Targa Resources (TRGP) investor relations material

Executive summary

• Achieved record adjusted EBITDA of $1.603 billion in Q2 2026, up 38% year-over-year and 14% sequentially, driven by strong Permian volumes, asset acquisitions, and marketing outperformance.

• Net income attributable to shareholders rose 22% year-over-year to $764.6 million for Q2 2026, supported by higher volumes and margin expansion.

• Set new records for Permian inlet (7.2 Bcf/d), NGL transportation, fractionation, and LPG export volumes, with global demand and geopolitical factors boosting export activity.

• Major infrastructure projects, including new gas processing plants, fractionators, and pipeline expansions, are progressing on schedule, supporting continued growth.

• Stakeholder Acquisition and other asset additions contributed to increased throughput and segment growth.

Financial highlights

• Total revenues for Q2 2026 were $4.44 billion, up 4% year-over-year; adjusted EBITDA was $1.603 billion, up 38% year-over-year and 14% sequentially.

• Net income for Q2 2026 was $764.6 million, up from $629.1 million in Q2 2025 and $479.6 million in Q1 2026.

• Adjusted cash flow from operations was $1,371 million for Q2, up 47% year-over-year; adjusted free cash flow was $205 million.

• Declared a Q2 common dividend of $1.25 per share, a 25% increase over Q2 2025; $268 million in total dividends to be paid.

• Repurchased $80 million in common stock at an average price of $259.93 per share during Q2; $1.24 billion remains under repurchase programs.

Outlook and guidance

• Full-year 2026 adjusted EBITDA expected at the top end of $5.7–$5.9 billion guidance.

• Net growth capital for 2026 estimated at $4.5 billion; net maintenance capital at $250 million.

• Multiple new processing plants and fractionation trains scheduled to come online through 2028, supporting continued volume and margin growth.

• Anticipates continued strong volume growth into 2027 and beyond, with additional plant expansions under evaluation.

• Expects material free cash flow inflection post-2027 as major projects come online.