Targa Resources Corp. Earnings Per Share Disclosure
Restricted Stock Unit awards (“RSUs”) that vest no later than three years following the RSUs’ grant date participate in quarterly cash dividend payments. As these RSUs and certain four-year retention awards participate in nonforfeitable dividends with the common equity owners of the Company, they are considered participating securities.
We calculate earnings per share using the two-class method. Earnings are allocated to common stock and participating securities based on the amount of dividends paid in the current period plus an allocation of the undistributed earnings to the extent that each security participates in earnings.
The following table sets forth a reconciliation of net income and weighted average shares outstanding used in computing basic and diluted net income per common share for the periods presented:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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(In millions, except per share amounts) |
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Net income (loss) attributable to Targa Resources Corp. |
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$ |
1,923.0 |
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$ |
1,312.0 |
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$ |
1,345.9 |
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Less: Premium on repurchase of noncontrolling interests, net of tax (1) |
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70.5 |
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32.9 |
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|
|
510.1 |
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Net income (loss) attributable to common shareholders |
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1,852.5 |
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|
|
1,279.1 |
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|
|
835.8 |
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Less: Participating share-based earnings (2) |
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11.1 |
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9.6 |
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|
|
7.6 |
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Net income (loss) allocated to common shareholders for basic earnings per share |
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$ |
1,841.4 |
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$ |
1,269.5 |
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$ |
828.2 |
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Weighted average shares outstanding - basic |
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216.1 |
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220.2 |
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224.6 |
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Dilutive effect of unvested restricted stock awards |
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0.8 |
|
|
|
1.1 |
|
|
|
1.4 |
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Weighted average shares outstanding - diluted |
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216.9 |
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|
|
221.3 |
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|
226.0 |
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Net income (loss) available per common share - basic |
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$ |
8.52 |
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$ |
5.77 |
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$ |
3.69 |
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Net income (loss) available per common share - diluted |
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$ |
8.49 |
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$ |
5.74 |
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$ |
3.66 |
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The following potential common stock equivalents are excluded from the determination of diluted earnings per share because the inclusion of such shares would have been anti-dilutive (in millions on a weighted-average basis):
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Unvested restricted stock awards |
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1.0 |
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|
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1.2 |
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|
1.5 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 29, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.