Targa Resources priced a $1.5 billion public offering of senior notes to finance debt redemption and corporate purposes.
Quiver AI Summary
Targa Resources Corp. announced the pricing of a public offering of $1.5 billion in senior notes, consisting of $750 million of 4.900% Senior Notes due 2030 and $750 million of 5.650% Senior Notes due 2036, with expected closing on June 18, 2025, pending customary conditions. Proceeds will be used predominantly to redeem existing 6.500% Senior Notes due 2027 and for general corporate purposes, including debt repayment and capital expenditures. This offering is made under an effective SEC registration statement and prospectus. Targa Resources is a major player in midstream services and plays a vital role in connecting energy supplies to markets in North America and beyond.
Potential Positives
- Targa Resources is raising $1.5 billion through the issuance of senior notes, enhancing its capital structure and liquidity.
- The proceeds will be used to redeem higher-interest 2027 Notes, reducing future interest expense.
- This offering is part of Targa's effective shelf registration with the SEC, indicating regulatory compliance and strategic financial planning.
- The company operates in a critical energy sector, positioning itself for growth in response to increasing demand for cleaner fuels and infrastructure.
Potential Negatives
- Issuing $1.5 billion in senior notes may raise concerns about the company's debt levels and financial leverage, potentially impacting investor confidence.
- The use of proceeds to redeem higher interest 6.500% notes indicates that the company may be under pressure to manage its interest expenses more effectively.
- The reliance on forward-looking statements to communicate future expectations may create uncertainty and be viewed as a risk by investors.
FAQ
What is the total amount of Targa Resources' public offering?
Targa Resources announced a public offering totaling $750 million for two sets of Senior Notes, due 2030 and 2036.
When is the expected closing date for the offering?
The Offering is expected to close on June 18, 2025, subject to customary closing conditions.
How will Targa use the proceeds from the offering?
Targa plans to redeem its 2027 Notes and use remaining proceeds for general corporate purposes and capital expenditures.
Where can I find Targa Resources Corp.'s official filings?
Official filings by Targa Resources can be found on the U.S. Securities and Exchange Commission's website, including Form 10-K and 10-Q reports.
Is this announcement an offer to sell securities?
No, this announcement does not constitute an offer to sell or solicit offers to buy any securities, except as required by law.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$TRGP Insider Trading Activity
$TRGP insiders have traded $TRGP stock on the open market 13 times in the past 6 months. Of those trades, 0 have been purchases and 13 have been sales.
Here’s a breakdown of recent trading of $TRGP stock by insiders over the last 6 months:
- D. SCOTT PRYOR (See Remarks) has made 0 purchases and 3 sales selling 55,000 shares for an estimated $10,138,403.
- MATTHEW J MELOY (Chief Executive Officer) has made 0 purchases and 3 sales selling 48,837 shares for an estimated $9,527,064.
- JENNIFER R. KNEALE (See Remarks) has made 0 purchases and 5 sales selling 29,887 shares for an estimated $5,750,806.
- WATERS S IV DAVIS sold 2,190 shares for an estimated $429,802
- CHARLES R CRISP sold 1,947 shares for an estimated $378,167
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$TRGP Hedge Fund Activity
We have seen 502 institutional investors add shares of $TRGP stock to their portfolio, and 454 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- GQG PARTNERS LLC added 1,410,747 shares (+64.0%) to their portfolio in Q1 2025, for an estimated $282,812,451
- WELLINGTON MANAGEMENT GROUP LLP added 962,631 shares (+7.5%) to their portfolio in Q1 2025, for an estimated $192,978,636
- GOLDMAN SACHS GROUP INC added 834,666 shares (+43.6%) to their portfolio in Q1 2025, for an estimated $167,325,493
- BALYASNY ASSET MANAGEMENT L.P. removed 792,397 shares (-99.6%) from their portfolio in Q1 2025, for an estimated $158,851,826
- DEUTSCHE BANK AG\ removed 675,520 shares (-30.8%) from their portfolio in Q1 2025, for an estimated $135,421,494
- ALLSPRING GLOBAL INVESTMENTS HOLDINGS, LLC removed 651,282 shares (-73.8%) from their portfolio in Q1 2025, for an estimated $130,562,502
- MITSUBISHI UFJ TRUST & BANKING CORP removed 626,131 shares (-83.4%) from their portfolio in Q1 2025, for an estimated $125,520,481
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$TRGP Analyst Ratings
Wall Street analysts have issued reports on $TRGP in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Scotiabank issued a "Outperform" rating on 05/20/2025
- Barclays issued a "Overweight" rating on 01/13/2025
- Wells Fargo issued a "Overweight" rating on 12/18/2024
To track analyst ratings and price targets for $TRGP, check out Quiver Quantitative's $TRGP forecast page.
$TRGP Price Targets
Multiple analysts have issued price targets for $TRGP recently. We have seen 4 analysts offer price targets for $TRGP in the last 6 months, with a median target of $211.0.
Here are some recent targets:
- Brandon Bingham from Scotiabank set a target price of $193.0 on 05/20/2025
- Gabriel Moreen from Mizuho Securities set a target price of $212.0 on 05/20/2025
- An analyst from Morgan Stanley set a target price of $244.0 on 03/17/2025
Full Release
HOUSTON, June 04, 2025 (GLOBE NEWSWIRE) -- Targa Resources Corp. (“Targa” or the “Company”) (NYSE: TRGP) announced today the pricing of an underwritten public offering (the “Offering”) of $750 million aggregate principal amount of its 4.900% Senior Notes due 2030 and $750 million aggregate principal amount of its 5.650% Senior Notes due 2036 at a price to the public of 99.870% and 99.700% of their face value, respectively. The Offering is expected to close on June 18, 2025, subject to the satisfaction of customary closing conditions.
The Company expects to use a portion of the net proceeds from the Offering to redeem the 6.500% Senior Notes due 2027 (the “2027 Notes”) issued by Targa Resources Partners LP and to use the remaining net proceeds for general corporate purposes, including to repay borrowings under its unsecured commercial paper note program, to repay other indebtedness, to repurchase or redeem securities or to fund capital expenditures, additions to working capital or investments in its subsidiaries.
This Offering is being made pursuant to an effective shelf registration statement and prospectus filed by the Company with the U.S. Securities and Exchange Commission (the “SEC”) and may be made only by means of a prospectus and prospectus supplement related to such Offering meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”). This announcement shall not constitute an offer to sell or a solicitation of an offer to buy any of these securities, except as required by law.
About Targa Resources Corp.
Targa Resources Corp. (NYSE: TRGP) is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. The Company owns, operates, acquires, and develops a diversified portfolio of complementary domestic 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 natural gas liquids (“NGL(s)”) 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 liquified petroleum gas exporters; and gathering, storing, terminaling, and purchasing and selling crude oil.
The principal executive offices of Targa Resources Corp. are located at 811 Louisiana, Suite 2100, Houston, TX 77002 and its telephone number is 713-584-1000.
Forward-Looking Statements
Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act, 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 the expected closing date and use of proceeds from the Offering, such as the redemption of the 2027 Notes. 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, those described more fully in the Company’s filings with the SEC, including its most recent Annual Report on Form 10-K, Quarterly Report 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
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