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Targa Resources (TRGP) Q3 2026 Earnings Report

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MX:TRGP Q3 2026 EPS Results

Actual EPS
MXN 56.90
Consensus EPS
MXN 50.94
Beat/Miss
Beat by +MXN 5.95
One Year Ago EPS
MXN 41.11

MX:TRGP Q3 2026 Revenue Results

Actual Revenue
MXN 103.80B
Expected Revenue
MXN 88.68B
Beat/Miss
Beat by +MXN 15.12B
YoY Revenue Growth
+32.82%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/05/2026
Time
Before Open
Conference Call
Thursday, November 5, 2026
MX:TRGP Upcoming Earnings

Targa Resources's next earnings date is estimated for February 25, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

MX:TRGP Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 05, 2026|% Change Since:0.00%|
Earnings Call Sentiment|Positive

The call was strongly positive. Record Permian, NGL transportation and fractionation volumes, a raised 2026 adjusted EBITDA outlook, multi-year double-digit growth visibility, major customer wins, ahead-of-schedule project execution, strong liquidity and increased shareholder returns significantly outweighed the sequential EBITDA decline, lower LPG exports versus the prior quarter, earlier curtailments and elevated planned capital spending.

Company Guidance

Targa now expects adjusted EBITDA to be at least $6 billion in 2026, more than $1 billion higher than 2025 and a more than 21% increase year-over-year; Permian volume growth in 2027 is expected to look similar to 2026, with years of double-digit percentage Permian volume growth, while fourth-quarter margin is expected to be modest above fee floors and 2027 may benefit from some commodity price tailwinds. The company expects 2026 growth capital of approximately $5 billion and net maintenance capital spending of $250 million, with 2027 capital likely to remain elevated; two plants are expected in 2027, five plants are currently in progress for 2028, and the next three Permian plants will likely be needed in 2028 or early 2029. Targa expects free cash flow to be meaningful and growing in 2028, targets a long-term leverage ratio of 3x to 4x, expects LPG export capacity to reach around 19 million barrels per month in the third quarter of 2027, and announced its intention to recommend a 20% increase to the annual common dividend in 2027 to $6 per share.

  • Record Permian Volumes and Strong GrowthThird-quarter Permian natural gas volumes reached a record 7.5 billion cubic feet per day, up approximately 5% from the second quarter and 14% from a year ago. Year-to-date Permian volumes increased 13% year-over-year, compared with approximately 7% growth for the overall Permian Basin.
  • Raised 2026 Adjusted EBITDA OutlookTarga now expects 2026 adjusted EBITDA to be at least $6 billion, more than $1 billion higher than 2025 and representing growth of more than 21% year-over-year.
  • Multi-Year Double-Digit Permian Growth VisibilityManagement expects 2027 Permian volume growth to look similar to 2026 and said existing customer activity and recent commercial wins support an expectation of multiple years of double-digit percentage Permian volume growth across various commodity price environments.
  • Expanded ExxonMobil RelationshipTarga announced new 20-year, fee-based integrated gathering and processing and downstream services agreements with ExxonMobil, supported by significant acreage dedications in the Delaware and Midland Basins. Management described the agreement as additive to the outlook and extending the duration of Targa's growth, with attractive returns expected on the capital investment.
  • Strong Customer Activity and Additional Upside from Deeper BenchesProducer activity remains strong across the Midland and Delaware Basins. Management said early results from the Woodford and Barnett zones indicate substantial hydrocarbon potential and described deeper-bench development as potential upside, although it is not materially included in the current forward outlook.
  • Improved Waha Pricing and NGL DemandNew Permian natural gas egress capacity improved Waha prices meaningfully during the third quarter. Management also reported higher NGL prices supported by strong domestic and global demand, with recent Waha prices around $1.50 per MMBtu and the average NGL barrel north of $1 per gallon.
  • Expected Fourth-Quarter Margin TailwindsGiven recent natural gas and NGL prices, Targa expects modest margin above fee floors in the fourth quarter and may benefit from commodity price tailwinds in 2027.
  • Permian Processing Expansion Ahead of ScheduleThe Copperhead plant in the Permian Delaware is in start-up ahead of schedule. The Yeti and Yeti II plants are now expected to start in the second quarter of 2027 and the third quarter of 2027, respectively, both ahead of schedule. East Driver added needed Midland capacity in the second quarter of 2026.
  • New Delaware and Midland Plants Under DevelopmentTarga is moving forward with three new Delaware processing plants—Wrangler, Ranger and Ranger II—which are expected to provide Delaware Basin capacity when online in the second quarter of 2028. The company is also ordering long-lead items for two additional Delaware plants and its next Midland plant, which are expected to be needed in 2028 or early 2029.
  • Residue Pipeline Connectivity ExpansionThe Bull Run Extension residue pipeline was placed in service early in the fourth quarter ahead of schedule. Buffalo Run, Forza and Bull Run II remain on track and are expected to expand intra-basin connectivity and producer access to multiple premium markets. Blackcomb and Traverse remain on track for the fourth quarter of 2026 and mid-2027, respectively.
  • Record NGL Transportation and Fractionation VolumesRecord NGL transportation volumes reached 1.17 million barrels per day, while record fractionation volumes reached 1.26 million barrels per day.
  • Strong LPG Export PerformanceThird-quarter LPG export loadings averaged 13.7 million barrels per month, up 10% year-over-year and representing Targa's third-highest quarter ever. Management cited strong demand for U.S. propane and butane and said the company is well contracted while seeking opportunities to move incremental vessels.
  • Downstream Project ExecutionTrain 12 at Mont Belvieu commenced operations in the fourth quarter ahead of schedule. Train 13 remains on track for the first quarter of 2028, and Train 14 is expected to begin operations in the first quarter of 2029. Once Train 14 is complete, operated fractionation capacity at Mont Belvieu will be approximately 1.8 million barrels per day.
  • Major NGL Transportation and Export ExpansionsThe Speedway NGL transportation expansion remains on track for the third quarter of 2027. It is designed for 1 million barrels per day of capacity, initially announced at 500,000 barrels per day, with additional pumps to be added as volumes increase. Targa's LPG export expansion remains on track for the third quarter of 2027 and is expected to increase export capacity to around 19 million barrels per month.
  • Capital Investment Supports GrowthTarga increased its 2026 growth capital outlook to approximately $5 billion to support customer growth, including the ExxonMobil agreements and newly announced projects. Net maintenance capital spending remains estimated at $250 million. Management expects a meaningful profile of growing free cash flow in 2028 as larger growth projects come online.
  • Solid Liquidity and Leverage PositionAt the end of the third quarter, Targa had $2.9 billion of available liquidity. Pro forma consolidated leverage was approximately 3.4x, within the company's long-term leverage ratio target of 3x to 4x.
  • Increased Shareholder ReturnsTarga declared a third-quarter common dividend of $1.25 per share, a 25% increase relative to the third quarter of 2025. The company also announced its intention to recommend a 20% increase in the annual common dividend in 2027 to $6 per share.
  • Share Repurchases and Flexible Capital AllocationThrough the first nine months of the year, Targa repurchased approximately $187 million of common stock at an average price of approximately $261 per share. Management said the company has continued buybacks while funding a bolt-on acquisition, substantial organic investment and dividend growth.
  • Operating Execution and Organizational DepthManagement emphasized industry-leading operating performance, safe operations and execution across the integrated system. Targa now has more than 3,700 employees, added Brent Secrest as President of Logistics and Transportation and appointed Ben Branstetter as Chief Financial Officer. Will Byers announced his retirement after a 30-year career.

MX:TRGP Earnings History

MX:TRGP earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 25, 20272026 (Q4)54.11-46.96――
Nov 05, 20262026 (Q3)50.9456.9041.1138.42% (+15.79)
Aug 06, 20262026 (Q2)52.6666.0353.9422.41% (+12.09)
May 07, 20262026 (Q1)46.1841.4017.11141.96% (+24.29)
Feb 19, 20262025 (Q4)42.7846.9626.9774.14% (+19.99)
Nov 05, 20252025 (Q3)39.3041.1132.7425.57% (+8.37)
Aug 07, 20252025 (Q2)34.6553.9425.11114.81% (+28.83)
May 01, 20252025 (Q1)36.8117.1122.88-25.20% (-5.77)
Feb 20, 20252024 (Q4)35.7726.9723.0616.94% (+3.91)
Nov 05, 20242024 (Q3)29.0532.7418.2379.59% (+14.51)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed