The first quarter earnings release, a supplement pre-presentation, and our latest investor presentation are available in the investor section of our website at targaresources.com. We had record first quarter adjusted EBITDA, Permian volumes, and NGL fractionation volumes despite the impacts of severe winter weather and periodic producer shut-ins from weak Waha gas prices. The efforts by the Targa team supported another record quarter and strong start to the second quarter. The short, medium, and long-term outlook for Targa growth has continued to improve.
A track record of constructing Permian gas processing plants on time or early. Our LPG export facilities, which we are expanding our capacity to more than 19 million barrels per month, timed very well for the increase in demand for long-term LPG export contracts. This track record of execution is a credit to our best-in-class engineering and operations teams and to our commercial team for continuing to identify attractive opportunities to grow our footprint. This increase highlights Targa's strength and the durability of our business across environments.
While it is difficult to predict with precision how producers are managing egress constraints in the short term, we continue to feel good about our low double-digit Permian volume growth estimate for 2026. We are also continuing to execute on our major projects along our Permian footprint to accommodate the growth from our customers. Additionally, we expect WACOM, a natural gas pipeline in which we have an equity interest, will provide much-needed egress relief for the Permian when in service in the fourth quarter of this year. Shifting to our Logistics and Transportation segment, Targa's NGL pipeline transportation volumes averaged 1.02 million barrels per day, and fractionation volumes averaged a record 1.145 million barrels per day during the first quarter.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year 2026 adjusted EBITDA | FY2026 | $5.7B-$5.9B (+$300M at midpoint) |
| Net growth capital | FY2026 | ~$4.5B (No change despite two new plants) |
| Net maintenance capital | FY2026 | $250M (No change) |
| Permian volume growth | FY2026 | Low double-digit growth (Reaffirmed) |
| Metric | YoY | Note |
|---|---|---|
| Adjusted EBITDA | — | Record $1.4B, up 5% sequentially on Permian acquisition contributions and marketing optimization, partially offset by winter weather |
| Permian natural gas inlet volumes | Record | Acquisition integration plus strong producer activity, partly offset by weather and shut-ins |
| NGL fractionation volumes | Record (1.145 MMbbl/d) | Strong underlying fundamentals, impacted by weather and shut-ins but rebounded |
| Common dividend | +25% | Increasing return of capital to shareholders |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Waha gas prices / Permian egress constraints | — | Tight basis driving producer shut-ins; relief expected late 2026 as GCX expansion, Blackcomb, Hugh Brinson, and WACOM come online | Worsening near-term, improving by year-end |
| LPG export demand | — | Higher butane demand after Iran/Middle East conflict; record second-quarter loadings expected; more multi-year contract inbounds than ever | Strengthening |
| Project execution cadence | — | 27 major projects online on time or early over six years; six Permian plants under construction; two new plants announced | Accelerating |
| Marketing/optimization | Modest gains assumed in February guidance | Material gas marketing opportunities expected until egress added; still conservatively forecast for back half | Stronger than initial guidance |