Targa Resources Tops Revenue Estimates at $5.6 Billion as Adjusted EBITDA Rises 18%

Targa Resources Corp. (NYSE: TRGP) reported third-quarter revenue of $5.6 billion, above the $4.77 billion analysts expected, in an 8-K filed Thursday, Nov. 5. Revenue rose 35% from $4.15 billion a year earlier. Net income attributable to Targa Resources Corp. was $658.2 million, up from $478.4 million. The release does not give an adjusted EPS figure to set against the $2.86 analyst estimate.

Earnings and revenue

Adjusted EBITDA reached $1,504.3 million, up 18% from $1,274.8 million a year earlier, but down 6% from the second quarter of 2026. Commodity sales rose 36% to $4.72 billion, and fees from midstream services rose 29% to $875.7 million. The company attributed the sequential decline to lower marketing margin and lower LPG export margin in its Logistics and Transportation segment.

Permian volumes

Plant natural gas inlet volumes in the Permian Basin reached a record 7,536.6 MMcf/d, up 14% from a year earlier. NGL pipeline transportation volumes rose 15% to 1,171.7 MBbl/d. Adjusted cash flow from operations was $1,276.8 million, while adjusted free cash flow fell to $33.6 million from $172.8 million, as growth capital expenditures rose to $1,186.0 million.

Outlook and dividend

Targa now estimates full-year 2026 adjusted EBITDA of at least $6.0 billion and continues to estimate net growth capital expenditures of about $5.0 billion. The company said it intends to recommend a quarterly common dividend of $1.50 per share for the first quarter of 2027, or $6.00 annualized, a 20% increase on the 2026 annual rate. It declared a $1.25 quarterly dividend on Oct. 13. During the quarter Targa repurchased 180,768 shares for $52 million, leaving $1,187 million under its repurchase programs. Total liquidity was about $2.9 billion as of Sept. 30.

The stock closed at $285.00 on Wednesday, Nov. 4, giving the company a market value of about $61.1 billion before the filing.