TRGP - This Little-Known Dividend Stock Is Crushing the S&P 500 This Year (and Could Have Plenty of Fuel to Continue Rising in 2025)
2024-05-26 05:19:00 ET
Targa Resources (NYSE: TRGP) tends to get easily overlooked . Pipeline behemoths Energy Transfer and Enterprise Products Partners overshadow it in the midstream industry. Because of that, many investors have likely missed that its stock has crushed the S&P 500 (SNPINDEX: ^GSPC) this year. The midstream company has soared over 30% this year, roughly three times the gain of that broader market index.
Targa could be just getting started. The company expects to generate significantly more free cash flow in 2025, fueled by upcoming expansion project completions. Because of that, the pipeline stock could have the fuel to continue rallying.
Targa Resources is coming off a record 2023. The midstream company grew its adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) by 22% to a record of over $3.5 billion. It delivered record full-year Permian, natural gas liquids (NGL) transportation, fractionation, and liquefied petroleum gas (LPG) export volumes in 2023. The company benefited from higher NGL supplies from its gathering and processing systems and those supplied by third parties. It also got a boost from the recent expansion of its LPG system and improved market conditions.
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This Little-Known Dividend Stock Is Crushing the S&P 500 This Year (and Could Have Plenty of Fuel to Continue Rising in 2025)