On August 6, Targa Resources Corp. (NYSE:TRGP) reported a record second quarter. Adjusted EBITDA reached $1.60 billion, a 38% jump from the same period a year earlier, and management now expects full-year results near the top of its guidance range. Targa moves and processes natural gas and natural gas liquids out of the Permian Basin, and these numbers suggest that system is running fuller than ever.
The strength came from volume, not just price. Adjusted EBITDA also climbed 14% from the first quarter, helped by Permian gas volumes that added over 450 million cubic feet of daily throughput. Some producers held back output because Waha gas prices went negative, and Targa still set a volume record.
Volumes for NGL pipelines, fractionation, and LPG exports also hit records, helped by Train 11, a new fractionator in Mont Belvieu, Texas, that started up early in the quarter. Construction is also landing on time. East Driver, a new processing plant serving the Midland side of the Permian, started up late in the quarter and ahead of schedule, and the other gathering and logistics projects are tracking their plans.
Shareholders get a cut too. On July 16, Targa declared a $1.25 per share quarterly dividend, 25% above the payout for the second quarter of 2025, payable August 14 to holders of record on July 31. It also spent $80 million buying back shares during the quarter.
Growth at this pace costs real money. Targa plans about $4.5 billion in net growth spending this year, and its consolidated debt stood at $19,578 million on June 30. About $3.2 billion of liquidity gives it a cushion.
In July, it also extended its receivables securitization facility to July 30, 2027 and raised the size to as much as $800 million. More borrowing capacity helps, but it is still borrowing. Not every dollar of the profit surge is as steady as a pipeline volume.
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