Marketing Supports Guide Increase; Strong Growth Trend Continues - 1Q26 Recap

Research evidence excerpt

Marketing Supports Guide Increase; Strong Growth Trend Continues - 1Q26 Recap

Midstream

Targa Resources

TD SECURITIES (USA) LLC EARNINGS UPDATE

May 11, 2026

Price: $248.12 (05/8/2026) Marketing Supports Guide Increase; Strong

Price Target: $245.00 (Prior $236.00) Growth Trend Continues - 1Q26 Recap

HOLD (2)

ESG SCORE: 57/100

Jason Gabelman THE TD COWEN INSIGHT

646 562 1309

TRGP beat and raised FY26 EBITDA on marketing. It baked-in marketing upside through May,

jason.gabelman@tdsecurities.com

implying potential for additional upside this year. It sanctioned two new processing plants for

Will Avila startup 1Q28, which bodes well for TRGP hitting its 3 plant/yr target. Permian volumes are in-

646 562 1344 line with guide, with current 250mmcf/d above 1Q levels, despite up to 0.4bcf/d shut-in due to

will.avila@tdsecurities.com

Waha prices.

Jeremy Meanwell

646 562 1374 Maintain Hold, Increase PT to $245

jeremy.meanwell@tdsecurities.com

TRGP increased FY26 EBITDA primarily on ytd marketing gains on Waha prices and lpg export

Key Data opportunities. It did not embed additional upside from these opportunities through the year.

Symbol NYSE: TRGP

We therefore see upside to TRGP EBITDA guide though at the same time acknowledge these

Beta: 0.74 opportunities may not persist in 2027. Separately, TRGP announced two new processing

52-Week Range: $260.08-$146.30 plants to come online 1Q28, boding well for adding another 3 plants that year, with potential

Market Cap: $53.3B for upside. The company noted Permian volumes trending in-line with forecast and current

Net Debt (MM): $19,628.2 volumes 0.3bcf/d above 1Q26 despite up to 0.3bcf/d shut-in due to Waha prices. We raise

Cash/Share: $1.22 FY26 EBITDA $0.3B and future EBITDA by $0.1B/yr on higher fee forecast. We increase our PT

Dil.