Targa Resources Corp. Q1 FY2026 earnings call

• Permian: Record natural gas inlet volumes driven by acquisition and producer activity, despite winter weather and shut-ins. Major projects underway, plants coming online early or on track. - Logistics and Transportation: NGL volumes impacted by winter but rebounded. Downstream projects in progress. - LPG Export: Loadings impacted by outage but rebounded, product mix shifting benefits dock space, demand for U.S. Gulf Coast LPGs high.

First quarter adjusted EBITDA was record. Permian volumes and NGL fractionation volumes were record. NGL pipeline transportation volumes averaged 1.02 million barrels per day and fractionation volumes averaged a record 1.145 million barrels per day during first quarter. LPG export loadings averaged 13.1 million barrels per month during first quarter.

• Increased 2026 adjusted EBITDA outlook to $5.7 - $5.9 billion, midpoint $300M higher than Feb. - Estimate net growth capital for 2026 ~$4.5B, net maintenance capital spending $250M. - Declared 1Q common dividend $1.25 per share, 25% increase from 2025, repurchased $55M in common shares.

Q: About Waha basis, impacts on basin and marketing uplift.

A: Jen responded on Waha basis tightness, GCX and other pipes coming online, conservative forecasting on optimization.

Q: On producer conversations and planned activities in light of higher prices and Middle East volatility.

A: Matt said continued strong producer activity, expected tailwinds with elevated prices.

Q: On LPG export dynamics and upside.

A: Ben talked about product mix shift, additional interest in butane volumes.

Q: On processing plant cadence and capacity.

A: Jen discussed producer activity and commercial team securing contracts dictating plant cadence.

Q: On guidance raise attribution to marketing and volume.

A: Jen said combination of factors, volume growth repeatable.

Q: On plants under construction and utilization.

A: Jen and Matt talked about capital efficiency, contracts in hand, commercial teams adding contracts.

Q: On Q2+ volume expectations and GOR trends.

A: Jen said forecasts based on longer term producer plans, GOR expected to be higher.

Q: On opportunistic M&A and non-Permian assets.

A: Jen said always looking at opportunities, open to monetizing assets.

Q: On guidance optimization outperformance and capital returns.

A: Matt and Will talked about potential upside in back half and return of capital strategy.

Q: On Q2 volume trend and sour gas volumes.

A: Jen quantified Q2 volume trend and expected sour gas volume ramp.

Q: On next year producer activity and plant early completion.

A: Jen talked about constructive producer activity outlook and plant early completion potential