Targa Resources Corp. (TRGP) reported third-quarter 2026 adjusted EBITDA of $1,504 million, 18% above the year-earlier $1,275 million, and said it now expects full-year 2026 adjusted EBITDA of at least $6.0 billion, up from an estimate towards the top end of $5.7 billion to $5.9 billion.

The sequential path reversed. Adjusted EBITDA fell 6% from the second-quarter record of $1,603 million, after a 14% sequential increase in that prior period. Net income attributable to Targa was $658 million, compared with $765 million in the second quarter.

The company said record Permian inlet volumes in Gathering and Processing and record NGL transportation and fractionation volumes in Logistics and Transportation were offset by lower marketing margin and lower LPG export margin in Logistics and Transportation.

Gathering and Processing adjusted operating margin was $1,069.9 million, up 22% from $873.7 million a year earlier. The company attributed the increase primarily to higher natural gas inlet volumes in the Permian, which drove higher fee-based margin.

Total Permian plant natural gas inlet averaged 7,536.6 MMcf/d, up 14% from 6,621.6 MMcf/d a year earlier. Permian Delaware inlet was 4,063.8 MMcf/d and Permian Midland inlet was 3,472.8 MMcf/d. Companywide plant inlet was 9,256.3 MMcf/d. Gathering and Processing NGL production averaged 1,234.7 MBbl/d. Average realized natural gas price was $1.61/MMBtu and NGL price was $0.50/gal.

The company said the Permian inlet increase was attributable to 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, the East Driver plant in the second quarter of 2026, continued strong producer activity, and the acquisition of certain assets in the Permian Basin in the first quarter of 2026.

In Logistics and Transportation, record NGL pipeline transportation and fractionation margin was offset by lower marketing margin and lower LPG export margin. The company said marketing margin was lower due to fewer optimization opportunities and LPG export margin was lower due to lower volumes and fees, reversing second-quarter sequential increases in both. NGL pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from Permian Gathering and Processing systems.

Total revenues were $5,598.6 million, up 35% from $4,151.2 million a year earlier. Commodity sales were $4,722.9 million and fees from midstream services were $875.7 million. Adjusted free cash flow was $33.6 million, down 81% from $172.8 million a year earlier.

On October 13, 2026, Targa declared a quarterly cash dividend of $1.25 a share, or $5.00 a share annualized, for the third quarter of 2026, a 25% increase over the dividend declared for the third quarter of 2025. Total cash dividends of approximately $268 million were scheduled for payment on November 17, 2026. The company said it now expects to recommend to its board an annual common dividend of $6.00 a share in 2027, a 20% increase to 2026, and that for the first quarter of 2027 management intends to recommend an increase to $1.50 a share, or $6.00 a share annualized.

During the third quarter, Targa repurchased 180,768 shares at a weighted average price of $287.64 a share for a total net cost of $52 million. As of September 30, 2026, $1,187 million remained under share repurchase programs. Total consolidated debt was $19.8 billion, net of issuance costs and unamortized discount, and total consolidated liquidity was approximately $2.9 billion.

The company said it continues to estimate 2026 net growth capital expenditures of approximately $5.0 billion, up from approximately $4.5 billion, and that its estimate for 2026 net maintenance capital expenditures remains unchanged at approximately $250 million.

In August 2026, Targa announced new 20-year, fee-based integrated midstream agreements with subsidiaries of ExxonMobil for natural gas gathering and processing and downstream services in the Permian Basin, and three new Permian Delaware processing plants — Wrangler, Ranger and Ranger II — to support those agreements. It recently commenced operations of Train 12 fractionator and the Bull Run Extension intra-basin residue pipeline, ahead of schedule. The Copperhead plant in the Permian Delaware is in start-up. The company now expects Yeti and Yeti II to begin operations in the second and third quarters of 2027, earlier than previously expected.

Targa said it is ordering long-lead items for an additional processing plant in the Permian Midland and two additional plants in the Permian Delaware, and that it is evaluating the timing and expects those plants will likely be needed in 2028 or early 2029. In November 2026 it announced a new 150 MBbl/d NGL fractionator, Train 14, in Mont Belvieu, Texas, expected to begin operations in the first quarter of 2029. Construction continues on Roadrunner III, Copperhead II, Wrangler, Ranger and Ranger II in the Permian Delaware, and on Train 13, Speedway NGL Pipeline, GPMT LPG Export Expansion, and Buffalo Run, Bull Run II and Forza residue pipelines.