Targa Resources and ExxonMobil Announce Long-Term Midstream Agreements
On August 17, Targa Resources (TRGP) and ExxonMobil (XOM) announced new 20-year midstream agreements covering natural gas gathering, processing, and downstream NGL transportation in the Delaware and Midland basins. The contracts extend through 2046 and include acreage dedications to support Exxon's growing production volumes. Targa is constructing three new Permian processing plants—Wrangler, Ranger, and Ranger II—which will add 825 million cubic feet per day of capacity by early 2028. The company also plans a Mont Belvieu fractionation train expansion and the ~70-mile Bull Run II residue gas pipeline. Financially, ExxonMobil reported $14.5 billion in net income for Q2 2026 with strong cash flow generation of $23.6 billion from operations. Targa Resources saw record revenue of $4.44 billion and a significant increase in Adjusted EBITDA to $1.603 billion, driven by its fee-based midstream model.
Topics: earnings comparison energy stocks ExxonMobil midstream agreements Targa Resources