11 Best Crude Oil Stocks To Buy Right Now

7. Targa Resources Corp. (NYSE:TRGP)

Number of Hedge Fund Holders: 61

Targa Resources Corp. (NYSE:TRGP) is a leading provider of midstream energy services, specializing in the gathering, processing, storage, and transportation of natural gas and natural gas liquids. The company operates an extensive infrastructure network across key US energy basins, including the Permian, Eagle Ford, and Bakken, enabling it to efficiently move hydrocarbons from production sites to end markets. TRGP’s business is primarily focused on natural gas processing, with large-scale assets on the Gulf Coast that facilitate exports and downstream distribution, but it also remains closely tied to crude oil production, as its infrastructure supports producers operating in oil-rich shale plays.

Targa Resources Corp. (NYSE:TRGP) delivered record financial and operational results in 2024, with adjusted EBITDA increasing 17% YoY. The company’s Permian Gathering & Processing (G&P) volumes grew by 14% YoY with an incremental 709 million cubic feet per day moving through their system, significantly exceeding initial high single-digit growth expectations. This outperformance was driven by the advantages of their Permian systems, dedicated acreage on premium rock, lower declines on existing volumes, increased producer activity, higher gas-to-oil ratios, and commercial success in bringing new volumes onto their systems. The company returned significant capital to shareholders in 2024, including a 50% increase in common dividend versus 2023 and a record $755 million of common share repurchases.

Looking ahead to 2025, Targa Resources Corp. (NYSE:TRGP) estimates another year of record results with over $600 million in EBITDA growth expected. The company is positioned to deliver significant growth in 2026 and beyond, with 4 new Permian G&P plants coming online in 2026, driving substantial NGL volume growth through downstream assets. Management expects Permian G&P volume growth to be more second-half weighted in 2025, with several large commercial wins beginning to add volumes late in 2025 and into 2026, positioning the company for even stronger volume growth in 2026. The company’s compelling value proposition continues to be supported by growing EBITDA, meaningful increases to common dividends per share, a reduced share count, and an excellent outlook.