Targa Resources: Industry Shrinkage Portends Potential Recession, No Growth In The Future

NodeGuardian · 2026-02-20T10:22:48+00:00

Targa Resources is expanding rapidly through acquisitions, accumulating over $17 billion in debt. While it achieved record Q3 EBITDA, its high valuation and leverage pose risks of significant losses amid potential industry downturns.

NodeGuardian

2026-02-20 10:22:48

Abstract generation in progress

Targa Resources is aggressively expanding through projects and acquisitions, including a recent debt-financed acquisition that pushed its total debt above $17 billion. Despite record Q3 EBITDA, the company’s valuation appears fully priced, offering little protection against a potential market downturn. Rapid expansion and high leverage could lead to significant downside if growth falters or a cyclical industry downturn occurs, especially given signs of industry contraction.

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