Targa Resources

Targa Resources (Targa) gathers and processes natural gas and transports, fractionates, stores, sells and exports natural gas liquids (NGLs). It reports two segments. Gathering and Processing has plants and pipelines in the Permian Basin of West Texas and Southeast New Mexico and in other basins in Texas, Oklahoma, North Dakota and Louisiana. Logistics and Transportation has NGL pipelines, fractionators in Mont Belvieu, Texas, and LPG export facilities at Galena Park, Texas.

In Q3 2026, natural gas inlet volumes in the Permian were a record 7,537 million cubic feet per day, NGL pipeline transportation volumes 1,172 thousand barrels per day and fractionation volumes 1,262 thousand barrels per day. In 2025, adjusted EBITDA was a record $4,957 million. Its shares trade on the New York Stock Exchange. The head office is in Houston.

Targa trades close to the AI estimate because investors pay for its fast growth in the Permian Basin and its fast-growing dividend, but they also see its high spending and its exposure to commodity prices. Adjusted EBITDA rose 18% to $1,504 million in Q3 2026, and Targa expects at least $6.0 billion for 2026, after $4,957 million in 2025. Net growth capital expenditures are about $5.0 billion in 2026.

For the value to grow, three things must be true. Permian production must keep growing, so that the new plants for ExxonMobil and other customers fill. The new projects, such as the Speedway NGL Pipeline and Trains 13 and 14 in Mont Belvieu, must start on time and on budget.

Free cash flow must grow enough to pay the planned 2027 dividend of $6.00 per share without much more debt. The Q4 2026 report and the 2027 outlook, expected in February 2027, are the next test. A fall in Permian drilling or lower NGL prices can slow the growth.

AI estimate, checked by Kevin. How it is made

1. Nov 5, 2026Passed

   Q3 2026 results and the 2026 outlookHigher adjusted EBITDA and a kept or higher 2026 outlook pass; a lower outlook fails.Outcome: Adjusted EBITDA rose 18% to $1,504 million, and Targa raised its 2026 outlook to at least $6.0 billion.
2. Feb 5, 2027 · est.Pending

   Q4 2026 results and the 2027 outlook2026 adjusted EBITDA of $6.0 billion or more and a 2027 outlook for higher EBITDA pass; a lower outlook fails.
3. Q3 2027 · est.Pending

   Start of the Yeti and Yeti II plantsYeti in Q2 2027 and Yeti II in Q3 2027, as planned, pass; delays fail.

Every passed and failed checkpoint across all picks

• November 5, 2026Targa reported Q3 2026 results. Net income attributable to Targa rose to $658 million, or $3.04 per diluted share, from $478 million, and adjusted EBITDA rose 18% to $1,504 million. Permian inlet, NGL transportation and fractionation volumes were records. Targa now expects 2026 adjusted EBITDA of at least $6.0 billion, and it expects to recommend a 2027 annual dividend of $6.00 per share, 20% more than in 2026. It will build Train 14, a new 150 thousand barrels per day fractionator in Mont Belvieu, which is expected to start in Q1 2029. In August 2026, Targa signed 20-year, fee-based agreements with subsidiaries of ExxonMobil for gathering, processing and downstream services in the Permian Basin, and it announced three new processing plants in the Permian Delaware to serve them.
• August 20, 2026Targa appointed Brent B. Secrest, a former Chief Commercial Officer of Enterprise Products, as President of Logistics and Transportation from September 1, 2026.
• August 6, 2026Targa reported Q2 2026 results. Net income attributable to Targa was $765 million, and adjusted EBITDA rose 38% to a record $1,603 million. Train 11 and the Delaware Express NGL Pipeline expansion started operations.

Last earnings

November 5, 2026 (8-K on sec.gov)

Next earnings

Expected about February 5, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Sep 30, 2026Filed November 5, 2026 · trgp-20260930
• 8-KEarnings release and Investor disclosureFiled November 5, 2026 · Press release and exhibits
• 8-KChange of directors or officersFiled August 25, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Jun 30, 2026Filed August 6, 2026 · trgp-20260630
• 8-KEarnings release and Investor disclosureFiled August 6, 2026 · Press release and exhibits
• 8-KChange of directors or officersFiled July 17, 2026 · Read it on sec.gov
• 8-KNew material agreementFiled July 6, 2026 · Read it on sec.gov
• 8-KShareholder vote resultsFiled May 22, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Mar 31, 2026Filed May 7, 2026 · trgp-20260331
• 8-KEarnings release and Investor disclosureFiled May 7, 2026 · Press release and exhibits

Every filing on SEC EDGAR (CIK 1389170)

• Growth depends on oil and gas drilling in the Permian Basin. Lower oil prices can slow drilling and leave new plants and pipelines with less volume than planned.
• Part of the margin depends on commodity prices and spreads, mainly in Gathering and Processing and in marketing. In Q3 2026, lower marketing margin and lower LPG export margin reduced adjusted EBITDA by 6% from Q2 2026.
• Targa spends about $5.0 billion on growth projects in 2026. Delays or higher costs on the new plants, pipelines and fractionators can lower returns and raise debt.
• Other midstream companies compete for Permian volumes, NGL transportation and fractionation.
• LPG exports depend on foreign demand and trade policy. Tariffs or trade disputes can reduce export volumes and fees.

Targa funds itself with senior unsecured notes, commercial paper, a revolving credit facility and cash flow. At September 30, 2026, total consolidated debt was $19.8 billion, net of issuance costs and discount: $17.9 billion of senior unsecured notes, $860 million of commercial paper, $451 million under the accounts receivable securitization facility and $796 million of finance lease liabilities. Read more

Dividend yield

1.7% (last 12 months, at today’s price of $281.32)

Paid per share

$4.75 in the last 12 months (4 payments)

Current annual rate

$5.00 ($1.25 × 4 a year)

Payout ratio

44% of the last fiscal year’s earnings (the year that ended December 31, 2025)

Latest ex-dividend date

October 30, 2026, $1.25 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 25.4% a year. From 2015 to 2025, the dividend grew by about 1.0% a year.

Source: company filings and market data, read on November 11, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.