023.
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On November 2, 2023, Targa Resources Corp (NYSE:TRGP) released its third quarter 2023 earnings report. The company reported a net income of $220.0 million, marking an increase from $193.1 million in the third quarter of 2022. The company also announced expectations for a 50% year-over-year increase to the 2024 common dividend.
Financial Highlights
TRGP reported adjusted EBITDA of $840.2 million for Q3 2023, a 6% increase from $768.6 million in Q3 2022. The company also reported distributable cash flow and adjusted free cash flow for Q3 2023 of $602.2 million and $8.6 million, respectively.
The company repurchased 1,583,317 shares of its common stock during Q3 2023 at a weighted average per share price of $83.38 for a total net cost of $132.0 million. As of September 30, 2023, there was $810.7 million remaining under the companys $1.0 billion common share repurchase program.
Operational Achievements
During Q3 2023, TRGP completed its 1 million barrel per month LPG export expansion at Galena Park and its new 275 million cubic feet per day Greenwood plant in Permian Midland. The company also reported record NGL transportation volumes during the quarter.
Future Outlook
TRGP maintains its 2023 adjusted EBITDA estimate between $3.5 billion and $3.7 billion, with current expectations trending to the lower end of the range. The company's estimate for 2023 total net growth capital expenditures remains unchanged at between $2.0 billion and $2.2 billion, with current expectations trending to the higher end of the range.
The company also announced its intention to recommend to its Board of Directors an annual common dividend per share of $3.00 in 2024, a 50% increase to 2023, reflecting a continued commitment to return additional capital to shareholders and the strength of TRGP's outlook.
Financial Tables Summary
TRGP's total revenues for Q3 2023 were $3,896.6 million, a decrease of 27% from $5,360.1 million in Q3 2022. The decrease in commodity sales reflects lower natural gas, NGL, and condensate prices, partially offset by higher NGL and natural gas volumes.
The company's total consolidated debt as of September 30, 2023, was $12,920.4 million, with $1.8 billion in total consolidated liquidity. The company's total net growth capital expenditures for 2023 are estimated to be between $2.0 billion and $2.2 billion.
Explore the complete 8-K earnings release (here) from Targa Resources Corp for further details.
This article first appeared on GuruFocus.
