Targa Resources Inc

TD Cowen upgraded Targa Resources to Buy from Hold and raised its price target to $350 from $275, sending the oil and gas infrastructure company's shares up 3.3% in Friday's trading. Analyst Jason Gabelman cited expected Permian Basin wet gas growth and peer-leading EBITDA growth, saying Targa has grown its Permian gas processing volumes faster than underlying robust Permian gas growth, a trend he expects to continue on producer activity and expanding gas-to-oil ratios. He forecast 17 new processing plants through 2030 and two plants per year beyond 2030, underpinned by maintained market share and Targa's relationship with Permian-growth leader Exxon. Gabelman also sees Targa's free cash flow yield improving to greater than 10% in 2028 from 6% in 2026, versus peer FCF yield of 8.5% in 2030, supported by EBITDA growth from new processing plants and completion of the large Speedway NGL pipeline capital project, which he said could push the market toward a 2030 valuation methodology rather than 2027 EBITDA.

Citi analysts say the Permian Basin is entering a multi-year expansion phase for natural gas infrastructure that could ease takeaway constraints, supported by growing LNG exports and electricity demand from AI data centers. The bank expects the Permian to become the largest gas-producing basin in the U.S., with four recently announced projects reducing price differentials at the Waha Hub. Permian gas production rose from 17.2 billion cubic feet per day in 2021 to an estimated 27.6 bcf/d in 2025, outpacing pipeline development and causing pricing dislocations. Citi highlights Devon Energy, Diamondback Energy through Solitude, and Exxon Mobil's involvement with Targa Resources as examples of producers securing firm transportation capacity. Gas-focused exploration and production stocks have gained about 4.4% over the past month, and Citi's storage model points to a tighter market than forecasts, with inventory builds averaging 1.6 bcf/d below expectations.

Targa Resources and ExxonMobil have signed new 20-year, integrated fee-based midstream agreements, locking in acreage dedications in the Delaware and Midland basins through 2046 for natural gas gathering, processing, and downstream NGL transportation and fractionation. To support ExxonMobil's expanding volumes, Targa announced three new Permian Delaware processing plants—Wrangler, Ranger, and Ranger II—adding 825 million cubic feet per day of capacity by the first half of 2028, and is evaluating up to five additional plants, a new Mont Belvieu fractionation train, and the ~70-mile Bull Run II residue gas pipeline. In Q2 2026, ExxonMobil reported $14.5 billion in net income on $116.0 billion in revenue, while Targa posted record revenue of $4.44 billion and net income of $764.6 million, with Adjusted EBITDA up 38% year-over-year to $1.603 billion. Targa's updated 2026 net growth capex is approximately $5.0 billion, against a total debt load of $19.58 billion, while ExxonMobil has saved $16.3 billion compared with 2019 levels. Hedge fund positioning shifted in Q1 2026, with Targa's fund holders declining from 49 to 45 and ExxonMobil's from 98 to 94, though GQG Partners increased its ExxonMobil stake by 154%.

Targa Resources Corp. announced the addition of Brent B. Secrest as President - Logistics and Transportation and the appointment of Benjamin J. Branstetter as Chief Financial Officer, effective September 1, 2026. Secrest joins from Enterprise Products Partners L.P., where he served as Executive Vice President and Chief Commercial Officer, bringing over two decades of midstream energy experience. Branstetter, who has been with Targa since April 2017 and currently serves as President - Logistics and Transportation, will succeed William A. Byers, who is retiring after a 30-year energy industry career and will transition to an advisory role through year-end 2026. The changes were approved by Targa's Board of Directors and are intended to strengthen the executive leadership team and support continued long-term growth.

Targa Resources shares closed at $297.77 on Tuesday, near their 52-week high of $305.08, after surging 85.2% over the past year. The rally followed a new 20-year agreement with ExxonMobil across the Permian Basin, which adds significant acreage dedications and is expected to drive volume growth through 2046. The Zacks Consensus Estimate for Targa's 2026 earnings is $11.01 per share, implying 29.7% year-over-year growth, while revenues are pegged at $19.12 billion, up 12.3%. However, the company raised its 2026 growth capital spending to $5 billion from $4.5 billion, and management expects marketing gains to moderate in the second half. Targa trades at an EV/EBITDA of 15.24, above the industry average of 12.35, and carries a Zacks Rank #3 (Hold).

Targa Resources Corp. announced new 20-year fee-based integrated midstream agreements with ExxonMobil and three new natural gas processing plants in the Permian Delaware. The agreements add significant acreage dedications in the Delaware and Midland basins through 2046, including gathering, processing, treating, NGL transportation, and fractionation, plus 20-year NGL dedications to Targa's logistics and transportation systems. Targa also announced the Wrangler, Ranger, and Ranger II plants with aggregate capacity of about 825 million cubic feet per day, expected in service in the first half of 2028, and is evaluating up to five additional plants. A new roughly 70-mile natural gas pipeline called Bull Run II will connect the new plants to Waha, supported by take-or-pay commitments and expected to begin operations in the first half of 2028. Targa updated its full-year 2026 net growth capital estimate to approximately $5.0 billion.

Targa Resources Corp. reported record second-quarter 2026 results with revenue of US$4,440.1 million and net income of US$764.6 million, and raised its full-year adjusted EBITDA guidance toward the top of its prior range. The company also announced a 25% dividend increase and ongoing share repurchases, citing 38% year-over-year adjusted EBITDA growth and record Permian gas volumes. Management highlighted confidence in the business despite risks around potential midstream overbuild and intensifying competition in core regions.

Targa Resources reported second-quarter revenue of $4.44 billion, missing the Zacks Consensus Estimate of $4.95 billion, while earnings per share of $3.54 beat the consensus of $2.83. Key operating metrics exceeded analyst expectations, with Gathering and Processing total plant natural gas inlet volumes reaching 8908.9 million cubic feet versus the two-analyst average estimate of 8639.05 million cubic feet, and total gross NGL production of 1180.8 million barrels of oil compared to the 1131.45 million barrel estimate. In Logistics and Marketing, NGL sales came in at 1310.9 million barrels of oil, above the 1222.45 million barrel average estimate based on two analysts. The company also saw higher-than-expected export volumes and fractionation volumes, while average realized prices for condensate were above estimates but natural gas and NGL prices fell short.

Targa Resources now expects full-year 2026 adjusted EBITDA to be towards the top end of its previously provided guidance range of $5.7 billion to $5.9 billion. The company reported second-quarter adjusted EBITDA of $1.603 billion, a 38% year-over-year increase, driven by record Permian volumes that rose 450 million cubic feet per day compared to the first quarter. CEO Matt Meloy noted that strong Permian growth pulled through record volumes across downstream systems including NGL transportation, fractionation, and LPG exports. Management also highlighted that marketing businesses outperformed expectations by approximately $250 million in the first half, though they remain conservative on continued marketing gains for the remainder of the year. The company continues to estimate 2026 net growth capital of approximately $4.5 billion and net maintenance capital of $250 million, with major projects like the Speedway fractionator and a large LPG export expansion on track for the third quarter of 2027.

Targa Resources appointed former ConocoPhillips executive Thomas Mathiasmeier as a Class II director and Audit Committee member, following a quarterly dividend declaration. The company's share price has returned 7.54% over the past 30 days and 52.30% year-to-date, with a 5-year total shareholder return of about 6x. Targa Resources is currently trading at $284.45 against a narrative fair value of $291.05, suggesting it is 2.3% undervalued, though its P/E of 28.8x exceeds the US Oil and Gas industry average of 14.3x and a peer average of 16.4x.

Targa Resources Corp. declared a quarterly cash dividend of $1.25 per common share for the second quarter of 2026. The dividend, which equates to $5.00 per share on an annualized basis, will be paid on August 14, 2026 to shareholders of record as of July 31, 2026. The company also announced it will report its second quarter 2026 financial results before the market opens on Thursday, August 6, 2026, and will host a live earnings webcast at 11:00 a.m. Eastern Time that same day.

TimesSquare Capital Management highlighted Targa Resources Corp. as a beneficiary of geopolitical tensions in Iran, contributing to stock price appreciation. The midstream energy company saw a 37% stock price increase following a solid fourth quarter driven by strong production volumes. Management announced increased planned capital expenditures, construction of a new natural gas liquids plant in Delaware, and expansion of their NGL pipeline. Targa Resources shares gained 48.58% over the past 52 weeks, closing at $257.81 on July 1, 2026, with a market capitalization of $55.34 billion.