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Targa Resources TRGP

Targa Resources scores weak on business quality (4.0 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$286.70Oct 10, 2026
Business qualityWeak
Next earningsOct 29, 2026, before the open
Insiders, 90 daysSelling

Why it matters

  1. What Targa Resources does

    Targa Resources operates midstream energy infrastructure, gathering and processing natural gas and natural gas liquids primarily in the Permian Basin for producers who pay fees for transportation and fractionation. The company is advancing infrastructure projects to handle growing Permian volumes and capture expanding production.

  2. What it does best

    Targa excels at return on equity, posting 72.2% which crushes peer MPLX at 33.4%. This high return stems from deeply integrated Permian gathering systems that lock in regional gas volumes.

  3. The main risk

    Heavy debt loads present a clear vulnerability, with total debt reaching $17.4 billion and interest coverage sitting thin at 4.3x. A drop in commodity volumes could strain these debt service costs.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margin reaches 22.9% with a net margin of 13.5%, showing stable profitability as regional scale increases.

MoatFair

Physical pipeline networks lock in regional producers, supported by a top-quartile ROE of 72.2% that deters quick replication.

GrowthSlow

Revenue growth is muted at 3.9%, showing a slower rate compared to historical periods as the expansion pace stabilizes.

Financial healthWeak

Debt-to-equity stands at 5.7x alongside free cash flow of $651M, leaving the balance sheet soft and carrying substantial leverage.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

3 sold $2.1M outside pre-planned sales.

Our sealed record on TRGP

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is TRGP a good business?

Targa Resources scores weak on the Cluenex quality check (4.0 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health weak.

Are insiders buying TRGP?

In the last 90 days of SEC Form 4 filings: 3 sold $2.1M outside pre-planned sales.

When does TRGP report earnings?

Oct 29, 2026, before the open.

For members

See TRGP today

  • Today's verdict on TRGP, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Targa Resources (TRGP)”, https://cluenex.com/stocks/trgp/, data as of Oct 10, 2026.