Targa Resources signs 20-year midstream deal with ExxonMobil

Houston - Targa Resources Corp. and ExxonMobil have inked 20-year fee-based midstream agreements spanning the Permian Basin, a press release revealed. These agreements set the stage for shared interest in gathering and processing services within the region until 2046. The deal bolsters Targa's presence in the Permian Midland, extending existing agreements and adding new acreage dedicated to gathering and processing operations.

Three new natural gas processing plants - Wrangler, Ranger, and Ranger II - will collectively handle approximately 825 million cubic feet per day, with operational commencement in the first half of 2028. Targa is also mulling over up to five further processing plants in the Permian Delaware region. Additionally, a 70-mile natural gas pipeline, Bull Run II, will extend takeaway capacity to the Waha Hub, with operations expected to kick off in the first half of 2028.

The company has raised its full-year 2026 net growth capital estimate to around $5.0 billion, accounting for investments in the new Delaware processing plants, field capital, and the Bull Run II pipeline. Targa CEO Matt Meloy expressed excitement about the strengthened strategic partnership with ExxonMobil, anticipating the expansion to contribute to the company's robust growth trajectory for years to come.