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 record adjusted EBITDA of $1,603 million, a 38% increase 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, with downstream and export growth underpinning results.

• Major Permian Basin expansions, including the Stakeholder Acquisition, and new asset additions contributed to throughput and segment growth.

• Strong customer activity and expanding acreage dedications in the Permian support long-term growth prospects.

• Delivered record results despite weather challenges, gas takeaway constraints, and market volatility.

Financial highlights

• Q2 2026 adjusted EBITDA was $1,603 million, up 38% year-over-year and 14% sequentially; net income was $764.6 million, up 22% year-over-year.

• Total Q2 2026 revenues were $4.44 billion, up 4% year-over-year; adjusted cash flow from operations was $1,371 million, up 47% year-over-year.

• Adjusted free cash flow for Q2 2026 was $205 million, reflecting higher capital expenditures.

• Quarterly dividend increased 25% year-over-year to $1.25 per share; $268 million in total dividends to be paid.

• Repurchased $80 million in common stock at an average price of $259.93/share in 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, with growth over 2025 to approach $1 billion.

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

• Multiple new processing plants and fractionation trains 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.

• Fee-based margin expected to exceed 90%.