Targa's first-quarter earnings generally met our expectations. The 2024 EBITDA guidance by management is unchanged at a midpoint of $3.8 billion, matching our forecast. We expect to leave our fair value estimate unchanged at $99 as well as our no moat rating.
Targa is leveraged to the high-growth Permian, and its Grand Prix pipeline has been an important growth engine.
G&P assets face a constant capital expenditures treadmill, given rapid well decline rates to maintain flows.
|
Metric
|
TRGP
|
PAA
|
ET
|
|---|---|---|---|
Price/Earnings (Normalized) | 25.34 | 12.14 | 12.82 |
Price/Book Value | 9.67 | 1.51 | 1.76 |
Price/Sales | 1.64 | 0.25 | 0.63 |
Price/Cash Flow | 8.70 | 4.68 | 4.96 |
|
Metric
|
TRGP
|
PAA
|
ET
|
|---|---|---|---|
Quick Ratio | 0.57 | 0.84 | 0.93 |
Current Ratio | 0.70 | 0.98 | 1.18 |
Interest Coverage | 3.26 | 5.20 | 3.18 |
|
Metric
|
TRGP
|
PAA
|
ET
|
|---|---|---|---|
Return on Assets (Normalized) | 6.72% | 3.63% | 5.75% |
Return on Equity (Normalized) | 51.07% | 12.48% | 22.11% |
Return on Invested Capital (Normalized) | 11.28% | 6.19% | 9.47% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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