This year has been a bit of a whirlwind for Targa Resources (NYSE:TRGP). Like most energy companies, the midstream service provider made drastic changes as oil prices plunged earlier this year, slashing both its dividend and capital spending program to shore up its balance sheet. That put a lot of pressure on its stock price, which has plummetted nearly 65% this year.
However, the company thinks the sell-off is overdone, especially given the significant improvement in its financial profile and market conditions. That led it to authorize a $500 million stock repurchase program to gobble up a meaningful amount of its beaten-down shares.
Bouncing back faster than anticipated
Targa Resources recently provided investors with an update to its outlook for 2020. The midstream company noted that despite the impacts and uncertainties caused by COVID-19, its “overall business performance has been strong.” That leads it