Yahoo Finance Targa to Buy Back $500M of Stock, Nudges Guidance Higher
With an aim to enhance its shareholder value, Targa Resources Corp. TRGP recently announced a new share repurchase program. Per the plan, management is authorized to buy back up to $500 million worth of its shares, which is already made effective. The same is contingent on market conditions and can be suspended as and when required.
The company delivered an impressive business performance despite economic gloom emanating from the prevalent coronavirus pandemic. Targa predicts its 2020 adjusted EBITDA to be at or around the upper end of its prior guided range of $1.5-$1.625 billion. Meanwhile, this one of the leading providers of integrated midstream services in North America projects its full-year net growth capital spending at the lower end of its previous outlook of $700-$800 million.
CEO Matt Meloy states that Targa’s strong performance projection along with its tepid capital expenditure growth view through the second half of this year generates additional free cash flow, which enables it to carry on with its strategy of deleveraging its balance sheet over time.
Company Summary
Targa is a premier energy infrastructure company. This Houston, TX-based operator primarily derives its revenues from gathering, compressing, treating, processing and selling natural gas. The company also provides services associated with natural gas liquids (NGL) (including those to liquefied petroleum gas (LPG) exporters) and crude oil.
Zacks Rank & Key Picks
Targa currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are PDC Energy, Inc. PDCE, Laredo Petroleum, Inc. LPI and WT Offshore, Inc. WTI, each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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