$TRGP · Targa Resources Corp.
Targa Resources filed its 10-Q for the quarter ended September 30, 2026. Total revenues rose 34.9% YoY to $5.599B, driven by a 36% increase in commodity sales and 29% growth in midstream service fees. Net income attributable to Targa rose 38% to $658.2M, with diluted EPS of $3.04 versus $2.20 a year earlier. Adjusted EBITDA grew 18% to $1,504.3M for the quarter.
- Total revenues rose 34.9% YoY to $5.599B in Q3 2026.
- Net income attributable to Targa rose 38% to $658.2M.
- Diluted EPS was $3.04 versus $2.20 a year earlier.
- Adjusted EBITDA grew 18% to $1,504.3M.
- Long-term debt increased to $19.28B from $16.66B at year-end 2025.
Shares fell 4.21% to $272.99 in the regular session despite strong results, down 1.04% from the filing-time price of $275.87 — suggesting the market had already priced in robust Permian volume growth.
Targa delivered 38% net income growth and 18% adjusted EBITDA growth on surging Permian volumes, yet the stock sold off, signaling elevated expectations.
Targa's 14% Permian gas inlet growth and 13% NGL production growth reflect continued strong midstream demand from Permian drilling activity, outpacing many midstream peers.
Commodity price volatility and hedging losses (a $254.0M pre-tax fair-value decline on commodity hedges in Q3) remain key earnings risks. Higher leverage from the $1.27B Dovetail acquisition and rising long-term debt add balance-sheet exposure.