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How Investors May Respond To Targa Resources (TRGP) Forza Pipeline Project Launch in the Delaware Basin

Simply Wall St · 09/06/2025 14:02
  • In early September 2025, Targa Resources launched a non-binding open season for its proposed Forza Pipeline Project in the Delaware Basin, featuring a 36-mile, 36-inch pipeline with 750 dekatherms per day of primary firm transportation service from Lea County, New Mexico to the Waha Hub in Texas.
  • This move underscores Targa's efforts to expand natural gas transportation infrastructure linking gas processing assets to major demand centers, reflecting its focus on enhancing market access and revenue potential.
  • We'll examine how the Forza Pipeline Project announcement may influence Targa Resources' long-term infrastructure growth narrative.

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Targa Resources Investment Narrative Recap

To be a Targa Resources shareholder, you have to be confident in the company's ability to capitalize on the ongoing demand for natural gas infrastructure in core US basins, while also managing capital costs and competitive threats. The Forza Pipeline Project open season strengthens Targa’s growth narrative but does not materially alter the most important short-term catalyst, sustained volume growth in the Permian, nor meaningfully reduce the ongoing risk of midstream overbuild and rising competition in key markets.

Of recent announcements, the expansion of Targa’s share repurchase program remains highly relevant, reinforcing management’s conviction in the company’s long-term prospects and adding an element of support for per-share earnings. This complements the pipeline news, as both moves reflect efforts to build resilience against sector headwinds and enhance returns amid sector-specific risks.

But in contrast, investors should remain aware of the risk that...

Read the full narrative on Targa Resources (it's free!)

Targa Resources' outlook forecasts $23.6 billion in revenue and $2.4 billion in earnings by 2028. To achieve this, analysts expect 11.4% annual revenue growth and a $0.9 billion increase in earnings from the current $1.5 billion.

Uncover how Targa Resources' forecasts yield a $207.42 fair value, a 28% upside to its current price.

Exploring Other Perspectives

TRGP Community Fair Values as at Sep 2025
TRGP Community Fair Values as at Sep 2025

Six private investors in the Simply Wall St Community have published fair value estimates for Targa Resources ranging from US$123 to US$321.46 per share. With competition intensifying in the Permian and new pipeline projects on the horizon, these diverging views show how expectations for future market share and profitability can vary widely.

Explore 6 other fair value estimates on Targa Resources - why the stock might be worth 24% less than the current price!

Build Your Own Targa Resources Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.