Targa Resources Corp.
For the period ended Mar 31, 2026. Filed May 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
TRGP$264.59-2.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001193125-25-266435
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001193125-26-211698
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 193 previous paragraphs and 181 current paragraphs.
115 unchanged; 43 reworded; 23 added; 28 removed; 7 previous and 0 current paragraphs rearranged.
Tables are not compared: 15 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Our new cryogenic natural gas processing plant additions include:
Current report
Yeti II plant, a 275 MMcf/d plant in Permian Delaware (the “Yeti II plant”), expected to begin operations in the fourth quarter of 2027.
Current report
Roadrunner III plant, a 265 MMcf/d plant in Permian Delaware (the “Roadrunner III plant”), expected to begin operations in the first quarter of 2028.
Current report
Copperhead II plant, a 275 MMcf/d plant in Permian Delaware (the “Copperhead II plant”), expected to begin operations in the first quarter of 2028.
Current report
Train 11 in Mont Belvieu, Texas (“Train 11”), commenced operations early in the second quarter of 2026.
Current report
Train 12 in Mont Belvieu, Texas (“Train 12”), expected to begin operations in the first quarter of 2027.
Current report
Train 13 in Mont Belvieu, Texas (“Train 13”), expected to begin operations in the first quarter of 2028.
Current report
Acquisitions and Joint Ventures
Current report
In January 2026, we completed the acquisition of all of the membership interests in Stakeholder Midstream, LLC for $1.25 billion in cash (the “Stakeholder Acquisition”). We acquired a portfolio of complementary Permian Basin midstream infrastructure assets which have been integrated into our Permian Delaware operations. The acquisition had an effective date of January 1, 2026.
Current report
In January 2026, we used $650.0 million in borrowings from our Commercial Paper Program and $600.0 million from our Securitization Facility to fund the Stakeholder Acquisition.
Current report
In January 2026, we completed the redemption of all of the Partnership’s 6.875% Senior Unsecured Notes due 2029 (the “Partnership’s 6.875% Notes due 2029”) and recognized a debt extinguishment loss of $10.1 million, comprised of $7.8 million related to the redemption premium paid and $2.3 million from the write-off of debt issuance costs.
Current report
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (the “OBBBA”) into law. Among other things, the OBBBA indefinitely extends the 100% first-year depreciation allowance on qualified property placed in service after January 19, 2025, includes favorable modifications to the business interest expense limitation, and otherwise extends and enhances certain key provisions of the Tax Cuts & Jobs Act. The OBBBA has multiple effective dates with respect to its various provisions, with certain provisions effective in 2025. While the OBBBA has not materially impacted our effective tax rate, we expect it to substantially decrease Targa’s cash taxes over the next several years.
Current report
Excludes amortization recognized in interest expense.
Current report
The increase in operating expenses was primarily due to higher labor and maintenance costs due to increased activity and system expansions, and the acquisition of certain assets in the Permian Basin.
Current report
The increase in general and administrative expense was primarily due to higher compensation and benefits.
Current report
The decrease in other, net, was primarily due to the premium paid on the redemption of all of the Partnership’s 6.875% Notes due 2029.
Current report
The increase in operating expenses was primarily due to higher volumes, multiple plant additions and the acquisition of certain assets in the Permian Basin during the first quarter of 2026.
Current report
Represents the total quantity of mixed NGLs that earn a transportation margin.
Current report
Export volumes represent the quantity of NGL products delivered to third-party customers at our Galena Park Marine Terminal that are destined for international markets.
Current report
The increase in operating expenses was due to higher repairs and maintenance and higher compensation and benefits.
Current report
In January 2026, we used $650.0 million in borrowings from our Commercial Paper Program and $600.0 million from our Securitization Facility to fund the Stakeholder Acquisition.
Current report
In January 2026, we completed the redemption of all of the Partnership’s 6.875% Notes due 2029 and recognized a debt extinguishment loss of $10.1 million, comprised of $7.8 million related to the redemption premium paid and $2.3 million from the write-off of debt issuance costs.
Current report
In March 2026, we completed an underwritten public offering of the 4.350% Notes due 2031 and the 6.050% Notes due 2056, resulting in net proceeds of approximately $1,483.2 million. We used the net proceeds from the debt issuance for general corporate purposes, including to reduce borrowings under the Commercial Paper Program.
Removed paragraphs (28)
Previous report
In August 2023, we announced the construction of a new 275 MMcf/d cryogenic natural gas processing plant in Permian Delaware (the “Bull Moose plant”). The Bull Moose plant commenced operations in the first quarter of 2025.
Previous report
In May 2024, we announced the construction of a new 275 MMcf/d cryogenic natural gas processing plant in Permian Midland (the “Pembrook II plant”). The Pembrook II plant commenced operations in the third quarter of 2025.
Previous report
In August 2024, we announced the construction of a new 275 MMcf/d cryogenic natural gas processing plant in Permian Delaware (the “Bull Moose II plant”). The Bull Moose II plant commenced operations in the fourth quarter of 2025.
Previous report
In January 2023, we reached an agreement with our partners in Gulf Coast Fractionators (“GCF”) to reactivate GCF’s 135 MBbl/d fractionation facility. GCF commenced operations in the first quarter of 2025.
Previous report
In February 2025, we announced plans to construct a new 150 MBbl/d fractionation train in Mont Belvieu, Texas (“Train 12”). Train 12 is expected to begin operations in the first quarter of 2027.
Previous report
Joint Ventures
Previous report
On March 5, 2025, we completed the acquisition of Blackstone’s 45% interest in Targa Badlands LLC (“Targa Badlands”) for aggregate consideration of $1.8 billion in cash (the “Badlands Transaction”). As a result of the acquisition, we own 100% of the interests in and earnings of Targa Badlands effective January 1, 2025.
Previous report
In February 2025, we entered into a new $3.5 billion TRGP senior revolving credit facility (the “TRGP Revolver”), which provides for a revolving credit facility in an initial aggregate principal amount up to $3.5 billion and matures on February 18, 2030. The maturity date is extendable, subject to the lenders’ consent, by one year up to two times. In connection with our entry into the TRGP Revolver, we terminated our previous revolving credit facility (the “Previous TRGP Revolver”).
Previous report
Litigation expense includes charges related to litigation resulting from the major winter storm in February 2021 that we consider outside the ordinary course of our business and/or not reflective of our ongoing core operations. We may incur such charges from time to time, and we believe it is useful to exclude such charges because we do not consider them reflective of our ongoing core operations and because of the generally singular nature of the claims underlying such litigation.
Previous report
Excludes amortization of interest expense. The nine months ended September 30, 2024 includes $55.8 million of interest expense on a 2024 legal ruling associated with an agreement, dated December 27, 2015, for crude oil and condensate between Targa Channelview LLC, then a subsidiary of the Company, and Noble Americas Corp (the “Splitter Agreement”).
Previous report
The increase in commodity sales reflected higher natural gas prices ($322.3 million) and higher NGL volumes ($213.8 million), partially offset by lower NGL prices ($263.3 million) and the unfavorable impact of hedges ($16.6 million).
Previous report
The increase in operating expenses was primarily due to higher maintenance, taxes and labor costs as a result of system expansions.
Previous report
The increase in other operating (income) expense was primarily due to recognition of Section 45Q tax credits earned through our carbon capture and sequestration activities.
Previous report
The decrease in net income attributable to noncontrolling interests was primarily due to the Badlands Transaction in the first quarter of 2025 and the acquisition of the remaining membership interest in Cedar Bayou Fractionators, L.P. in the fourth quarter of 2024 (the “CBF Acquisition”).
Previous report
The increase in fees from midstream services was primarily due to higher gas gathering and processing fees, and higher export volumes, partially offset by lower transportation and fractionation fees. Lower transportation and fractionation fees were predominantly due to a planned turnaround at a portion of our facilities in Mont Belvieu, Texas.
Previous report
The increase in product purchases and fuel reflected higher natural gas prices and higher NGL volumes, partially offset by lower NGL prices.
Previous report
The increase in operating expenses was primarily due to higher maintenance and labor costs and taxes as a result of system expansions and the planned turnaround at a portion of our facilities in Mont Belvieu, Texas.
Previous report
The increase in other operating (income) expense was primarily due to recognition of Section 45Q tax credits earned through our carbon capture and sequestration activities.
Previous report
The increase in interest expense, net, was primarily due to higher borrowings in 2025, partially offset by the recognition of cumulative interest on a legal ruling associated with the Splitter Agreement in 2024.
Previous report
The decrease in net income attributable to noncontrolling interests was primarily due to the Badlands Transaction in the first quarter of 2025 and the CBF Acquisition in the fourth quarter of 2024.
Previous report
The increase in operating expenses was primarily due to higher volumes and multiple plant additions in the Permian.
Previous report
The increase in operating expenses was primarily due to higher volumes and multiple plant additions in the Permian.
Previous report
Operating expenses were relatively flat despite system expansions which were offset by lower repairs and maintenance.
Previous report
The increase in adjusted operating margin was due to higher pipeline transportation and fractionation margin and higher LPG export margin. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from our Permian Gathering and Processing systems, the addition of Train 9 during the second quarter of 2024, a full quarter of operation of Daytona NGL Pipeline which commenced operations during the third quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024. LPG export margin increased due to higher volumes and fees.
Previous report
The increase in operating expenses was predominantly due to system expansions and the planned turnaround at a portion of our facilities in Mont Belvieu, Texas.
Previous report
In February 2025, we entered into the TRGP Revolver, which provides for a revolving credit facility in an initial aggregate principal amount up to $3.5 billion (with an option to increase such maximum aggregate principal amount by up to $500.0 million in the future, subject to the terms of the TRGP Revolver) and a swing line sub-facility of up to $150.0 million. In connection with our entry into the TRGP Revolver, we terminated the Previous TRGP Revolver.
Previous report
In February 2025, we completed an underwritten public offering of the 5.550% Notes due 2035 and the 6.125% Notes 2055, resulting in net proceeds of approximately $2.0 billion. We used the net proceeds from the debt issuance to fund the Badlands Transaction and for general corporate purposes, including to repay borrowings under the Commercial Paper Program.
Previous report
In June 2025, we completed an underwritten public offering of the 4.900% Notes due 2030 and the 5.650% Notes due 2036, resulting in net proceeds of approximately $1.5 billion. We used the net proceeds from the debt issuance to fund the redemption of all of the Partnership’s 6.500% Notes due 2027 in July 2025, and the remaining net proceeds for general corporate purposes, including to repay borrowings under the Commercial Paper Program.
Reworded paragraphs (43)
Previous wording
In November 2024, we announced the construction of a new 275 MMcf/d cryogenic natural gas processing plant in Permian Delaware (the “Falcon II plant”). The Falcon II plant is expected to begin operations in the second quarter of 2026.
Current wording
Falcon II plant, a 275 MMcf/d plant in Permian Delaware (the “Falcon II plant”), commenced operations in the first quarter of 2026.
Previous wording
In August 2024, we announced the construction of a new 275 MMcf/d cryogenic natural gas processing plant in Permian Midland (the “East Pembrook plant”). The East Pembrook plant is expected to begin operations in the second quarter of 2026.
Current wording
East Pembrook plant, a 275 MMcf/d plant in Permian Midland (the “East Pembrook plant”), commenced operations late in the first quarter of 2026.
Previous wording
In November 2024, we announced the construction of a new 275 MMcf/d cryogenic natural gas processing plant in Permian Midland (the “East Driver plant”). The East Driver plant is expected to begin operations in the third quarter of 2026.
Current wording
East Driver plant, a 275 MMcf/d plant in Permian Midland (the “East Driver plant”), expected to begin operations in the third quarter of 2026.
Previous wording
In November 2025, we announced the construction of a new 275 MMcf/d cryogenic natural gas processing plant in Permian Delaware (the “Copperhead plant”). The Copperhead plant is expected to begin operations in the first quarter of 2027.
Current wording
Copperhead plant, a 275 MMcf/d plant in Permian Delaware (the “Copperhead plant”), expected to begin operations in the first quarter of 2027.
Previous wording
In September 2025, we announced the construction of a new 275 MMcf/d cryogenic natural gas processing plant in Permian Delaware (the “Yeti plant”). The Yeti plant is expected to begin operations in the third quarter of 2027.
Current wording
Yeti plant, a 275 MMcf/d plant in Permian Delaware (the “Yeti plant”), expected to begin operations in the third quarter of 2027.
Previous wording
In May 2024, we announced plans to construct a new 150 MBbl/d fractionation train in Mont Belvieu, Texas (“Train 11”). Train 11 is expected to begin operations in the second quarter of 2026.
Current wording
Our new 150 MBbl/d fractionation train additions include:
Previous wording
In February 2025, we announced an intra-Delaware Basin expansion of our Grand Prix pipeline system in Permian Delaware. The expansion is expected to begin operations in the second quarter of 2026.
Current wording
In February 2025, we announced an intra-Delaware Basin expansion of our NGL pipeline system, (“Delaware Express”) in Permian Delaware. The expansion is expected to begin operations in the second quarter of 2026.
Previous wording
In February 2025, we announced an expansion of our LPG export capabilities at our Galena Park Marine Terminal, to include the addition of a new pipeline from Mont Belvieu to Galena Park and additional refrigeration. Our effective export capacity will increase up to 19 MMBbl per month, depending upon the mix of propane and butane demand, vessel size and availability of supply, among other factors. The expansion is expected to be completed in the third quarter of 2027.
Current wording
In February 2025, we announced an expansion of our LPG export capabilities at our Galena Park Marine Terminal, (“the GPMT LPG Export Expansion”) to include the addition of a new pipeline from Mont Belvieu to Galena Park and additional refrigeration. Our effective export capacity will increase up to 19 MMBbl per month, depending upon the mix of propane and butane demand, vessel size and availability of supply, among other factors. The GPMT LPG Export Expansion is expected to be completed in the third quarter of 2027.
Previous wording
In November 2025, we announced the Forza Pipeline (“Forza”), a new 36-mile interstate natural gas pipeline in Permian Delaware that will connect our new and existing gas plants and enhance connectivity to the Waha hub. Forza will shortly file a certificate application with the Federal Energy Regulatory Commission and is expected to begin operations in the middle of 2028, pending receipt of necessary regulatory approvals.
Current wording
In November 2025, we announced the Forza Pipeline (“Forza”), a new 36-mile interstate natural gas pipeline in Permian Delaware that will connect our new and existing gas plants and enhance connectivity to the Waha hub. Forza filed a certificate application on December 3, 2025, with the FERC and, pending receipt of necessary regulatory approvals, is expected to begin operations in the middle of 2028.
Previous wording
On July 31, 2024, we entered into a joint venture (“Blackcomb Joint Venture”) to construct and operate the Blackcomb pipeline. The Blackcomb Joint Venture is owned 70.0% by WPC, 17.5% by Targa, and 12.5% by MPLX LP. WPC is a joint venture owned 50.6% by WhiteWater, 30.4% by MPLX LP, and 19.0% by Enbridge Inc. The Blackcomb pipeline is designed to transport up to 2.5 Bcf/d of natural gas through approximately 365 miles of 42-inch pipeline from the Permian Basin in West Texas to the Agua Dulce area in South Texas, and is expected to be in service in the second half of 2026, pending the receipt of customary regulatory and other approvals.
Current wording
In July 2024, we entered into a joint venture (“Blackcomb Joint Venture”) which will construct the Blackcomb pipeline designed to transport up to 2.5 Bcf/d of natural gas through approximately 365 miles of 42-inch pipeline from the Permian Basin in West Texas to the Agua Dulce area in South Texas. The Blackcomb pipeline is expected to be in service in the fourth quarter of 2026.
Previous wording
On April 3, 2025, WhiteWater announced the Blackcomb Joint Venture has reached a final investment decision to construct the Traverse pipeline. The bi-directional Traverse pipeline is designed to transport up to 2.5 Bcf/d of natural gas through approximately 160 miles of pipeline between Agua Dulce and the Katy area and is expected to be in service in 2027, pending the receipt of customary regulatory and other approvals. Both the Blackcomb and Traverse pipelines will be operated by an affiliate of WhiteWater.
Current wording
In April 2025, WhiteWater announced the Blackcomb Joint Venture reached a final investment decision to construct the Traverse pipeline, which is designed to transport up to 2.5 Bcf/d of natural gas through approximately 160 miles of pipeline between the Agua Dulce area and the Katy area. The Traverse pipeline is expected to be in service in mid-2027.
Previous wording
For additional information, see Note 4 – Joint Ventures and Acquisitions to our Consolidated Financial Statements.
Current wording
For additional information, see “Note 4 – Acquisitions and Joint Ventures” to our Consolidated Financial Statements.
Previous wording
For the three and nine months ended September 30, 2025, we repurchased 932,023 shares and 3,538,285 shares of our common stock at a weighted average per share price of $166.95 and $170.93 for a total net cost of $155.6 million and $604.8 million, respectively. As of September 30, 2025, there was $1,410.6 million remaining under the Share Repurchase Programs.
Current wording
For the three months ended March 31, 2026, we repurchased 227,801 shares of our common stock at a weighted average per share price of $241.43 for a total net cost of $55.0 million. As of March 31, 2026, there was $1,318.6 million remaining under the Share Repurchase Programs.
Previous wording
In April 2025, we declared an increase to our quarterly common dividend to $1.00 per common share, or $4.00 per common share annualized, effective for the first quarter of 2025.
Current wording
In April 2026, we declared an increase to our quarterly common dividend to $1.25 per common share, or $5.00 per common share annualized, effective for the first quarter of 2026.
Previous wording
In June 2025, we completed an underwritten public offering of (i) $750.0 million aggregate principal amount of our 4.900% Senior Unsecured Notes due 2030 (the “4.900% Notes due 2030”) and (ii) $750.0 million aggregate principal amount of our 5.650% Senior Unsecured Notes due 2036 (the “5.650% Notes due 2036”), resulting in net proceeds of approximately $1.5 billion. The 4.900% Notes due 2030 and 5.650% Notes due 2036 are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by our subsidiaries that guarantee the TRGP Revolver, so long as such subsidiary guarantors satisfy certain conditions. We used the net proceeds from the debt issuance to fund the redemption of all of the Partnership’s 6.500% Senior Unsecured Notes due 2027 (the “6.500% Notes due 2027”) in July 2025, and the remaining net proceeds for general corporate purposes, including to repay borrowings under the Commercial Paper Program.
Current wording
In March 2026, we completed an underwritten public offering of (i) $750.0 million aggregate principal amount of our 4.350% Senior Unsecured Notes due 2031 (the “4.350% Notes due 2031”) and (ii) $750.0 million aggregate principal amount of our 6.050% Senior Unsecured Notes due 2056 (the “6.050% Notes due 2056”) (collectively, the “March 2026 Senior Unsecured Notes”), resulting in net proceeds of approximately $1,483.2 million. The March 2026 Senior Unsecured Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by our subsidiaries that guarantee the TRGP Revolver, so long as such subsidiary guarantors satisfy certain conditions. We used the net proceeds from the debt issuance for general corporate purposes, including to reduce borrowings under the Commercial Paper Program.
Previous wording
As of September 30, 2025, Internal Revenue Service (the “IRS”) examinations are currently in process for the 2022 taxable year of certain wholly-owned and consolidated subsidiaries that are treated as partnerships for U.S. federal income tax purposes. We are responding to information requests from the IRS with respect to these audits. We do not expect there to be any audit adjustments that would materially change our taxable income. The IRS examinations for taxable years 2019 and 2020 of certain wholly-owned and consolidated subsidiaries that are treated as partnerships for U.S. federal income tax purposes were closed on September 16, 2025 with no change.
Current wording
As of March 31, 2026, examinations by the Internal Revenue Service (the “IRS”) are currently in process for the 2022 taxable year of certain wholly-owned and consolidated subsidiaries that are treated as partnerships for U.S. federal income tax purposes. We are responding to information requests from the IRS with respect to these audits. We do not expect there to be any audit adjustments that would materially change our taxable income.
Previous wording
The U.S. Department of the Treasury and the IRS have issued guidance on the application of the corporate alternative minimum tax (the “CAMT”), including proposed regulations issued in September 2024, which may be relied upon until final regulations are released. Based on our interpretation of the Inflation Reduction Act of 2022 (the “IRA”), the CAMT and related guidance, the impact from the One Big Beautiful Bill Act (the “OBBBA”), and several operational, economic, accounting and regulatory assumptions, we do not anticipate paying CAMT in the near term.
Current wording
The U.S. Department of the Treasury and the IRS have issued guidance on the application of the corporate alternative minimum tax (the “CAMT”), which is a 15% minimum tax imposed on certain financial income of “applicable corporations,” including proposed regulations issued in September 2024, which may be relied upon until final regulations are released. Based on our current interpretation of the Inflation Reduction Act of 2022 (the “IRA”), the CAMT and related guidance, the impact from the OBBBA, and several operational, economic, accounting and regulatory assumptions, we do not anticipate paying CAMT in the near term.
Previous wording
The following table and discussion summarize our consolidated results of operations for the periods indicated:
Current wording
The following table and discussion is a summary of our consolidated results of operations for the periods presented:
Previous wording
The increase in commodity sales reflected higher natural gas prices ($815.5 million), higher NGL volumes ($354.1 million) and the favorable impact of hedges ($17.8 million), partially offset by lower NGL and condensate prices ($318.1 million).
Current wording
The decrease in commodity sales reflected lower NGL, natural gas and condensate prices ($1,064.2 million), partially offset by higher NGL, natural gas and condensate volumes ($476.9 million) and the favorable impact of hedges ($47.5 million).
Previous wording
The increase in fees from midstream services was primarily due to higher gas gathering and processing fees and higher transportation and fractionation fees.
Current wording
The increase in fees from midstream services was primarily due to higher gas gathering and processing fees, partially offset by lower export volumes.
Previous wording
The increase in product purchases and fuel reflected higher natural gas prices and higher NGL volumes, partially offset by lower NGL prices.
Current wording
The decrease in product purchases and fuel reflected lower NGL and natural gas prices, partially offset by higher NGL and natural gas volumes.
Previous wording
The increase in depreciation and amortization expense was primarily due to the impact of system expansions on our asset base.
Current wording
The increase in depreciation and amortization expense was primarily due to the acquisition of certain assets in the Permian Basin and the impact of system expansions on our asset base.
Previous wording
The increase in interest expense, net, was primarily due to higher borrowings in 2025.
Current wording
The increase in interest expense, net, was primarily due to higher borrowings, partially offset by an increase in capitalized interest.
Previous wording
The increase in income tax (expense) benefit was primarily due to the increase in pre-tax book income and a decrease in income allocated to noncontrolling interest that is not taxable to the Company.
Current wording
The increase in income tax (expense) benefit was primarily due to the increase in pre-tax book income.
Previous wording
The premium on repurchase of noncontrolling interests, net of tax was due to the Badlands Transaction in 2025.
Current wording
The premium on repurchase of noncontrolling interests, net of tax was due to the Badlands Transaction in the first quarter of 2025.
Previous wording
Our operating margins by reportable segment are:
Current wording
The following table presents our operating margins by reportable segment:
Previous wording
The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes in the Permian, partially offset by lower volumes in other areas. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Roadrunner II plant during the second quarter of 2024, the Greenwood II plant during the fourth quarter of 2024, the Bull Moose plant during the first quarter of 2025, the Pembrook II plant during the third quarter of 2025, and continued strong producer activity.
Current wording
The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes in the Permian which drove higher fee-based margin, partially offset by lower commodity prices. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Pembrook II plant during the third quarter of 2025, the Bull Moose II plant during the fourth quarter of 2025, the Falcon II plant during the first quarter of 2026, continued strong producer activity and the acquisition of certain assets in the Permian Basin during the first quarter of 2026.
Previous wording
The increase in adjusted operating margin was due to higher pipeline transportation and fractionation margin, partially offset by lower marketing margin. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from our Permian Gathering and Processing systems, a full quarter of operation of Daytona NGL Pipeline which commenced operations during the third quarter of 2024, and the addition of Train 10 during the fourth quarter of 2024. Marketing margin decreased due to fewer optimization opportunities.
Current wording
The increase in adjusted operating margin was due to higher marketing margin and higher pipeline transportation and fractionation margin. Marketing margin increased due to greater optimization opportunities. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from our Permian Gathering and Processing systems.
Previous wording
Other contains the results of commodity derivative activity mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. We have entered into derivative instruments to hedge the commodity price associated with a portion of our future commodity purchases and sales and natural gas transportation basis risk within our Logistics and Transportation segment. See further details of our risk management program in “Item 3. – Quantitative and Qualitative Disclosures About Market Risk.”
Current wording
Other contains the unrealized mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. We have entered into derivative instruments to hedge the commodity price associated with a portion of our future commodity purchases and sales and natural gas transportation basis risk within our Logistics and Transportation segment. See further details of our risk management program in “Item 3. Quantitative and Qualitative Disclosures About Market Risk.”
Previous wording
As of September 30, 2025, inclusive of our consolidated joint venture accounts, we had $124.1 million of Cash and cash equivalents on our Consolidated Balance Sheets. On a consolidated basis, our main sources of liquidity and capital resources are internally generated cash flows from operations, borrowings under the TRGP Revolver, the Commercial Paper Program, the Securitization Facility, and access to debt and equity capital markets. We supplement these sources of liquidity with joint venture arrangements and proceeds from asset sales. Our exposure to adverse credit conditions includes our credit facilities, cash investments, hedging abilities, customer performance risks and counterparty performance risks.
Current wording
As of March 31, 2026, inclusive of our consolidated joint venture accounts, we had $100.1 million of Cash and cash equivalents on our Consolidated Balance Sheets. On a consolidated basis, our main sources of liquidity and capital resources are internally generated cash flows from operations, borrowings under the TRGP Revolver, the Commercial Paper Program, the Securitization Facility, and access to debt and equity capital markets. We have the ability to supplement these sources of liquidity with joint venture arrangements and proceeds from asset sales. Our exposure to adverse credit conditions includes our credit facilities, cash investments, hedging abilities, customer performance risks and counterparty performance risks.
Previous wording
A portion of our capital resources are allocated to letters of credit to satisfy certain counterparty credit requirements. As of September 30, 2025, we had $26.7 million in letters of credit outstanding under the TRGP Revolver. The letters of credit also reflect certain counterparties’ views of our financial condition and ability to satisfy our performance obligations, as well as commodity prices and other factors.
Current wording
A portion of our capital resources are allocated to letters of credit to satisfy certain counterparty credit requirements. As of March 31, 2026, we had $17.9 million in letters of credit outstanding under the TRGP Revolver. The letters of credit also reflect certain counterparties’ views of our financial condition and ability to satisfy our performance obligations, as well as commodity prices and other factors.
Previous wording
Working capital is the amount by which current assets exceed current liabilities. On a consolidated basis, at the end of any given month, accounts receivable and payable tied to commodity sales and purchases are relatively balanced, with receivables from customers being offset by plant settlements payable to producers. The factors that typically cause overall variability in our reported total working capital are: (i) our cash position; (ii) liquids inventory levels, which we closely manage, as well as liquids valuations; (iii) changes in payables and accruals related to major growth capital projects; (iv) changes in the fair value of the current portion of derivative contracts; (v) monthly swings in borrowings under the Securitization Facility; and (vi) major structural changes in our asset base or business operations, such as certain organic growth capital projects and acquisitions or divestitures.
Current wording
Working capital is the amount by which current assets exceed current liabilities. On a consolidated basis, at the end of any given month, accounts receivable and payable tied to commodity sales and purchases are relatively balanced, with receivables from customers being offset by plant settlements payable to producers. The factors that typically cause overall variability in our reported total working capital are: (i) our cash position; (ii) liquids inventory levels, which we closely manage, as well as liquids valuations; (iii) changes in payables and accruals related to major growth capital projects; (iv) changes in the fair value of the current portion of derivative contracts; (v) monthly swings in borrowings under the Securitization Facility and changes in other current debt balances; and (vi) major structural changes in our asset base or business operations, such as certain organic growth capital projects and acquisitions or divestitures.
Previous wording
Our working capital as of September 30, 2025 increased $208.7 million compared to December 31, 2024. The increase was primarily due to lower product purchases and fuel payables resulting from lower NGL and natural gas prices, a higher NGL inventory balance as well as lower interest payable and accrued liabilities, partially offset by a higher outstanding balance on the Securitization Facility and lower receivables resulting from lower NGL and natural gas prices.
Current wording
Our working capital as of March 31, 2026 increased $226.4 million compared to December 31, 2025. The increase was primarily due to the redemption of all of the Partnership’s 6.875% Notes due 2029, higher trade receivables resulting from higher natural gas and NGL prices and lower interest payable due to timing of interest payments. The increase was partially offset by a higher outstanding balance on the Securitization Facility, higher net liabilities for hedging activities, lower NGL inventory balance and higher payable balances due to capital spending on growth projects.
Previous wording
The increase in net cash provided by operating activities was primarily due to higher collections from customers resulting from increased revenues in 2025 compared to 2024, partially offset by an increase in payments for product purchases and fuel, operating costs and interest on debt. In addition, during 2024, we made a nonrecurring one-time payment associated with the Splitter Agreement.
Current wording
The decrease in net cash provided by operating activities was primarily due to lower collections from customers resulting from lower revenues in 2026 compared to 2025, as well as higher operating costs, payments for hedging activities, and interest on debt, partially offset by a decrease in payments for product purchases.
Previous wording
The increase in net cash used in investing activities was due to higher outlays for major growth capital projects in 2025 primarily related to construction activities and an increase in contributions to unconsolidated affiliates.
Current wording
The increase in net cash used in investing activities was primarily due to outlays for the Stakeholder Acquisition and higher outlays for major growth capital projects in 2026.
Previous wording
The change in net cash provided by (used in) financing activities was due to higher proceeds from debt financings in 2025, and lower distributions to noncontrolling interests subsequent to the CBF Acquisition in the fourth quarter of 2024 and the Badlands Transaction in the first quarter of 2025, partially offset by higher repurchases of noncontrolling interests due to the Badlands Transaction and higher dividends paid. The increase in cash flows from our debt activity was due to higher net borrowings of our senior unsecured notes in 2025 and higher net borrowings under the Securitization Facility, partially offset by lower net borrowings under the Commercial Paper Program. In addition, in 2024, we fully repaid the remaining balance outstanding under the $1.5 billion unsecured term loan facility.
Current wording
The change in net cash provided by (used in) financing activities was due to lower repurchases of noncontrolling interests primarily due to the Badlands Transaction in 2025 and lower repurchases of common stock, partially offset by lower borrowings of debt and higher dividends paid. The decrease in cash flows from our debt activity was due to the redemption of all of the Partnership’s 6.875% Notes due 2029 and lower proceeds from the issuance of our senior unsecured notes in 2026, partially offset by higher net borrowings under the Securitization Facility and the Commercial Paper Program.
Previous wording
In lieu of providing separate financial statements for the Obligated Group, we have presented the following supplemental summarized Combined Balance Sheet and Statement of Operations information for the Obligated Group based on Rule 13-01 of the SEC’s Regulation S-X. The composition of the Obligated Group changed in connection with our entry into the TRGP Revolver. As a result, the following supplemental summarized combined financial information of the Obligated Group appearing below supersedes such information appearing in our Annual Report.
Current wording
In lieu of providing separate financial statements for the Obligated Group, we have presented the following supplemental summarized Combined Balance Sheet and Statement of Operations information for the Obligated Group based on Rule 13-01 of the SEC’s Regulation S-X.
Previous wording
Summarized Combined Balance Sheet and Statement of Operations information for the Obligated Group as of the end of the most recent period presented follows:
Current wording
Summarized Combined Balance Sheet and Statement of Operations information for the Obligated Group as of the end of the most recent periods presented follows:
Previous wording
The following table details the dividends on common stock declared and/or paid by us for the nine months ended September 30, 2025:
Current wording
The following table details the dividends on common stock declared and/or paid by us for the three months ended March 31, 2026:
Previous wording
Growth capital expenditures, net of contributions from noncontrolling interests and including contributions to investments in unconsolidated affiliates, were $2,332.6 million and $2,180.4 million for the nine months ended September 30, 2025 and 2024.
Current wording
Growth capital expenditures, net of any reimbursements of project costs and contributions from noncontrolling interests, and including contributions to investments in unconsolidated affiliates, were $914.4 million and $594.5 million for the three months ended March 31, 2026 and 2025.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
In May 2023, our Board of Directors approved a $1.0 billion common share repurchase program (the “2023 Share Repurchase Program”). During the first quarter of 2025, we exhausted the 2023 Share Repurchase Program.
Previous report — wording carried elsewhere
In February 2025, we completed an underwritten public offering of (i) $1.0 billion aggregate principal amount of our 5.550% Senior Unsecured Notes due 2035 (the “5.550% Notes due 2035”) and (ii) $1.0 billion aggregate principal amount of our 6.125% Senior Unsecured Notes due 2055 (the “6.125% Notes due 2055”), resulting in net proceeds of approximately $2.0 billion. The 5.550% Notes due 2035 and 6.125% Notes due 2055 are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by our subsidiaries that guarantee the TRGP Revolver, so long as such subsidiary guarantors satisfy certain conditions. We used the net proceeds from the debt issuance to fund the Badlands Transaction and the remaining net proceeds for general corporate purposes, including to repay borrowings under our unsecured commercial paper note program (the “Commercial Paper Program”).
Previous report — wording carried elsewhere
In July 2025, the Partnership amended the $600.0 million accounts receivable securitization facility (the “Securitization Facility”) to, among other things, extend the facility termination date to August 31, 2026.
Previous report — wording carried elsewhere
See “—Results of Operations—By Reportable Segment” for additional information on a segment basis.
Previous report — wording carried elsewhere
The increase in depreciation and amortization expense was primarily due to the impact of system expansions on our asset base.
Previous report — wording carried elsewhere
The increase in income tax (expense) benefit was primarily due to the increase in pre-tax book income and a decrease in income allocated to noncontrolling interest that is not taxable to the Company.
Previous report — wording carried elsewhere
The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes in the Permian, partially offset by lower volumes in other areas. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Greenwood II plant during the fourth quarter of 2024, the Bull Moose plant during the first quarter of 2025, the Pembrook II plant during the third quarter of 2025, and continued strong producer activity.