Targa Resources (TRGP) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted EBITDA of $4.1 billion in 2024, up 17% year-over-year, driven by strong Permian volumes, commercial success, and system expansions.

• Outperformed expectations with record NGL transportation, fractionation, and LPG export volumes, supported by new assets and higher fees.

• Announced and accelerated major projects: Delaware Express pipeline, Train 12 fractionator, LPG export expansion at Galena Park, and new Permian plants.

• Returned significant capital to shareholders, including a 50% dividend increase, $755 million in share repurchases, and plans for a 33% dividend hike in 2025.

• Strong multi-year growth outlook, with four new Permian G&P plants coming online in 2026 and continued segment growth.

Financial highlights

• Q4 2024 adjusted EBITDA was $1.122 billion, up 17% year-over-year and 5% sequentially; full year adjusted EBITDA reached $4.14 billion, up 17%.

• Q4 2024 revenue was $4.41 billion, up 4% year-over-year; full year revenue was $16.38 billion, up 2%.

• Permian G&P volumes grew 14% year-over-year, adding 709 million cubic feet per day.

• NGL pipeline transportation averaged 872,000 barrels/day; fractionation averaged 1.1 million barrels/day in Q4.

• Record LPG export loadings averaged 14 million barrels/month in Q4.

Outlook and guidance

• 2025 adjusted EBITDA guidance is $4.65–$4.85 billion, a 15% increase at the midpoint, with over 90% fee-based margin.

• 2025 growth capital spending estimated at $2.6–$2.8 billion; maintenance capital at $250 million.

• 2025 dividend per share expected to increase 33% year-over-year to $4.00.

• Growth in 2025 expected to be back-half weighted, with even stronger growth anticipated in 2026.

• Four new Permian G&P plants to come online in 2026, supporting further volume and EBITDA growth.