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DATE
Thursday, Nov. 5, 2026
CALL PARTICIPANTS
- Chief Executive Officer – Matt Meloy
- President – Jennifer Kneale
- Chief Financial Officer – Benjamin Branstetter
- Vice President, Investor Relations and Fundamentals – Tristan Richardson
- President, Gathering and Processing – Pat McDonie
- President, Logistics and Transportation – Brent Secrest
- Chief Commercial Officer – Bobby Muraro
TAKEAWAYS
- Full Year Adjusted EBITDA Guidance — at least $6 billion, representing 21% growth from 2025.
- Third Quarter Adjusted EBITDA — $1.5 billion, representing an 18% increase from the prior year period.
- Permian Natural Gas Inlet Volumes — 7.5 billion cubic feet per day, increasing 5% from the second quarter and 14% year over year.
- Permian Volume Growth — 900 million cubic feet per day compared to the prior year, equivalent to the capacity of more than three processing plants.
- NGL Transportation Volumes — 1.17 million barrels per day, achieving a record for the company.
- NGL Fractionation Volumes — 1.26 million barrels per day, driven by higher supply from Permian systems.
- LPG Export Loadings — 13.7 million barrels per month, an increase of 10% from the prior year despite being below second quarter records.
- Growth Capital Expenditures — $5 billion for the full year 2026, updated to include three Delaware plants and the Bull Run II project.
- Net Maintenance Capital Expenditures — $250 million estimated for the full year 2026.
- Common Dividend — $1.25 per share for the third quarter, reflecting a 25% increase from the third quarter of 2025.
- 2027 Dividend Guidance — $6.00 per share on an annual basis, representing a 20% increase from 2026.
- Share Repurchases — $187 million through the first nine months of 2026, at an average price of $261 per share.
- Total Consolidated Debt — $19.8 billion as of Sept. 30, including $17.9 billion in senior unsecured notes.
- Available Liquidity — $2.9 billion as of the end of the third quarter, including $2.6 billion under the revolving credit facility.
- Consolidated Leverage Ratio — 3.4x, which remains within the long-term target range of 3x to 4x.
- Train 14 Capacity — 150,000 barrels per day, with operations expected to begin in the first quarter of 2029.
- Total Mont Belvieu Fractionation Capacity — 1.8 million barrels per day once Train 14 is complete.
- Regional Basin Outperformance — 13% volume growth year to date, compared to an overall Permian Basin increase of 7%.
- Waha Hub Natural Gas Price — $1.50 per MMBtu, supporting modest margin above fee floors for the fourth quarter.
- Average NGL Barrel Price — north of $1 per gallon, contributing to commodity price tailwinds expected in 2027.
- LPG Export Capacity Target — 19 million barrels per month, following the completion of a large expansion in the third quarter of 2027.
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RISKS
- Kneale stated, “fog sometimes becomes a little bit of an issue in the ship channel and you can have day or multi-day disruptions,” referring to potential logistical impacts on the timing of LPG export loadings.
- Meloy noted that while volume growth has exceeded expectations, the company experienced “greater-than-anticipated price-driven curtailments in the first half of the year.”
SUMMARY
Targa Resources Corp. (TRGP -4.63%) reported record Permian natural gas inlet, NGL transportation, and fractionation volumes for the third quarter of 2026. Management updated full year adjusted EBITDA guidance to at least $6 billion, a 21% increase year over year, while maintaining growth capital expenditures at $5 billion. The company announced a 20-year integrated agreement with ExxonMobil covering gathering, processing, and downstream services, supported by acreage dedications in the Delaware and Midland Basins. Targa continues to advance multiple infrastructure projects, including the newly announced Train 14 fractionator at Mont Belvieu and long-lead orders for three additional Permian processing plants. Capital allocation priorities focused on a recommended 20% dividend increase for 2027 and continued share repurchases.
- CEO Meloy stated, “visibility into existing customer activity and recent commercial wins support an expectation of years of double-digit percentage Permian volume growth,” regarding the long-term volume outlook.
- The company accelerated the start-up timelines for several assets, with the Copperhead plant in start-up and the Yeti and Yeti II plants moved forward to the second and third quarters of 2027.
- President Kneale noted that the Speedway NGL pipeline project “is a 1 million barrel a day pipe” designed to provide significant operating leverage as Permian production ramps.
- Management indicated that secondary bench development in the Woodford and Barnett zones represents “incremental upside” not currently factored into the company’s baseline growth forecast.
- The ExxonMobil agreements involved a “competitive process” where Targa leveraged its “run time reliability” to secure long-term fee-based contracts.
INDUSTRY GLOSSARY
- Permian Basin: A major oil and natural gas producing region in West Texas and Southeastern New Mexico.
- NGL (Natural Gas Liquids): Hydrocarbons including ethane, propane, butane, and natural gasoline that are separated from natural gas.
- Fractionation: The process of separating mixed NGLs into individual purity products.
- Waha Hub: A major natural gas pricing point in West Texas.
- LPG (Liquefied Petroleum Gas): Flammable mixtures of hydrocarbon gases, primarily propane and butane, used as fuel or feedstocks.
- MMBtu: One million British Thermal Units, a standard unit of measurement for natural gas energy content.
- MBbl/d: Thousand barrels per day.
- G&P: Gathering and Processing.
- L&T: Logistics and Transportation.
Full Conference Call Transcript
Operator: Good day, and thank you for standing by. Welcome to the Targa Resources Corp. Third Quarter 2026 Earnings Webcast and Presentation Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Tristan Richardson, Vice President, Investor Relations and Fundamentals. Sir, please go ahead.
Tristan Richardson: Thanks, Michelle. Good morning, and welcome to the Third Quarter 2026 Earnings Call for Targa Resources Corp. The third quarter earnings release, a supplement presentation and our latest investor presentation are available in the Investors section of our website at targaresources.com. Statements made during this call that may include Targa’s expectations or predictions should be considered forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 193
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