Aug 6, 2026, 6:15 AM ETEnergy

Targa Resources Corp. — Second Quarter 2026 Earnings Summary

TRGPTARGA RESOURCES CORP

Financial Performance

Net income attributable to Targa Resources Corp. was $765 million for the second quarter of 2026, an increase of 22% compared to $629 million in the second quarter of 2025.
Adjusted EBITDA reached a record $1,603 million for the second quarter of 2026, representing a 38% year-over-year increase from $1,163 million in the second quarter of 2025 and a 14% sequential increase from the first quarter of 2026.
Total revenues were $4,440.1 million for the three months ended June 30, 2026, up 4% from $4,260.1 million in the prior year period; year-to-date revenues were $8,534.8 million, down 3% from $8,821.6 million.
Sales of commodities were $3,592.9 million for the quarter, down 1% year-over-year, while fees from midstream services were $847.2 million, up 36% year-over-year.
Adjusted cash flow from operations was $1,371.0 million for the quarter, up 47% from $934.4 million in the prior year period.
Adjusted free cash flow was $205.3 million for the quarter, compared to a loss of $9.6 million in the prior year period.
Total consolidated debt as of June 30, 2026, was $19,578 million, including $17,900 million in senior unsecured notes, $600 million in commercial paper, $451 million in the securitization facility, and $794 million in finance lease liabilities.
Total consolidated liquidity was approximately $3.2 billion, comprising $2.9 billion available under the TRGP Revolver, $149 million under the Securitization Facility, and $132 million in cash.

The Company estimates full-year 2026 adjusted EBITDA to be towards the top end of the $5.7 billion to $5.9 billion range.
Net growth capital expenditures for 2026 are estimated at approximately $4.5 billion.
Net maintenance capital expenditures for 2026 remain estimated at approximately $250 million.
The higher full-year outlook is driven by strong marketing and optimization margins realized in the first and second quarters and continued volume growth across integrated assets.

Gathering and Processing (G&P):
- Adjusted operating margin was $973.5 million for the second quarter of 2026, up 21% from $807.0 million in the prior year period.
- Total Permian natural gas inlet volumes increased 14% year-over-year to 7,187.3 MMcf/d, with Permian Midland up 9% and Permian Delaware up 20%.
- NGL production in the Permian increased 18% year-over-year to 1,006.9 MBbl/d.
- Commenced operations of the East Driver processing plant in Permian Midland late in the second quarter, ahead of schedule.
- Construction continues on Copperhead, Yeti, Yeti II, Roadrunner III, and Copperhead II plants in Permian Delaware.
Logistics and Transportation (L&T):
- Adjusted operating margin was $1,062.6 million for the second quarter of 2026, up 44% from $737.8 million in the prior year period.
- Record NGL transportation, fractionation, and LPG export volumes were reported.
- NGL pipeline transportation volumes increased 14% year-over-year to 1,098.9 MBbl/d.
- Fractionation volumes increased 24% year-over-year to 1,206.1 MBbl/d.
- Export volumes increased 15% year-over-year to 487.1 MBbl/d.
- Commenced operations of Train 11 fractionator and the Delaware Express NGL Pipeline expansion during the second quarter.
- Construction continues on Train 12 and Train 13 fractionators, Speedway NGL Pipeline, GPMT LPG Export Expansion, and Bull Run, Buffalo Run, and Forza intra-basin residue gas pipeline projects.

Permian natural gas inlet volumes increased despite temporary curtailments by certain producer customers responding to negative Waha natural gas prices in the second quarter.
Average realized natural gas price in the G&P segment was $(2.48)/MMBtu for the quarter, compared to $1.01/MMBtu in the prior year period, due to extended negative Waha prices from egress constraints.
Average realized NGL price in the G&P segment was $0.48/gal, up 17% from $0.41/gal in the prior year period.
Average realized condensate price in the G&P segment was $90.57/Bbl, up 42% from $63.79/Bbl in the prior year period.

Negative Waha natural gas prices caused temporary curtailments by certain producer customers in the Permian Basin.
Future results are subject to uncertainties including commodity price volatility, weather, political and economic conditions, and changes in laws and regulations regarding taxes, tariffs, and international trade.
Risks include the timing and success of capital project completions, the expected growth of volumes on systems, and the impact of global conflicts on commodity prices.

Management highlighted record adjusted EBITDA and record volumes in Permian inlet, NGL transportation, fractionation, and LPG exports.
The sequential increase in adjusted EBITDA was driven by higher marketing margins in L&T, record Permian volumes in G&P, and record NGL transportation, fractionation, and LPG export volumes in L&T.
Marketing margin increased in L&T due to greater optimization opportunities.
Higher G&P operating margin was driven by record Permian natural gas inlet volumes, partially offset by lower natural gas prices.

On July 16, 2026, the Company declared a quarterly cash dividend of $1.25 per common share, a 25% increase over the second quarter of 2025, totaling approximately $268 million to be paid on August 14, 2026.
During the second quarter of 2026, Targa repurchased 308,102 shares of common stock at a weighted average price of $259.93 for a total net cost of $80 million.
As of June 30, 2026, $1,239 million remained available under the Company's share repurchase programs.
In July 2026, the Company amended its Securitization Facility to extend the termination date to July 30, 2027, and increase borrowing capacity to up to $800 million.
The Company recognized Section 45Q tax credits earned through carbon capture and sequestration activities, which impacted other operating income expense for the six-month period.