TD Cowen Upgrades Targa Resources to Buy, Lifts Price Target to $350

Chevron chairman and chief executive Mike Wirth said publicly that he does not see how oil prices come down quickly, warning that the mechanisms that absorbed the earlier oil supply shock have largely been used up and that risks remain to the upside over the next few months. Speaking at a University of Texas at Austin energy conference on September 11, Wirth said strategic reserve releases, commercial inventory drawdowns and eased restrictions on sanctioned crude stored at sea had all played out, and the loss of flexibility became more acute after attacks knocked out a major Saudi crude pipeline bypassing the Strait of Hormuz, putting an estimated 2.5 million barrels of oil per day in limbo. The average U.S. diesel price crossed $6 per gallon for the first time on September 10 and had hit a record $6.23 a gallon by the time Wirth spoke, while gasoline was back up to about $4.32 a gallon after slipping below $4 during the summer. Brent crude for November 2026 delivery traded near $105 a barrel around the conference and West Texas Intermediate was just above $100, up about 50% from roughly $70 before the Iran war started in late February, with China's return to the international market adding demand pressure. President Trump said on September 9 that oil prices would come down right after the election, tying the timeline to the November midterms, while Interior Secretary Doug Burgum has called the latest supply disruption temporary and pointed to expanded Venezuelan output and U.S. refining capacity as near-term offsets.

GE Vernova CEO Scott Strazik said on September 16 that the company's backlog could reach the $200 billion mark "very early" in 2027, sooner than Wall Street had expected. The company's backlog of $176 billion at the end of Q2 grew $13 billion from the previous quarter and was up 37% YoY, providing visibility into earnings well into the 2030s. Revenue grew 22% YoY to $11.1 billion in the second quarter, while free cash flow reached $5.1 billion, already exceeding its full-year 2025 level, and GEV raised its 2026 revenue forecast to $45.5 billion-$46.5 billion from a previous range of $44.5 billion-$45.5 billion. Data center-related orders exceeded $5 billion in the first half of this year, more than double 2025's total, though the Wind business remains a drag with orders down about 40% from a year earlier and segment EBITDA losses widening by over 66% YoY to $275 million. The stock came under pressure on September 14 when GLJ Research issued a 'Sell' rating and a Street-low price target of $470.

The U.S. national average price of gasoline stood at about $4.47 a gallon on Sept. 18, up 4% in a week and roughly 57% year to date, as the war between the United States and Israel and Iran disrupted global energy markets more violently than anyone expected. Diesel hit a record $6.4776 on Sept. 18, up 6.5% in a week and 79% this year, breaking its old 2022 peak of $5.815 on Sept. 4 and setting 13 new highs since. Jeff Currie, former head of Commodities Research at Goldman Sachs, said retail gas prices may reach $5 a gallon just in time for the midterm elections on Nov. 3, while the U.S. Energy Information Administration forecasts retail gasoline will average $3.95 a gallon in the fourth quarter. U.S. Energy Administration data show gasoline demand in July and August of 2026 was off about 1% from a year ago, and the seasonal price decline from September to year-end has averaged about 10% in recent years, a break holiday travelers should not expect this time. The war, which erupted on Feb. 27 after Israeli Prime Minister Benjamin Netanyahu convinced President Trump and members of his administration that Iran's government was fragile, has cut crude shipments through the Strait of Hormuz, the route for about 20% of the world's crude oil before the conflict, while Ukrainian drone attacks on Russian refineries have forced Russia to cut diesel exports to western Europe and elsewhere.