Record 2025 performance was driven by an 11% increase in Permian volumes and record NGL transport, fractionation, and LPG export throughput.
Management attributes growth to a combination of existing customer drilling activity and significant commercial success, adding several billion cubic feet per day of gas volumes beyond legacy dedications.
The company is executing an aggressive 8-plant expansion plan over two years to provide 2.2 billion cubic feet per day of incremental processing capacity to meet rising demand.
Strategic positioning in the Delaware Basin is intensifying due to a more diverse customer set and upward revisions in producer activity forecasts.
The ‘wellhead-to-water’ strategy integrates G&P with downstream assets, allowing Targa to capture margins across the entire value chain while ensuring flow assurance for producers.
Operational resilience was demonstrated during January winter storms, where assets remained online and ready to receive volumes immediately as temperatures improved.
Management expects 2026 Permian volume growth to remain in the low double digits, consistent with previous long-term guidance.
Post-2027 capital spending is projected to stabilize at approximately $2.5 billion annually, assuming a pace of roughly three new plants per year.
The completion of the Speedway pipeline and LPG export expansion in late 2027 is expected to drive run-rate adjusted EBITDA over $6 billion and significantly increase free cash flow.
Guidance for 2026 adjusted EBITDA of $5.4 billion to $5.6 billion assumes conservative marketing gains and relies on high fee-based margin stability.
Future growth capital assumes minimal NGL transport and LPG export spending for several years following the current major project cycle.
Targa announced the new Yeti II processing plant and Fractionator 13 to support NGL supply growth through 2028 and beyond.
The acquisition of Stakeholder and other bolt-on transactions added approximately 500,000 dedicated acres and 2 million acres in areas of mutual interest.
Waha natural gas prices are expected to remain volatile through 2026 until new egress pipelines like Blackcomb and Traverse come online.
Management noted that lead times for critical infrastructure like compression and power generation are lengthening, requiring earlier capital commitments.
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