10 Best Performing Energy Stocks in 2024

05. Targa Resources Corp. (NYSE:TRGP)

Year to date Share Price Gain: 79.98%

Number of Hedge Fund Holders: 39

Targa Resources Corp. (NYSE:TRGP) has been one of the top-performing energy stocks in 2024, with a remarkable year-to-date share price gain of 79.98%. This performance is driven by the company’s strong position in the midstream sector, particularly in North America’s natural gas and natural gas liquids (NGL) space. Targa’s comprehensive infrastructure for gathering, processing, transporting, and selling natural gas and NGL products, alongside its robust logistics and transportation network, makes it a key player in the energy market.

In its Q2 2024 earnings, Targa Resources Corp. (NYSE:TRGP) exceeded expectations, reporting earnings per share (EPS) of $1.33, compared to the expected $1.28. The company also posted record operational metrics, with adjusted EBITDA reaching $984 million—a 2% increase from the previous quarter. Targa’s strong performance was largely driven by record volumes from the Permian Basin, where natural gas inlet volumes reached 5.7 billion cubic feet per day, and NGL pipeline transportation volumes hit 784,000 barrels per day.

Targa’s ability to generate strong cash flows, even in a challenging commodity price environment, is a testament to its fee-based contract structure, which minimizes exposure to fluctuations in commodity prices. Approximately 90% of its margins are protected by these contracts, with additional hedging further insulating the company from market volatility. This financial stability has allowedTarga Resources Corp. (NYSE:TRGP) to return value to shareholders, highlighted by a $355 million stock repurchase during the quarter.

Moreover, Targa’s ongoing investment in infrastructure projects, such as its Train 9 fractionator and the Roadrunner II plant in the Permian, positions the company for future growth. With plans to invest approximately $2.7 billion in growth capital in 2024, Targa Resources Corp. (NYSE:TRGP) is well-prepared to capitalize on increasing volumes from the Permian Basin. The company’s participation in the Blackcomb pipeline joint venture further strengthens its position in the natural gas market.

In summary, Targa Resources Corp. (NYSE:TRGP) strong financial performance, growth-oriented investments, and solid fundamentals make it a standout energy stock for 2024. With continued expansion in key regions and a focus on shareholder returns, Targa is well-positioned for sustained success in the years ahead.