Targa Resources reported record NGL fractionation, transportation and export volumes during the second quarter of 2026 as continued Permian Basin growth and new infrastructure drove record Adjusted EBITDA.
Fractionation volumes increased 24% year-over-year to approximately 1.206 million barrels per day from 969,100 barrels per day. NGL pipeline transportation volumes increased 14% to approximately 1.099 million barrels per day, while export volumes increased 15% to a record 487,100 barrels per day.
The higher throughput helped drive a 44% increase in Logistics and Transportation adjusted operating margin to approximately $1.063 billion from $737.8 million a year earlier. Operating margin increased 50% to $948.3 million.
Targa attributed the improvement to higher marketing margins, increased pipeline transportation and fractionation margins and higher LPG export margins. NGL transportation and fractionation benefited from rising supply volumes from the company’s Permian Gathering and Processing systems and the addition of Train 11 early in Q2.
The infrastructure buildout remains substantial. Targa began operations at its Train 11 fractionator in Mont Belvieu and completed the Delaware Express NGL Pipeline expansion during the quarter. Construction continues on Train 12 and Train 13, the Speedway NGL Pipeline, the GPMT LPG Export Expansion and several intra-basin residue gas pipeline projects.
Expansion is also continuing upstream in the Permian. Targa placed its East Driver processing plant in Permian Midland into service ahead of schedule late in Q2, while construction continues on Copperhead, Yeti, Yeti II, Roadrunner III and Copperhead II in the Delaware Basin.
The company’s Permian natural gas inlet volume reached a record 7.187 billion cubic feet per day, up 14% year-over-year. Permian NGL production increased 18% to approximately 1.007 million barrels per day, including 23% growth in the Delaware Basin.
Those volumes continued increasing even in a difficult regional gas-price environment. Permian inlet volumes rose by more than 450 million cubic feet per day sequentially despite temporary producer curtailments in response to negative Waha natural gas prices.
Targa generated record Q2 Adjusted EBITDA of approximately $1.603 billion, up 38% from $1.163 billion a year earlier and 14% sequentially. Net income attributable to Targa Resources increased 22% to approximately $765 million.
Adjusted cash flow from operations increased 47% to $1.371 billion, while adjusted free cash flow improved to $205.3 million from negative $9.6 million in the prior-year quarter.
Targa continues to expect approximately $4.5 billion of net growth capital expenditures during 2026. Following its strong first-half performance, the company now expects full-year Adjusted EBITDA toward the upper end of its $5.7 billion to $5.9 billion outlook.
The company also increased its quarterly dividend 25% year-over-year to $1.25 per share and repurchased $80 million of stock during Q2. Another approximately $1.24 billion remained available under its repurchase programs at quarter-end.
