Growth Project Update and 2026 Capital Outlook

To accommodate our customers’ continued growth plans and these new commercial agreements, Targa announced three new natural gas processing plants in the Permian Delaware, the Wrangler, Ranger and Ranger II plants, with aggregate capacity of ~825 million cubic feet per day (MMcf/d). The three new plant additions are expected to be in service in the first half of 2028 and we are evaluating up to five additional new processing plants to accommodate expected production growth in the area over the longer term. Targa is also evaluating the timing of an additional fractionation train in Mont Belvieu.

Targa also announced a new ~70-mile natural gas pipeline as part of our Bull Run residue system in the Permian Delaware ("Bull Run II"). The pipeline will provide natural gas takeaway from the new plant additions announced today to Waha and will be supported by take or pay commitments. Bull Run II is expected to begin operations in the first half of 2028.

We are updating our estimate for FY26 growth capital to ~$5.0B which incorporates expected investment in the new Delaware processing plants announced today, incremental associated field capital, and the Bull Run II natural gas pipeline. The new commercial success announced today adds long-term visibility to our growth, and we expect our plant, field and downstream infrastructure currently underway will be much needed to accommodate planned volume growth.