TRGP

Targa Resources Corp. reported past second-quarter 2026 results with revenue of US$4,440.1 million and net income of US$764.6 million, alongside strong year-to-date earnings growth despite slightly lower six-month revenue. The company paired these record operational and earnings results with higher full-year guidance, expanded midstream infrastructure, a 25% dividend increase, and ongoing share repurchases, highlighting management’s confidence in the business. We’ll now explore how record adjusted EBITDA growth and raised full-year guidance may influence Targa Resources’ existing investment narrative. Find 50 companies with promising cash flow potential yet trading below their fair value. To own Targa Resources, you need to believe in the durability of its Permian-centered midstream footprint and its ability to convert higher volumes into cash flow while managing a relatively high debt load. The latest record second quarter earnings and higher full year adjusted EBITDA guidance support the near term volume and earnings catalyst, but they do not remove key risks around potential midstream overbuild and intensifying competition in core regions. The most relevant update here is management’s decision to raise full year 2026 adjusted EBITDA guidance toward the top of its prior range, following 38% year over year adjusted EBITDA growth and record Permian gas volumes. That shift in guidance ties directly into the main catalyst of higher system throughput and new plants coming online, while also amplifying the importance of monitoring project capital costs and the risk of infrastructure overbuild as Targa continues expanding into 2027 and beyond. Yet investors should also be aware that even with strong recent results, the risk of midstream overbuild and margin compression in NGL exports could still... Read the full narrative on Targa Resources (it's free!) Targa Resources' narrative projects $25.9 billion revenue and $3.2 billion earnings by 2029. This requires 16.0% yearly revenue growth and a $1.1 billion earnings increase from $2.1 billion today. Uncover how Targa Resources' forecasts yield a $297.29 fair value, a 8% upside to its current price. Four members of the Simply Wall St Community currently estimate Targa’s fair value between US$227.53 and US$562.59, highlighting how far opinions can spread. Against this backdrop, the raised adjusted EBITDA guidance and continued build out of Permian infrastructure sharpen the question of how overbuild risk and future margins might shape actual performance, so it is worth considering several alternative viewpoints before forming your own stance. Explore 4 other fair value estimates on Targa Resources - why the stock might be worth over 2x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Targa Resources research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free Targa Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Targa Resources' overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: We've uncovered the 10 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Rare earth metals are the new gold rush. Find out which 28 stocks are leading the charge. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TRGP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Targa Resources (TRGP) is back on investors radar after reporting second quarter 2026 results, including higher net income and earnings per share, alongside fresh details on its ongoing share repurchase activity. For the quarter ended June 30, 2026, Targa Resources reported revenue of US$4,440.1 million compared with US$4,260.1 million a year earlier. Net income was US$764.6 million versus US$629.1 million, with basic and diluted earnings per share from continuing operations at US$3.54 compared with roughly US$2.88 a year ago. Across the first six months of 2026, revenue was US$8,534.8 million compared with US$8,821.6 million in the prior year period. Net income for the half year was US$1,244.2 million versus US$899.6 million, with basic earnings per share from continuing operations of US$5.76 and diluted earnings per share of US$5.75 compared with roughly US$3.79 and US$3.78 respectively a year earlier. Management also highlighted record Permian volumes and marketing gains contributing to adjusted EBITDA, with expectations to be at the top end of 2026 guidance. Several new gas processing plants are coming online, and downstream projects such as the Train 11 fractionator, Delaware Express Pipeline and Speedway are reported to be progressing on schedule. Alongside the earnings update, Targa Resources increased its dividend by 25% and continued to return capital through buybacks. From April 1, 2026 to June 30, 2026, the company repurchased 308,102 shares for US$80 million under the buyback announced on August 1, 2024, bringing total repurchases under that program to 4,301,175 shares for US$776.92 million, or 1.99% of shares. A separate repurchase program announced on August 7, 2025 had no activity during the same period. See our latest analysis for Targa Resources. Targa Resources shares have reacted positively to the latest earnings and buyback update, with a 1-day share price return of 3.34% and a 7-day share price return of 7.37%. That sits against a slightly weaker 30-day share price return. The 1-year total shareholder return of 72.63% and 5-year total shareholder return above 6x indicate that momentum has been strong over both shorter and longer periods. If Targa Resources has you looking more closely at energy infrastructure, it could be a good time to scan for other companies in similar niches through a dedicated stock list such as 38 power grid technology and infrastructure stocks After a sharp multi year run and a fresh bump on these results, investors now need to ask whether most of Targa Resources upside has already been captured, or if the recent move still leaves meaningful value on the table. Based on the most followed narrative, Targa Resources' fair value of about $297 sits above the recent close of $275.79, which raises a clear valuation gap for investors to weigh. Read the complete narrative. Want to see what sits behind that export buildout story? The narrative leans on ambitious revenue expansion, firm profit margins and a premium future earnings multiple. Curious which exact assumptions connect those dots. Result: Fair Value of $297 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there is still real risk that rising competition in the Permian and potential midstream overbuild could pressure Targa Resources fees and reduce future earnings power. Find out about the key risks to this Targa Resources narrative. The analysts' narrative points to Targa Resources trading below a fair value estimate of about $297 per share. A different lens comes from the P/E ratio. At 26.2x, the stock sits above the US Oil and Gas industry on 12.6x and above a fair ratio of 24.7x, which points to less room for error if growth or margins soften. For investors who want to stress test that earnings based picture against peers and the fair ratio, the valuation breakdown can help to frame how much valuation risk feels acceptable at this point in the story. See what the numbers say about this price — find out in our valuation breakdown. If the mixed signals around Targa Resources have you on the fence, it helps to see both sides quickly and judge the balance for yourself. To weigh that mix of concerns and potential rewards in one place, take a look at the 3 key rewards and 2 important warning signs If Targa Resources has sharpened your focus on where to put fresh capital, do not stop here. The next opportunity could already be on your screen. Spot potential value early by scanning screener containing 18 high quality undiscovered gems that combine solid fundamentals with lower visibility among mainstream investors. Strengthen your core holdings through the solid balance sheet and fundamentals stocks screener (50 results) and focus on companies with financial profiles that may better handle tougher conditions. Target quality at a discount by using the 50 high quality undervalued stocks to surface stocks where fundamentals and current pricing look out of sync. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TRGP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Targa Resources Corp. TRGP reported second-quarter 2026 adjusted earnings of $3.54 per share, which beat the Zacks Consensus Estimate of $2.83. The bottom line also increased from the year-ago quarter’s level of $2.87. The outperformance can be attributed to the increased operating margin in the Gathering and Processing segment and Logistics and Transportation segment, and a decrease in the company’s product costs. Total quarterly revenues of $4.4 billion increased from the prior-year quarter’s level of $4.3 billion. The strong quarterly revenues can be attributed to higher fees from its midstream services. However, the top line missed the Zacks Consensus Estimate of $4.9 billion due to decreased sale of commodities. Targa Resources, Inc. price-consensus-eps-surprise-chart | Targa Resources, Inc. Quote The company’s adjusted EBITDA for the second quarter totaled $1.6 billion, up from $1.2 billion in the prior-year period. On July 16, 2026, Targa Resources declared a quarterly cash dividend of $1.25 per common share, or $5 on an annualized basis, for the second quarter of 2026. This dividend represents a 25% increase over the common dividend declared with respect to the second quarter of 2025. Total cash dividends of approximately $268 million will be paid on Aug. 14, 2026, to its shareholders of record as of the close of business on July 31. During the second quarter of 2026, Targa Resources repurchased 308,102 shares of its common stock, spending approximately $80 million (at an average price of $259.93 per share). As of June 30, 2026, the company had $1,239 million remaining in its share repurchase program. Targa Resources also provided an update on several ongoing projects. It commenced operations at its new East Driver plant in the Permian Midland late in the second quarter, ahead of schedule. Construction is progressing on the Copperhead, Yeti, Yeti II, Roadrunner III and Copperhead II plants in the Permian Delaware, with all G&P projects remaining on track. In the L&T segment, the company began operations at its Train 11 fractionator in Mont Belvieu, TX, and completed the Delaware Express NGL Pipeline expansion during the second quarter. Construction is ongoing on the 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. All L&T projects remain on schedule. Gathering and Processing: The segment recorded an operating margin of $732.6 million, up 25% from $587.6 million recorded in the year-ago period. The figure, however, missed the Zacks Consensus Estimate of $743 million. The year-over-year increase in adjusted operating margin was primarily driven by higher natural gas inlet volumes in the Permian, which drove higher fee-based margin. Logistics and Transportation: This unit reflects TRGP’s downstream operations. Its operating margin of $948.3 million increased 50% year over year and also beat the Zacks Consensus Estimate of $794 million. The year-over-year rise can be attributed to a higher marketing margin, higher pipeline transportation and fractionation margin and higher LPG export margin. Marketing margin increased, backed by greater optimization opportunities. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from our Permian Gathering and Processing systems and the addition of Train 11 early in the second quarter of 2026. LPG export margin increased, driven by higher volumes and fees. TRGP’s fractionation volumes totaled 1,206.1 thousand barrels per day, up 24% from 969.1 thousand barrels per day recorded a year ago. The Zacks Consensus Estimate for the same was pegged at 1,166 thousand barrels per day. NGL pipeline transportation volumes rose 14% year over year, export volumes increased 15% and NGL sales increased 14% in the same period. Targa Resources incurred product costs of $2.3 billion, which decreased 6% from the year-ago quarter’s figure. At the same time, it reported operating expenses of $354.1 million, up 9% from the year-ago quarter’s level of $323.6 million. The company spent $1.1 billion on growth capital programs compared with $885.1 million in the year-ago period. As of June 30, 2026, TRGP had cash and cash equivalents of $132.3 million and long-term debt of $19 billion, with a debt-to-capitalization of around 83.4%. Given Targa Resources’ strong performance during the first half of 2026, the company now expects full-year adjusted EBITDA to reach the upper end of its previously projected $5.7 billion-$5.9 billion range. The improved outlook reflects stronger-than-expected marketing and optimization margins, particularly in the first and second quarters, along with continued volume growth across its integrated assets. Targa Resources maintained its 2026 net growth capital expenditure outlook at approximately $4.5 billion and expects net maintenance capital expenditures to remain around $250 million. TRGP currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. While we have discussed TRGP’s second-quarter results in detail, let us take a look at three other key reports in this space. Imperial Oil Limited IMO reported second-quarter 2026 adjusted earnings per share of $3.27, which beat the Zacks Consensus Estimate of $2.99 and increased from the year-ago quarter’s $1.34, driven by higher price realizations. Revenues of $11.6 billion missed the Zacks Consensus Estimate of $11.8 billion. However, the top line increased significantly from the year-ago quarter’s level of $8.1 billion, backed by strong performance in both the Upstream and Downstream segments. As of June 30, 2026, Imperial Oil had cash and cash equivalents of C$2.8 billion. Total debt of the company amounted to C$3.96 billion, with a debt-to-capitalization of 13.9%. USA Compression Partners USAC reported second-quarter 2026 adjusted net profit of 31 cents per common unit, beating the Zacks Consensus Estimate of 24 cents. The metric improved from the year-ago quarter’s net profit of 22 cents per common unit, driven by a year-over-year increase in revenue-generating capacity. The largest independent provider of natural gas compression services generated revenues of $342.1 million, improving 36.8% from the year-ago quarter’s level and beating the Zacks Consensus Estimate by 0.7%. This growth was aided by higher contract operations revenues and higher revenues from the sale of parts and services. As of June 30, 2026, USA Compression had net long-term debt of $2.9 billion. The partnership had $536.9 million of remaining unused availability under its revolving credit facility. Diamondback Energy, Inc. FANG reported second-quarter 2026 adjusted earnings per share of $6.48, which beat the Zacks Consensus Estimate of $5.96 and more than doubled from the year-ago adjusted profit of $2.67. The outperformance was driven by production growth and a 53.1% improvement in the year-over-year realized oil prices. This Midland, TX-based oil and gas exploration and production company’s revenues of $5.6 billion increased more than 51% from the year-ago quarter and topped the Zacks Consensus Estimate by about 17%, fueled primarily by higher sales of oil, natural gas and natural gas liquids, increased sales of purchased oil and higher revenues from other operating income. As of June 30, the Permian-focused operator had approximately $462 million in cash and cash equivalents and $11.1 billion in long-term debt, representing a debt-to-capitalization of 20.1%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Targa Resources, Inc. (TRGP) : Free Stock Analysis Report Imperial Oil Limited (IMO) : Free Stock Analysis Report USA Compression Partners, LP (USAC) : Free Stock Analysis Report Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 11:00 a.m. ET Vice President, Investor Relations and Fundamentals - Tristan Richardson Chief Executive Officer - Matt Meloy President - Jennifer Kneale Chief Financial Officer - William Byers President, Gathering and Processing - Pat McDonie President, Logistics and Transportation - Benjamin Branstetter Chief Commercial Officer - Bobby Muraro Operator: Good day, and thank you for standing by. Welcome to the Targa Resources Corp. Second Quarter 2026 Earnings Webcast and Presentation. [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. Please go ahead. Tristan Richardson: Thanks, operator. Good morning, and welcome to the Second Quarter 2026 Earnings Call for Targa Resources Corp. The second 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 1934. Actual results could differ materially from those projected in forward-looking statements. For a discussion of factors that could cause actual results to differ, please refer to our latest SEC filings. Our speakers for the call today will be Matt Meloy, Chief Executive Officer; Jen Kneale, President; and Will Byers, Chief Financial Officer. Additionally, members of Targa's senior management will be available for Q&A, including Pat McDonie, President, Gathering and Processing; Ben Branstetter, President, Logistics and Transportation; and Bobby Muraro, Chief Commercial Officer. I'll now turn the call over to Matt. Matt Meloy: Thanks, Tristan, and good morning. We had another great quarter where we reported numerous financial and operational records. Adjusted EBITDA increased 38% year-over-year. We reported record volumes again in the Permian, up more than 900 million cubic feet per day from a year ago and up 450 million cubic feet per day compared to Q1. That's almost 2 plants worth of gas in 1 quarter. This strong Permian growth drove record volumes across our downstream systems, including NGL transportation, fractionation and LPG export. Our customers remain active and the commercial service offering we've built the past many years continues to gain traction with our customers. We continue to benefit from the activity of our producer customers with millions of acres dedicated across the Permian, and that number continues to grow. With the largest G&P footprint in the Permian, we believe we are positioned very well for continued growth over the long term. And given the strength we have seen so far this year, we now expect to be towards the top end of our previously provided adjusted EBITDA guidance range, suggesting that our 2026 adjusted EBITDA growth over 2025 may be close to $1 billion, all while reducing our share count and increasing our dividend. This strong performance underscores the value of the organic growth projects that we continue to invest in and positions Targa for success across a range of market conditions. In the first half of 2026 against the backdrop of weather-related challenges in the first quarter, natural gas takeaway constraints, negative Permian gas pricing and broader market volatility, we were still able to deliver record results. And beyond 2026, we believe we are in an excellent position with our multiple projects underway expected to provide our producer customers with the critical infrastructure needed to grow production. And the global environment is recognizing the value and importance of U.S. energy now more than ever. We expect to benefit from critical long lead demand catalysts, including expanding LNG export capacity, growing power generation needs, increasing global demand for hydrocarbons and increasing recognition of the strategic role U.S. energy plays in supporting economic growth and energy security worldwide. Against this backdrop, we believe Targa is uniquely positioned to benefit from sustained producer activity and increasing demand for the critical infrastructure services we provide. Our focus at Targa remains unchanged; to deliver the very best operating performance for our customers, to utilize that track record to continue to add contracts with existing and new customers and to deliver on our major projects currently underway. We believe our premier Permian asset footprint, integrated wellhead-to-water system and strong financial position provide a durable competitive advantage. These strengths allow us to continue investing in high-return integrated growth opportunities that maximize the value of our existing network while supporting our customers' development plans. Before I turn the call over to Jen to discuss operations in more detail, I would like to thank the Targa team for their continued focus on safety and execution while continuing to provide best-in-class service and reliability to our customers. Jennifer Kneale: Thanks, Matt. Good morning, everyone. Second quarter Permian volumes were a record 7.2 billion cubic feet per day, up approximately 7% from the first quarter and 14% from a year ago. We mentioned in early May that we had about 200 million to 400 million cubic feet per day of gas shut in behind our Permian systems on any given day with weak Waha prices. So our volume growth of 450 million cubic feet a day quarter-over-quarter despite a second quarter with shut-ins, demonstrates the robust activity that we are seeing on our assets. With Hugh Brinson Phase 1 and the GCX expansion now online, we have seen most of the price-driven producer shut-ins return to our system in July, and we continue to see a lot of activity behind our systems, positioning us really well for strong growth in Permian volumes across 2026 that are tracking higher than what we were expecting in February. This will position us well with continued momentum heading into 2027. The constrained gas egress environment across the past several quarters has created increased marketing opportunities for Targa with our marketing businesses outperforming our expectations by approximately $250 million in the first half of the year, much of which occurred in the second quarter. Waha gas prices have improved, narrowing basis spreads and curtailed volumes are returning to our system, highlighting some of the built-in offsets in our business. In addition to the strong growth we are seeing from our customers, 2026 is a year of significant execution for Targa as we continue to progress the major projects along our integrated system. In the Permian Delaware, our 5 gas processing plants, Copperhead I and II, Yeti I and II, and Roadrunner III are on track to begin operations as previously announced. In the Permian Midland, our East Driver plant began service late in the second quarter, ahead of schedule. We continue to see growth behind our Midland system and are currently evaluating the timing of our next Midland processing plant. We also continue to execute on our residue natural gas strategy, adding intrabasin connectivity across our Permian footprint with our key natural gas projects on track, which will enhance our producer customers' access to multiple premium markets. Blackcomb and Traverse, two natural gas pipelines in which we have an equity interest, remain on track for the fourth quarter of 2026 and mid-2027, contributing to continued improving natural gas egress in the Permian for the near to medium term. Shifting to Logistics & Transportation, the growth we are experiencing in the Permian is flowing through our integrated footprint, contributing to record NGL transportation volumes of 1.1 million barrels per day and record fractionation volumes of 1.2 million barrels per day. With conflict in the Middle East increasing global demand for U.S. hydrocarbons, our LPG export loadings averaged a record 14.8 million barrels per month during the second quarter. The Targa team was able to respond quickly and serve our customers, and our commercial teams have been active adding to our long-term contract portfolio. With our strong outlook for continued growth on our Permian G&P footprint, which we expect will create meaningful incremental supply of NGLs, we have several key downstream projects underway. Our Train 11 fractionator came online early in the second quarter and was quickly highly utilized, and our Train 12 and Train 13 fractionators remain on track. Targa's Delaware Express Pipeline, an expansion of our NGL pipeline transportation system within the Permian, came online during the second quarter and will give us much needed capacity for the growing supply of NGLs we are seeing across the Delaware Basin. Speedway, the large expansion of our NGL transportation system connecting our Permian G&P position to our leading fractionation footprint in Mont Belvieu, remains on track for the third quarter of 2027. Our NGL transportation system has effectively been running full since we announced Speedway and our transportation volumes reflect our proactive and capital efficient efforts to secure medium term transportation agreements on third party pipelines until Speedway comes into service. We have completed five processing plants in the Permian since we announced Speedway and have five plants currently underway. The growth we expect from our G&P footprint positions us well for a base load of supply for Speedway's initial capacity of 500,000 barrels per day. Lastly, we expect our large LPG export expansion that will increase our capacity to around 19 million barrels per month will be much needed and remains on track for the third quarter of 2027. We believe that we are exceptionally well positioned operationally and that our wellhead-to-water strategy driven by activity in the Permian Basin will continue to put us in excellent position to execute for our shareholders and customers. I would also like to thank our employees that have worked tirelessly to continue to perform safely and at an exceptional level for our customers and our shareholders. I will now turn the call over to Will to discuss our financial results and outlook in more detail. William Byers: Thanks, Jen. Targa's reported adjusted EBITDA for the second quarter was $1.603 billion, 14% higher than the first quarter. The increase was primarily a result of contributions from higher optimization opportunities in our marketing businesses and record volumes across our operations, including Permian G&P, NGL transportation, fractionation and LPG export. Given the strength of our performance so far this year, we now expect full year 2026 adjusted EBITDA to be towards the top end of our guidance range of $5.7 billion to $5.9 billion. As has long been our practice, we do not forecast material marketing optimization margin when we provide our financial expectations. The first half of 2026 benefited from marketing opportunities that were not included in our guidance provided in February, and our approach remains unchanged as we look to the balance of the year. Importantly, the fundamentals supporting our business are very constructive. Improved Permian takeaway capacity and stronger Waha pricing are benefiting our customers and supporting continued growth in liquids-rich natural gas volumes across our integrated system. Combined with the ongoing execution of our growth projects and the strength of our asset footprint, these factors continue to support our confidence in the outlook for the second half of 2026 and beyond. We continue to estimate net growth capital for 2026 of approximately $4.5 billion, we also continue to estimate 2026 net maintenance capital spending of $250 million. At the end of the second quarter, we had $3.2 billion of available liquidity and our pro forma consolidated leverage ratio was approximately 3.4x, well within our long-term leverage ratio target range of 3 to 4x. In July, we also extended the maturity of our accounts receivable securitization facility to July 30, 2027, and expanded the total capacity by $200 million. Shifting to capital allocation, our focus is more of the same from Targa, maintain our strong investment-grade balance sheet, continue to invest in high-returning integrated projects and return an increasing amount of capital to our shareholders. We declared a second quarter common dividend of $1.25 per share, which is a 25% increase relative to the second quarter common dividend for 2025. We also opportunistically repurchased approximately $80 million in common stock at an average price of $259.93 per share during the second quarter. We are on track for another record year at Targa across multiple dimensions and remain well positioned to create value for our shareholders over the long term. And with that, I will turn the call back over to Tristan. Tristan Richardson: Thanks, Will. [Operator Instructions] Operator? Operator: [Operator Instructions] Our first question comes from Jeremy Tonet with JPMorgan Securities. Jeremy Tonet: Just wanted to touch on how you see the volume trajectory at this point. If you could drill in on what type of curtailments you see on the system and what could come back over, I guess, the balance of the year? And just thinking, I guess, some of your competitors say that they're seeing activity picking up quicker than they expected. I'm wondering how you see activity in your system and the trajectory into '27. Jennifer Kneale: Jeremy, this is Jen. I think as I tried to describe in my scripted remarks, volumes are -- volume growth is going really, really well across the Targa system. We had a really good start to the first half of the year, which is pretty remarkable when you think about the weather impacts in the first quarter. And then as we described on our May earnings call, about 200 million cubic feet to 400 million cubic feet a day of shut-ins on any given day during the second quarter. So to have 450 million cubic feet a day of growth quarter-over-quarter, I think, is really reflective of the producers and the activity in and around our systems. As we look forward, July was another really strong month of volume growth. So as I said, for the year now, I'd say that we are tracking ahead of expectations with a view of continued volume growth across the back half of the year. I think largely, the growth that we're seeing is consistent with what we expected, again, maybe a little bit ahead. But we've got really active producers across the system that I think are feeling supported by a macro backdrop now with both higher crude oil prices and now with the egress situation in the Permian at least temporarily resolved benefiting from higher gas prices. So it's just a really supportive environment of both an expectation for continued activity back half of '26. And then that, of course, I think, means we're well supported for the continued growth into '27 and beyond. Jeremy Tonet: Got it. And then just wanted to go back, I guess, to any thoughts you could share on the cadence of gas processing plant additions, how you see that going forward each year? Is it 3 a year? Would you expect 3 for '28? Or how should we think about that at this point? Jennifer Kneale: I think you've seen a quick cadence of plant adds for us over the last several years here already this year, getting 2 plants online in the Midland Basin. That's a little bit lumpier for us having 2 plants come online as quickly sort of back-to-back as they did, but part of that was an exceptional job by our engineering and operations team to get East Pembrook online earlier than expected. We've now got 5 plants that are under construction, indicated on the call this morning that we're evaluating the next time or the next -- the appropriate time to move forward with our next Midland plant. So as we look forward, we put out an illustrative framework now a couple of quarters ago that demonstrated continued cadence of, call it, 3 plants a year if we assume high single-digit, low double-digit Permian growth. I think where we are today with the commercial success that we've had over the last couple of years is accelerated from there. Ultimately, whether that cadence continues to be accelerated going forward will be a function both of the existing contracts that we've already got in place as well as continued commercial success. I'm biased, but I think we've got by far the best commercial team in the business. And I can assure you that they are not resting on their laurels and are continuing to go out and identify new opportunities to add to the contracts that we already have in place with existing and new producers. So we'll be continuing to work that angle as well. So I think we just feel really good, Jeremy. But ultimately, the pace of growth will drive is it 3 plants, is it more plants? But feel really well positioned for just continued growth going forward. Operator: Our next question comes from Spiro Dounis with Citi. Spiro Dounis: I want to go back to your comments around the integrated footprint. If I include East Driver, that's about 6 announced plants adding about 240,000 barrels a day of NGLs to the system. It sounds like you're covered on the egress side, frac arguably starting to look a little tight again if you announce another plant. And then on export, I think that's probably where we could see the need for another expansion sooner rather than later. So curious how you're thinking about downstream infrastructure needs and what a seventh or eighth plant coming online in 2028 might do to the need to expand downstream again? Jennifer Kneale: Spiro, I think we've got really good operating leverage when we think about Speedway coming online in the third quarter of 2027 and our ability to expand Speedway from, call it, 500,000 barrels a day to 1 million barrels a day by just adding incremental pumps as our volume growth continues to ramp, a very cost-efficient way to add a lot of capacity. So I think we've got good operating leverage there. We are in a really good spot to baseload Speedway with a lot of volumes given everything that we've announced since that came into service. And as you pointed out, on the LPG export side, a lot of operating leverage there when that expansion comes online in the third quarter of 2027 as well. So I think you really hit all the key points, which is we need to evaluate the timing of our next fractionator. We feel like we're in good position right now with Train 11 online, highly utilized from start-up to like Trains 12 and 13 will be as well. But we'll evaluate the right timing of that next frac. Otherwise, on the residue side, I feel like we're in a good spot with all the intra-basin activity that we've got underway to really build out our residue capabilities. So ultimately, I think it will continue to be more of the same, which is with the additional plant adds, when do we need another frac. But we do have, I think, material operating leverage across both NGL and transportation and exports once we get those 2 big projects online in the third quarter of 2027. Spiro Dounis: Got it. That's great to hear. Maybe just to go back to the guidance quickly. And you talked about this a little bit with Jeremy, but it does seem to imply a decline in the second half of the year to hit the high end, which does seem conservative to us. Certainly appreciate the point that Waha marketing gains are probably moderating here, but you had a lot of positive commentary about producer activity and curtailments really coming back and would have thought that had been enough to offset. Could you -- so maybe just walk through some of the assumptions and maybe put a finer point on what you're not counting on that could lead to a positive surprise? Matt Meloy: Yes. Spiro, Matt here. No, good question. Look, the first half of the year was really strong underlying volume performance, which Jen talked about. But we also pointed to $250 million of optimization margin that we weren't counting on. And with the basis narrowing, part of that margin comes from our transport position. So we forecast that pretty conservative in the back half of the year. We have -- we don't have a very significant assumption for continued marketing gains as we go forward from here. And so that's why you're seeing perhaps a conservative view of the second half of this year. But with the volumes that we've seen across our system, Jen talked about the strength that we've had so far this year. Most of the shut-ins have returned. July was a really good month. We've had really good August so far. And we actually still have some volume shut in on our system that are going to come back and add even more volumes in the back half of the year. So I think we feel really good about the underlying volume trajectory. It's just going to be moderated and offset by perhaps lower marketing opportunities in the back half of the year. Operator: Our next question comes from Jackie Koletas with Goldman Sachs. Jacqueline Koletas: First, I just wanted to touch again on the NGL business and extending your platform. Peers are actively expanding the ethane export capacity on the Gulf Coast. I mean where would you say are the economics currently for expanding into ethane capacity at Galena Park? Are you comfortable continuing to rely on the LPG business? Or is there a scale that you can see on ethane export solution? Jennifer Kneale: Jackie, this is Jen. I think it was probably, gosh, 8 or 9 years ago that we first mentioned publicly that we are evaluating ethane export opportunities. Given the vast amount of ethane in our system, I think it puts us in a really good position with a lot of supply. We've managed that supply position thus far by selling into the domestic markets and have really strong relationships with our domestic customers and also with some of our peers that are exporting some of those volumes to the rest of the world. I think that's worked really well for us thus far. But of course, we're always evaluating opportunities across the entire value chain and ethane exports is no different. We've got a growing supply portfolio as a result of all of our gathering and processing plant adds and then the incremental fracs bringing more ethane into our system. I think our team has done a great job of increasing our domestic connectivity to make sure that we're very comfortable with where those volumes ultimately will find a home. But certainly, that's something that we continue to evaluate, and we'll continue to evaluate it going forward. But I don't think we feel like it's something that we have to do. I think if it's complementary to what we do and if it makes sense and if it can provide returns that are commensurate with where we can invest across the rest of our portfolio, then we'll certainly continue to consider expanding. Jacqueline Koletas: That's very clear. And then just as a follow-up, you mentioned very strong volume recovery. As we see volume growth continue and prices begin to rebound, how do you contemplate the ability to move off of fee floors into '27 and how that may frame up your long-term outlook from here? Jennifer Kneale: I think moving off of fee floors would be very much welcome across the Targa system, we've been below fee floors for a long time, really only having maybe less than a handful of months over the last couple of years where we have benefited from margin above fee floor levels. I think certainly, with the incremental egress on the natural gas side, you're seeing gas prices move higher. Our fee floors are a combination of both gas and NGL prices. So ultimately, it will depend where sort of the entire barrel moves. But I think that from our perspective, we do believe with all of the tailwinds around the incremental demand for natural gas and NGLs in the U.S. and globally, we're likely to see some price tailwinds as we move forward. And ultimately, that would be certainly additive to our performance as we move through the next several years. Operator: Our next question comes from Julien Dumoulin-Smith with Jefferies. Julien Dumoulin-Smith: Maybe following up on what's been discussed here a little bit. Can you follow up on the plant cadence? Can you speak to what are the variables that can surprise the upside to this 3 plant per year model, right? Is it more of the Permian macro versus specific commercial wins? And specifically, given the commercial discussion that you've had here in '25 and obviously, year-to-date '26, are you tracking ahead of that expectation of 3 plants per year or that framework for '28 and onwards here, again, kind of going on your improving backdrop commentary? Matt Meloy: Yes. No, good question, and we're always challenging ourselves for what -- how to kind of think about that. I think it's a combination of what you talked about. I think overall, just trends in the Permian Basin with just strong activity, increasing GORs is going to put us in good position to continue to add multiple plants a year for years to come. But then on top of that, which is a bit more episodic, is our larger commercial wins and other opportunities. And as Jen said, we think we have the best commercial team in the business. So as we continue to have commercial wins, you've seen us talk about that in 2024 and 2025. We're having a good year so far in 2026 and would expect to continue to add more acreage dedications, more volumes from our commercial success. So I think in any environment, we're going to be adding multiple plants a year. I think that is already outlined, and we have 5 plants coming on and already announced, and we're evaluating the timing of the next plant in the Midland, and we're evaluating more plants in the Delaware for future timing. So we feel really good about adding significant volumes, but I think it's a combination of all those factors. Julien Dumoulin-Smith: Awesome. And maybe a related point here. With the Permian Basin continuing to consolidate, can you speak to how you're structuring your commercial strategy going forward, right? Are you pursuing a more volumetric-centric strategy on the G&P front to attract more volume on your system and improve like more of a system-wide ROIC with your downstream assets, if you will? I mean how are you thinking about that, especially given the improving volume writ large we just alluded to? Jennifer Kneale: I think that we have exceptional relationships with our producers and are always trying to add to our portfolio of producers that we have on our systems, Julien. And so part of what we pride ourselves is a willingness to be creative and work with each individual producer to meet their needs whether that's a result of the needs that they have from consolidation or for any other reason. So for us it's a portfolio approach. We work with each individual producer to try to figure out what their needs are and then best meet those needs and then that all comes together in thinking through what therefore that we need from an infrastructure perspective to support that outlook of growth that portfolio of producer customers will provide for us. So I think it's really much each producer is different. We work very well with each of the producer customers that we have, are always trying to figure out how to best position our producer customers for success as well as Targa. And that's really, I think, put us in a really good position to both continue to service existing customers and add contracts with existing customers and then go out and win new business as well. Operator: Our next question comes from Gabriel Moreen with Mizuho. Gabriel Moreen: I had a quick question on LPG exports with all the volume you were able to squeeze out during the quarter. And I think some of the co-loading you mentioned with butane allowing you additional capacity. Does that mean that excess capacity becomes underwritable under long-term contracts? And then maybe you can speak a little bit to some of the new contracts you're signing, enter pricing, just directionally speaking. Thank you. Benjamin Branstetter: Gabriel, this is Ben. Yes, you hit on it. We had a great second quarter on the export side. I'd like to say thanks to our internal team who really worked hand-in-hand with our customers to utilize every minute the dock space that we could and get product out to the world. You also hit on part of the record was us being able to load more butane given the global demand for butane. So that did help us move some additional volume across the dock in the second quarter. As we look forward, we came into the second quarter highly contracted. We remain highly contracted. We're contracted through LEP 4 start-up and for years thereafter. And part of that has been the current environment that's been very strong. We came into this year with a lot of really good discussions underway. Those have only improved with the conflict. We're seeing people that weren't necessarily targeting U.S. supply now targeting U.S. supply. And so we have been able to underwrite some of this current environment into our long-term outlook for our exports. Matt Meloy: Yes. And just to add on to that, too, with the increased demand for butane across our dock, we are being -- we are working in more of our longer-term contracts, more butane loadings contracted as opposed to having that open capacity. So it's been nice on that front as well. Operator: Our next question comes from Manav Gupta with UBS. Manav Gupta: Congrats on a great quarter. I just wanted to understand, can you help us with the post-Speedway material inflection in free cash flow. So how should we think about those incremental -- usage of those incremental free cash flows once Speedway does come online? Jennifer Kneale: Manav, this is Jen. I think that for us, it's going to continue to be really the approach that we've taken over the last several years, which is we'll continue to invest in the business. We'll materially increase our common dividends per share. We'll opportunistically repurchase stock, and we'll have a really strong to strengthening balance sheet. I think we're really excited about that inflection when you think about Speedway and our LPG export facility coming online in the third quarter of 2027, which will finally sort of put us in a position to offer our shareholders and prospective shareholders a value proposition that has a really attractive growing EBITDA business and sort of underlying fundamental operational position, combined with also an increasing free cash flow position, too. So I think that's a spot that we're really excited about getting to. But it's really a function of our continued investment in our business has created opportunities for us to grow our EBITDA to the point where we will be able to both invest in our business and have free cash flow. And that inflection is really what is going to occur when we get Speedway and our LPG export facility online. Manav Gupta: Perfect. My quick follow-up here is a little bit. On the last earnings call, Exxon talked about 40 different technologies that they're deploying in Permian, and they're basically saying those are stackable. And what they say is it will materially improve recovery within the Permian. And Chevron through its advanced chemicals is saying they are seeing material decline in terms of rates when they have deployed these chemicals. So I'm trying to understand, besides the price and other things, do you see technology driving significantly higher Permian volumes? Because once Exxon and Chevron catch on to it, others would also. So trying to understand, are you seeing anything out there in a technological perspective, which could drive higher Permian recovery, which would benefit you guys? Jennifer Kneale: Manav, I think that the producers are the best sources of information around the technologies that they're using and the results that they are driving through those technological improvements. I think we certainly have a view that as we've seen over the last couple of decades, technology will continue to drive improving results and efficiencies for our producer customers, and we'll be a big beneficiary of that. I think there's a lot of talk about helpful technologies now and expected into the future, and that will provide an incremental tailwind for us. So I think there's a lot of reasons that we feel very convicted about our opportunities to grow our volumes as we look out over the next short, medium and long term. Technology is probably a smaller part of that, but it will certainly be a nice to have as our producers continue to make technological improvements. Operator: Our next question comes from Burke Sansiviero with Wolfe Research. Burke Sansiviero: Just one quick one for me today. So G&P volumes were up 7% quarter-over-quarter and then gross margins were up 4%. So per unit margins went down. Any color on what pushed that per unit margin lower? And where should we see it trend from here? Matt Meloy: Yes, I can start. I mean we have done a really good job at moving our G&P contracts to fee-based contracts. That said, we still have some part of our G&P contracts that are commodity sensitive. And so that was a slight headwind. And then there are gains, fuel gains, fixed recovery gains, some other gains, which can affect results as well. But overall, a really strong quarter for our G&P, but I'd say it's largely commodity price, which was a slight offset to our G&P business in the quarter. Operator: Our next question comes from Jason Gabelman with TD Cowen. Jason Gabelman: I was hoping you could elaborate on a couple of points that have already been touched on. First, on the processing plant growth, it seems like the lead time from sanctioning to starting up is somewhere between 20 to 24 months. Is that still what you're seeing? And how are you managing some of the pressure points in the supply chain? Patrick McDonie: This is Pat. Yes, lead times definitely have gotten extended. And a lot of it is around the electrical infrastructure for plant. It's some of the vessels that are needed for the plant build. But frankly, we've adapted to that. We have good line of sight on our volume growth. I'd say it's more like 18 to 24 months is kind of the time frame that we look at. Construction part of that is really 10 to 12 months, depending upon is it sweet sour, what the required AGI well, et cetera. But frankly, lead times on compression, lead times on certain components of plants certainly are extended, but it hasn't affected our ability to perform in any way. Jason Gabelman: Great. That's helpful. And then my follow-up is just I want to understand a bit more the kind of trade-off between the lower marketing margins and then the improvement on Waha prices as it feeds through your fee floors. And I know you've been hesitant to kind of provide any guidance on what commodity price levels result in an increase of fee floors. But just as we sit here where prices are right now, would you expect the net impact from lower marketing margins in 3Q to be offset by an uplift in fee floors? Or is that a net tailwind or headwind based on where commodity prices sit right now versus 2Q? Jennifer Kneale: Jason, I'd say that, that will be a headwind for us third quarter versus second quarter in terms of just the strength of marketing benefits that we had in the second quarter. It wasn't just on the natural gas side with Waha, as Ben talked about. We also had very strong LPG export marketing benefits in the second quarter, which helped us too. So as we think about the third quarter, I think the biggest beneficiary of higher Waha prices will be our producers, which ultimately puts us in the best possible position. We like when our producers are incentivized to continue to be active, and I think with higher crude prices along with higher gas prices, there's a really supportive macro backdrop for our producer customers. But for us, I think we will continue to likely be below fee floor levels, sort of in the aggregate across the portfolio in the third quarter. We do have an expectation that gas prices will continue to potentially increase with the demand pull that we are seeing for volumes out of the Permian. And that'll be a tailwind over time for us. Operator: And our final question comes from Sunil Sibal with Seaport Global. Sunil Sibal: So first, a clarification. I think you suggested that you're still seeing some shut-ins in volumes in Permian. So I just wanted to clarify, is that primarily price related? Or are there any other issues which might be causing that? Jennifer Kneale: Sunil, I'd say that we generally have shut-ins across our assets when producers are shutting in volumes for frac protection and things like that. So I'd say that where we are right now in early August, the vast, vast majority of what I'd call price-related shut-ins are back on our system. We've got a little bit that's still coming back on that will provide a little bit more of a tailwind for us here in the third quarter. But I'd say the vast majority are back online now. Sunil Sibal: Okay. And then on the gas egress side, I think you touched upon a couple of projects in which you are participant kicking in late in '26 and '27. So I was curious, when you think about the base earnings, which you talked about from your gas marketing business, should we expect that base earnings also to move up as those projects come online? Or is that all capacity that will essentially help you move on the G&P side of things and is all talked about there -- taken care of there, I mean? Jennifer Kneale: We will benefit in terms of our equity earnings as a result of the 17.5% interest that we have in those projects, benefiting from higher equity earnings when those projects come online. In terms of the gas marketing business, that's really where the margin that's reported there is related to our ability to utilize our vast network of infrastructure in place to move volumes to different markets on behalf of our producers and Targa. So a little bit apples to oranges. So I think in terms of the projects coming online that I talked about with Blackcomb and Traverse, there, we've got a 17.5% equity interest and certainly will be a beneficiary when those projects are online and have ramped fully. And then on the gas marketing side, ultimately, the forward performance will depend on what we see as opportunities in the market. And I think we've had a really strong last several years related to gas marketing. I think we've hopefully demonstrated that we've done a good job of managing the risks across our enterprise such that if Waha gas prices are low, our infrastructure allows us to potentially be a beneficiary of that type of environment. We have an expectation that gas may get tight again in the future. So we would have those assets in place to be a beneficiary there. Otherwise, we're always trying to figure out how to move gas to higher-priced markets and utilize our assets to do so. And our gas marketing team does a really good job of that quarter in and quarter out. I think what we are just trying to highlight is that the last several quarters and second quarter in particular, we would -- there was material outperformance as a result of the dynamics that we were seeing in the market. Sunil Sibal: Yes. If I can ask a clarification. It seems like one of your customers recently announced a big behind-the-meter power generation project in Permian to support the data center demand. Is that something that you're seeing more widespread in your operations? And how does that impact your strategy on the gas marketing side? Matt Meloy: Yes, sure. No, there's multiple projects out there to support data centers and other needs for gas for power generation. And so we're actually in our gas marketing team having conversations about potentially being a supply for some projects in and around the Permian. We continue to have discussions. And I'd say that is somewhat of an opportunity for us. We think multiple projects like the one you referenced and others are likely to get done and be some additional demand for gas in the region. Operator: This concludes the question-and-answer session. I would now like to turn it back to Tristan Richardson for closing remarks. Tristan Richardson: Great. Thanks, everyone, for joining the call this morning, and we appreciate your interest in Targa Resources. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Targa Resources, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Targa Resources wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Targa Resources (TRGP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Targa Resources, Inc.? Here are five stocks we like better. Record quarterly performance: Targa reported second-quarter adjusted EBITDA of $1.603 billion, up 38% year over year and 14% sequentially, driven by record Permian volumes, marketing gains and downstream activity. Guidance raised within prior range: The company expects full-year adjusted EBITDA toward the upper end of its $5.7 billion–$5.9 billion forecast, supported by continued Permian growth as previously shut-in volumes return to its systems. Expansion and shareholder returns: Targa expects about $4.5 billion in 2026 growth capital spending, with multiple processing and export projects advancing, while it raised its dividend 25% year over year and repurchased approximately $80 million of stock. 3 S&P 500 Stocks With Sky High Risk-Adjusted Returns Targa Resources (NYSE:TRGP) reported record second-quarter operating volumes and adjusted EBITDA, supported by growth in the Permian Basin, higher marketing optimization opportunities and record activity across its downstream operations. Chief Executive Officer Matt Meloy said adjusted EBITDA rose 38% from a year earlier, while Permian volumes increased by more than 900 million cubic feet per day from the prior-year period and 450 million cubic feet per day from the first quarter. The company said its results were achieved despite first-quarter weather disruptions, natural-gas takeaway constraints, negative Permian gas pricing and broader market volatility. → No Hangover: Revisiting Microsoft One Week After Earnings The Top 5 Performing S&P 500 Stocks YTD in 2024 For the full year, Targa now expects adjusted EBITDA to be toward the upper end of its prior $5.7 billion to $5.9 billion guidance range. Meloy said that would suggest adjusted EBITDA growth of close to $1 billion over 2025, alongside dividend growth and share repurchases. President Jen Kneale said second-quarter Permian volumes reached a record 7.2 billion cubic feet per day, up approximately 7% sequentially and 14% from a year earlier. During the quarter, Targa had roughly 200 million to 400 million cubic feet per day of gas shut in behind its Permian systems on a given day because of weak Waha pricing. → MarketBeat Week in Review – 08/03 - 08/07 Oil & Gas Are Moving In August, Here Are The 3 Industry Favorites However, the company said the quarter-over-quarter volume increase despite those shut-ins demonstrated continued producer activity. With the Hugh Brinson Phase I project and GCX expansion now operating, most price-related producer shut-ins returned to Targa’s systems in July, according to Kneale. Kneale said July delivered another strong month of volume growth and that activity is running somewhat ahead of the company’s expectations at the start of the year. The company expects continued growth during the second half of 2026 and said the momentum supports its outlook for 2027 and beyond. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Management also said a stronger macro backdrop, including higher crude oil prices and improved natural-gas egress from the Permian, is supporting producer activity. The company noted that a small amount of price-related shut-in volume remained to return in early August, while routine shut-ins can also occur for operational reasons such as frac protection. Chief Financial Officer Will Byers said second-quarter adjusted EBITDA was $1.603 billion, up 14% from the first quarter. The gain reflected higher marketing optimization opportunities and record volumes in Permian gathering and processing, NGL transportation, fractionation and LPG exports. Targa’s marketing businesses exceeded the company’s expectations by about $250 million in the first half, with much of the outperformance occurring during the second quarter. Kneale said constrained Permian gas egress created opportunities for the marketing business, while stronger Waha prices and narrower basis spreads have since reduced some of those opportunities. Meloy said the company is taking a conservative view of marketing margins for the second half because it does not assume material optimization gains in its guidance. While underlying volumes remain strong, management expects lower marketing opportunities to moderate results compared with the second quarter. Downstream operations also set records during the quarter. Targa reported NGL transportation volumes of 1.1 million barrels per day, fractionation volumes of 1.2 million barrels per day and LPG export loadings averaging 14.8 million barrels per month. Management said demand for U.S. hydrocarbons, including butane, helped the company maximize dock utilization and export volumes. Ben Branstetter, president of Logistics and Transportation, said Targa remains highly contracted through the startup of its LPG Export Expansion, or LEP 4, and for years afterward. The company said some demand created by the current export environment has been incorporated into longer-term contracts. Targa said its East Driver gas-processing plant in the Permian Midland began service late in the second quarter ahead of schedule. Five additional processing plants in the Permian Delaware — Copperhead I and II, Yeti I and II, and Roadrunner III — remain on schedule to begin operations as previously announced. The company is evaluating the timing of its next Midland processing plant and expects a continued cadence of multiple plant additions annually, depending on basin growth, commercial contracts and new customer wins. Pat McDonie, president of Gathering and Processing, said extended equipment lead times have not affected Targa’s ability to execute projects, with the company generally planning around an 18- to 24-month timeline from development to startup. On the downstream side, Targa’s Train 11 fractionator entered service early in the second quarter and was quickly highly utilized. Trains 12 and 13 remain on track. The Delaware Express Pipeline also entered service during the quarter, adding NGL transportation capacity in the Delaware Basin. The Speedway NGL pipeline expansion, connecting Targa’s Permian operations to Mont Belvieu, remains scheduled for the third quarter of 2027. Initial capacity is expected to be 500,000 barrels per day, with potential expansion to 1 million barrels per day through additional pumping capacity. Targa’s LPG export expansion, expected to raise capacity to roughly 19 million barrels per month, is also scheduled for the third quarter of 2027. Byers said Targa continues to expect approximately $4.5 billion of net growth capital spending and $250 million of net maintenance capital spending in 2026. The company ended the second quarter with $3.2 billion of available liquidity and a pro forma consolidated leverage ratio of about 3.4 times, within its long-term target range of 3 times to 4 times. Targa declared a second-quarter common dividend of $1.25 per share, a 25% increase from the year-earlier dividend. It also repurchased about $80 million of common stock during the quarter at an average price of $259.93 per share. Targa Resources Corporation (NYSE: TRGP) is a U.S.-focused midstream energy company that provides gathering, processing, transportation, storage and marketing services for natural gas, natural gas liquids (NGLs), and condensate. Its operations span the midstream value chain, including gas gathering systems that collect production from wells, processing plants that separate and recover NGLs and other hydrocarbons, fractionation and purification facilities that prepare NGLs for market, and pipeline and terminal assets that move and store products for producers, refiners and other customers. The company operates a network of pipelines, processing plants, fractionators and storage facilities that serve producers and consumers across major U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Targa Resources Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record Permian volumes of 7.2 billion cubic feet per day drove outperformance, effectively adding the equivalent of two processing plants' worth of gas in a single quarter. Management attributed the 38% year-over-year adjusted EBITDA increase to the strength of an integrated 'wellhead-to-water' system, which captured record downstream volumes in NGL transport, fractionation, and LPG exports. The constrained natural gas egress environment in the Permian created approximately $250 million in unexpected marketing optimization opportunities during the first half of 2026. Volume growth of 450 million cubic feet per day quarter-over-quarter was achieved despite significant producer shut-ins, which management cited as evidence of robust underlying activity on Targa's dedicated acreage. Strategic positioning in the Permian Midland and Delaware basins is being reinforced by a rapid plant construction cadence to meet accelerated demand from existing and new producer contracts. The company is successfully transitioning its G&P portfolio toward fee-based contracts, though it remains sensitive to commodity price fluctuations when below established fee floors. Full-year 2026 adjusted EBITDA is now expected at the top end of the $5.7 billion to $5.9 billion range, assuming continued volume momentum but more conservative marketing gains. Management anticipates a significant free cash flow inflection in late 2027 as major capital projects, including the Speedway NGL pipeline and LPG export expansions, come online. The growth framework assumes a continued cadence of adding approximately three processing plants per year, though this may accelerate based on recent commercial success and producer consolidation trends. Future capital allocation will prioritize maintaining a strong investment-grade balance sheet, investing in high-returning integrated projects, and materially increasing common dividends per share. and opportunistic share repurchases, supported by a long-term leverage target of 3x to 4x. Long-term demand catalysts include expanding LNG export capacity and growing power generation needs, specifically from emerging data center developments in the Permian region. Supply chain lead times for processing plants have extended to 18-24 months, primarily due to delays in electrical infrastructure and specialized vessel fabrication. While most price-driven producer shut-ins returned in July following new takeaway capacity, management noted that some volumes remain offline pending further egress improvements. The marketing business outperformance of $250 million in H1 2026 is viewed as episodic and is not forecasted to repeat at the same magnitude in the second half of the year. Ongoing conflict in the Middle East has structurally increased global demand for U.S. hydrocarbons, directly contributing to record LPG export loadings of 14.8 million barrels per month. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that the vast majority of price-related shut-ins returned to the system in July as Waha prices improved. Activity is tracking ahead of February expectations, with July showing continued strong growth despite previous egress constraints. Targa highlighted significant operating leverage in the Speedway pipeline, which can be expanded from 500,000 to 1 million barrels per day via low-cost pump additions. The company is currently evaluating the timing for its next fractionator to stay ahead of the incremental NGL supply from newly announced plants. Management stated they are evaluating ethane exports but do not feel compelled to build, as current domestic connectivity and peer export relationships are sufficient. Any investment in ethane exports would require returns commensurate with the rest of Targa's high-returning integrated portfolio. Targa's gas marketing team is actively in discussions to serve as a primary fuel supplier for behind-the-meter power generation projects. Management views the emergence of data centers in the Permian as a material new demand source for regional natural gas.

Targa Resources, Inc. (TRGP) came out with quarterly earnings of $3.54 per share, beating the Zacks Consensus Estimate of $2.83 per share. This compares to earnings of $2.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +25.09%. A quarter ago, it was expected that this company would post earnings of $2.55 per share when it actually produced earnings of $2.21, delivering a surprise of -13.33%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Targa Resources, which belongs to the Zacks Oil and Gas - Refining and Marketing - Master Limited Partnerships industry, posted revenues of $4.44 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 10.35%. This compares to year-ago revenues of $4.26 billion. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Targa Resources shares have added about 41% since the beginning of the year versus the S&P 500's gain of 12.8%. While Targa Resources has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Targa Resources was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.79 on $4.93 billion in revenues for the coming quarter and $10.83 on $19.4 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Refining and Marketing - Master Limited Partnerships is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Borr Drilling (BORR), another stock in the broader Zacks Oils-Energy sector, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This oilfield services company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of -178.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Borr Drilling's revenues are expected to be $249 million, down 7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Targa Resources, Inc. (TRGP) : Free Stock Analysis Report Borr Drilling Limited (BORR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

HOUSTON, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Targa Resources Corp. (NYSE: TRGP) (“TRGP,” the “Company” or “Targa”) today reported second quarter 2026 results. Second quarter 2026 net income attributable to Targa Resources Corp. was $765 million compared to $629 million for the second quarter of 2025. The Company reported adjusted earnings before interest, income taxes, depreciation and amortization, and other non-cash items (“adjusted EBITDA”)(1) of $1,603 million for the second quarter of 2026 compared to $1,163 million for the second quarter of 2025. Highlights Record adjusted EBITDA for the second quarter of $1.6 billion, an increase of 38% year-over-year and a 14% increase compared to the first quarter Record Permian inlet, NGL transportation, fractionation, and LPG export volumes during the second quarter Commenced operations of our Train 11 fractionator and Delaware Express NGL Pipeline expansion during the second quarter Commenced operations of our new East Driver processing plant in Permian Midland late in the second quarter, ahead of schedule Estimate full year 2026 adjusted EBITDA to be towards the top end of $5.7 billion to $5.9 billion range Continue to estimate 2026 net growth capital expenditures of approximately $4.5 billion On July 16, 2026, the Company declared a quarterly cash dividend of $1.25 per common share, or $5.00 per common share on an annualized basis, for the second quarter of 2026. This dividend represents a 25 percent increase over the common dividend declared with respect to the second quarter of 2025. Total cash dividends of approximately $268 million will be paid on August 14, 2026 on all outstanding shares of common stock to holders of record as of the close of business on July 31, 2026. During the second quarter of 2026, Targa repurchased 308,102 shares of its common stock at a weighted average per share price of $259.93 for a total net cost of $80 million. As of June 30, 2026, there was $1,239 million remaining under the Company’s share repurchase programs. Second Quarter 2026 - Sequential Quarter over Quarter Commentary Targa reported record second quarter adjusted EBITDA of $1,603 million, representing a 14 percent increase compared to the first quarter of 2026. The sequential increase was driven by higher marketing margin in our Logistics and Transportation (“L&T”) segment, record Permian volumes in our Gathering and Processing (“G&P”) segment, and record NGL transportation, fractionation, and LPG export volumes in our L&T segment. In our G&P segment, higher sequential adjusted operating margin was driven by record Permian natural gas inlet volumes, partially offset by lower natural gas prices. Permian inlet volumes increased more than 450 million cubic feet per day (“MMcf/d”) despite temporary curtailments by certain producer customers in response to negative Waha natural gas prices in the second quarter. In our L&T segment, higher sequential adjusted operating margin was driven by higher marketing margin, and record NGL pipeline transportation, fractionation, and LPG export volumes. Marketing margin increased due to greater optimization opportunities. NGL pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from our Permian G&P systems and the addition of Train 11 early in the second quarter of 2026. LPG export margin increased due to higher volumes and fees. Capitalization, Financing and Liquidity The Company’s total consolidated debt as of June 30, 2026 was $19,578 million, net of $128 million of debt issuance costs and $39 million of unamortized discount, with $17,900 million of outstanding senior unsecured notes, $600 million outstanding under our Commercial Paper Program, $451 million outstanding under our accounts receivable securitization facility (the “Securitization Facility”), and $794 million of finance lease liabilities. Total consolidated liquidity as of June 30, 2026 was approximately $3.2 billion, including $2.9 billion available under the TRGP Revolver, $149 million under the Securitization Facility and $132 million of cash. In July 2026, Targa amended the Securitization Facility to, among other things, extend the facility termination date to July 30, 2027 and increase borrowing capacity to up to $800 million. Growth Projects Update In our G&P segment, we commenced operations of our new East Driver plant in the Permian Midland late in the second quarter, ahead of schedule. Construction remains underway on our Copperhead, Yeti, Yeti II, Roadrunner III, and Copperhead II plants in Permian Delaware, and our G&P projects remain on track. In our L&T segment, we commenced operations of our Train 11 fractionator in Mont Belvieu, TX and our Delaware Express NGL Pipeline expansion in the second quarter. Construction continues on our Train 12 and Train 13 fractionators in Mont Belvieu, our Speedway NGL Pipeline, our GPMT LPG Export Expansion, and our Bull Run, Buffalo Run and Forza intra-basin residue gas pipeline projects. Our L&T projects remain on track. 2026 Outlook Given the strength of Targa’s performance through the first two quarters of the year, Targa now estimates full year 2026 adjusted EBITDA to be towards the top end of our $5.7 billion to $5.9 billion range. The higher outlook for full year 2026 is driven by the realization of strong marketing and optimization margin particularly in the first and second quarters of the year, and continued strength of volume growth of our integrated assets across the full year. We continue to estimate net growth capital expenditures to be approximately $4.5 billion, and our estimate for 2026 net maintenance capital expenditures remains unchanged at approximately $250 million. 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 August 6, 2026 to discuss second 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/o7q55fuf/lan/en/. A webcast replay will be available at the link above approximately two hours after the conclusion of the event. Targa Resources Corp. – Consolidated Financial Results of Operations Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025 Commodity sales were relatively flat due to lower natural gas prices ($784.8 million) and the unfavorable impact of hedges ($291.6 million), partially offset by higher NGL and condensate prices ($597.8 million) and higher NGL, natural gas and condensate volumes ($435.2 million). The increase in fees from midstream services was primarily due to higher gas gathering and processing fees, higher transportation and fractionation fees, and higher export volumes. The decrease in product purchases and fuel reflected lower natural gas prices, partially offset by higher NGL prices, and higher NGL and natural gas volumes. The increase in operating expenses was primarily due to higher labor and maintenance costs in part due to system expansions, and the acquisition of certain assets in the Permian Basin, partially offset by lower compressor rental costs. See “—Review of Segment Performance—” for additional information on a segment basis. The increase in depreciation and amortization expense was primarily due to the acquisition of certain assets in the Permian Basin, higher amortization of right-of-use assets for finance leases, and the impact of system expansions on the Company’s asset base. The increase in general and administrative expense was primarily due to higher compensation and benefits. The increase in other operating (income) expense was primarily due to lower asset abandonment costs. The increase in income tax (expense) benefit was primarily due to the increase in pre-tax book income. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 The decrease in commodity sales reflected lower natural gas and NGL prices ($1,309.2 million) and the unfavorable impact of hedges ($244.1 million), partially offset by higher NGL, natural gas and condensate volumes ($899.6 million) and higher condensate prices ($70.5 million). The increase in fees from midstream services was primarily due to higher gas gathering and processing fees, higher transportation and fractionation fees, and higher export volumes. The decrease in product purchases and fuel reflected lower natural gas and NGL prices, partially offset by higher NGL and natural gas volumes. The increase in operating expenses was primarily due to higher labor and maintenance costs, and taxes in part due to system expansions, partially offset by lower compressor rental costs. See “—Review of Segment Performance—” for additional information on a segment basis. The increase in depreciation and amortization expense was primarily due to the acquisition of certain assets in the Permian Basin, higher amortization of right-of-use assets for finance leases, and the impact of system expansions on the Company’s asset base. The increase in general and administrative expense was primarily due to higher compensation and benefits. The increase in other operating (income) expense was primarily due to recognition of Section 45Q tax credits earned through the Company’s carbon capture and sequestration activities, and lower asset abandonment costs. The increase in interest expense, net, was primarily due to higher borrowings, partially offset by an increase in capitalized interest. The decrease in other, net, was primarily due to the premium paid on the redemption of all of the Partnership’s 6.875% Notes due 2029. The increase in income tax (expense) benefit was primarily due to the increase in pre-tax book income. The premium on repurchase of noncontrolling interests, net of tax was due to the Badlands Transaction in the first quarter of 2025. Review of Segment Performance The following discussion of segment performance includes inter-segment activities. The Company views segment operating margin and adjusted operating margin as important performance measures of the core profitability of its operations. These measures are key components of internal financial reporting and are reviewed for consistency and trend analysis. For a discussion of adjusted operating margin, see “Non-GAAP Financial Measures ― Adjusted Operating Margin.” Segment operating financial results and operating statistics include the effects of intersegment transactions. These intersegment transactions have been eliminated from the consolidated presentation. The Company operates in two primary segments: (i) Gathering and Processing; and (ii) Logistics and Transportation. Gathering and Processing Segment The Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast. The following table provides summary data regarding results of operations of this segment for the periods indicated: The following table presents the realized commodity hedge gain (loss) attributable to the Company’s equity volumes that are included in the adjusted operating margin of the Gathering and Processing segment: Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025 The increase in adjusted operating margin was primarily due to higher natural gas inlet volumes in the Permian which drove higher fee-based margin, partially offset by lower natural gas prices. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Pembrook II plant during the third quarter of 2025, the Bull Moose II plant during the fourth quarter of 2025, the Falcon II plant during the first quarter of 2026, the East Pembrook plant during the second quarter of 2026, continued strong producer activity and the acquisition of certain assets in the Permian Basin during the first quarter of 2026. The increase in operating expenses was primarily due to higher volumes resulting from multiple plant additions and the acquisition of certain assets in the Permian Basin during the first quarter of 2026. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 The increase in adjusted operating margin was primarily due to higher natural gas inlet volumes in the Permian which drove higher fee-based margin, partially offset by lower natural gas and NGL prices. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Pembrook II plant during the third quarter of 2025, the Bull Moose II plant during the fourth quarter of 2025, the Falcon II plant during the first quarter of 2026, the East Pembrook plant during the second quarter of 2026, continued strong producer activity and the acquisition of certain assets in the Permian Basin during the first quarter of 2026. The increase in operating expenses was primarily due to higher volumes resulting from multiple plant additions and the acquisition of certain assets in the Permian Basin during the first quarter of 2026. Logistics and Transportation Segment The Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling, and marketing of NGLs and NGL products, including services to LPG exporters and certain natural gas supply and marketing activities in support of the Company’s other businesses. The Logistics and Transportation segment also includes Targa’s NGL pipeline system, which connects the Company’s gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with the Company’s Downstream facilities in Mont Belvieu, Texas. The Company’s Downstream facilities are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana. The following table provides summary data regarding results of operations of this segment for the periods indicated: Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025 The increase in adjusted operating margin was due to higher marketing margin, higher pipeline transportation and fractionation margin and higher LPG export margin. Marketing margin increased due to greater optimization opportunities. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from our Permian Gathering and Processing systems and the addition of Train 11 early in the second quarter of 2026. LPG export margin increased due to higher volumes and fees. The increase in operating expenses was primarily due to higher compensation and benefits including amounts related to system expansions. Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 The increase in adjusted operating margin was due to higher marketing margin, higher pipeline transportation and fractionation margin and higher LPG export margin. Marketing margin increased due to greater optimization opportunities. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from our Permian Gathering and Processing systems and the addition of Train 11 early in the second quarter of 2026. LPG export margin increased due to higher volumes and fees. The increase in operating expenses was primarily due to higher compensation and benefits including amounts related to system expansions. Other Other contains the unrealized mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. The Company has entered into derivative instruments to hedge the commodity price associated with a portion of the Company’s future commodity purchases and sales and natural gas transportation basis risk within the Company’s Logistics and Transportation segment. About Targa Resources Corp. Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company’s assets connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuels and feedstocks. Targa is a FORTUNE 500 company and is included in the S&P 500. For more information, please visit the Company’s website at www.targaresources.com. Non-GAAP Financial Measures This press release includes the Company’s non-GAAP financial measures: adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment). The following tables provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The Company utilizes non-GAAP measures to analyze the Company’s performance. Adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment) are non-GAAP measures. The GAAP measures most directly comparable to these non-GAAP measures are income (loss) from operations, Net income (loss) attributable to Targa Resources Corp. and segment operating margin. These non-GAAP measures should not be considered as an alternative to GAAP measures and have important limitations as analytical tools. Investors should not consider these measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Additionally, because the Company’s non-GAAP measures exclude some, but not all, items that affect income and segment operating margin, and are defined differently by different companies within the Company’s industry, the Company’s definitions may not be comparable with similarly titled measures of other companies, thereby diminishing their utility. Management compensates for the limitations of the Company’s non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating these insights into the Company’s decision-making processes. Adjusted Operating Margin The Company defines adjusted operating margin for the Company’s segments as revenues less product purchases and fuel. It is impacted by volumes and commodity prices as well as by the Company’s contract mix and commodity hedging program. Gathering and Processing adjusted operating margin consists primarily of: service fees related to natural gas and crude oil gathering, treating and processing; and revenues from the sale of natural gas, condensate, crude oil and NGLs less producer settlements, fuel and transport and the Company’s equity volume hedge settlements. Logistics and Transportation adjusted operating margin consists primarily of: service fees (including the pass-through of energy costs included in certain fee rates); system product gains and losses; and NGL and natural gas sales, less NGL and natural gas purchases, fuel, third-party transportation costs and the net inventory change. The adjusted operating margin impacts of mark-to-market hedge unrealized changes in fair value are reported in Other. Adjusted operating margin for the Company’s segments provides useful information to investors because it is used as a supplemental financial measure by management and by external users of the Company’s financial statements, including investors and commercial banks, to assess: the financial performance of the Company’s assets without regard to financing methods, capital structure or historical cost basis; the Company’s operating performance and return on capital as compared to other companies in the midstream energy sector, without regard to financing or capital structure; and the viability of capital expenditure projects and acquisitions and the overall rates of return on alternative investment opportunities. Management reviews adjusted operating margin and operating margin for the Company’s segments monthly as a core internal management process. The Company believes that investors benefit from having access to the same financial measures that management uses in evaluating the Company’s operating results. The reconciliation of the Company’s adjusted operating margin to the most directly comparable GAAP measure is presented under “Review of Segment Performance.” Adjusted EBITDA The Company defines adjusted EBITDA as Net income (loss) attributable to Targa Resources Corp. before interest, income taxes, depreciation and amortization, and other items that the Company believes should be adjusted consistent with the Company’s core operating performance. The adjusting items are detailed in the adjusted EBITDA reconciliation table and its footnotes. Adjusted EBITDA is used as a supplemental financial measure by the Company and by external users of the Company’s financial statements such as investors, commercial banks and others to measure the ability of the Company’s assets to generate cash sufficient to pay interest costs, support the Company’s indebtedness and pay dividends to the Company’s investors. Adjusted Cash Flow from Operations and Adjusted Free Cash Flow The Company defines adjusted cash flow from operations as adjusted EBITDA less cash interest expense on debt obligations and cash tax (expense) benefit. The Company defines adjusted free cash flow as adjusted cash flow from operations less maintenance capital expenditures and growth capital expenditures, net of any reimbursements of project costs and contributions from noncontrolling interests, and including contributions to investments in unconsolidated affiliates. Adjusted cash flow from operations and adjusted free cash flow are performance measures used by the Company and by external users of the Company’s financial statements, such as investors, commercial banks and research analysts, to assess the Company’s ability to generate cash earnings (after servicing the Company’s debt and funding capital expenditures) to be used for corporate purposes, such as payment of dividends, retirement of debt or redemption of other financing arrangements. The following table reconciles the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the periods indicated: The following table presents a reconciliation of estimated net income of the Company to estimated adjusted EBITDA for 2026: Regulation FD Disclosures The Company uses any of the following to comply with its disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or the Company’s website. The Company routinely posts important information on its website at www.targaresources.com, including information that may be deemed to be material. The Company encourages investors and others interested in the Company to monitor these distribution channels for material disclosures. Forward-Looking Statements Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding the Company’s projected financial performance, capital spending, payment of future dividends and stock repurchase activity. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, actions taken by other countries with significant hydrocarbon production, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of the Company’s completion of capital projects and business development efforts, the expected growth of volumes on the Company’s systems, the impact of significant public health crises, commodity price volatility due to ongoing or new global conflicts, changes in laws and regulations, particularly with regard to taxes, tariffs and international trade, and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Targa Investor [email protected](713) 584-1133

For the quarter ended June 2026, Targa Resources, Inc. (TRGP) reported revenue of $4.44 billion, up 4.2% over the same period last year. EPS came in at $3.54, compared to $2.87 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $4.95 billion, representing a surprise of -10.35%. The company delivered an EPS surprise of +25.09%, with the consensus EPS estimate being $2.83. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Targa Resources performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Gathering and Processing - NGL sales per day: 680.8 millions of barrels of oil per day versus 665.02 millions of barrels of oil per day estimated by two analysts on average. Gathering and Processing - Gross NGL production - Coastal: 38.7 millions of barrels of oil versus 38.36 millions of barrels of oil estimated by two analysts on average. Gathering and Processing - Condensate sales per day: 22.4 millions of barrels of oil per day versus the two-analyst average estimate of 21.59 millions of barrels of oil per day. Logistics and Marketing - NGL sales: 1310.9 millions of barrels of oil compared to the 1222.45 millions of barrels of oil average estimate based on two analysts. Logistics and Marketing - Export volumes: 487.1 millions of barrels of oil compared to the 435.14 millions of barrels of oil average estimate based on two analysts. Logistics and Marketing - Fractionation volumes: 1206.1 millions of barrels of oil compared to the 1166.05 millions of barrels of oil average estimate based on two analysts. Gathering and Processing - Total Plant natural gas inlet volumes: 8908.9 millions of cubic feet versus 8639.05 millions of cubic feet estimated by two analysts on average. Gathering and Processing - Total Gross NGL production: 1180.8 millions of barrels of oil versus the two-analyst average estimate of 1131.45 millions of barrels of oil. Gathering and Processing - Average realized prices - Condensate: $90.57 versus $85.35 estimated by two analysts on average. Gathering and Processing - Average realized prices - Natural gas: $-2.48 versus $1.46 estimated by two analysts on average. Gathering and Processing - Average realized prices - NGL: $0.48 compared to the $0.51 average estimate based on two analysts. Gathering and Processing - Plant natural gas inlet volumes - Badlands: 133.8 millions of cubic feet versus 129.34 millions of cubic feet estimated by two analysts on average. View all Key Company Metrics for Targa Resources here>>> Shares of Targa Resources have returned -6.4% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Targa Resources, Inc. (TRGP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ONEOK Inc. OKE reported second-quarter 2026 operating earnings per share (EPS) of $1.53, which beat the Zacks Consensus Estimate of $1.39 by 10.07%. The bottom line increased 14.2% from the year-ago quarter’s figure of $1.34.Results benefited from record natural gas liquids raw feed throughput, higher natural gas processing and refined products volumes, and increased optimization and marketing activity. Operating revenues for the quarter totaled $12.05 billion, which beat the Zacks Consensus Estimate of $10.66 billion by 13.03%. The top line improved 52.8% from $7.89 billion in the prior-year quarter. ONEOK, Inc. price-consensus-eps-surprise-chart | ONEOK, Inc. Quote Adjusted EBITDA was $2.12 billion, up 7.1% year over year.Operating income totaled $1.59 billion, up 11.3% from the prior-year level of $1.43 billion.Operations and maintenance expenses increased to $715 million from $618 million, reflecting larger operating footprint and project-related spending.ONEOK incurred interest expenses of $434 million, down 0.91% from $438 million recorded in the year-ago period. Natural Gas Liquids adjusted EBITDA slipped 2.1% year over year to $659 million. Higher operating costs and lower transportation and storage volumes more than offset gains from optimization and marketing and exchange services.NGL raw feed throughput rose 6.7% year over year to 1,630 thousand barrels per day.Raw feed throughput increased across the system. Gulf Coast/Permian volumes rose 15.2% year over year to 605 MBbl/d. Rocky Mountain volumes increased to 478 MBbl/d, while Mid-Continent throughput reached 547 MBbl/d.The Medford fractionator expansion remains a key capacity project. Phase I, adding 100,000 barrels per day, is expected to be completed in the fourth quarter of 2026. Phase II, providing another 110,000 barrels per day, is scheduled for completion in the first quarter of 2027. Refined Products and Crude adjusted EBITDA increased 12.6% year over year to $627 million. The improvement reflected higher refined products volumes and rates, along with stronger crude marketing earnings. Higher employee-related costs, property taxes and outside-service expenses partly offset these gains.Refined products volumes shipped rose 8.4% to 1,629 MBbl/d. Gasoline volumes reached 943 MBbl/d, distillates totaled 577 MBbl/d and aviation and other volumes were 109 MBbl/d. The average refined products tariff rate increased to 5.5 cents per gallon from 5.3 cents.Crude oil volumes declined slightly year over year to 1,766 MBbl/d. ONEOK mechanically completed its Greater Denver refined products pipeline expansion in early August, increasing capacity by 35,000 barrels per day. Natural Gas Gathering and Processing adjusted EBITDA edged up 1.1% year over year to $546 million. Higher production volumes and improved realized condensate prices were partly offset by higher operating costs and weaker realized NGL pricing.Natural gas processed increased 2.4% to 5,707 million cubic feet per day. Volumes benefited from increased production across all operating regions.Natural Gas Pipelines adjusted EBITDA jumped 58.0% to $297 million. Favorable price differentials between the Waha Hub and Katy, TX, markets, higher firm transportation revenues and stronger contributions from Northern Border Pipeline and Matterhorn Express Pipeline supported the increase.Transportation capacity contracted rose to 7,735 thousand dekatherms per day from 7,206 thousand a year ago. Contracted capacity represented 92% of available capacity compared with 90% in the prior-year quarter. Cash and cash equivalents amounted to $161 million as of June 30, 2026, compared with $78 million at the end of 2025.As of June 30, 2026, short-term borrowings increased to $1.50 billion from $820 million as of Dec. 31, 2025.As of June 30, 2026, long-term debt (excluding current maturities) totaled $30.77 billion compared with $30.76 billion as of Dec. 31, 2025.Cash provided by operating activities totaled $2.99 billion for the first six months of 2026, up from $2.43 billion a year earlier. Capital expenditures totaled $1.48 billion, while dividends paid amounted to $1.35 billion. ONEOK increased its 2026 net income guidance to $3.41-$3.79 billion, resulting in earnings per common share range of $5.38-$5.99. The Zacks Consensus Estimate for 2026 earnings per share is pegged at $5.56.  Adjusted EBITDA is projected to be in the range of $8.20-$8.50 billion in 2026.The company kept its 2026 capital expenditure guidance unchanged at $2.70-$3.20 billion. Management cited continued segment strength, strategic opportunities across the system and a constructive market environment. ONEOK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Delek Logistics Partners, LP DKL is scheduled to release second-quarter results on Aug. 5, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.12 per share, which indicates a year-over-year increase of 34.94%.DKL’s long-term earnings growth rate is 22.24%. The Zacks Consensus Estimate for second-quarter sales is pegged at $253.94 million, which calls for a year-over-year rise of 3.08%. Targa Resources TRGP is slated to report second-quarter results on Aug. 6, before market open. The Zacks Consensus Estimate for earnings is pegged at $2.71 per share, which indicates a year-over-year decrease of 5.57%.TRGP’s long-term earnings growth rate is 18.18%. The Zacks Consensus Estimate for second-quarter sales is pinned at $4.95 billion, which suggests a year-over-year increase of 16.26%. Plains All American Pipeline PAA is slated to report second-quarter results on Aug. 7, before market open. The Zacks Consensus Estimate for earnings is pegged at 40 cents per share, which indicates a year-over-year increase of 11.11%.PAA’s long-term earnings growth rate is 1.63%. The Zacks Consensus Estimate for second-quarter sales is pegged at $14.87 billion, which suggests a year-over-year increase of 39.74%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ONEOK, Inc. (OKE) : Free Stock Analysis Report Plains All American Pipeline, L.P. (PAA) : Free Stock Analysis Report Delek Logistics Partners, L.P. (DKL) : Free Stock Analysis Report Targa Resources, Inc. (TRGP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research