Targa Resources beats quarterly core profit estimates on gas volumes boost
Nov 5 (Reuters) -Targa Resources TRGP.N surpassed Wall Street's estimates for third-quarter core profit on Tuesday, benefiting from increased volumes of natural gas and natural gas liquids transported through its pipelines.
U.S. pipeline operators are seeingrobust demand for their infrastructure as oil and gas production continues to climb in the Permian Basin, which accounts for half of the country's crude oil output.
Targa'stotal quarterly natural gas sales volumes were up 3% to 2.84 billion British thermal units per day (BBtu/d) from the previous year, while total natural gas inlets for processing rose 18% in the Permian Basin.
Natural gas liquid (NGL) pipeline transportation volumes were up about 26%to 829,200 barrels per day in the quarter ended Sept. 30. NGLs are hydrocarbon liquids such as ethane, propane and butane, which are used as fuels for heating, refrigeration and gasoline blending, among others.
The company expects full-year adjusted core profit above the higher end of its previously forecast range of $3.95 billion to $4.05 billion.
Houston, Texas-based Targa also said it would build two natural gas processing plants in the Permian Basin, which straddles New Mexico and Texas, in response to the increase in production.
On an adjusted basis, its core profit was $1.07 billionin the reported quarter, compared to analysts' estimate of $1.01 billion, according to data compiled by LSEG.
The company's quarterly net income attributable to common shareholders rose 76% to $387.4 million, compared to last year.
Reporting by Pooja Menon in Bengaluru; Editing by Pooja Desai
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
