TARGA RESOURCES Reports 43.8% Decrease in Total Revenue for Q2 2023
August 8, 2023
🌥️Earnings Overview
TARGA RESOURCES ($NYSE:TRGP) reported total revenue of USD 3403.7 million for the quarter ending June 30th 2023, a 43.8% decrease compared to the same period in FY2022. Net income for the quarter also declined by 44.8%, amounting to USD 329.3 million year over year.
Analysis
GoodWhale has conducted an analysis of TARGA RESOURCES‘s financials and concluded that it is a medium risk investment. According to the Risk Rating, TARGA RESOURCES’ financial and business aspects were taken into account and the overall assessment gave a medium risk score. GoodWhale has also identified two risk warnings in the income sheet and balance sheet, which may need to be further investigated. To access this analysis and view all of the risk warnings, make sure to register on goodwhale.com. Through deep research and experienced evaluation, GoodWhale can help you make more informed decisions when it comes to investing in TARGA RESOURCES. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Targa Resources. More…
| Total Revenues | Net Income | Net Margin |
| 17.84k | 846.6 | 7.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Targa Resources. More…
| Operations | Investing | Financing |
| 2.84k | -5.47k | 2.64k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Targa Resources. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 19.46k | 14.92k | 11.84 |
Key Ratios Snapshot
Some of the financial key ratios for Targa Resources are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 30.9% | 43.2% | 13.7% |
| FCF Margin | ROE | ROA |
| 4.8% | 58.7% | 7.9% |
Peers
The company has a strong presence in the key producing basins in the United States and is well-positioned to capitalize on the growing demand for natural gas. Targa’s competitors include ONEOK Inc, Kinetik Holdings Inc, Anhui Province Natural Gas Development Co Ltd.
– ONEOK Inc ($NYSE:OKE)
ONEOK Inc is a leading midstream service provider in the United States. It has a market cap of 24.61B as of 2022 and a Return on Equity of 28.78%. The company operates in three segments: Natural Gas Gathering, Processing and Transportation; Natural Gas Liquids (NGL) Gathering, Processing, Transportation and Marketing; and Crude Oil Gathering and Transportation. ONEOK is one of the largest independent natural gas processors in the United States, with an average processing capacity of 2.6 billion cubic feet per day in 2020. The company is also one of the largest NGL marketers in the United States and owns one of the largest NGL transportation systems in the country.
– Kinetik Holdings Inc ($NASDAQ:KNTK)
Kinetik Holdings Inc is a publicly traded company with a market capitalization of $1.49 billion as of 2022. The company has a return on equity of 5.46%. Kinetik Holdings Inc is engaged in the business of providing turnkey engineering, procurement and construction services for the development and construction of electric transmission and distribution systems.
– Anhui Province Natural Gas Development Co Ltd ($SHSE:603689)
Anhui Province Natural Gas Development Co Ltd is a Chinese state-owned enterprise that engages in the development and operation of natural gas projects. The company has a market cap of 3.45 billion as of 2022 and a return on equity of 7.42%. The company’s main business activities include the exploration, development, production, and sales of natural gas.
Summary
TARGA RESOURCES experienced a sharp decline in total revenue in the quarter ended June 30th 2023, falling 43.8% from the same period in FY2022. Net income also decreased significantly, by 44.8%, resulting in a substantial decrease in total earnings for the quarter. Investors should be aware of the poor performance of TARGA RESOURCES when assessing the company’s financial position. As such, potential investors should be cautious and thoroughly analyse the company’s operations prior to making a decision to invest in TARGA RESOURCES.
Additionally, investors should monitor the company’s progress and performance, in order to gain a better understanding of its future prospects.
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