Targa Resources Shares Dip After Dividend Declaration

Targa Resources Corp. (NYSE: TRGP) shares were slightly lower in early trading, with the stock down about -1.2% following an update on quarterly dividend policy and the timing of its fourth-quarter earnings webcast. TRGP has traded in a 52-week range roughly from about $145 to $223, with recent strength underpinned by record volumes in midstream segments and rising adjusted EBITDA through 2025. Recent price action shows some consolidation after earlier gains as investors await fresh quarterly results.

Targa Resources announced that its board declared a quarterly cash dividend of $1.00 per common share for the fourth quarter of 2025, payable on Feb. 13, 2026, to holders of record as of Jan. 30, 2026. For the first quarter of 2026, the company intends to recommend an increase to $1.25 per share, or an annualized $5.00, subject to board approval and payable in May 2026. The board also set the timing of the fourth-quarter 2025 earnings webcast, with details to be released ahead of the event.

Targa said it has closed its acquisition of Stakeholder Midstream, LLC, for $1.25 billion in cash, effective Jan. 1, 2026. The deal adds roughly 480 miles of natural-gas pipelines, about 180 million cubic feet per day of cryogenic natural gas processing and sour-gas treating capacity, plus a small crude oil gathering system to Targa’s portfolio. The acquisition extends the company’s midstream services in the Permian Basin and is expected to enhance long-term, fee-based revenue streams.

The combined assets come with long-term, fee-based contracts across about 170,000 dedicated acres, underpinning a stable volume profile that management says should contribute about $200 million annually in unlevered adjusted free cash flow once fully integrated.

Targa intends to fund the transaction with cash on hand and borrowings under its existing $3.5 billion revolving credit facility, with pro forma leverage expected to remain within its target range of 3.0 to 4.0 times debt-to-EBITDA.