Targa Resources Reports Q3 2026 Results & Raises FY26 Adjusted EBITDA Guidance

Executive Summary

On November 5, 2026, Targa Resources Corp. (NYSE: TRGP) filed a Current Report on Form 8-K under Items 2.02 and 7.01, furnishing its financial results for the third quarter ended September 30, 2026.

Key Financial Highlights

• Net Income Attributable to TRGP: Reported at $658 million, up 37.7% compared to $478 million in Q3 2025.
• Adjusted EBITDA: Reached $1,504 million, an 18% increase year-over-year compared to $1,275 million in Q3 2025 (and down 6% sequentially from Q2 2026 due to reduced marketing and LPG export margins).
• FY 2026 Guidance: The company increased its full-year 2026 Adjusted EBITDA expectation to at least $6.0 billion.
• Capital Expenditures: Net growth capital expenditures for 2026 remain estimated at ~$5.0 billion, with net maintenance capital expenditures unchanged at ~$250 million.

Capital Allocation & Shareholder Returns

• Dividend: Declared a Q3 2026 quarterly dividend of $1.25 per share ($5.00 annualized), paid November 17, 2026, representing a 25% increase year-over-year. Management intends to recommend a further 20% boost to $1.50 per share ($6.00 annualized) starting in Q1 2027.
• Share Repurchases: Repurchased 180,768 shares at an average price of $287.64 for $52 million during Q3 2026. Approximately $1.187 billion remains available under authorized repurchase programs.
• Liquidity & Debt: Consolidated debt as of September 30, 2026, totaled $19.8 billion (net of issuance costs/discounts). Total available liquidity stood at approximately $2.9 billion, including $2.6 billion under the revolving credit facility and $143 million in cash.

Growth Projects & Commercial Developments

• Commercial Agreements: Announced long-term, 20-year fee-based midstream contracts with ExxonMobil subsidiaries in the Permian Basin.
• Permian Processing Plants: Start-up is underway ahead of schedule for the Copperhead plant in the Delaware Basin; ordering long-lead equipment for three additional plants (one Midland, two Delaware).
• Fractionation & Pipelines: Commenced operations at Train 12 fractionator and Bull Run Extension intra-basin pipeline ahead of schedule. Sanctioned a new 150 MBbl/d fractionator (Train 14) at Mont Belvieu, TX, targeted for Q1 2029.