HOUSTON - Targa Resources Corp. (NYSE: NYSE:TRGP) announced its financial results for the first quarter of 2024, reporting a net income of $275.2 million, a decrease from $497.0 million in the same quarter of the previous year.
Despite the fall in net income, the company achieved a record adjusted EBITDA of $966.2 million, marking a slight increase from $940.6 million year-over-year (YoY). Targa's first-quarter revenue amounted to $4.56 billion, surpassing the analyst consensus estimate of $4.3 billion.
The company's revenue represented a modest 1% increase compared to the first quarter of 2023, with sales of commodities experiencing a 2% decline, offset by a significant 23% rise in fees from midstream services. This growth in fees was primarily attributed to higher gas gathering and processing fees, as well as increased export volumes.
Targa also declared a 50% increase in its quarterly cash dividend to $3.00 per share annualized and repurchased approximately $124 million of common stock during the quarter. The company reaffirmed its full-year 2024 adjusted EBITDA guidance, estimating it to remain between $3.7 billion and $3.9 billion, with no changes to its 2024 and 2025 growth capital estimates.
The company's CEO, Joe Bob Perkins, commented on the results, stating, "Our record adjusted EBITDA in the first quarter reflects the strength of our diversified midstream operations and our ability to safely and reliably deliver energy. We remain committed to executing our growth strategy while delivering value to our shareholders."
Targa's capitalization and liquidity remained strong, with total consolidated debt as of March 31, 2024, standing at $13.056 billion and total consolidated liquidity at approximately $2.6 billion.
In terms of operational highlights, Targa started up its new 120 thousand barrels per day Train 9 fractionator in Mont Belvieu, TX, and announced new projects including a 275 million cubic feet per day Permian Midland gas plant and a 150 thousand barrels per day Train 11 fractionator in Mont Belvieu.
The company's performance in the Gathering and Processing segment showed a 3% increase in adjusted operating margin, driven by higher natural gas inlet volumes and higher fees in the Permian. The Logistics and Transportation segment also saw a 3% increase in adjusted operating margin, with higher pipeline transportation and fractionation margin and higher LPG export margin.
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