Targa Resources Q1 EBITDA Jumps 19% to $1.4B, Raises 2026 Outlook
Targa Resources posted Q1 2026 net income of $480M, up from $271M, and record adjusted EBITDA of $1.403B, a 19% annual gain. The company increased full-year adjusted EBITDA guidance to $5.7–$5.9B, raised its quarterly dividend by 25%, and repurchased $55M of shares.
1. Record Q1 Financial Results
Targa Resources reported first quarter 2026 net income of $480 million, up 77% from $271 million a year earlier, and record adjusted EBITDA of $1.403 billion, a 19% increase versus Q1 2025. Sequentially, adjusted EBITDA rose 5% from Q4 2025, driven by record Permian gathering and processing volumes and higher marketing margins.
2. Guidance Increase and Volume Milestones
The company raised its full-year 2026 adjusted EBITDA guidance to a range of $5.7–$5.9 billion, reflecting sustained operational strength. It achieved record Permian inlet volumes and fractionation throughput in the first quarter, underpinning the bullish outlook.
3. Dividend Hike and Share Repurchase
On April 16, 2026, Targa declared a quarterly cash dividend of $1.25 per share, a 25% increase from the prior year, for a total payout of approximately $268 million on May 15. During Q1, the company repurchased 227,801 shares for $55 million, leaving $1.319 billion of repurchase capacity.
4. Progress on Growth Projects
Targa completed start-up of its Falcon II and East Pembrook processing plants in the Permian and its Train 11 fractionator in Mont Belvieu in early 2026, and began commissioning the Delaware Express NGL pipeline expansion. It also announced two new Permian Delaware processing plants—Roadrunner III (265 MMcf/d) and Copperhead II (275 MMcf/d)—expected online by Q1 2028.