Targa Resources (TRGP) Q1 2026 earnings summary

Executive summary

• Achieved record first quarter 2026 adjusted EBITDA of $1.4 billion, up 19% year-over-year, and record net income of $480 million, up 140% year-over-year, driven by higher Permian volumes, margin improvements, and asset acquisitions despite weather disruptions.

• Revenue for Q1 2026 was $4.56 billion, down 10% year-over-year, primarily due to lower commodity prices, partially offset by higher volumes and favorable hedging impacts.

• Major acquisitions, including Stakeholder Midstream for $1.25 billion, expanded Permian Delaware operations and integrated 480 miles of pipelines.

• Completed major infrastructure projects, including Falcon II and East Pembrook processing plants and Train 11 fractionator, with additional plants announced in Permian Delaware.

• Integrated asset footprint and operational execution position the company for continued growth.

Financial highlights

• Adjusted EBITDA for Q1 2026 was $1.4 billion, up 19% year-over-year and 5% sequentially, driven by Permian acquisition and marketing optimization.

• Net income attributable to common shareholders was $480 million, up 140% year-over-year.

• Full year 2026 adjusted EBITDA guidance raised to $5.7–$5.9 billion, $300 million above prior guidance, reflecting a 17% increase at the midpoint.

• Declared a first quarter dividend of $1.25 per share, a 25% increase year-over-year; $268 million in total dividends to be paid.

• Repurchased $55 million in common shares at an average price of $241.43 per share; $1.3 billion remains under repurchase programs.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance raised to $5.7–$5.9 billion, driven by strong marketing, LPG exports, and volume growth.

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

• Over 90% of 2026 operating margin expected to be fee-based, reducing commodity price sensitivity.

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

• Additional upside possible from further optimization and volume recovery as new pipeline capacity comes online.