Targa Resources Corp.
For the period ended Jun 30, 2026. Filed Aug 6, 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.
Jun 30, 2026 · Filed Aug 6, 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 2026-03-31; filed 2026-05-07.
0001193125-26-211698
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001193125-26-337729
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 181 previous paragraphs and 196 current paragraphs.
155 unchanged; 23 reworded; 9 added; 3 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 14 previous and 15 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 (9)
Current report
In July 2026, the Partnership amended the accounts receivable securitization facility (the “Securitization Facility”) to, among other things, extend the facility termination date to July 30, 2027. Additionally, the total capacity of the Securitization Facility increased from up to $600 million to up to $800 million of borrowing capacity, which is comprised of a committed line of up to $600 million and an uncommitted line of up to $200 million. Availability under the Securitization Facility is subject to the value of the underlying receivables.
Current report
Litigation and environmental reserves includes charges related to specific litigation and environmental compliance matters that are nonrecurring in nature and 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 these charges as we do not consider them reflective of our ongoing core operations.
Current report
Commodity sales were relatively flat due to lower natural gas prices ($784.8 million) and the unfavorable impact of hedges ($291.6 million), partially offset by higher NGL and condensate prices ($597.8 million) and higher NGL, natural gas and condensate volumes ($435.2 million).
Current report
The increase in other operating (income) expense was primarily due to lower asset abandonment costs.
Current report
The increase in operating expenses was primarily due to higher labor and maintenance costs, and taxes in part due to system expansions, partially offset by lower compressor rental costs.
Current 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, and lower asset abandonment costs.
Current report
The increase in operating expenses was primarily due to higher compensation and benefits including amounts related to system expansions.
Current report
The increase in operating expenses was primarily due to higher compensation and benefits including amounts related to system expansions.
Current report
The total borrowing capacity of the Securitization Facility increased to up to $800 million as part of the July 2026 amendment of the facility.
Removed paragraphs (3)
Previous 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.
Previous report
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 report
The increase in operating expenses was due to higher repairs and maintenance and higher compensation and benefits.
Reworded paragraphs (23)
Previous 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.
Current wording
East Driver plant, a 275 MMcf/d plant in Permian Midland (the “East Driver plant”), commenced operations late in the second quarter of 2026.
Previous wording
Train 11 in Mont Belvieu, Texas (“Train 11”), commenced operations early in the second quarter of 2026.
Current wording
Train 11 in Mont Belvieu, Texas (“Train 11”), commenced operations in the second quarter of 2026.
Previous 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.
Current wording
In February 2025, we announced an intra-Delaware Basin expansion of our NGL pipeline system, (“Delaware Express”) in Permian Delaware. The expansion commenced operations in the second quarter of 2026.
Previous 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.
Current wording
For the three and six months ended June 30, 2026, we repurchased 308,102 shares and 535,903 shares of our common stock at a weighted average per share price of $259.93 and $252.07 for a total net cost of $80.1 million and $135.1 million, respectively. As of June 30, 2026, there was $1,238.5 million remaining under the Share Repurchase Programs.
Previous wording
The increase in fees from midstream services was primarily due to higher gas gathering and processing fees, partially offset by lower export volumes.
Current wording
The increase in fees from midstream services was primarily due to higher gas gathering and processing fees, higher transportation and fractionation fees, and higher export volumes.
Previous wording
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 wording
The increase in operating expenses was primarily due to higher labor and maintenance costs in part due to system expansions, and the acquisition of certain assets in the Permian Basin, partially offset by lower compressor rental costs.
Previous 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.
Current wording
The increase in depreciation and amortization expense was primarily due to the acquisition of certain assets in the Permian Basin, higher amortization of right-of-use assets for finance leases, and the impact of system expansions on our asset base.
Previous 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).
Current wording
The decrease in commodity sales reflected lower natural gas and NGL prices ($1,309.2 million) and the unfavorable impact of hedges ($244.1 million), partially offset by higher NGL, natural gas and condensate volumes ($899.6 million) and higher condensate prices ($70.5 million).
Previous wording
The decrease in product purchases and fuel reflected lower NGL and natural gas prices, partially offset by higher NGL and natural gas volumes.
Current wording
The decrease in product purchases and fuel reflected lower natural gas and NGL prices, partially offset by higher NGL and natural gas volumes.
Previous wording
Average realized prices, net of fees, include the effect of realized commodity hedge gain/loss attributable to our equity volumes. The price is calculated using total commodity sales plus the hedge gain/loss as the numerator and total sales volume as the denominator, net of fees.
Current wording
Average realized prices, net of fees, include the effect of realized commodity hedge gain/loss attributable to our equity volumes. The price is calculated using total commodity sales plus the hedge gain/loss as the numerator and total sales volume as the denominator, net of fees. Negative realized natural gas prices during the second quarter of 2026 were a result of an extended period of negative Waha prices due to significant egress constraint in the Permian Basin.
Previous 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.
Current wording
The increase in adjusted operating margin was primarily due to higher natural gas inlet volumes in the Permian which drove higher fee-based margin, partially offset by lower natural gas 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, the East Pembrook plant during the second 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 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 wording
The increase in operating expenses was primarily due to higher volumes resulting from multiple plant additions 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 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.
Current wording
The increase in adjusted operating margin was due to higher marketing margin, higher pipeline transportation and fractionation margin and higher LPG export 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 and the addition of Train 11 early in the second quarter of 2026. LPG export margin increased due to higher volumes and fees.
Previous 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.
Current wording
As of June 30, 2026, inclusive of our consolidated joint venture accounts, we had $132.3 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
In July 2025, the Partnership amended the Securitization Facility to, among other things, extend the facility termination date to August 31, 2026.
Current wording
In July 2026, the Partnership amended the Securitization Facility to, among other things, extend the facility termination date to July 30, 2027. Additionally, the total capacity of the Securitization Facility increased from up to $600 million to up to $800 million of borrowing capacity, which is comprised of a committed line of up to $600 million and an uncommitted line of up to $200 million. Availability under the Securitization Facility is subject to the value of the underlying receivables.
Previous 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.
Current wording
Our working capital as of June 30, 2026 increased $402.1 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 and higher trade receivables, partially offset by a higher outstanding balance on the Securitization Facility, a higher payables balance due to capital spending on growth projects, a lower NGL inventory balance, and higher product purchases and fuel payables.
Previous 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.
Current wording
The increase in net cash provided by operating activities was primarily due to a decrease in payments for product purchases resulting from lower natural gas and NGL prices, partially offset by lower collections from customers resulting from lower revenues in 2026 compared to 2025, and higher payments for operating costs, hedging activities, and interest on debt.
Previous 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.
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 capital growth projects in 2026.
Previous 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.
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 proceeds from debt activity and by higher dividends paid. The decrease in cash flows from our debt activity during the six months ended June 30, 2026 as compared to the same period in 2025 was due to lower proceeds from the issuance of our senior unsecured notes in 2026 and the use of cash in January 2026 to redeem all of the Partnership’s 6.875% Notes due 2029, partially offset by higher proceeds from net borrowings under the Commercial Paper Program and the Securitization Facility.
Previous wording
The following table details the dividends on common stock declared and/or paid by us for the three months ended March 31, 2026:
Current wording
The following table details the dividends on common stock declared and/or paid by us for the six months ended June 30, 2026:
Previous 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.
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 $2,027.7 million and $1,479.6 million for the six months ended June 30, 2026 and 2025.
Previous wording
Maintenance capital expenditures, net of any reimbursements of project costs and contributions from noncontrolling interests, were $37.6 million and $47.3 million for the three months ended March 31, 2026 and 2025.
Current wording
Maintenance capital expenditures, net of any reimbursements of project costs and contributions from noncontrolling interests, were $90.0 million and $106.2 million for the six months ended June 30, 2026 and 2025.
Previous wording
As of March 31, 2026, there were $62.3 million in surety bonds outstanding related to various performance obligations. These are in place to support various performance obligations as required by (i) statutes within the regulatory jurisdictions where we operate and (ii) counterparty support. Obligations under these surety bonds are not normally called, as we typically comply with the underlying performance requirement.
Current wording
As of June 30, 2026, there were $64.1 million in surety bonds outstanding related to various performance obligations. These are in place to support various performance obligations as required by (i) statutes within the regulatory jurisdictions where we operate and (ii) counterparty support. Obligations under these surety bonds are not normally called, as we typically comply with the underlying performance requirement.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
The decrease in product purchases and fuel reflected lower natural gas prices, partially offset by higher NGL prices, and higher NGL and natural gas volumes.
Current report — wording carried from elsewhere
The increase in fees from midstream services was primarily due to higher gas gathering and processing fees, higher transportation and fractionation fees, and higher export volumes.
Current report — wording carried from elsewhere
See “—Results of Operations—By Reportable Segment” for additional information on a segment basis.
Current report — wording carried from elsewhere
The increase in depreciation and amortization expense was primarily due to the acquisition of certain assets in the Permian Basin, higher amortization of right-of-use assets for finance leases, and the impact of system expansions on our asset base.
Current report — wording carried from elsewhere
The increase in general and administrative expense was primarily due to higher compensation and benefits.
Current report — wording carried from elsewhere
The increase in income tax (expense) benefit was primarily due to the increase in pre-tax book income.
Current report — wording carried from elsewhere
The increase in adjusted operating margin was primarily due to higher natural gas inlet volumes in the Permian which drove higher fee-based margin, partially offset by lower natural gas and NGL 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, the East Pembrook plant during the second quarter of 2026, continued strong producer activity and the acquisition of certain assets in the Permian Basin during the first quarter of 2026.
Current report — wording carried from elsewhere
The increase in operating expenses was primarily due to higher volumes resulting from multiple plant additions and the acquisition of certain assets in the Permian Basin during the first quarter of 2026.
Current report — wording carried from elsewhere
The increase in adjusted operating margin was due to higher marketing margin, higher pipeline transportation and fractionation margin and higher LPG export 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 and the addition of Train 11 early in the second quarter of 2026. LPG export margin increased due to higher volumes and fees.