# Targa Resources Corp. (TRGP)

Informational only - not investment advice.

CIK: 0001389170
SIC: 4922 Natural Gas Transmission
SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [Electric, Gas, And Sanitary Services](/major-group/49/) > [SIC 4922 Natural Gas Transmission](/industry/4922/)
Latest 10-K filed: 2026-02-19
SEC page: https://www.sec.gov/edgar/browse/?CIK=1389170
Filing source: https://www.sec.gov/Archives/edgar/data/1389170/000119312526059296/trgp-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-19 · accession 0001193125-26-059296 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001389170.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 17,028,300,000 USD | 2025 | verified |
| Net income | 1,923,000,000 USD | 2025 | verified |
| Assets | 25,218,400,000 USD | 2025 | verified |
| Free cash flow | 584,100,000 USD | 2025 | computed |
| Net margin | 11.29% | 2025 | computed |
| Operating margin | 19.56% | 2025 | computed |
| Revenue YoY | +3.95% | 2025 | computed |
| ROE | 62.68% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | TRGP | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 11.3% | 18.0% | 38 | 9 |
| Revenue growth | 3.9% | 13.8% | 0 | 9 |
| FCF margin | 3.4% | 8.4% | 0 | 9 |
| ROE | 62.7% | 15.1% | 100 | 8 |
| ROA | 7.6% | 4.4% | 100 | 9 |
| Liabilities / equity | 7.22 | 2.18 | 100 | 8 |
| Current ratio | 0.67 | 0.69 | 38 | 9 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 4922 Natural Gas Transmission, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 17028300000 | USD | 2025 | 2026-02-19 |
| Net income | 1923000000 | USD | 2025 | 2026-02-19 |
| Assets | 25218400000 | USD | 2025 | 2026-02-19 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001389170.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 5,586,700,000 | 8,814,900,000 | 10,484,000,000 | 8,671,100,000 | 8,260,300,000 | 16,949,800,000 | 20,929,800,000 | 16,060,300,000 | 16,381,500,000 | 17,028,300,000 |
| Net income | -187,300,000 | 54,000,000 | 1,600,000 | -209,200,000 | -1,553,900,000 | 71,200,000 | 1,195,500,000 | 1,345,900,000 | 1,312,000,000 | 1,923,000,000 |
| Operating income | 55,800,000 | -122,400,000 | 237,500,000 | 192,900,000 | -1,303,700,000 | 864,800,000 | 1,729,000,000 | 2,626,200,000 | 2,695,400,000 | 3,331,200,000 |
| Diluted EPS | -1.80 | -0.31 | -0.53 | -1.44 | -7.26 | -0.07 | 3.88 | 3.66 | 5.74 | 8.49 |
| Operating cash flow | 837,400,000 | 939,500,000 | 1,144,000,000 | 1,389,800,000 | 1,744,500,000 | 2,302,900,000 | 2,380,800,000 | 3,211,600,000 | 3,649,700,000 | 3,917,400,000 |
| Capital expenditures | 562,100,000 | 1,297,500,000 | 3,114,800,000 | 2,877,800,000 | 951,600,000 | 505,100,000 | 1,334,300,000 | 2,385,400,000 | 2,965,800,000 | 3,333,300,000 |
| Assets | 12,871,200,000 | 14,388,600,000 | 16,938,200,000 | 18,815,100,000 | 15,875,700,000 | 15,208,200,000 | 19,560,000,000 | 20,671,800,000 | 22,734,100,000 | 25,218,400,000 |
| Stockholders' equity | 5,248,600,000 | 6,160,300,000 | 6,079,400,000 | 4,920,800,000 | 2,653,900,000 | 2,011,800,000 | 2,665,700,000 | 2,739,700,000 | 2,592,400,000 | 3,067,900,000 |
| Cash and cash equivalents | 73,500,000 | 137,200,000 | 232,100,000 | 331,100,000 | 242,800,000 | 158,500,000 | 219,000,000 | 141,700,000 | 157,300,000 | 166,100,000 |
| Free cash flow | 275,300,000 | -358,000,000 | -1,970,800,000 | -1,488,000,000 | 792,900,000 | 1,797,800,000 | 1,046,500,000 | 826,200,000 | 683,900,000 | 584,100,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -3.35% | 0.61% | 0.02% | -2.41% | -18.81% | 0.42% | 5.71% | 8.38% | 8.01% | 11.29% |
| Operating margin | 1.00% | -1.39% | 2.27% | 2.22% | -15.78% | 5.10% | 8.26% | 16.35% | 16.45% | 19.56% |
| Return on equity | -3.57% | 0.88% | 0.03% | -4.25% | -58.55% | 3.54% | 44.85% | 49.13% | 50.61% | 62.68% |
| Return on assets | -1.46% | 0.38% | 0.01% | -1.11% | -9.79% | 0.47% | 6.11% | 6.51% | 5.77% | 7.63% |
| Liabilities / equity | 1.45 | 1.34 | 1.79 | 2.82 | 4.98 | 6.56 | 6.34 | 6.55 | 7.77 | 7.22 |
| Current ratio | 0.86 | 0.79 | 0.51 | 0.89 | 0.82 | 0.77 | 0.77 | 0.79 | 0.72 | 0.67 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/TRGP/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001389170.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.84 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.03 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.44 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 3,896,600,000 | 220,000,000 | 0.97 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 4,239,500,000 | 299,600,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 4,562,400,000 | 275,200,000 | 1.22 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 3,562,000,000 | 298,500,000 | 1.33 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 3,851,800,000 | 387,400,000 | 1.75 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 4,405,300,000 | 351,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 4,561,500,000 | 270,500,000 | 0.91 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 4,260,100,000 | 629,100,000 | 2.87 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 4,151,200,000 | 478,400,000 | 2.20 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 4,055,500,000 | 545,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 4,094,700,000 | 479,600,000 | 2.21 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 4,440,100,000 | 764,600,000 | 3.54 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from TRGP's latest 10-K: [/company/TRGP/business/](/company/TRGP/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from TRGP's latest 10-K: [/company/TRGP/risk-factors/](/company/TRGP/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1389170/000119312526337729/trgp-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our annual report on Form 10-K for the year ended December 31, 2025 (“Annual Report”), as well as the unaudited consolidated financial statements and notes hereto included in this quarterly report on Form 10-Q for the quarter ended June 30, 2026 (“Quarterly Report”).

Overview

Targa Resources Corp. (NYSE: TRGP) is a publicly traded Delaware corporation formed in October 2005. Targa is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. We own, operate, acquire, and develop a diversified portfolio of complementary domestic infrastructure assets.

Our Operations

We are engaged primarily in the business of:

•
gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas;

•
transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including services to LPG exporters; and

•
gathering, storing, terminaling, and purchasing and selling crude oil.

To provide these services, we operate in two primary segments: (i) Gathering and Processing, and (ii) Logistics and Transportation (also referred to as our Downstream Business).

Our Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast.

Our Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling, and marketing of NGLs and NGL products, including services to LPG exporters and certain natural gas supply and marketing activities in support of our other businesses. The Logistics and Transportation segment also includes our NGL pipeline system, which connects our gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with our Downstream facilities in Mont Belvieu, Texas. Our Downstream facilities are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana.

Other contains the unrealized mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges.

Recent Developments

In response to increasing production and to meet the infrastructure needs of producers and our downstream customers, our major expansion projects include the following:

Permian Basin Processing Expansions

Our new cryogenic natural gas processing plant additions include:

•
Falcon II plant, a 275 MMcf/d plant in Permian Delaware (the “Falcon II plant”), commenced operations in the first quarter of 2026.

•
East Pembrook plant, a 275 MMcf/d plant in Permian Midland (the “East Pembrook plant”), commenced operations late in the first quarter of 2026.

•
East Driver plant, a 275 MMcf/d plant in Permian Midland (the “East Driver plant”), commenced operations late in the second quarter of 2026.

29

•
Copperhead plant, a 275 MMcf/d plant in Permian Delaware (the “Copperhead plant”), expected to begin operations in the first quarter of 2027.

•
Yeti plant, a 275 MMcf/d plant in Permian Delaware (the “Yeti plant”), expected to begin operations in the third quarter of 2027.

•
Yeti II plant, a 275 MMcf/d plant in Permian Delaware (the “Yeti II plant”), expected to begin operations in the fourth quarter of 2027.

•
Roadrunner III plant, a 265 MMcf/d plant in Permian Delaware (the “Roadrunner III plant”), expected to begin operations in the first quarter of 2028.

•
Copperhead II plant, a 275 MMcf/d plant in Permian Delaware (the “Copperhead II plant”), expected to begin operations in the first quarter of 2028.

Fractionation Expansions

Our new 150 MBbl/d fractionation train additions include:

•
Train 11 in Mont Belvieu, Texas (“Train 11”), commenced operations in the second quarter of 2026.

•
Train 12 in Mont Belvieu, Texas (“Train 12”), expected to begin operations in the first quarter of 2027.

•
Train 13 in Mont Belvieu, Texas (“Train 13”), expected to begin operations in the first quarter of 2028.

NGL Pipeline Expansions

•
In February 2025, we announced an intra-Delaware Basin expansion of our NGL pipeline system, (“Delaware Express”) in Permian Delaware. The expansion commenced operations in the second quarter of 2026.

•
In September 2025, we announced plans to construct the Speedway NGL Pipeline (“Speedway”) which will transport NGLs from our existing assets and future plant additions in the Permian Basin to our fractionation and storage complex in Mont Belvieu, Texas. The project consists of approximately 500 miles of 30-inch diameter pipeline and associated infrastructure with an initial capacity of approximately 500 MBbl/d, expandable to 1,000 MBbl/d. Speedway is expected to begin operations in the third quarter of 2027.

LPG Export Expansion

•
In February 2025, we announced an expansion of our LPG export capabilities at our Galena Park Marine Terminal, (“the GPMT LPG Export Expansion”) to include the addition of a new pipeline from Mont Belvieu to Galena Park and additional refrigeration. Our effective export capacity will increase up to 19 MMBbl per month, depending upon the mix of propane and butane demand, vessel size and availability of supply, among other factors. The GPMT LPG Export Expansion is expected to be completed in the third quarter of 2027.

Natural Gas Pipelines

•
In August 2025, we announced a 43-mile extension of our Bull Run intrastate natural gas pipeline (the “Bull Run Extension”) to expand and enhance connectivity of our Permian Delaware system to the Waha hub in West Texas. The Bull Run Extension is expected to begin operations in the first quarter of 2027.

•
In September 2025, we announced a new 35-mile intrastate natural gas pipeline that will enhance connectivity across several of our plants in the Permian Midland and a 55-mile conversion of an existing Targa pipeline into natural gas service (together, “Buffalo Run”) that will connect our Permian Midland and Permian Delaware intra-basin natural gas systems. Buffalo Run is expected to be completed in stages and fully complete in early 2028.

•
In November 2025, we announced the Forza Pipeline (“Forza”), a new 36-mile interstate natural gas pipeline in Permian Delaware that will connect our new and existing gas plants and enhance connectivity to the Waha hub. Forza filed a certificate application on December 3, 2025, with the FERC and, pending receipt of necessary regulatory approvals, is expected to begin operations in the middle of 2028.

30

Acquisitions and Joint Ventures

•
In July 2024, we entered into a joint venture (“Blackcomb Joint Venture”) which will construct the Blackcomb pipeline designed to transport up to 2.5 Bcf/d of natural gas through approximately 365 miles of 42-inch pipeline from the Permian Basin in West Texas to the Agua Dulce area in South Texas. The Blackcomb pipeline is expected to be in service in the fourth quarter of 2026.

•
In April 2025, WhiteWater announced the Blackcomb Joint Venture reached a final investment decision to construct the Traverse pipeline, which is designed to transport up to 2.5 Bcf/d of natural gas through approximately 160 miles of pipeline between the Agua Dulce area and the Katy area. The Traverse pipeline is expected to be in service in mid-2027.

•
In January 2026, we completed the acquisition of all of the membership interests in Stakeholder Midstream, LLC for $1.25 billion in cash (the “Stakeholder Acquisition”). We acquired a portfolio of complementary Permian Basin midstream infrastructure assets which have been integrated into our Permian Delaware operations. The acquisition had an effective date of January 1, 2026.

For additional information, see “Note 4 – Acquisitions and Joint Ventures” to our Consolidated Financial Statements.

Capital Allocation

In July 2024, our Board of Directors approved a $1.0 billion common share repurchase program (the “2024 Share Repurchase Program”). In addition, in August 2025, our Board of Directors approved a new $1.0 billion common share repurchase program (the “2025 Share Repurchase Program” and, together with the 2024 Share Repurchase Program, the “Share Repurchase Programs”). We are not obligated to repurchase any specific dollar amount or number of shares under the Share Repurchase Programs and may discontinue these programs at any time.

For the three and six months ended June 30, 2026, we repurchased 308,102 shares and 535,903 shares of our common stock at a weighted average per share price of $259.93 and $252.07 for a total net cost of $80.1 million and $135.1 million, respectively. As of June 30, 2026, there was $1,238.5 million remaining under the Share Repurchase Programs.

In April 2026, we declared an increase to our quarterly common dividend to $1.25 per common share, or $5.00 per common share annualized, effective for the first quarter of 2026.

Financing Activities

In January 2026, we used $650.0 million in borrowings from our Commercial Paper Program and $600.0 million from our Securitization Facility to fund the Stakeholder Acquisition.

In January 2026, we completed the redemption of all of the Partnership’s 6.875% Senior Unsecured Notes due 2029 (the “Partnership’s 6.875% Notes due 2029”) and recognized a debt extinguishment loss of $10.1 million, comprised of $7.8 million related to the redemption premium paid and $2.3 million from the write-off of debt issuance costs.

In March 2026, we completed an underwritten public offering of (i) $750.0 million aggregate principal amount of our 4.350% Senior Unsecured Notes due 2031 (the “4.350% Notes due 2031”) and (ii) $750.0 million aggregate principal amount of our 6.050% Senior Unsecured Notes due 2056 (the “6.050% Notes due 2056”) (collectively, the “March 2026 Senior Unsecured Notes”), resulting in net proceeds of approximately $1,483.2 million. The March 2026 Senior Unsecured Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by our subsidiaries that guarantee the TRGP Revolver, so long as such subsidiary guarantors satisfy certain conditions. We used the net proceeds from the debt issuance for general corporate purposes, including to reduce borrowings under the Commercial Paper Program.

In July 2026, the Partnership amended the accounts receivable securitization facility (the “Securitization Facility”) to, among other things, extend the facility termination date to July 30, 2027. Additionally, the total capacity of the Securitization Facility increased from up to $600 million to up to $800 million of borrowing capacity, which is comprised of a committed line of up to $600 million and an uncommitted line of up to $200 million. Availability under the Securitization Facility is subject to the value of the underlying receivables.

For additional information about our recent debt-related transactions, see “Note 7 – Debt Obligations” to our Consolidated Financ

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1389170/000119312526059296/trgp-20251231.htm
Complete FY 2025 MD&A: /company/TRGP/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-19
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the notes included in Part IV of this Annual Report. Additional sections in this Annual Report should be helpful to the reading of our discussion and analysis, including the following: (i) a description of our business strategy found in “Item 1. Business–Overview”; (ii) a description of recent developments, found in “Item 1. Business–Recent Developments”; and (iii) a description of risk factors affecting us and our business, found in “Item 1A. Risk Factors.” Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Annual Report can be found in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2024.

General Trends and Outlook

We expect our results of operations to continue to be affected by the following key trends: commodity prices, volume throughput and demand for our products and services, contract terms and mix, the impact of our hedging activities, the cost to operate and support assets, volatile capital markets and competition. These expectations are based on assumptions made by us and information currently available to us. To the extent our underlying assumptions about or interpretations of available information prove to be incorrect, our actual results may vary materially from our expected results.

Commodity Prices

There has been, and we believe there will continue to be, volatility in commodity prices and in the relationships among natural gas, NGL and crude oil prices. The volatility and uncertainty of natural gas, NGL and crude oil prices impact drilling, completion and other investment decisions by producers and ultimately supply to our systems. See “Item 1A. Risk Factors – Our cash flow is affected by supply and demand for natural gas, NGL products, and crude oil, and by natural gas, NGL, crude oil and condensate prices, and decreases in supply, demand or these prices could adversely affect our results of operations and financial condition.”

Our operating income generally improves in an environment of higher natural gas, NGL and condensate prices. Our processing profitability is largely dependent upon pricing and the supply of and market demand for natural gas, NGLs and condensate, both of which are beyond our control. In a declining commodity price environment, without taking into account our hedges, we will realize a reduction in cash flows under our percent-of-proceeds contracts proportionate to average price declines. While we have a significant level of margin that we derive from fee-based arrangements across our operations and particularly for our assets in the Downstream Business, our contract mix, along with our commodity hedging program, serves to mitigate the impact of commodity price movements on our cash flows. For additional information regarding our hedging activities, see “Item 7A. Quantitative and Qualitative Disclosures about Market Risk — Commodity Price Risk.”

The following table presents selected average annual and quarterly industry index prices for natural gas, selected NGL products and crude oil for the periods presented:

[[GREPCENT_TABLE]]
[["","Natural Gas $/MMBtu (1)","","","Illustrative Targa NGL $/gal (2)","","","Crude Oil $/Bbl (3)"],["2025"],["4th Quarter","$","3.55","","","$","0.56","","","$","59.95"],["3rd Quarter","","3.07","","","","0.57","","","","65.35"],["2nd Quarter","","3.44","","","","0.61","","","","65.04"],["1st Quarter","","3.66","","","","0.70","","","","71.96"],["2025 Average","","3.43","","","","0.61","","","","65.58"],["2024"],["4th Quarter","$","2.80","","","$","0.65","","","$","69.40"],["3rd Quarter","","2.16","","","","0.59","","","","78.71"],["2nd Quarter","","1.89","","","","0.61","","","","79.97"],["1st Quarter","","2.24","","","","0.65","","","","75.61"],["2024 Average","","2.27","","","","0.63","","","","75.92"]]
[[/GREPCENT_TABLE]]

(1)
Natural gas prices are based on average first of month prices from Henry Hub Inside FERC commercial index prices.

(2)
“Illustrative Targa NGL” pricing is weighted using average quarterly prices from Mont Belvieu Non-TET monthly commercial index and represents the following composition for the periods noted:

2025: 44% ethane, 32% propane, 11% normal butane, 4% isobutane and 9% natural gasoline

2024: 44% ethane, 32% propane, 11% normal butane, 4% isobutane and 9% natural gasoline

(3)
Crude oil prices are based on average quarterly prices of West Texas Intermediate crude oil as measured on the NYMEX.

53

Volumes and Demand for our Services

Fluctuations in energy prices can greatly affect production rates and investments by third parties in the development and production of new oil and natural gas reserves. Our operations are affected by the level of crude, natural gas and NGL prices, the relationship among these prices and related activity levels from our customers. In our gathering and processing operations, plant inlet volumes, crude oil volumes and capacity utilization rates generally are driven by wellhead production and our competitive and contractual position on a regional basis and more broadly by the impact of prices for crude oil, natural gas and NGLs on exploration and production activity in the areas of our operations. Drilling and production activity generally decreases as crude oil and natural gas prices decrease below commercially acceptable levels. Producers generally focus their drilling activity on certain basins depending on commodity price fundamentals. Our asset systems are predominantly located in some of the most economic basins in the United States.

The factors that impact the gathering and processing volumes also impact the total volumes that flow to our Downstream Business. Accordingly, increased producer activity will drive demand for our midstream services and may result in incremental growth capital expenditures. Demand for our transportation, fractionation and other fee-based services is largely correlated with producer activity levels. Demand for our international export, storage and terminaling services has remained relatively constant, as demand for these services is based on a number of domestic and international factors.

Contract Terms, Contract Mix and the Impact of Commodity Prices

Across our operations and particularly in our Downstream Business, we benefit from long-term fee-based arrangements for our services. Our Gathering and Processing segment contract mix also has components of fee-based margin, such as fee floors and other fee-based services which mitigate against low commodity prices. The significant level of margin we derive from fee-based arrangements combined with our hedging arrangements helps to mitigate our exposure to commodity price movements. Volatility in commodity prices can have a significant impact on our profitability, especially those percent-of-proceeds contracts that create direct exposure to changes in energy prices by paying us for gathering and processing services with a portion of proceeds from the commodities handled (“equity volumes”).

Contract terms in the Gathering and Processing segment are based upon a variety of factors, including natural gas and crude quality, geographic location, competitive dynamics and the pricing environment at the time the contract is executed, and customer requirements. Our gathering and processing contract mix and, accordingly, our exposure to crude, natural gas and NGL prices may change as a result of producer preferences, competition and changes in production as wells decline at different rates or are added, our expansion into regions where different types of contracts are more common and other market factors.

The contract terms and contract mix of our Downstream Business can also have a significant impact on our results of operations. Transportation and fractionation services are supported by fee-based contracts whose rates and terms are driven by NGL supply and transportation and fractionation capacity. Export services are supported by fee-based contracts whose rates and terms are driven by global LPG supply and demand fundamentals. The Logistics and Transportation segment includes predominantly fee-based contracts.

Impact of Our Commodity Price Hedging Activities

We have hedged the commodity price risk associated with a portion of our expected natural gas, NGL and condensate equity volumes, future commodity purchases and sales, and transportation basis risk by entering into financially settled derivative transactions. These transactions include swaps, futures, and purchased puts (or floors) and calls (or caps) to hedge additional expected equity commodity volumes without creating volumetric risk. We intend to continue managing our exposure to commodity prices in the future by entering into derivative transactions. We actively manage the Downstream Business product inventory and other working capital levels to reduce exposure to changing prices. For additional information regarding our hedging activities, see “Item 7A. Quantitative and Qualitative Disclosures About Market Risk–Commodity Price Risk.”

Operating Expenses

Variable costs such as service and repairs can impact our results. Continued expansion of existing assets will also give rise to additional operating expenses, which will affect our results. The employees supporting our operations are employees of Targa Resources LLC, a Delaware limited liability company, and a wholly-owned subsidiary of ours.

54

Volatile Capital Markets and Competition

We continuously consider and enter into discussions regarding potential growth projects and acquisitions and may contemplate external funding for potential growth projects and acquisitions. Any limitations on our access to capital may impair our ability to execute this strategy. If the cost of such capital becomes too expensive, our ability to develop or acquire strategic and accretive assets may be limited. We may not be able to raise the necessary funds on satisfactory terms, if at all. The primary factors influencing our cost of borrowing include interest rates, credit spreads, covenants, underwriting or loan origination fees and similar charges we pay to lenders. These factors may impair our ability to execute our growth and acquisition strategy.

Current economic conditions and competition for asset purchases and development opportunities could limit our ability to fully execute our growth strategy. Increased volatility in commodity prices and the broader market could negatively impact the ability of companies in the oil and gas industry to seek financing and access the capital markets on favorable terms or at all. We believe we have sufficient access to financial resources and liquidity necessary to meet our requirements for working capital, debt service payments and capital expenditures in 2026 and beyond. For additional information regarding our financing activities, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Our Liquidity and Capital Resources.”

How We Evaluate Our Operations

The profitability of our business is a function of the difference between: (i) the revenues we receive from our operations, including fee-based revenues from services and revenues from the natural gas, NGLs, crude oil and condensate we sell, and (ii) the costs associated with conducting our operations, including the costs of wellhead natural gas, crude oil and mixed NGLs that we purchase as well as operating, general and administrative costs and the impact of our commodity hedging activities. Because commodity price movements tend to impact both revenues and costs, increases or decreases

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/TRGP/mda/fy2025/
All MD&A years: /company/TRGP/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/TRGP/mda/fy2024/): filed 2025-02-20; accession 0000950170-25-023983 (https://www.sec.gov/Archives/edgar/data/1389170/000095017025023983/trgp-20241231.htm)
- [FY 2023 MD&A](/company/TRGP/mda/fy2023/): filed 2024-02-15; accession 0000950170-24-015841 (https://www.sec.gov/Archives/edgar/data/1389170/000095017024015841/trgp-20231231.htm)
- [FY 2022 MD&A](/company/TRGP/mda/fy2022/): filed 2023-02-22; accession 0000950170-23-003797 (https://www.sec.gov/Archives/edgar/data/1389170/000095017023003797/trgp-20221231.htm)
- [FY 2021 MD&A](/company/TRGP/mda/fy2021/): filed 2022-02-24; accession 0001564590-22-006563 (https://www.sec.gov/Archives/edgar/data/1389170/000156459022006563/trgp-10k_20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 4922 Natural Gas Transmission) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/TRGP.md · JSON record: /company/TRGP.json · verified financials: /company/TRGP/financials.json / /company/TRGP/financials.csv · machine TOC for the whole site: /llms.txt