Shares of Targa Resources (TRGP) plunged 5.01% in intraday trading on Thursday following the release of the company's first-quarter 2025 financial results, which fell short of analysts' expectations. The pipeline operator reported lower-than-anticipated revenue and net income, primarily due to the impact of winter weather events on its operations.

Targa Resources announced Q1 revenue of $4.56 billion, unchanged from the same period last year but significantly below the analyst consensus estimate of $4.90 billion. The company's net income for the quarter came in at $279.8 million, falling short of the $461 million expected by analysts. Targa attributed the underperformance to reduced system volumes across its gathering and processing and logistics and transportation systems, which were negatively affected by winter weather events.

Despite the disappointing top and bottom-line results, Targa Resources did report some positive metrics. The company's adjusted EBITDA rose 5% to $1.18 billion, slightly surpassing estimates of $1.16 billion. Additionally, Targa maintained its full-year outlook, continuing to estimate FY adjusted EBITDA between $4.65 billion and $4.85 billion. However, this guidance failed to alleviate investor concerns, as evidenced by the sharp decline in the stock price. Year-to-date, Targa Resources shares are now down 8.4%, reflecting growing uncertainty about the company's ability to meet market expectations in the face of operational challenges.