Strong Q2 Performance: Targa Resources reported adjusted EBITDA of $1.163 billion for Q2 2025, an 18% year-over-year increase attributed to record Permian volumes and higher margins across gathering and processing (G&P) and logistics and transportation (L&T) segments. This strong performance sets a solid foundation for continued growth in the latter half of the year.

Volume Growth and Capacity Expansion: The company achieved record natural gas inlet volumes averaging 6.3 billion cubic feet per day, a significant increase of 11% year-over-year. With ongoing expansions in processing infrastructure, like the Pembrook II plant and the upcoming Bull Run plants, Targa expects continued strong volume growth into 2026, potentially exceeding initial growth forecasts.

NGL Market Resilience: Despite concerns about NGL margin pressures and overcapacity in the market, Targa remains well-positioned due to its highly contracted LPG export capabilities. The firm asserts that ongoing demand for liquefied petroleum gases (LPGs) and their investments in infrastructure should sustain profitability.