Targa Resources Corp. reported third quarter 2026 revenue of $5.60 billion, significantly exceeding the consensus estimate of $5.14 billion. The company achieved record natural gas inlet volumes in the Permian Basin and record NGL transportation and fractionation throughput. Based on strong operational performance, management raised its full-year 2026 adjusted EBITDA guidance and announced a 20% increase to its expected 2027 common dividend.
Key Highlights
- Record Permian natural gas inlet volumes averaged 7.54 billion cf/d, surpassing the analyst estimate of 7.4 billion cf/d and driving segment margin growth.
- Adjusted EBITDA rose 18% year-over-year to $1.50 billion, supported by record NGL pipeline transportation and fractionation margin.
- Management raised full-year 2026 adjusted EBITDA guidance to at least $6.0 billion, up from the previous outlook which peaked at $5.9 billion.
- Infrastructure expansion remains ahead of schedule, with the Train 12 fractionator and Bull Run Extension pipeline commencing operations and the Copperhead plant currently in start-up.