Targa Resources (TRGP) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 net income of $764.6 million, up 22% year-over-year, and adjusted EBITDA of $1.603 billion, up 38% year-over-year and 14% sequentially, driven by higher Permian volumes, margin expansion, and asset acquisitions.

• Set new records for Permian inlet, NGL transportation, fractionation, and LPG export volumes, supported by major organic growth projects and recent acquisitions.

• Commenced operations of Train 11 fractionator, Delaware Express NGL Pipeline expansion, and East Driver processing plant ahead of schedule.

• Strong customer activity and expanding acreage dedications in the Permian underpin continued growth, positioning at the top end of adjusted EBITDA guidance for 2026.

• Major capital projects and acquisitions supported segment performance, while liquidity and capital resources remain strong.

Financial highlights

• Q2 2026 adjusted EBITDA was $1.603 billion, up 38% year-over-year and 14% sequentially, with net income of $764.6 million and total revenues of $4.44 billion, up 4% year-over-year.

• 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 dividend of $1.25 per share, a 25% increase over Q2 2025, and repurchased $80 million in common stock at an average price of $259.93 per share.

• Operating expenses increased 9% year-over-year, mainly due to system expansions and asset acquisitions.

• Depreciation and amortization rose 21% in Q2, reflecting asset base growth.

Outlook and guidance

• Full-year 2026 adjusted EBITDA is expected at the top end of the $5.7–$5.9 billion guidance range, with net growth capital expenditures estimated at $4.5 billion and maintenance capital at $250 million.

• Expect 2026 adjusted EBITDA growth over 2025 to approach $1 billion, with continued share count reduction and dividend increases.

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

• Management expects sufficient liquidity and capital resources to meet obligations and fund growth over the next twelve months.

• Tracking ahead of volume growth expectations for 2026, with strong momentum into 2027.