Targa Inks 20-Year ExxonMobil Deal, Plans Three Permian Gas Plants
TRGP sits 98% above its 52-week low of $144.14.
Summary
Targa Resources signed 20-year agreements with ExxonMobil to provide natural-gas gathering, processing, and downstream services in the Permian Basin, expanding acreage in the Delaware and Midland basins and extending existing Midland agreements through 2046. The deal includes 20-year commitments for NGL transportation and fractionation. Targa will build three new processing plants—Wrangler, Ranger, and Ranger II—with combined capacity of 825 MMcf/d, expected online in H1 2028, plus a 70-mile Bull Run II pipeline to Waha Hub supported by take-or-pay commitments. The company raised 2026 growth capital guidance to $5 billion and is evaluating up to five additional plants and another fractionation train. This follows record Q2 2026 adjusted EBITDA of $1.6 billion and raised full-year guidance reported on August 6. The ExxonMobil relationship locks in long-term volume growth and supports free cash flow expansion into the next decade.
At the time of this announcement, TRGP was trading at $285.50 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $59.6B. The 52-week trading range was $144.14 to $291.04. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.