Third Quarter 2026 – Sequential Quarter over Quarter Commentary
Targa reported third quarter adjusted EBITDA of $1,504 million, representing a 6 percent decrease compared to the second quarter of 2026. Record Permian inlet volumes in our Gathering and Processing (“G&P”) segment and record NGL transportation and fractionation volumes in our Logistics and Transportation (“L&T”) segment were offset by lower marketing margin and lower LPG export margin in our L&T segment.
In our G&P segment, higher sequential adjusted operating margin was driven by record natural gas inlet volumes in the Permian region and higher natural gas and NGL prices.
In our L&T segment, record NGL pipeline transportation and fractionation margin was offset by lower marketing margin and lower LPG export margin. NGL pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from our Permian G&P systems. Marketing margin was lower due to fewer optimization opportunities. LPG export margin was lower due to lower volumes and fees.
Capitalization, Financing and Liquidity
The Company’s total consolidated debt as of September 30, 2026 was $19.8 billion, net of $124 million of debt issuance costs and $38 million of unamortized discount, with $17.9 billion of outstanding senior unsecured notes, $860 million outstanding under our Commercial Paper Program, $451 million outstanding under our accounts receivable securitization facility (the “Securitization Facility”), and $796 million of finance lease liabilities.
Total consolidated liquidity as of September 30, 2026 was approximately $2.9 billion, including $2.6 billion available under the TRGP Revolver, $149 million under the Securitization Facility and $143 million of cash.
Growth Projects Update
In our G&P segment, Targa’s Copperhead plant in the Permian Delaware is currently in start-up, ahead of schedule. The Company now expects our Yeti and Yeti II plants to begin operations in the second quarter of 2027 and third quarter of 2027, earlier than previously expected. Construction continues on our Roadrunner III, Copperhead II, Wrangler, Ranger, and Ranger II plants in the Permian Delaware, and these projects remain on track.
In response to increasing production, the infrastructure needs of our customers and recent commercial success, we are ordering long-lead items for our next processing plant in the Permian Midland and our next two processing plants in the Permian Delaware. We are evaluating the timing and expect these new plants will likely be needed in 2028 or early 2029.
In our L&T segment, Targa recently commenced operations of our Train 12 fractionator in Mont Belvieu, TX and our Bull Run Extension intra-basin residue gas pipeline project in the fourth quarter of 2026, ahead of schedule. Construction continues on our Train 13 fractionator, Speedway NGL Pipeline, GPMT LPG Export Expansion, and Buffalo Run, Bull Run II, and Forza intra-basin residue gas pipeline projects, which remain on track.
In November 2026, in response to increasing production and to meet the infrastructure needs of our customers, we announced a new 150 thousand barrels per day (“MBbl/d”) NGL fractionator, Train 14, in Mont Belvieu, TX. Train 14 is expected to begin operations in the first quarter of 2029.
2026 Outlook and Capital Allocation Update
Given the strength of Targa’s operating performance through the first three quarters of the year, Targa now estimates full year 2026 adjusted EBITDA to be at least $6.0 billion. We continue to estimate net growth capital expenditures to be approximately $5.0 billion, and our estimate for 2026 net maintenance capital expenditures remains unchanged at approximately $250 million.
For the first quarter of 2027, management intends to recommend to Targa’s Board of Directors an increase to its common dividend to $1.50 per common share or $6.00 per common share annualized. The recommended common dividend per share increase, if approved, would be effective for the first quarter of 2027 and payable in May 2027. Beyond 2027, we expect to be in position to continue to provide meaningful annual increases to our common dividend.
An earnings supplement presentation and updated investor presentation are available under Events and Presentations in the Investors section of our website at www.targaresources.com/investors/events.
Conference Call
We will host a conference call for the investment community at 11:00 a.m. Eastern time (10:00 a.m. Central time) on November 5, 2026 to discuss third quarter results. The conference call can be accessed via webcast under Events and Presentations in the Investors section of our website at www.targaresources.com/investors/events, or by going directly to https://edge.media-server.com/mmc/p/5srx7xm2/. A webcast replay will be available at the link above approximately two hours after the conclusion of the event.
(1) Adjusted EBITDA and adjusted operating margin (segment) are non-GAAP financial measures and are discussed under “Non-GAAP Financial Measures.”
Targa Resources Corp. – Consolidated Financial Results of Operations
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026 vs. 2025
2026
2025
2026 vs. 2025
(In millions)
Revenues:
Sales of commodities
$
4,722.9
$
3,469.9
$
1,253.0
36
%
$
11,660.4
$
10,990.6
$
669.8
6
%
Fees from midstream services
875.7
681.3
194.4
29
%
2,473.0
1,982.2
490.8
25
%
Total revenues
5,598.6
4,151.2
1,447.4
35
%
14,133.4
12,972.8
1,160.6
9
%
Product purchases and fuel
3,578.6
2,506.4
1,072.2
43
%
8,275.1
8,200.2
74.9
1
%
Operating expenses
372.3
333.5
38.8
12
%
1,060.1
960.7
99.4
10
%
Depreciation and amortization expense
459.6
383.5
76.1
20
%
1,338.7
1,124.8
213.9
19
%
General and administrative expense
112.9
104.8
8.1
8
%
328.8
294.3
34.5
12
%
Other operating (income) expense
(20.8
)
(13.9
)
(6.9
)
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
