Key Highlights

  • Third quarter Revenue was USD 5.60 billion, driven by higher NGL, Natural Gas and condensate prices and higher volumes.
  • Full year 2026 adjusted EBITDA is now projected at least USD 6 billion, more than USD 1 billion above 2025.
  • The third quarter Dividend was USD 1.25 per share, a 25% increase from the third quarter of 2025.
  • Management intends to recommend a USD 6 annual dividend for 2027, and 2026 growth Capital is near USD 5 billion.

Targa Resources Corp. (NYSE:TRGP) reported third quarter 2026 revenue of USD 5.60 billion. The Quarterly Report attributes the increase in Commodity sales to higher NGL, natural gas and condensate prices of USD 801.5 million, higher volumes of USD 383.0 million and favorable hedges of USD 68.5 million.

Chief Executive Officer Matt Meloy and management said that, based on performance through nine months, full year 2026 adjusted EBITDA is now projected at least USD 6 billion, representing growth of more than 21% over 2025.

Volumes, Plants and Capital Spending

Natural gas inlet volumes in the Permian rose on the addition of the Bull Moose II plant in the fourth quarter of 2025, the Falcon II and East Pembrook plants in the first quarter of 2026 and the East Driver plant in the second quarter of 2026, along with Assets acquired in the Permian in the first quarter. In January 2026 the company completed the Stakeholder Midstream Acquisition for USD 1.25 billion in cash.

Management raised its 2026 growth capital outlook to approximately USD 5 billion, which includes three Delaware plants and Bull Run II announced in August and the projects announced with the quarter. Net maintenance capital spending is estimated at USD 250 million. Management said 2027 capital remains elevated as major growth projects proceed.

Recent natural gas prices at Waha were around USD 1.50 per MMBtu, and the average NGL barrel was above USD 1 per gallon, which management said supports modest Margin above fee floors in the fourth quarter.

Capital Returns

Through nine months the company repurchased approximately USD 187 million of common stock at an average price of approximately USD 261 per share, with USD 1,186.5 million remaining under its repurchase programs as of September 30, 2026. The quarterly common dividend was increased to USD 1.25 per share earlier in the year. Management also announced its intention to recommend a 20% increase in the annual common dividend for 2027, to USD 6 per share.

Project Milestones to Track

Management listed several dated milestones. The Copperhead plant is in start-up ahead of schedule, and the Yeti and Yeti II plants are projected to start in the second and third quarters of 2027. The Train 12 fractionator began operations in the fourth quarter, Train 13 is projected for the first quarter of 2028, and a 14th train at Mont Belvieu is projected to begin in the first quarter of 2029.

The Speedway NGL pipeline, with initial capacity of 500,000 barrels a day and a design of 1 million barrels a day, and the LPG export expansion to around 19 million barrels per month are both projected for the third quarter of 2027. The Blackcomb and Traverse natural gas pipelines are projected for the fourth quarter of 2026 and mid-2027.