Targa Resources beats profit estimates on record Permian volumes, boosts dividend
Targa Resources, the pipeline operator, beat expectations for its third-quarter core profit adjusted on Wednesday. This was boosted by record volumes of natural gas and liquids from the Permian Basin.
The company announced that it would increase its dividends by 25%, to $5 per share, in 2026.
Midstream companies in the United States, such as Targa, and Kinder Morgan, are benefiting by a boom in oil and natural gas production, as well a rising demand for natgas from LNG export facilities, and an increase in power generation due to AI operations and cryptocurrency mining, and data centers.
Targa expects its full-year adjusted core profits to be at the upper end of their $4.65 billion – $4.85 billion range.
The quarterly Permian gas inlet volume increased by about 11%, to 6.62 billion cubic foot per day (cfpd), compared to a year ago. Meanwhile, the natgas pipeline transport volumes grew by about 23% and reached 1,017 thousand bbls per day.
The company announced that it will also be building a natural gas processing facility in New Mexico's Permian Delmarva, which is expected to start operations in the first half of 2027.
Targa is expanding its infrastructure footprint to keep up with the record production from the Permian Basin.
According to LSEG, the Houston-based company posted an adjusted core profit for the quarter ending September 30 of $1.27 Billion, compared to estimates of $1.21 Billion.
(source: Reuters)