Targa posts record Q2 volumes, sees EBITDA near guidance high end

Transcript intelligence

What changed

Compared with the prior quarter, Targa reported a stronger operating quarter with record Permian gathering volumes and LPG export loadings, five processing plants in the project pipeline, and a planned LPG export expansion to roughly 19 million barrels per month by Q3 2027. Guidance was maintained rather than raised, with management pointing to the top end of the existing range.

Guidance delta

Management maintained FY2026 adjusted EBITDA guidance and expects results toward the top of the $5.7-$5.9 billion range.

Key takeaways

• Adjusted EBITDA rose 38% year over year, with management expecting FY2026 results toward the top of its existing guidance range.
• Permian gathering volumes and LPG export loadings reached records, while downstream NGL and LPG volumes also hit all-time highs.
• Growth plans include five gas-processing plants, pipeline expansions, additional fractionation capacity, and a larger LPG export project.
• Capital allocation included $4.5 billion of net growth capex, a dividend increase, and $80 million of share repurchases.

Management priorities

• Expand Permian gas-processing capacity and bring five new plants online.
• Complete Delaware Express and Speedway NGL pipeline expansions and advance fractionation projects.
• Deliver the LPG export expansion and maintain dividend growth, selective repurchases, and an investment-grade balance sheet.