Shares of Targa Resources Corp. were indicated up more than 3% in premarket trading Monday, after the natural gas transportation company announced a $500 million stock repurchase program, and said its overall business has been "strong" in the face of the COVID-19 pandemic. Based on Friday's stock closing price of $14.31, the new buyback program could represent up to 34.94 million shares, or about 15% of the shares outstanding. The company now expects its 2020 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to be at or around the high end of its previously provided guidance range of $1.500 billion to $1.625 billion, and its 2020 net growth capital spending to be around the low end of its outlook of $700 million to $800 million. "Our expected strong performance and lower growth capital spending through the second half of 2020 creates additional free cash flow, which positions us to continue to execute on our strategy of reducing leverage over time," said Chief Executive Matt Meloy. The stock has tumbled 65.0% year to date through Friday, while the SPDR Energy Select Sector ETF (XLE) has dropped 51.2% and the S&P 500 has gained 3.6%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 05, 2020 06:10 ET (10:10 GMT)
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