UK Markets close in 5 hrs 6 mins
  • FTSE 100

    -33.89 (-0.53%)
  • FTSE 250

    -255.61 (-1.31%)
  • AIM

    +2.21 (+0.21%)

    -0.0014 (-0.12%)

    -0.0030 (-0.2243%)

    -391.34 (-2.91%)
  • CMC Crypto 200

    -29.88 (-8.07%)
  • S&P 500

    -5.76 (-0.16%)
  • DOW

    -173.77 (-0.58%)

    -0.49 (-1.07%)

    +7.10 (+0.39%)
  • NIKKEI 225

    +240.45 (+0.91%)

    +149.70 (+0.56%)
  • DAX

    +1.14 (+0.01%)
  • CAC 40

    -4.94 (-0.09%)

Targa to Buy Back $500M of Stock, Nudges Guidance Higher

Zacks Equity Research
·2-min read

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.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WT Offshore, Inc. (WTI) : Free Stock Analysis Report
PDC Energy, Inc. (PDCE) : Free Stock Analysis Report
Targa Resources, Inc. (TRGP) : Free Stock Analysis Report
Laredo Petroleum, Inc. (LPI) : Free Stock Analysis Report
To read this article on click here.