Targa Resources Beats First-Quarter Core Profit Estimates on Higher Transportation Volumes
(Reuters) — Targa Resources beat Wall Street estimates for first-quarter core profit, as the pipeline operator benefitted from higher volumes of natural gas liquids (NGL) transported through its system.
NGL pipeline transportation volumes were up nearly 34% in the January-March quarter compared to last year, while NGL sales rose about 22% to 1.23 million bbl/d in the quarter from a year earlier.
Crude prices gained in the January-March quarter, as production curtailments from OPEC+, Russian refinery outages and the Middle East conflict raised concerns over supplies, helping oil and gas transportation firms like Targa Resources charge higher fees.
The company said its pipeline transported higher volumes primarily through its systems in the Permian Basin.
NGLs are hydrocarbon liquids like ethane, propane and butane among others which are used as fuels for heating, refrigeration and gasoline blending among others.
Targa Resources said its revenue for the first quarter rose slightly to $4.56 billion, from $4.52 billion last year.
The company reaffirmed its full-year adjusted core profit forecast of $3.7 billion to $3.9 billion, compared with analysts' estimates of $3.84 billion, according to LSEG data.
On an adjusted basis, the Houston, Texas-based company's core profit was $966.2 million in the quarter ended March 31, compared with analysts' estimates of $937.95 million.
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