Jeremy Tonet — Analyst, J.P. Morgan
Hi, good morning.
Will Byers — CFO, Targa Resources
Morning, Jeremy.
Matthew Meloy — CEO, Targa Resources
Good morning.
Jeremy Tonet — Analyst, J.P. Morgan
Just want to kind of start off with the outlook ahead for 2026. You've seen steady growth there, you know, double digits, whereas others in the industry, we've seen kind of some retrenchment in forward expectations. And just wondering if you could walk us through a bit more what's, you know, driving Targa resiliency in the growth outlook in 2026 and versus others, and I guess, what do you see post 2026, you know, that gives you confidence in, in future, you know, above average growth?
Matthew Meloy — CEO, Targa Resources
Yeah. Hey, thanks, Jeremy. I'll start, and then if Jen or Pat wanna jump in. You know, for us, it kind of starts with our largest footprint across both the Delaware and the Midland, our strong producer relationships, and just our existing customers that we have that have just continued to drill, you know, across our footprint. We've had a lot of commercial success as well in 2024 and 2025, which is kind of continuing to add to our already existing strong growth rate on existing dedicated acreage. So I think it's a combination of just existing customers continuing to drill and continuing to add to our footprint. You saw that with kind of our two bolt-on acquisitions and some of the larger projects we talked about in 2024, just continuing to add volumes for us. So 2026 looks very strong.
You know, we're pointing to low double digits, and that's really pretty similar to what, you know, we saw at this time last year when we kind of guided to that, to that growth rate for 2026. But all the commercial success we're having and just the activity we're seeing from our bottoms-up forecast from our producers is giving us, even, you know, I'd, I'd say we're more positive on 2027 and beyond, from, from, you know, what we see today.
Jeremy Tonet — Analyst, J.P. Morgan
More positive. That's great to hear. I think that might tie into my next question. When you talk about the $2.5 billion of CapEx, kind of like that mid-cycle, if you will, it's higher than before, and it has another plant, I think, than where you were before. Just wondering if you could, you know, bridge us through, you know, what the drivers are there, and is this an expectation of even better growth in versus what you thought before, which is what it sounds like?
Jen Kneale — President, Targa Resources
... Good morning, Jeremy. This is Jen. I think that what we wanted to do with that slide was really put on one page what we've been spending a lot of time talking to investors and potential investors about, which is really that next transformation for Targa. When our EBITDA is, as Matt said in his scripted remarks, over $6 billion once Speedway is online on an annualized basis, and as we think about growth from there, just the amount of free cash flow that we would be able to generate across the scenarios that we would consider to be reasonable for us, thinking about the, the future in terms of, call it, high to low, double-- high single-digit to low double-digit growth across our footprint.
So I think we're supported by all the growth that we have seen from our existing contracts over the last couple of years. And then, as we talked about on our February call last year, and then on this call, we've just had a ton of commercial success. So hats off to our commercial team, who, of course, are supported by our operations, but are just doing a really good job of identifying incremental opportunities for us to grow our already very large footprint. And as we think about the, what I'd call, sort of, multi-year average growth capital spend, post Speedway and post our LPG export project coming online, what we wanted to demonstrate is that, one, we're growing off a bigger base. So when we previously put that information out, we've now grown for the last two years at a pretty good clip.
So, one, it's just off a larger base, and that's why we're now saying it could be, call it, 2.5-3 plants of spending in there, and that requires incremental field and compression spending as well. And then there's also incremental spending for residue, which has become a bigger part of our business versus where we were 2 years ago. And also there's some carbon capture and other things. But I do think it's a really good indicator of just the amount of free cash flow we are going to be in position to generate as we get Speedway and our LPG export expansion completed, as those are really the two chunkiest projects that we have in our purview.
Jeremy Tonet — Analyst, J.P. Morgan
Got it. That's helpful. I'll leave it there.
Matthew Meloy — CEO, Targa Resources
Okay, thanks, Jeremy.
Theresa Chen — Analyst, Barclays
Good morning. I'd like to unpack that, 2027 plus inlet growth assumption, that high single digit to low double digit rate. How much of this growth is a result of growing with your producers per their plans? Are there key commodity price assumptions here that underlie this range? Is it contingent upon additional commercial wins or further tuck in M&A? Any color here would be great.
Matthew Meloy — CEO, Targa Resources
Yeah, sure. You know, and as we, you know, kind of look at our multi-year forecast, you know, we'll get bottoms up, you know, individual forecasts from our producers. And our larger independents and majors will typically get several years of forecast. Really, over the last 90, 100 and 180 days, we've continued to get revisions higher. And it's not just from one producer, it's from several producers. And I'd say that is more in the Delaware side than it is in the Midland. There's just kind of more activity and a more diverse customer set over there. So we're becoming the outlook is becoming stronger and stronger in the Delaware. You know, we announced another Delaware plant today and two long lead, you know, additional infrastructure for two long lead plants.
Both of those are likely to be in the Delaware, so that would make just a lot of infrastructure going in over there. And so that gives us just more confidence as we look to 2027, 2028, and even further out in our longer term growth outlook. And when I said, I think 2027 is gonna be stronger, it's. I would say it's gonna be stronger than what we previously had expected at this time last year. We're not commenting relative to 2026 or 2025 growth. It's just as we look out for multiple years, we see a stronger growth rate than where we sat at this time last year.
Theresa Chen — Analyst, Barclays
Understood. Thank you. And just looking at the results to date, so much of the momentum recently has been a result of commercial success executed a while ago and now coming to fruition, and it's a loaded term, given the competitive environment in which you operate. On a go-forward basis, how should we think about the durability of your commercial success and your ability to replicate it over time?
Matthew Meloy — CEO, Targa Resources
Well, I mean, I'd say what's great is, even if we don't have a significant amount more commercial success, we're gonna have really strong growth for years to come. If you just look at the millions of acres we have dedicated. So what we've done is we've just added to our existing, really robust growth profile from our existing customers, and we have a really good commercial team. And so if we can find a creative, either bolt-on acquisitions or step out projects, we'll continue to add to that. But I would say we don't need it to fill the plants up that we've announced, and we don't need it to continue to grow in the Permian. I think further commercial success would just be additive to the growth rate that we're looking on now.
Jen Kneale — President, Targa Resources
I'd just add, Teresa, we reach final investment decision on the projects that we move forward with based on the contracts that we have in hand. There isn't an assumption of future growth from contracts to be identified in the future or anything else. It's based on what is already executed and how we best position ourselves to service those already executed contracts as we move forward through time.
Theresa Chen — Analyst, Barclays
That's very clear. Thank you.
Matthew Meloy — CEO, Targa Resources
Okay, thank you.
John Mackay — Analyst, Goldman Sachs
Hey, guys. Thank you for the time. I think I'll pick up on this thread a little bit more. You know, you are, you know, it looks like you're pointing to continuing to effectively take share in the basin. I think Teresa kind of asked on this, but maybe I'll follow up. You know, are you guys still seeing the same level of margins you've seen historically? Or maybe more broadly, you can kind of talk about that, you know, margin per M trajectory you've been seeing. Thanks.
Jen Kneale — President, Targa Resources
... This is Jen. I think that, yes, you should expect that we will continue to be able to execute consistent with our track record as it relates to our returns. We've got excellent producers already under contract with long-term contracts, and I think we're doing a really good job of hopefully executing at a very high level for them. So it really all starts with our operations team, our engineering team, supply chain, getting all the assets that we need in hand that we can build so that we're in position to execute for our producers.
I really think it's some of our advantages around having the largest sour system in the Delaware, having the largest footprint across the entire Permian, that puts us in position, as Matt said, to be able to do step outs from a very economic perspective, from a capital perspective, and continue to generate returns, again, commensurate with the track record that we've been able to demonstrate. So this isn't us taking lower returns to continue to execute. I think it's really working very well with our producers to continue to show a track record of being in position with the assets they need to ensure that their volumes flow, and doing a really good job for them is what continues to put us in a really strong position.
That's operations all the way from the wellhead down to the water, and we're really proud of how well our team is continuing to execute.
John Mackay — Analyst, Goldman Sachs
That's absolutely clear. Thank you. Maybe just follow up is, you know, you guys are talking about a lot of gas here. Maybe just share your kind of medium and longer term view on Waha at this point. Thanks.
Bobby Muraro — Chief Commercial Officer, Targa Resources
This is Bobby. Yeah, I think we'll—we are excited. There's been a lot of public commentary about the pipes that are coming online later this year. We'll be excited to see those pipes come online, as well as others, further out the calendar in 2028. I think it's gonna be, you know, what it's been the last 10 years, which is gonna be, you know, a bumpy ride. As assets come online, we'll be in good shape on differentials, and then we'll fill those pipes up, and new ones will come online. So when you think about the medium and longer term, I think we see in our view more pipes coming after the ones that have already been announced.
But it'll be kind of the same oscillating mechanic where, you know, we fill up the pipes, basis gets rough, and then new pipes come online and fix it, and more people will have to underwrite more pipes going forward after the ones that have already been announced.
John Mackay — Analyst, Goldman Sachs
Sorry, just to make sure we're hearing you right. I guess your view right now is the current set of pipes coming should be mostly filled kind of as they come online. Thanks.
Bobby Muraro — Chief Commercial Officer, Targa Resources
I don't think that's right. I think they will fill up over time. I think they'll fill up probably up, you know, I'll say, faster than people expect at the end of the day, with the results we're seeing in the Permian from our customers. But it is a ramp over time. At the end of the day, the day you turn on a 2 or 2.5 Bcf pipe, there isn't all of a sudden 2 Bcf or 2.5 Bcf of new residue that day. So they do take a little bit of time to ramp up.
Maybe you see a little bit more this time with shut-ins that we've heard about in the Permian, on other systems, but at the end of the day, they will take time to ramp up, but it's just... It's the same thing every time. It's the same story, just a different year.
John Mackay — Analyst, Goldman Sachs
All right. That's clear. Appreciate the time. Thank you.
Bobby Muraro — Chief Commercial Officer, Targa Resources
Okay. Thank you.
Keith Stanley — Analyst, Wolfe Research
Hi, good morning. Just wanted to clarify, I think you said $150 million of upside from marketing last year. What are you assuming on marketing for this year relative to 2025? And what potential opportunities do you think there could be to capture this year?
Jen Kneale — President, Targa Resources
Morning, Keith. This is Jen. That's right. In our scripted comments, Will said that for 2025, we had about an extra $150 million of marketing benefits. I'd say that, consistent with what Bobby just answered, we believe that this is going to be a little bit of a bumpy ride as we move through 2026 around Waha pricing, particularly to the extent we have planned and/or unplanned maintenance from pipes that are taking Permian gas volumes out of the basin.
To the extent that that occurs, that will create additional marketing opportunities for us. We're largely focused on making sure that our producer volumes move. We're in an excellent position to do that. And so as you think about our 2026 guidance, I think consistent with our past practice, we're very conservative about how we forecast marketing gains. We've got, you know, call it a month and a half here, of the year where we have really good visibility, and then we've got the balance of the year where I think there could be some incremental opportunities, but we haven't factored that in in a material way.
Keith Stanley — Analyst, Wolfe Research
Got it. Thanks for that. And second one, it kind of following up on some of the earlier ones, but just taking the Delaware by itself, for example, you're building four plants now. You just said the long lead items for the next two plants are also in the Delaware, so that's six plants in the Delaware. How much of the growth outlook there would you attribute to the Delaware just booming versus Targa is taking market share or getting a disproportional amount of the market, given a competitive advantage?
Bobby Muraro — Chief Commercial Officer, Targa Resources
Yeah, I mean, you know, it's hard for us to really know how much is market share gains. I don't know what's happening, you know, on other systems as we look out several years. I'd say what we've seen from several of our producers, where we've had some underlying acreage dedications come back to us, come back to us with revisions to the upside. In one producer, it might be 50 million a day, it could be 40 million a day, it could be 150 million a day. We've had several of those over the last six months, which is just adding to our, our outlook. I would suspect others are having that on other systems as well. So it's a little hard for us to know how much is just total growth from the Delaware versus share gains.
We kinda learn a little bit about that in hindsight. I'd say-
... We're pretty aware of all the opportunities out there. We, we don't win everything. You know, I think we win our fair share, and we have really strong and active producers and just a lot of acreage already dedicated to us, and there's just a lot more activity on.
Jen Kneale — President, Targa Resources
I would just add that I think that the acreage that we have dedicated to us has shown a resiliency as well. As you've seen rig counts drop in the Delaware, I think we've had really good consistency as we've moved forward through the last couple of years, which we would expect to continue going forward. So some of it is also that we've gained market shares, rigs have dropped from other areas, but it's not necessarily that we've had a lot of adds to our acreage that is already existing. It's more that I think we've had just consistency and then just better results in that consistent activity on our acreage.
Keith Stanley — Analyst, Wolfe Research
Thank you.
Matthew Meloy — CEO, Targa Resources
Okay, thank you.
Manav Gupta — Analyst, UBS
Good morning. I wanted to ask you something, which is more of an upstream question, but two of your biggest customers are very actively talking about it. They're basically saying, "Look, our Permian recoveries are improving as we put more science into it, whether it's AI, whether it's lightweight proppants, whether it's surfactants." And so they're basically saying the Permian rates of returns are improving because our wells are performing better as more science is going into that. I'm just trying to understand, based on what you're seeing out there, are you also seeing that, that as you know more of these newer technologies are going into Permian, the well recovery is improving, which is obviously very positive for Targa?
Jen Kneale — President, Targa Resources
Good morning, Manav. I would just say that I think it's a combination of factors. It's, I think, really exciting for all of us to hear about the technological developments that our producer customers are making and their excitement about the implications for their improved efficiencies going forward and improved rates of return because of the success that they're having. I think that's part of what we're seeing. I think we're also seeing just the benefits of improving GORs in certain areas of operation. Frankly, just more gas coming out of wells than was forecasted as well, being a factor, too. So for us, I think it's a combination of factors. The technological developments and the impact on individual wells, I think we really have to look to our producer customers and what they are saying for the real commentary around that.
I think there's a variety of factors that are contributing to us seeing more gas coming out of wells than were previously forecasted.
Manav Gupta — Analyst, UBS
Perfect. Thank you. My quick follow-up is, you did announce 2 small bolt-on deals, very interesting opportunities. Can you help us understand those 2 a little better, how they came about and why they fit perfectly into Targa? Thank you.
Bobby Muraro — Chief Commercial Officer, Targa Resources
Yeah, this is Bobby. Both those acquisitions were from producers that we have really strong relationships with and have for a long period of time. And discussing their plans going forward and how they're going to work it, it seemed to make more sense for us to own those assets and build out the systems, and we're excited about it because it also gives us some assets in areas where we can go leverage and leverage the footprints and grab more acreage as we move through time. At the end of the day, it was kind of a testament to relationships we have with producers and working with them on a day-to-day basis to make sure they've got what they need to drill their wells and bring gas to us.
Manav Gupta — Analyst, UBS
Thank you so much, and congrats on a good quarter.
Matthew Meloy — CEO, Targa Resources
Thank you.
Jen Kneale — President, Targa Resources
Thank you.
Michael Blum — Analyst, Wells Fargo
Hey, good morning, everyone.
Michael Blum — Analyst, Wells Fargo
Maybe just, just to stay on the, the conversation around, growth and, and what's going on out in, in the Permian with your producers. I, I was wondering if you could talk a little bit more about slide 16, which references deeper zone development and maybe what your, your producers are seeing there and how that may be contributing to your, your robust outlook.
Matthew Meloy — CEO, Targa Resources
Yeah, you know, what we've seen is, I'd say, some early activity from some of our producers in that zone. So most of our growth is from traditional formations, traditional zones, but we are starting to see more activity from a number of our producers in the deeper zones. What we wanted to highlight is, as you look out over the longer term, this as the Barnett Woodford gets developed, it could add to our longer-term growth rate. Yeah, there's some piece of it. There's a little bit that's in 2026, and as you move out, there's some more potential as you go forward. But we kind of view that as more of an upside over the next several years that could get developed. And we're seeing more producers get active, and we've seen early well results be pretty positive there.
Michael Blum — Analyst, Wells Fargo
Okay, got it. And then, you know, just in light of the volatility we've seen at Waha, you know, the last few months and, you know, the marketing profits you captured in 2025. Can you just remind us how much open pipeline capacity you have to take advantage when spreads widen? And then, I guess on the flip side, in your prepared remarks, you said you're going to benefit as Waha prices improve. So can you just, again, there, just tell us, you know, A, how much direct Waha price exposure you have at this point, which at least I understand you hedge most of it. So just wanted to understand, you know, both sides of that coin. Thanks.
Matthew Meloy — CEO, Targa Resources
Yeah, hey Michael, so we have, I'd say, significant transport positions to multiple locations. And as Jen kind of talked about this earlier, it is for flow assurance for our customers to make sure we can get it out. Our primary concern is making sure our customers can produce the gas, and we can move that gas to market. So that's kind of where we start. Now, a lot of that does create a basis position for us. And so we have the opportunity when there is some price spread, to capture some of the differential on those transport positions. We do hedge a lot of that and try and reduce that risk over multiple years. We haven't outlined an exact amount of what that position is because it's frankly always changing, too. We're always hedging it.
We're always trying to just make sure we have transportation to multiple markets. It's a fluid number, but that is what you see from us is when you see weak prices and even some volume downside from shut-ins, we do have an offset in the transportation position. For us, longer term, I think we benefit more by having plenty of takeaway, higher Waha prices, because a lot of our contracts are fee-based, but also fee floors. And so when Waha is, you know, moves higher, and we have, you know, NGL prices around where they are, you could see us benefit from some upside from higher Waha prices. And I would say, I think we have more length there.
Just kind of that in-between area where we're not really benefiting from marketing and we have low prices, that's really how we guide and factor in our multi-year forecast, is in, you know, not being above the floors and not having a lot of marketing. To the extent it moves up or moves down, I'd say we have some upside, really, in either direction.
Michael Blum — Analyst, Wells Fargo
Got it. Thank you.
Matthew Meloy — CEO, Targa Resources
Okay, thank you.
Jean Ann Salisbury — Managing Director, BofA Securities
Hi, good morning. One kind of bear case, I guess, that I've heard is that you've seen ethane recovery go up pretty materially as Waha price has been distressed over the last year or two. Do you see any risk that once the Permian gas pipelines come on, Waha price is a little better, that that could be a headwind, at least a noticeable headwind, I suppose, to ethane recovery and therefore volume growth?
Matthew Meloy — CEO, Targa Resources
No, I mean, Permian is generally in recovery. You have to have a really significant dislocation. I mean, what we see when economics change is rejection out in other areas, whether you're in Mid-Continent or Rockies or a little further away. But generally speaking, Permian has been mostly in recovery, even in periods of, you know, kind of price dislocation. We've been in recovery, we'd expect to be in recovery, and that's, you know, how we have kind of baked it into our forecast.
Jean Ann Salisbury — Managing Director, BofA Securities
Great. Thanks.
Matthew Meloy — CEO, Targa Resources
Okay. Thank you.
AJ O'Donnell — Analyst, TPH
Morning, everyone. I was hoping I could just get a little bit more detail on the bridge on the new CapEx budget, the step up of $1.2 billion. Apologies if you-- if I missed this during the prepared, but curious if you could provide some detail on how much is being driven by the new plants and Frac Thirteen versus, you know, additional field capital compression for the legacy system and your recent acquisitions.
Jen Kneale — President, Targa Resources
Sure, AJ, this is Jen. I think that the easy items to bridge are the ones that you mentioned, right? You've got the Yeti Two plant in the Delaware, and you've got Frac Train Thirteen, and I think the cost of those are very much consistent with the costs that we've outlined before in terms of what a new plant or frac costs us. I think we also announced that we are ordering the long lead items for our next two plants in the Permian Delaware. You can assume that in our guidance, we've assumed that we move forward with those. Our general track record is we announce we're getting long lead items as we finalize location and some other key decisions, and then we move forward with the final investment decision. So you can assume that there's spending around that as well.
I think that we've also got a lot of field gathering and compression, gathering lines and compression spending, and that's both to service what I'd call kind of our core contracts already in place, and then incremental spending associated with the commercial success that Matt outlined in his commercial remarks, and we've got some hopefully pretty good information in our slides around our commercial success as well. I will say that we've also seen the lead times for items like pipe, compression, and even some power generation assets get longer. So part of this is also we need to accelerate our spending to be in position to ensure that we can handle the growth that we expect coming to us in 2027, 2028, and really beyond.
We're also just trying to make sure that we don't put ourselves in a position where we can't continue to provide exemplary service to our producers.
AJ O'Donnell — Analyst, TPH
Great. Thank you for that. And then maybe if I could just sneak one more in. Just overall basin, you know, thinking about some of the higher GORs that you outlined in your deck, and just kind of wondering from that context, you know, if we see, you know, overall basin Permian oil production flat in 2026, can you give us your latest updates on, you know, how you think overall rich gas production could trend in an environment like that, maybe exit to exit? Thanks.
Matthew Meloy — CEO, Targa Resources
Yeah, I mean, we've outlined, and in our investor presentation, we kind of talk about if crude is growing X, that means gas is going to grow Y, and then we've outperformed that. And so if you look at the latest forecast, you know, that we use, we're not necessarily saying it's right, but there's a 4% spread. It would suggest if crude is growing X, gas is going to grow 4% higher than crude. If you've looked at recently, it's maybe even a little bit higher than that, so maybe it's even potentially more than that. And then we've typically, over the last several years, have outperformed basin, so that would point to our growth rate being even higher than that.
So I think even in an environment where we have flat to modest crude growth, gas should grow higher from higher GORs and some of the zones that they're targeting, just are more gassy, and from our continued just strong performance, in the basin. So I think it points to really, you know, pretty strong growth outlook for us, even in a slow to modest growth for crude.
AJ O'Donnell — Analyst, TPH
Thank you for all the detail. Appreciate it.
Matthew Meloy — CEO, Targa Resources
Okay. Thank you.
Amit Sharma — Analyst, BMO Capital Markets
Hi, thanks for taking my question. Just one quick one for us. It looks like you guys had a nice sequential increase in fourth quarter export volumes, but it's about 3% or 4% lower than it was a year ago. So as we think about the additional export capacity coming online in 2027, is your confidence in growing kind of export volumes in tandem with that capacity kind of based on success you've had from your commercial commitments you've been able to secure already? Or is it somewhat kind of based on your forward view of kind of where the supply balance is headed in the national market? Thanks.
Ben Branstetter — Senior Vice President, Downstream Commercial, Targa Resources
Hey, this is Ben. We had a very nice fourth quarter on the exports, but we were impacted a little bit by fog there. And honestly, we're shaping up for a really nice first quarter as well. But as I think about how we view the export business, that's really part of our integrated value chain. And so as you see us announcing eight plants coming across the Permian, those are integrated molecules that are flowing through our pipe, our frac, and our export. And so we're really excited to have that export project coming online. You know, we remain generally very well contracted across the dock, and honestly, we're having as many conversations that we've ever had about long-term supply, kind of globally coming out of the Gulf Coast.
Amit Sharma — Analyst, BMO Capital Markets
Thank you.
Bobby Muraro — Chief Commercial Officer, Targa Resources
Okay, thank you.
Brandon Bingham — Analyst, Scotiabank
Hey, good morning. Thanks for taking the questions. Just wanted to touch on the EBITDA guidance for this year. Just especially where you came in in full year 2025 and just the recent strong performance track record here. Just wondering what it would take to see you come in at the higher end and what you kind of see as some of the various puts and takes there, and specifically thinking about the commentary around continuous volatility in Waha and what that might do for the year.
Jen Kneale — President, Targa Resources
Good morning, Brandon. This is Jen. I'd say that the range is based on a number of cases that we run. So as we think about what would get us to the upside, I think the two biggest variables there would be if we just have volume growth be stronger than we are currently forecasting, wells come online more quickly and/or more volumes come from wells than we are currently forecasting. That would certainly be something that would, I think, potentially drive us higher. And then the other one, I think you appropriately mentioned at the end of your question, which is we haven't factored in a lot of marketing gains, and that's across NGL gas and exports.
So to the extent that we are able to move more volumes across any of those and benefit more than we're currently forecasting, that would also drive us, I think, higher, to the higher end of the range.
Brandon Bingham — Analyst, Scotiabank
Okay, makes sense. And then just quickly wanted to go back. You mentioned in prepared remarks, a comment about kind of commodity price sensitivity. Just kind of wondering if you could maybe break that out between oil and NGLs and gas, especially, you know, you have a dollar budgeted for 2026 for Waha prices, but I think calendar 2027 is trading nearly 3x that. So just trying to think through over the near term as these pipes come online and, and just the commentary around Waha and what maybe some upside could look like as far as that's concerned, and, and how the sensitivity might change between the three commodities.
Jen Kneale — President, Targa Resources
I would just say that we are really well hedged as it relates to our equity volumes. So when you think about our direct price exposure, we're really well hedged. So the move higher in prices, we'd be a big beneficiary there if prices moved above our Fee Floor levels. We haven't described where our Fee Floors are, but we've been essentially below Fee Floors for the vast, vast majority of months over the last two years. So that would result in EBITDA being higher. I'd say that we've had a point of view that I think has worked well for us over the last couple of years, that we were going to have a lot of tightness in Waha pricing, and that's why you saw us hedge as much as we've hedged.
So I would say that when you think about the streams, probably have more exposure directly on our equity volumes to changes in natural gas liquids prices. But when you think about marketing opportunities in 2024 and 2025, we talked about the fact that because we do have a lot of transport to ensure our molecules flow, we have benefited from what we would call outsized marketing gains on the gas side the last couple of years. To the extent we see contango in the NGL markets, there we've got good opportunity to utilize our storage in Mont Belvieu to potentially be a beneficiary of that. We haven't really had that in some time, but we're sitting there with a really attractive position of assets if we do get those opportunities to be a beneficiary.
Brandon Bingham — Analyst, Scotiabank
Great. Really helpful. Thank you.
Jen Kneale — President, Targa Resources
Thanks.
Bobby Muraro — Chief Commercial Officer, Targa Resources
Okay. Thank you.
Jason Gabelman — Analyst, TD Cowen
Morning. Thanks for taking my questions. I wanted to ask about the downstream growth. You know, you don't, you don't really talk about much additional capital into the downstream part of the business after 2027, but it does look like, I guess, you'll be a bit short on Y-grade pipeline capacity. So how do you plan on managing those molecules as new fracs come online, later, this decade? And then any thoughts on additional fracs that you would need to build, beyond the one announced today?
Bobby Muraro — Chief Commercial Officer, Targa Resources
Yeah. Hey, Jason. You know, I think as we look at our downstream infrastructure, what we kind of talk about is, when we get into the back half of 2027, is having operating leverage and excess capacity on our NGL transportation once Speedway comes online, and then with building trains 11, 12, and 13, it should put us in a nice, balanced position of having some excess capacity, but not too much on the frac side. So I think we'll be pretty well balanced on the frac side, and we'll have some capacity on the transport side when Speedway comes up. And as we're expanding our export facility, that should create some nice operating leverage for us as well, as there's, you know, significant available capacity with LPG 4 when it comes up.
As we're growing and these volumes are ramping, it will provide some period of time before we'll need another expansion on the export dock. So I think with our downstream side, the reason we're pointing to a little bit lower CapEx post 2027 is we're gonna have some operating leverage kind of through the footprint on the downstream side.
Ben Branstetter — Senior Vice President, Downstream Commercial, Targa Resources
But the elastic-
Matthew Meloy — CEO, Targa Resources
Okay.
Ben Branstetter — Senior Vice President, Downstream Commercial, Targa Resources
case that we put out there talks about additional potential fracs and those numbers.
Matthew Meloy — CEO, Targa Resources
Right.
Ben Branstetter — Senior Vice President, Downstream Commercial, Targa Resources
-as well as other downstream complementary assets, just not the bigger transport or frac or export.
Matthew Meloy — CEO, Targa Resources
Yeah. Yeah, that's right. So then as you go forward, post 2027, it's really ratable fracs will be the large piece of the downstream spend.
Jason Gabelman — Analyst, TD Cowen
Got it,
Speaker — Company Representative, Targa Resources
I'd just add for a bridge for you is this: remember, we have multiple medium-term flexible offloads in place right now, as you see Grand Prix running full, and that ramps into when Speedway comes on in the third quarter of 2027, a base load of volumes to drive it at just, you know, very good project returns.
Jason Gabelman — Analyst, TD Cowen
Got it. Thanks. My quick follow-up is just on Speedway CapEx. Can you remind us how much of that is concentrated in 2026 versus how much spend will be left in 2027?
Jen Kneale — President, Targa Resources
Total project cost is $1.6 billion. I'd say we had a pretty good amount of spending on it in 2025. Spending in 2026 is more, and then we'll just be finishing it up in 2027. So we haven't broken out the cost publicly by year, but I'd say spending this year is more than it was last year, and then call it the balance of that will probably look more like 2026 than 2025 and 2027 as we finish up that project.
Jason Gabelman — Analyst, TD Cowen
Thank you.
Matthew Meloy — CEO, Targa Resources
Okay, thank you.
Sunil Sibal — Analyst, Seaport Global
Yeah, hi, good morning, everybody, and thanks for the time this morning. So I wanted to start off on the L&T segment. Seems like, you know, operating costs have been trending pretty low there. I was kind of curious if there is any kind of, you know, one-time factors which have helped you in 2025, or is that more of a secular trend in terms of operating cost control?
Jen Kneale — President, Targa Resources
I think that their costs are really consistent with volumes moving through the system and when we bring new assets online. Any of the lumpiness that you see is really around when we've got turnarounds, and I think we do a really good job of disclosing that. So as you look quarter to quarter, that is what may, might be creating some of the variability that you're talking about, Sunil.
Sunil Sibal — Analyst, Seaport Global
Okay, thanks for that. Then, obviously, good to see more acreage dedications coming to Targa. I was curious, you know, when you think about all the acreage dedications you have in Permian, is there a good way to think about that total amount of acreage dedications versus, you know, your current volume rate, essentially, you know, your inventory of volumes versus your current rates? Is there a kind of good way to think about that metric?
Matthew Meloy — CEO, Targa Resources
Yeah, I'm sorry. I don't know that I followed that. Do you think you-- Could you say it again?
Sunil Sibal — Analyst, Seaport Global
Yeah, I was curious, you know, with all the acreage dedications that you are growing, is there a way for us to think about the total inventory of volumes that you have, or that you are building because of the virtue of the acreage dedication versus the current volumes that you are moving on your systems?
Jen Kneale — President, Targa Resources
Sunil, this is Jen. I think that part of why we describe the incremental acreage dedications and with the bolt-on transactions, the very large area of mutual interest that is now dedicated to us, is just really highlighting the fact that there is decades of drilling inventory on acreage that is already dedicated to Targa. So it goes a little bit back to some of Matt's earlier comments in Q&A, that we are just sitting in a really strong position. We don't need to continue to execute commercially, but I know we've got the best commercial guys that are continuing to work day in and day out for their producers and for new producers. So we would expect to continue to add to that.
Even if we didn't, we've got decades of really attractive inventory on our system, and that's necessitating the infrastructure that we are putting in place today. That's really what is continuing to support this view that Targa has an exceptional, strong, medium, and long-term outlook.
Sunil Sibal — Analyst, Seaport Global
Okay. Thanks for that.
Matthew Meloy — CEO, Targa Resources
Okay, thank you.
Tristan Richardson — VP of Investor Relations and Fundamentals, Targa Resources
Thanks, Liz. Thanks to everyone for joining the call this morning. We appreciate your interest in Targa Resources.