Targa Resources Corp. reported second-quarter 2026 adjusted EBITDA of $1.603 billion, a record for the company and up 38 percent from $1.163 billion a year earlier. Net income attributable to Targa Resources was $765 million, up from $629 million in the second quarter of 2025. Adjusted EBITDA also rose 14 percent from the first quarter of 2026.
Total revenue was $4.44 billion, up 4 percent from $4.26 billion a year earlier. Fees from midstream services rose 36 percent to $847.2 million, while sales of commodities fell 1 percent to $3.593 billion.
Record volumes across Permian and NGL operations
Targa said the sequential increase in adjusted EBITDA reflected higher marketing margin in its Logistics and Transportation segment and record Permian volumes in its Gathering and Processing segment. The company also posted record NGL transportation, fractionation and LPG export volumes in Logistics and Transportation.
In Gathering and Processing, Permian natural gas inlet volumes increased more than 450 million cubic feet per day sequentially, even as some producer customers made temporary curtailments in response to negative natural gas prices at the Waha hub amid weak natural gas markets during the quarter. Higher sequential margin in the segment came alongside lower natural gas prices, the company said.
In Logistics and Transportation, marketing margin increased on what Targa called greater optimization opportunities. NGL pipeline transportation and fractionation volumes benefited from higher supply from the company's Permian gathering systems and from the addition of its Train 11 fractionator early in the quarter. LPG export margin rose on higher volumes and fees.
Growth projects
Targa commenced operations of its Train 11 fractionator in Mont Belvieu, Texas, and its Delaware Express NGL Pipeline expansion during the second quarter. Late in the quarter, the company also started up its new East Driver processing plant in the Permian Midland, ahead of schedule.
Construction continues on the Copperhead, Yeti, Yeti II, Roadrunner III and Copperhead II processing plants in the Permian Delaware, and on the Train 12 and Train 13 fractionators in Mont Belvieu, the Speedway NGL Pipeline, the GPMT LPG Export Expansion, and the Bull Run, Buffalo Run and Forza intra-basin residue gas pipelines. Targa said both its Gathering and Processing and Logistics and Transportation project slates remain on track.
Guidance, dividend and buybacks
Targa now estimates full-year 2026 adjusted EBITDA toward the top end of its previous $5.7 billion to $5.9 billion range, citing strong marketing and optimization margin in the first two quarters and continued volume growth. The company kept its 2026 net growth capital expenditure estimate at approximately $4.5 billion and its net maintenance capital expenditure estimate at approximately $250 million.
The board declared a quarterly cash dividend of $1.25 per share on July 16, 2026, equal to $5.00 per share annualized and a 25 percent increase over the dividend declared for the second quarter of 2025. About $268 million in total dividends is set to be paid on August 14, 2026, to shareholders of record as of July 31, 2026.
Targa repurchased 308,102 shares during the quarter at a weighted average price of $259.93 per share, for a net cost of $80 million. About $1.239 billion remained available under the company's share repurchase programs as of June 30, 2026.
Balance sheet
Total consolidated debt stood at $19.578 billion as of June 30, 2026, including $17.9 billion of senior unsecured notes, $600 million under the commercial paper program, $451 million under the accounts receivable securitization facility, and $794 million of finance lease liabilities. Total consolidated liquidity was approximately $3.2 billion, including $2.9 billion available under the TRGP revolver, $149 million under the securitization facility, and $132 million of cash.
In July 2026, Targa amended the securitization facility to extend its termination date to July 30, 2027, and to increase borrowing capacity to up to $800 million.