The fourth quarter earnings release, along with the fourth quarter earnings supplement presentation for Targa Resources that accompany our call, are available on our website at targaresources.com in the investor section. 2025 was another exceptional year for Targa, with record volumes across our integrated footprint, which drove record financial performance. Permian volumes grew 11% for the year, an increase of more than 600 million cubic feet per day. Frac volumes increased more than 120,000 barrels per day, and we also had record LPG export volumes.
Our operational performance translated into a record $4.96 billion of Adjusted EBITDA, more than $800 million higher year-over-year. We are almost 2 months into 2026, and our momentum continues as we estimate another year of low double-digit Permian volume growth. Our expectations for 2026 are consistent with our previous commentary, and our outlook for 2027 and beyond has only improved. We had strong commercial success in the Permian in 2024 and 2025, adding several billion cubic feet per day of gas volumes over and above our existing volume growth from long-term acreage dedications.
Our best-in-class footprint generates significant growth opportunities as we continue to expand our system and bolt-on growth projects. This commercial success further adds to our long-term growth rate and gives us confidence in our capital program. Our returns on investment over the last several years have been best in class, and we're investing in the same types of projects that generated those attractive rates of return. So with this outlook for strong volume growth, we are announcing two new projects today.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EBITDA | FY2026 | $5.4-$5.6B (+11% at midpoint vs 2025) |
| Growth capital spending | FY2026 | ~$4.5B (increase) |
| Permian volume growth | FY2026 | low double-digit |
| Multi-year average growth capital (post-Speedway) | post-2027 | ~$2.5B annually (increase, reflecting ~3 plants/year vs 2) |
| Run-rate Adjusted EBITDA (post-Speedway) | post-2027 | over $6B |
| Metric | YoY | Note |
|---|---|---|
| Full-year Adjusted EBITDA | +20% (record $4.96B) | record financial and operational performance, plus ~$150M higher-than-expected marketing optimization |
| Full-year Permian volumes | +11% (>600 MMcf/d) | strong producer activity and continued drilling across the footprint |
| Q4 Permian volumes | +10% (record 6.65 Bcf/d) | strong producer activity continued across systems |
| Q4 Adjusted EBITDA | +5% sequentially ($1.34B) | higher system volumes and greater marketing optimization opportunities |
| Q4 LPG export volumes | -3% to -4% (13.5M bbl/month) | fog impacts, though up sequentially |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Permian volume growth outlook | low double-digit growth guided for 2026 at this time last year | another year of low double-digit growth in 2026; 2027 and beyond outlook improved | Improving |
| Elevated growth capital environment | ~$1.7B illustrative mid-cycle case (2024) | ~$2.5B post-Speedway, ~$4.5B in 2026 | Increasing |
| Commercial success / acreage dedications | strong commercial wins in 2024 | ~350,000 dedicated acres added plus Stakeholder and two bolt-on acquisitions in 2025 | Expanding |
| Waha pricing volatility | negative Waha pricing causing Q4 shut-ins | expected to remain volatile through much of 2026, improving as egress builds by year-end exit | Volatile near-term, improving long-term |
| Fee-based cash flow stability | — | greater than 90% fee-based; 30% commodity move = less than 2% EBITDA change | Stable |