Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Core S&P U.S. Growth ETF (Symbol: IUSG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $178.40 per unit.With IUSG trading at a recent price near $161.40 per unit, t ...

Core Viewpoint - Kayne Anderson Energy Infrastructure Fund, Inc. reported its financial position as of August 31, 2025, highlighting a strong net asset value and significant asset coverage ratios under the Investment Company Act of 1940 [1][2]. Financial Summary - The Company's net assets totaled $2.3 billion, with a net asset value per share of $13.82 as of August 31, 2025 [2]. - Total assets amounted to $3,234.7 million, which included investments of $3,223.1 million and cash and cash equivalents of $8.9 million [3]. - The asset coverage ratio for senior securities representing indebtedness was 723%, while the total leverage coverage ratio was 522% [2]. Liabilities Overview - Total liabilities were reported at $347.1 million, which included a credit facility of $50 million, notes of $350 million, and a deferred tax liability of $294.2 million [3]. Investment Composition - The Company had 169,126,038 common shares outstanding and invested primarily in Midstream Energy Companies (94%), with smaller allocations to Power Infrastructure (3%) and Other (3%) [5]. - The ten largest holdings included significant investments in companies such as The Williams Companies, Inc. ($344 million), Enterprise Products Partners L.P. ($327.1 million), and Energy Transfer LP ($323.8 million) [5]. Investment Objective - The Company aims to provide a high after-tax total return with a focus on cash distributions to stockholders, investing at least 80% of its total assets in securities of Energy Infrastructure Companies [7].

Core Viewpoint - Targa Resources Corp. has initiated an open season for non-binding bids for its Forza Pipeline Project, aimed at transporting natural gas to meet rising regional output, with a capacity of up to 750,000 dekatherms per day [1][9]. Group 1: Forza Pipeline Project Details - The Forza Pipeline Project will consist of 36 miles of new 36-inch pipeline and 43 miles of leased capacity on the Bull Run Pipeline extension, connecting gas processing plants to demand centers and downstream markets [3]. - The project is expected to be completed by mid-2028, subject to regulatory approvals and shipper commitments [3]. Group 2: Financial Implications - The open season for bids is crucial for Targa's long-term contracts for natural gas transportation, which will positively impact its earnings and cash flows [2]. - Contracts for the pipeline will have a minimum term of 10 years, with options for ramp-up volumes to align with production growth [4]. Group 3: Strategic Importance - The Forza Pipeline is a key component of Targa's broader expansion strategy in the Permian Basin, enhancing system redundancy, reliability, and competitive advantage while improving access to in-basin demand and major interstate markets [5]. Group 4: Company Overview - Targa Resources is a leading energy infrastructure company in North America, primarily generating revenue from gathering, compressing, treating, processing, and selling natural gas [6].

HOUSTON, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Targa Resources Corp. (NYSE: TRGP) (“Targa” or the “Company”) announced today the launch of a non-binding open season for its proposed Forza Pipeline Project (“Forza Project”), a new interstate natural gas pipeline that will support increasing natural gas production in the Delaware Basin in Southeast New Mexico. The open season begins at 8:00 a.m. Central Standard Time September 2, 2025, and is scheduled to end at 5:00 p.m. Central Standard Time on October 2, 2025 ...

Group 1 - Targa Resources (NYSE: TRGP) has experienced a moderate performance over the past year, with a stock price increase of 12% [1] - The stock has not recovered from its "Liberation Day losses," despite overall market recovery [1] Group 2 - The article reflects a contrarian investment approach based on macro views and stock-specific turnaround stories [1]

Core Insights - Targa Resources Corp. (TRGP) has outperformed its industry with a 12.9% stock gain over the past year, while the broader Oil-Energy sector declined by 1.9% [1][4] - The company is a leading player in the midstream energy sector, providing essential services across the natural gas and natural gas liquids (NGL) value chain [5] Performance Comparison - Other midstream companies like CrossAmerica Partners (CAPL) increased by only 1.8%, while Western Midstream Partners (WES) and Sunoco (SUN) saw declines of 1.2% and 1.7%, respectively [4] - TRGP's strong performance has attracted investor interest and discussions about its future potential [4] Growth Drivers - Targa Resources is positioned to benefit from growing global demand for NGLs and LPG exports, with its Galena Park terminal operating near full capacity [7] - The company plans to expand its LPG export capacity to approximately 19 million barrels per month by Q3 2027, capitalizing on long-term international demand growth [8] - Approximately 90% of TRGP's revenues come from fee-based contracts, providing stability against commodity price fluctuations [9] Capital Allocation and Tax Benefits - Targa Resources employs a disciplined capital allocation strategy, targeting a return of 40-50% of adjusted cash flow to shareholders through dividends and buybacks [10] - Recent tax legislation allows TRGP to defer cash tax payments beyond 2027, enhancing liquidity for growth projects [11] Market Position - Targa Resources is the largest gas processor in the Permian Basin, with a 17% CAGR in Permian volumes over the past five years, outpacing basin-wide production growth [12] Challenges and Risks - The midstream sector faces potential overcapacity in NGL infrastructure, which could impact utilization rates and margins [13] - Execution risks in expansion projects could hinder growth if delays or cost overruns occur [14] - Competitive pressures in the Permian Basin may affect Targa Resources' market share and profitability [15] - Macroeconomic uncertainties and exposure to commodity price volatility could add further challenges to the company's outlook [16][17]

Core Insights - Targa Resources Corp. (TRGP) reported second-quarter 2025 earnings of $2.87 per share, exceeding the Zacks Consensus Estimate of $1.91 and improving from $1.33 in the same quarter last year, driven by strong volumes across its systems [1] - Total quarterly revenues reached $4.3 billion, a 19.6% increase from $3.6 billion in the prior-year quarter, primarily due to a 23% rise in commodity sales and a 5% increase in midstream service fees, although it fell short of the Zacks Consensus Estimate of $4.9 billion [2] - Adjusted EBITDA for the quarter was $1.2 billion, up from $984.3 million year-over-year [2] Dividend and Share Buyback - Targa declared a quarterly cash dividend of $1 per common share, totaling approximately $217 million, payable on August 15 to shareholders of record as of July 31 [3] - The company repurchased 651,163 common shares for about $124.9 million at an average price of $191.86 per share, with $890.5 million remaining under the authorized buyback plan as of March 31, 2025 [3] Operational Highlights - The company achieved all-time-high transportation volumes for Permian and NGL, and announced a 43-mile expansion of the Bull Run natural gas pipeline to enhance connectivity between the Permian Delaware system and WAHA [4] - The Gathering and Processing segment reported an operating margin of $588 million, a 3% increase from $573 million year-over-year, although it missed the consensus estimate of $619 million [5] - Logistics and Transportation segment's operating margin was $632 million, reflecting a 15% year-over-year increase that matched the consensus estimate [6] Volume and Margin Performance - Gathering and Processing volumes increased by 11% year-over-year to an average of 6,278 MMcf/d, surpassing the consensus mark of 6,135 MMcf/d [5][10] - Fractionation volumes rose 7% to 969 thousand barrels per day, although it fell short of the consensus estimate of 1,106 thousand barrels per day [8] - NGL pipeline transportation volumes increased by 23% year-over-year, while export volumes rose by 7% [8] Financial Overview - Product costs amounted to $2.4 billion, a 10.9% increase from the previous year, while operating expenses rose to $323.6 million, up 11% from $290.7 million [11] - The company invested $885.1 million in growth capital programs, compared to $798.7 million in the prior year [11] - As of June 30, 2025, Targa had cash and cash equivalents of $113.1 million and long-term debt of $16.1 billion, with a debt-to-capitalization ratio of approximately 85.6% [11] 2025 Guidance - Targa expects full-year adjusted EBITDA for 2025 to be in the range of $4.65-$4.85 billion, supported by growth in its Permian Gathering and Processing footprint [12] - The company anticipates total net growth capital expenditures for 2025 to be around $3 billion, reflecting earlier-than-expected project completions and new expansions [13] - The Gathering and Processing segment is set to see the Pembrook II plant come online ahead of schedule in August 2025, with several other projects progressing as planned [14][15]

Targa Resources, Inc. (TRGP) reported $4.26 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 19.6%. EPS of $2.87 for the same period compares to $1.33 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $4.85 billion, representing a surprise of -12.19%. The company delivered an EPS surprise of +50.26%, with the consensus EPS estimate being $1.91. Here is how Targa Resources performed in the just reported quarter in terms of the metrics mo ...

[PART I—FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Targa Resources Corp.'s unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income (loss), cash flows, and changes in owners' equity, along with detailed notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) This section provides a comparative overview of Targa Resources Corp.'s financial position at June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | Change (Millions USD) | % Change | | :--------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | **ASSETS** | | | | | | Total current assets | 2,207.2 | 2,296.3 | (89.1) | (3.9%) | | Property, plant and equipment, net | 19,020.3 | 18,062.7 | 957.6 | 5.3% | | Total assets | 23,512.8 | 22,734.1 | 778.7 | 3.4% | | **LIABILITIES & OWNERS' EQUITY** | | | | | | Total current liabilities | 3,176.7 | 3,172.6 | 4.1 | 0.1% | | Long-term debt | 16,082.3 | 13,786.9 | 2,295.4 | 16.6% | | Total owners' equity | 2,711.4 | 4,418.2 | (1,706.8) | (38.6%) | | Total liabilities and owners' equity | 23,512.8 | 22,734.1 | 778.7 | 3.4% | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section details Targa Resources Corp.'s revenues, expenses, and net income for the three and six months ended June 30, 2025, and 2024 | Metric | 3 Months Ended June 30, 2025 (Millions USD) | 3 Months Ended June 30, 2024 (Millions USD) | Change (Millions USD) | % Change | | :--------------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Total revenues | 4,260.1 | 3,562.0 | 698.1 | 19.6% | | Income (loss) from operations | 1,033.6 | 627.2 | 406.4 | 64.8% | | Net income (loss) attributable to Targa Resources Corp. | 629.1 | 298.5 | 330.6 | 110.8% | | Net income (loss) per common share - basic | 2.88 | 1.34 | 1.54 | 114.9% | | Net income (loss) per common share - diluted | 2.87 | 1.33 | 1.54 | 115.8% | | Metric | 6 Months Ended June 30, 2025 (Millions USD) | 6 Months Ended June 30, 2024 (Millions USD) | Change (Millions USD) | % Change | | :--------------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Total revenues | 8,821.6 | 8,124.4 | 697.2 | 8.6% | | Income (loss) from operations | 1,576.9 | 1,266.7 | 310.2 | 24.5% | | Net income (loss) attributable to Targa Resources Corp. | 899.6 | 573.7 | 325.9 | 56.8% | | Net income (loss) per common share - basic | 3.79 | 2.56 | 1.23 | 48.0% | | Net income (loss) per common share - diluted | 3.78 | 2.55 | 1.23 | 48.2% | [Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section presents Targa Resources Corp.'s comprehensive income (loss) for the three and six months ended June 30, 2025, and 2024, including other comprehensive income (loss) components | Metric | 3 Months Ended June 30, 2025 (Millions USD) | 3 Months Ended June 30, 2024 (Millions USD) | Change (Millions USD) | % Change | | :---------------------------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Net income (loss) | 637.2 | 358.9 | 278.3 | 77.5% | | Other comprehensive income (loss) | 37.1 | (22.5) | 59.6 | NM | | Comprehensive income (loss) attributable to Targa Resources Corp. | 666.2 | 276.0 | 390.2 | 141.4% | | Metric | 6 Months Ended June 30, 2025 (Millions USD) | 6 Months Ended June 30, 2024 (Millions USD) | Change (Millions USD) | % Change | | :---------------------------------------------------- | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Net income (loss) | 917.0 | 691.6 | 225.4 | 32.6% | | Other comprehensive income (loss) | 15.7 | (74.2) | 89.9 | NM | | Comprehensive income (loss) attributable to Targa Resources Corp. | 915.3 | 499.5 | 415.8 | 83.2% | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section outlines Targa Resources Corp.'s cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 | Metric | 6 Months Ended June 30, 2025 (Millions USD) | 6 Months Ended June 30, 2024 (Millions USD) | Change (Millions USD) | % Change | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Net cash provided by (used in) operating activities | 1,812.7 | 1,780.9 | 31.8 | 1.8% | | Net cash provided by (used in) investing activities | (1,770.1) | (1,427.7) | (342.4) | 24.0% | | Net cash provided by (used in) financing activities | (86.8) | (328.5) | 241.7 | (73.6%) | | Net change in cash and cash equivalents | (44.2) | 24.7 | (68.9) | NM | | Cash and cash equivalents, end of period | 113.1 | 166.4 | (53.3) | (32.0%) | [Consolidated Statements of Changes in Owners' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Owners'%20Equity%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section details the changes in Targa Resources Corp.'s owners' equity, including stockholders' equity and noncontrolling interests, for the periods presented | Metric | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | Change (Millions USD) | % Change | | :--------------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total Targa Resources Corp. stockholders' equity | 2,588.1 | 2,592.4 | (4.3) | (0.2%) | | Noncontrolling interests | 123.3 | 1,825.8 | (1,702.5) | (93.2%) | | Total owners' equity | 2,711.4 | 4,418.2 | (1,706.8) | (38.6%) | - The significant decrease in noncontrolling interests and total owners' equity is primarily due to the repurchase of noncontrolling interests, net of tax, amounting to **$1,779.7 million** for the six months ended June 30, 2025[29](index=29&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations of Targa Resources Corp.'s accounting policies, significant transactions, and financial statement line items [Note 1 — Organization and Operations](index=11&type=section&id=Note%201%20%E2%80%94%20Organization%20and%20Operations) This note describes Targa Resources Corp.'s corporate structure, its role as a midstream services provider, and its diversified asset portfolio - Targa Resources Corp. (TRGP) is a publicly traded Delaware corporation, a leading provider of midstream services, and one of North America's largest independent infrastructure companies, owning, operating, acquiring, and developing a diversified portfolio of complementary domestic infrastructure assets[33](index=33&type=chunk) - The Company's primary operations include gathering, compressing, treating, processing, transporting, and purchasing/selling natural gas; transporting, storing, fractionating, treating, and purchasing/selling NGLs and NGL products; and gathering, storing, terminaling, and purchasing/selling crude oil[35](index=35&type=chunk)[37](index=37&type=chunk) [Note 2 — Basis of Presentation](index=11&type=section&id=Note%202%20%E2%80%94%20Basis%20of%20Presentation) This note clarifies the preparation of the unaudited consolidated financial statements in accordance with Form 10-Q instructions and GAAP - The unaudited consolidated financial statements are prepared in accordance with Form 10-Q instructions and GAAP, reflecting normal recurring adjustments, and should be read with the Annual Report, noting interim results are not indicative of full-year performance[36](index=36&type=chunk) [Note 3 — Significant Accounting Policies](index=12&type=section&id=Note%203%20%E2%80%94%20Significant%20Accounting%20Policies) This note outlines any significant accounting policy updates and the company's evaluation of new FASB Accounting Standards Updates - No significant updates to accounting policies occurred during the six months ended June 30, 2025, other than evaluating new FASB ASUs[38](index=38&type=chunk) - The company is evaluating ASU 2023-09 (Improvements to Income Tax Disclosures), effective for fiscal years beginning after December 15, 2024, which will require disaggregation of income taxes paid and specific categories in rate reconciliation, with the impact limited to disclosure[39](index=39&type=chunk)[40](index=40&type=chunk) - The company is evaluating ASU 2024-03 (Disaggregation of Income Statement Expenses), effective for fiscal years beginning after December 15, 2026, requiring tabular disclosure of specific expense categories and total selling expenses, with the impact limited to disclosure[41](index=41&type=chunk)[42](index=42&type=chunk) [Note 4 — Joint Ventures and Acquisitions](index=13&type=section&id=Note%204%20%E2%80%94%20Joint%20Ventures%20and%20Acquisitions) This note details Targa's recent joint venture activities and acquisitions, including the Badlands Transaction - On March 5, 2025, Targa acquired Blackstone's **45% interest** in Targa Badlands LLC for **$1.8 billion cash**, gaining **100% ownership** effective January 1, 2025, resulting in a **$70.5 million premium** on repurchase of noncontrolling interests, reducing net income attributable to common shareholders[43](index=43&type=chunk) [Note 5 — Property, Plant and Equipment and Intangible Assets](index=13&type=section&id=Note%205%20%E2%80%94%20Property%2C%20Plant%20and%20Equipment%20and%20Intangible%20Assets) This note provides a breakdown of property, plant and equipment, and intangible assets, along with associated depreciation and amortization expenses | Asset Category | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | Change (Millions USD) | % Change | | :--------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Property, plant and equipment, net | 19,020.3 | 18,062.7 | 957.6 | 5.3% | | Intangible assets, net | 1,814.4 | 1,977.4 | (163.0) | (8.2%) | - Depreciation expense for the three and six months ended June 30, 2025, was **$292.2 million** and **$578.3 million**, respectively, up from $255.3 million and $502.5 million in the prior year periods[44](index=44&type=chunk) - Amortization expense for intangible assets was **$81.5 million** and **$163.0 million** for the three and six months ended June 30, 2025, respectively, down from $93.3 million and $186.6 million in the prior year periods, with estimated annual amortization projected to decrease from **$326.0 million** in 2025 to **$214.1 million** in 2029[46](index=46&type=chunk) [Note 6 – Investments in Unconsolidated Affiliates](index=14&type=section&id=Note%206%20%E2%80%93%20Investments%20in%20Unconsolidated%20Affiliates) This note outlines Targa's equity method investments in unconsolidated affiliates and their financial contributions - Targa holds equity method investments in several unconsolidated affiliates, including a **50% operated interest** in Little Missouri 4 (Gathering and Processing segment) and interests in Gulf Coast Fractionators (**38.8%**), Cayenne Pipeline, LLC (**50%**), and Blackcomb (**17.5%**) in the Logistics and Transportation segment[48](index=48&type=chunk)[51](index=51&type=chunk) Affiliate Investment Balances | Affiliate | Balance at Dec 31, 2024 (Millions USD) | Equity Earnings (Loss) (Millions USD) | Cash Distributions (Millions USD) | Contributions (Millions USD) | Balance at June 30, 2025 (Millions USD) | | :---------------- | :----------------------------------- | :------------------------------------ | :-------------------------------- | :--------------------------- | :---------------------------------- | | Little Missouri 4 | 84.3 | 7.6 | (9.7) | 5.1 | 87.3 | | GCF | 66.4 | 0.2 | — | 0.9 | 67.5 | | Cayenne | 12.3 | 3.0 | (1.4) | — | 13.9 | | Blackcomb | 30.3 | (0.2) | — | 69.8 | 99.9 | | Total | 193.3 | 10.6 | (11.1) | 75.8 | 268.6 | [Note 7 — Debt Obligations](index=15&type=section&id=Note%207%20%E2%80%94%20Debt%20Obligations) This note provides details on Targa's current and long-term debt, including recent financing activities and credit facilities | Debt Category | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | Change (Millions USD) | % Change | | :--------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Current debt obligations | 768.2 | 387.7 | 380.5 | 98.1% | | Long-term debt | 16,082.3 | 13,786.9 | 2,295.4 | 16.6% | | Total debt obligations | 16,850.5 | 14,174.6 | 2,675.9 | 18.9% | - In February 2025, Targa entered into a new **$3.5 billion** TRGP senior revolving credit facility (TRGP Revolver) maturing in February 2030, replacing the previous facility, with **no borrowings outstanding** as of June 30, 2025, and approximately **$2.8 billion** of available liquidity from the TRGP Revolver and Commercial Paper Program[55](index=55&type=chunk)[60](index=60&type=chunk) - In February 2025, Targa completed a public offering of **$2.0 billion** in Senior Unsecured Notes (5.550% due 2035 and 6.125% due 2055), with net proceeds used to fund the Badlands Transaction and repay Commercial Paper Program borrowings[56](index=56&type=chunk)[61](index=61&type=chunk) - In June 2025, Targa completed a public offering of **$1.5 billion** in Senior Unsecured Notes (4.900% due 2030 and 5.650% due 2036), with net proceeds initially used to reduce Securitization Facility and Commercial Paper Program borrowings, and in July 2025, to redeem the Partnership's 6.500% Senior Unsecured Notes due 2027[54](index=54&type=chunk)[62](index=62&type=chunk) - A conditional notice of redemption for the **6.500% Notes due 2027** was issued in June 2025, reclassifying them to Current debt obligations, with the redemption completed in July 2025, resulting in a **$1.9 million** debt extinguishment loss[54](index=54&type=chunk)[63](index=63&type=chunk) - In July 2025, the Partnership amended its **$600.0 million** accounts receivable securitization facility, extending its termination date to August 31, 2026[54](index=54&type=chunk)[64](index=64&type=chunk) [Note 8 — Common Stock and Related Matters](index=18&type=section&id=Note%208%20%E2%80%94%20Common%20Stock%20and%20Related%20Matters) This note covers Targa's share repurchase programs and common stock dividend declarations - Targa exhausted its **$1.0 billion 2023 Share Repurchase Program** in Q1 2025, has a **$1.0 billion 2024 Share Repurchase Program** (with **$566.2 million remaining** as of June 30, 2025), and approved a new **$1.0 billion 2025 Share Repurchase Program** in August 2025[65](index=65&type=chunk)[66](index=66&type=chunk)[68](index=68&type=chunk) Common Stock Repurchases | Period | Shares Repurchased | Weighted Average Price per Share (USD) | Total Net Cost (Millions USD) | | :--------------------------------- | :----------------- | :------------------------------------- | :---------------------------- | | 3 Months Ended June 30, 2025 | 1,955,099 | 165.86 | 324.3 | | 6 Months Ended June 30, 2025 | 2,606,262 | 172.35 | 449.2 | | 3 Months Ended June 30, 2024 | 2,985,816 | 118.91 | 355.1 | | 6 Months Ended June 30, 2024 | 4,172,260 | 114.75 | 478.8 | - In April 2025, Targa increased its common dividend to **$1.00 per common share**, or **$4.00 per common share annualized**, effective for Q1 2025[69](index=69&type=chunk) Common Dividends Declared and Paid | Three Months Ended | Date Paid or To Be Paid | Total Common Dividends Declared (Millions USD) | Common Dividends Paid or To Be Paid (Millions USD) | Dividends on Share-Based Awards (Millions USD) | Dividends Declared per Share of Common Stock (USD) | | :----------------- | :---------------------- | :--------------------------------------------- | :------------------------------------------------- | :--------------------------------------------- | :------------------------------------------------- | | June 30, 2025 | August 15, 2025 | 217.1 | 215.2 | 1.9 | 1.00000 | | March 31, 2025 | May 15, 2025 | 219.0 | 216.9 | 2.1 | 1.00000 | | December 31, 2024 | February 14, 2025 | 165.2 | 163.6 | 1.6 | 0.75000 | [Note 9 — Earnings per Common Share](index=19&type=section&id=Note%209%20%E2%80%94%20Earnings%20per%20Common%20Share) This note explains Targa's earnings per share calculation method and provides basic and diluted EPS figures - Targa calculates earnings per share using the two-class method, allocating earnings to common stock and participating securities (RSUs and certain retention awards) based on dividends and undistributed earnings[71](index=71&type=chunk)[72](index=72&type=chunk) Earnings per Common Share | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income (loss) attributable to common shareholders (Millions USD) | 629.1 | 298.5 | 829.1 | 573.7 | | Net income (loss) per common share - basic (USD) | 2.88 | 1.34 | 3.79 | 2.56 | | Net income (loss) per common share - diluted (USD) | 2.87 | 1.33 | 3.78 | 2.55 | | Weighted average shares outstanding - basic (Millions) | 216.6 | 221.0 | 217.2 | 221.9 | | Weighted average shares outstanding - diluted (Millions) | 217.3 | 221.9 | 218.0 | 222.9 | - Unvested restricted stock awards (**1.1 million shares** for 3 months ended June 30, 2025, and **1.1 million shares** for 6 months ended June 30, 2025) were excluded from diluted EPS calculation as their inclusion would have been anti-dilutive[73](index=73&type=chunk) [Note 10 — Derivative Instruments and Hedging Activities](index=19&type=section&id=Note%2010%20%E2%80%94%20Derivative%20Instruments%20and%20Hedging%20Activities) This note describes Targa's use of derivative instruments to manage commodity price risk and their impact on financial statements - Targa uses derivative instruments (swaps, futures, options) to manage commodity price risk and reduce cash flow volatility from natural gas, NGL, and condensate equity volumes, future commodity purchases/sales, and natural gas transportation basis risk, with hedges primarily designated as cash flow hedges[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) Commodity Derivative Contracts | Commodity | Instrument | Unit | 2025 | 2026 | 2027 | 2028 | | :---------- | :--------- | :--------- | :----- | :----- | :----- | :----- | | Natural Gas | Swaps | MMBtu/d | 81,584 | 81,604 | 44,508 | 11,047 | | Natural Gas | Basis Swaps | MMBtu/d | 568,668 | 368,459 | 288,329 | 100,000 | | NGL | Swaps | Bbl/d | 44,183 | 31,685 | 15,863 | 3,944 | | NGL | Futures | Bbl/d | 35,793 | 4,726 | — | — | | Condensate | Swaps | Bbl/d | 8,023 | 8,249 | 2,381 | 592 | Fair Value of Derivative Instruments | Derivative Type | June 30, 2025 (Millions USD) | December 31, 2024 (Millions USD) | | :------------------------------------ | :----------------------------- | :------------------------------- | | Total derivatives designated as hedging instruments (Assets) | 83.4 | 71.6 | | Total derivatives designated as hedging instruments (Liabilities) | (34.7) | (40.7) | | Total derivatives not designated as hedging instruments (Assets) | 21.1 | 15.5 | | Total derivatives not designated as hedging instruments (Liabilities) | (192.6) | (218.6) | | Total derivatives (Net Liability) | (122.8) | (172.2) | - Derivative contracts are subject to netting arrangements, reducing maximum loss due to counterparty credit risk by **$18.7 million** as of June 30, 2025, with the estimated fair value of derivatives being a net liability of **$122.8 million** as of June 30, 2025, reflecting a decrease from **$172.2 million** at December 31, 2024, primarily due to favorable movements in natural gas forward basis curves[78](index=78&type=chunk)[81](index=81&type=chunk)[247](index=247&type=chunk) Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | 3 Months Ended June 30, 2025 (Millions USD) | 3 Months Ended June 30, 2024 (Millions USD) | 6 Months Ended June 30, 2025 (Millions USD) | 6 Months Ended June 30, 2024 (Millions USD) | | :------------------------------------------------------------- | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Commodity contracts | 75.8 | 3.0 | 42.0 | (67.2) | Gain (Loss) Reclassified from OCI into Income (Effective Portion) | Gain (Loss) Reclassified from OCI into Income (Effective Portion) | 3 Months Ended June 30, 2025 (Millions USD) | 3 Months Ended June 30, 2024 (Millions USD) | 6 Months Ended June 30, 2025 (Millions USD) | 6 Months Ended June 30, 2024 (Millions USD) | | :-------------------------------------------------------------- | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Revenues | 27.7 | 32.2 | 21.6 | 29.0 | Gain (Loss) Recognized in Income on Derivatives (Not Designated as Hedges) | Gain (Loss) Recognized in Income on Derivatives (Not Designated as Hedges) | 3 Months Ended June 30, 2025 (Millions USD) | 3 Months Ended June 30, 2024 (Millions USD) | 6 Months Ended June 30, 2025 (Millions USD) | 6 Months Ended June 30, 2024 (Millions USD) | | :----------------------------------------------------------------------- | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Revenue | 206.2 | (88.8) | (79.0) | (120.7) | - As of June 30, 2025, Targa expects to reclassify **$49.5 million** of commodity hedge related net deferred gains from Accumulated OCI into earnings before income taxes over the next twelve months, with the maximum hedging period extending through 2028[83](index=83&type=chunk) [Note 11 — Fair Value Measurements](index=23&type=section&id=Note%2011%20%E2%80%94%20Fair%20Value%20Measurements) This note discusses the fair value of Targa's financial instruments, including derivatives and debt, and their classification within the fair value hierarchy - Derivative financial instruments are reported at fair value using present value methods or standard option valuation models, sensitive to changes in forward pricing for natural gas, NGLs, and crude oil, where a hypothetical **10% increase** in commodity prices would result in a net liability of **$298.5 million**, while a **10% decrease** would result in a net asset of **$52.8 million**[87](index=87&type=chunk)[88](index=88&type=chunk)[246](index=246&type=chunk) - Other financial instruments like cash, receivables, and payables approximate fair value due to their short-term nature, while debt fair values are based on carrying value for variable-rate debt and quoted market prices for senior unsecured notes[89](index=89&type=chunk)[91](index=91&type=chunk) Fair Value of Financial Instruments | Financial Instrument Category | June 30, 2025 Fair Value (Millions USD) | Level 1 (Millions USD) | Level 2 (Millions USD) | Level 3 (Millions USD) | | :---------------------------------------------------- | :-------------------------------------- | :--------------------- | :--------------------- | :--------------------- | | Assets from commodity derivative contracts | 103.6 | — | 103.6 | — | | Liabilities from commodity derivative contracts | 226.4 | — | 225.3 | 1.1 | | TRGP Revolver and Commercial Paper Program | 667.0 | — | 667.0 | — | | TRGP Senior unsecured notes | 11,004.7 | — | 11,004.7 | — | | Partnership's Senior unsecured notes | 4,986.5 | — | 4,986.5 | — | - Certain swaps are classified as Level 3 due to unobservable market prices or implied volatilities for a substantial portion of their term, valued using discounted cash flow based on extrapolated commodity forward curves, with the net Level 3 liability being **$1.1 million** as of June 30, 2025[92](index=92&type=chunk)[93](index=93&type=chunk) [Note 12 — Contingencies](index=25&type=section&id=Note%2012%20%E2%80%94%20Contingencies) This note details Targa's involvement in various legal, administrative, and regulatory proceedings, including environmental matters and breach of contract cases - Targa is involved in various legal, administrative, and regulatory proceedings, including environmental matters with agencies like the EPA and NMED[94](index=94&type=chunk) - New Mexico Environment Department (NMED) issued a proposed Administrative Compliance Order (ACO) in December 2024 for alleged air permit violations at the Red Hills gas processing facility, including a proposed civil penalty of **$47.8 million** and required capital improvements of **$140 million** (substantially completed by Dec 31, 2024), which Targa is contesting[95](index=95&type=chunk)[96](index=96&type=chunk) - A lawsuit related to the February 2021 winter storm resulted in a **$6.9 million judgment** against Targa, which is under appeal by both parties, while other similar breach of contract cases were settled for approximately **$12.7 million**[97](index=97&type=chunk) - In April 2024, Targa received an EPA Notice of Violation (NOV) and subpoena regarding alleged Clean Air Act violations at Targa Badlands LLC compressor stations, leading to a Plea Agreement in December 2024 for a single CAA violation with a maximum fine of **$500,000**, and a Consent Agreement and Final Order with the EPA in July 2025 requiring an administrative penalty of approximately **$3.2 million**[98](index=98&type=chunk)[99](index=99&type=chunk) [Note 13 — Revenue](index=27&type=section&id=Note%2013%20%E2%80%94%20Revenue) This note provides information on Targa's revenue recognition, including estimated minimum revenue from unsatisfied performance obligations and deferred revenue Fixed Consideration to be Recognized | Period | Fixed Consideration to be Recognized (Millions USD) | | :--------------- | :---------------------------------------- | | 2025 | 198.6 | | 2026 | 405.5 | | 2027 and after | 2,137.4 | - The estimated minimum revenue from unsatisfied performance obligations, primarily from contracts with minimum volume commitments, totals **$2,741.5 million** as of June 30, 2025, with remaining terms ranging from 1 to 14 years[100](index=100&type=chunk)[101](index=101&type=chunk) - Deferred revenue was **$125.7 million** as of June 30, 2025, up from **$119.9 million** at December 31, 2024, representing consideration received for which revenue recognition conditions have not yet been met[102](index=102&type=chunk) [Note 14 — Income Taxes](index=27&type=section&id=Note%2014%20%E2%80%94%20Income%20Taxes) This note discusses Targa's effective tax rate, deferred tax assets, ongoing IRS examinations, and the impact of recent tax legislation - Targa's effective tax rate for the three and six months ended June 30, 2025, is higher than the U.S. corporate statutory rate of **21%** due to state income taxes, partially offset by excess tax-deductible stock compensation, while the prior year was lower due to income allocated to noncontrolling interests not taxable to the Company[104](index=104&type=chunk) - The valuation allowance for deferred tax assets remained at **$5.9 million** as of June 30, 2025, and December 31, 2024[105](index=105&type=chunk) - IRS examinations are ongoing for 2019, 2020, and 2022 taxable years for certain subsidiaries, but no material audit adjustments to taxable income are expected, with the 2019 returns having a statute extension to December 2025[106](index=106&type=chunk)[145](index=145&type=chunk) - The One Big Beautiful Bill Act (OBBBA), signed in July 2025, indefinitely extends **100% first-year depreciation** and includes favorable modifications to business interest expense limitations, which Targa is assessing, expecting a benefit to cash flows from operating activities without a material impact on results of operations[107](index=107&type=chunk) - Targa does not anticipate paying Corporate Alternative Minimum Tax (CAMT) at least through 2026, based on interpretations of the IRA, CAMT guidance, OBBBA impact, and operational assumptions, noting any future CAMT liability would accelerate tax obligations, reducing cash available for distribution but providing an offsetting credit[108](index=108&type=chunk)[109](index=109&type=chunk)[147](index=147&type=chunk) [Note 15 — Supplemental Cash Flow Information](index=29&type=section&id=Note%2015%20%E2%80%94%20Supplemental%20Cash%20Flow%20Information) This note provides additional details on cash flow items, including interest paid, income taxes paid, and the impact of accruals on capital expenditures Supplemental Cash Flow Items | Cash Flow Item | 6 Months Ended June 30, 2025 (Millions USD) | 6 Months Ended June 30, 2024 (Millions USD) | Change (Millions USD) | % Change | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :-------------------- | :------- | | Interest paid, net of capitalized interest | 363.4 | 379.0 | (15.6) | (4.1%) | | Income taxes paid, net of refunds | 21.1 | 9.5 | 11.6 | 122.1% | | Impact of net accruals on capital expenditures | (187.4) | 160.7 | (348.1) | NM | | Changes in accrued distributions to noncontrolling interests | (13.5) | (0.6) | (12.9) | NM | - Interest capitalized on major projects was **$32.4 million** and **$33.8 million** for the six months ended June 30, 2025 and 2024, respectively[110](index=110&type=chunk) [Note 16 — Segment Information](index=29&type=section&id=Note%2016%20%E2%80%94%20Segment%20Information) This note provides financial and operational information disaggregated by Targa's two primary reportable segments: Gathering and Processing, and Logistics and Transportation - Targa operates in two primary segments: (i) Gathering and Processing and (ii) Logistics and Transportation (Downstream Business), with the 'Other' category including unrealized mark-to-market gains/losses from derivative contracts not designated as cash flow hedges[111](index=111&type=chunk)[114](index=114&type=chunk) - The Gathering and Processing segment includes assets for natural gas gathering, processing, and crude oil gathering/terminaling across key basins like Permian, Eagle Ford, Barnett, Anadarko, Williston, and Louisiana Gulf Coast[112](index=112&type=chunk) - The Logistics and Transportation segment focuses on converting mixed NGLs into products, including transportation, storage, fractionation, terminaling, and marketing of NGLs and NGL products, with facilities predominantly in Mont Belvieu, Galena Park, Texas, and Lake Charles, Louisiana[113](index=113&type=chunk) Segment Operating Margin | Segment Operating Margin (Millions USD) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Gathering and Processing | 587.6 | 572.6 | 1,189.8 | 1,128.9 | | Logistics and Transportation | 632.4 | 547.7 | 1,279.1 | 1,079.8 | | Other | 280.5 | (46.6) | 31.7 | (68.7) | Revenue Disaggregation | Revenue Disaggregation (Millions USD) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | **Sales of commodities:** | | | | | | Natural gas | 458.2 | 158.6 | 1,140.1 | 653.3 | | NGL | 2,832.9 | 2,719.6 | 6,209.7 | 6,065.3 | | Condensate and crude oil | 111.3 | 145.1 | 228.3 | 282.4 | | Derivative activities - Hedge | 27.7 | 32.2 | 21.6 | 29.0 | | Derivative activities - Non-hedge | 206.2 | (88.8) | (79.0) | (120.7) | | **Fees from midstream services:** | | | | | | Gathering and processing | 403.7 | 385.7 | 872.7 | 791.5 | | NGL transportation, fractionation and services | 83.2 | 75.2 | 160.0 | 148.7 | | Storage, terminaling and export | 120.9 | 114.5 | 252.7 | 240.3 | | Other | 16.0 | 19.9 | 15.5 | 34.6 | | **Total Revenues** | **4,260.1** | **3,562.0** | **8,821.6** | **8,124.4** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Targa's financial condition, operations, and liquidity, covering business overview, recent developments, capital allocation, financing, tax matters, and segment performance [Overview](index=33&type=section&id=Overview) This section provides a high-level summary of Targa Resources Corp.'s business as a leading North American midstream services provider - Targa Resources Corp. (TRGP) is a leading North American midstream services provider, operating a diversified portfolio of domestic infrastructure assets, with core businesses including natural gas gathering, processing, and transportation; NGL transportation, storage, fractionation, and marketing; and crude oil gathering, storage, and terminaling[120](index=120&type=chunk)[121](index=121&type=chunk)[126](index=126&type=chunk) - The company operates in two primary segments: Gathering and Processing (Permian Basin, Eagle Ford, Barnett, Anadarko, Williston, Louisiana Gulf Coast) and Logistics and Transportation (Mont Belvieu, Galena Park, Lake Charles, Texas)[122](index=122&type=chunk)[123](index=123&type=chunk) [Recent Developments](index=33&type=section&id=Recent%20Developments) This section highlights Targa's recent operational expansions, including new processing plants, fractionation trains, pipeline projects, and joint ventures [Permian Basin Processing Expansions](index=33&type=section&id=Permian%20Basin%20Processing%20Expansions) This subsection details Targa's ongoing and planned natural gas processing plant expansions in the Permian Basin - Targa has several new **275 MMcf/d** cryogenic natural gas processing plants in the Permian Basin: Bull Moose (Permian Delaware) commenced operations in Q1 2025; Pembrook II (Permian Midland) expected Q3 2025; Bull Moose II (Permian Delaware) expected Q4 2025; East Pembrook (Permian Midland) expected Q2 2026; Falcon II (Permian Delaware) expected Q2 2026; East Driver (Permian Midland) expected Q3 2026, with the company also ordering long-lead items for future plants[127](index=127&type=chunk)[136](index=136&type=chunk) [Fractionation Expansions](index=35&type=section&id=Fractionation%20Expansions) This subsection describes Targa's initiatives to expand its NGL fractionation capacity in Mont Belvieu, Texas - Gulf Coast Fractionators (GCF) **135 MBbl/d** facility reactivated in Q1 2025, and Targa plans to construct new **150 MBbl/d** fractionation trains in Mont Belvieu, Texas: Train 11 expected Q2 2026, and Train 12 expected Q1 2027[136](index=136&type=chunk) [NGL Pipeline Expansion](index=35&type=section&id=NGL%20Pipeline%20Expansion) This subsection outlines the planned expansion of Targa's Grand Prix NGL pipeline system in the Delaware Basin - An intra-Delaware Basin expansion of the Grand Prix pipeline system is expected to begin operations in Q2 2026[129](index=129&type=chunk) [LPG Export Expansion](index=35&type=section&id=LPG%20Export%20Expansion) This subsection details Targa's plans to increase LPG export capabilities at its Galena Park Marine Terminal - Targa is expanding LPG export capabilities at its Galena Park Marine Terminal, including a new pipeline and additional refrigeration, to increase effective export capacity up to **19 MMBbl per month**, with completion expected in Q3 2027[130](index=130&type=chunk) [Natural Gas Pipeline Extension](index=35&type=section&id=Natural%20Gas%20Pipeline%20Extension) This subsection describes the planned extension of the Bull Run intrastate natural gas pipeline to enhance Permian Delaware system connectivity - A **43-mile** extension of the Bull Run intrastate natural gas pipeline (Bull Run Extension) is planned to enhance connectivity of the Permian Delaware system to the WAHA hub, expected to begin operations in Q1 2027[131](index=131&type=chunk) [Joint Ventures](index=35&type=section&id=Joint%20Ventures) This subsection provides updates on Targa's joint venture activities, including the Blackcomb pipeline and the acquisition of Targa Badlands LLC - Targa entered the Blackcomb Joint Venture (**17.5% ownership**) in July 2024 to construct and operate the Blackcomb pipeline (**2.5 Bcf/d, 365 miles** from Permian to Agua Dulce), expected in service H2 2026, and the joint venture also decided to construct the Traverse pipeline (**2.5 Bcf/d, 160 miles** between Agua Dulce and Katy), expected in service 2027[132](index=132&type=chunk)[133](index=133&type=chunk) - On March 5, 2025, Targa acquired Blackstone's **45% interest** in Targa Badlands LLC for **$1.8 billion**, resulting in **100% ownership** effective January 1, 2025[134](index=134&type=chunk) [Capital Allocation](index=37&type=section&id=Capital%20Allocation) This section discusses Targa's strategies for allocating capital, including common dividends and share repurchase programs - In April 2025, Targa increased its quarterly common dividend to **$1.00 per share** (**$4.00 annualized**), effective for Q1 2025[137](index=137&type=chunk) - Targa exhausted its **$1.0 billion 2023 Share Repurchase Program** in Q1 2025, has a **$1.0 billion 2024 Share Repurchase Program** (with **$566.2 million remaining** as of June 30, 2025), and approved a new **$1.0 billion 2025 Share Repurchase Program** for **$1.0 billion** in August 2025[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) - For the six months ended June 30, 2025, Targa repurchased **2,606,262 shares** of common stock for a total net cost of **$449.2 million** at a weighted average price of **$172.35 per share**[139](index=139&type=chunk) [Financing Activities](index=37&type=section&id=Financing%20Activities) This section provides an overview of Targa's recent financing activities, including new credit facilities and senior unsecured note offerings - In February 2025, Targa established a new **$3.5 billion** TRGP senior revolving credit facility (TRGP Revolver) maturing in February 2030, replacing the previous facility[140](index=140&type=chunk) - In February 2025, Targa issued **$2.0 billion** in Senior Unsecured Notes (5.550% due 2035 and 6.125% due 2055) to fund the Badlands Transaction and repay Commercial Paper Program borrowings[141](index=141&type=chunk) - In June 2025, Targa issued **$1.5 billion** in Senior Unsecured Notes (4.900% due 2030 and 5.650% due 2036) to fund the redemption of the Partnership's 6.500% Senior Unsecured Notes due 2027 (completed in July 2025) and repay Commercial Paper Program borrowings[142](index=142&type=chunk) - In July 2025, the Partnership amended its **$600.0 million** accounts receivable securitization facility, extending its termination date to August 31, 2026[143](index=143&type=chunk) [Corporation Tax Matters](index=37&type=section&id=Corporation%20Tax%20Matters) This section discusses Targa's ongoing IRS examinations and its outlook on the Corporate Alternative Minimum Tax (CAMT) - IRS examinations are ongoing for 2019, 2020, and 2022 taxable years of certain subsidiaries, with no expected material changes to taxable income, and the 2019 returns have a statute extension to December 2025[144](index=144&type=chunk)[145](index=145&type=chunk) - Targa does not anticipate paying Corporate Alternative Minimum Tax (CAMT) at least through 2026, based on interpretations of the IRA, CAMT guidance, OBBBA impact, and operational assumptions, noting any future CAMT liability would accelerate tax obligations, reducing cash available for distribution but providing an offsetting credit[147](index=147&type=chunk) [How We Evaluate Our Operations](index=39&type=section&id=How%20We%20Evaluate%20Our%20Operations) This section explains the financial and operational metrics Targa's management uses to assess performance and profitability - Targa's profitability is driven by the difference between revenues (fee-based and commodity sales) and costs (commodity purchases, operating, G&A), influenced by contract mix, commodity prices, hedging, and throughput volumes, with fee-based contracts increasing due to capital expenditures and acquisitions[149](index=149&type=chunk)[150](index=150&type=chunk) - Management uses financial measures (adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow, adjusted operating margin) and operational measurements (throughput volumes, facility efficiencies, fuel consumption, operating expenses, capital expenditures) to analyze performance[151](index=151&type=chunk)[152](index=152&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk)[159](index=159&type=chunk) - Adjusted operating margin for segments is defined as revenues less product purchases and fuel, reflecting volumes, commodity prices, contract mix, and hedging, helping assess financial performance, operating performance, and return on capital[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk) - Adjusted EBITDA is Net income (loss) attributable to Targa Resources Corp. before interest, income taxes, depreciation and amortization, and other specified adjustments, used to measure asset cash generation for debt service and dividends[164](index=164&type=chunk) - Adjusted cash flow from operations is adjusted EBITDA less cash interest and cash taxes, while adjusted free cash flow is adjusted cash flow from operations less maintenance and growth capital expenditures (net of noncontrolling interest contributions and including unconsolidated affiliate contributions), both measuring cash earnings for corporate purposes like dividends or debt retirement[165](index=165&type=chunk) Non-GAAP Financial Measures | Non-GAAP Financial Measure (Millions USD) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Adjusted EBITDA | 1,163.0 | 984.3 | 2,341.5 | 1,950.8 | | Adjusted Cash Flow from Operations | 934.4 | 808.5 | 1,904.4 | 1,547.2 | | Adjusted Free Cash Flow | (9.6) | (43.0) | 318.6 | (40.0) | [Consolidated Results of Operations](index=45&type=section&id=Consolidated%20Results%20of%20Operations) This section provides a comprehensive analysis of Targa's consolidated revenues, expenses, and net income for the three and six months ended June 30, 2025, and 2024 Consolidated Financial Performance | Metric (Millions USD) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (Millions USD) | % Change | | :--------------------------------------- | :--------------------------- | :--------------------------- | :-------------------- | :------- | | Sales of commodities | 3,636.3 | 2,966.7 | 669.6 | 22.6% | | Fees from midstream services | 623.8 | 595.3 | 28.5 | 4.8% | | Total revenues | 4,260.1 | 3,562.0 | 698.1 | 19.6% | | Product purchases and fuel | 2,436.0 | 2,197.4 | 238.6 | 10.9% | | Operating expenses | 323.6 | 290.7 | 32.9 | 11.3% | | Depreciation and amortization expense | 373.7 | 348.6 | 25.1 | 7.2% | | General and administrative expense | 95.0 | 98.3 | (3.3) | (3.4%) | | Income (loss) from operations | 1,033.6 | 627.2 | 406.4 | 64.8% | | Interest expense, net | (218.4) | (176.0) | (42.4) | 24.1% | | Income tax (expense) benefit | (184.1) | (94.3) | (89.8) | 95.2% | | Net income (loss) attributable to Targa Resources Corp. | 629.1 | 298.5 | 330.6 | 110.8% | | Metric (Millions USD) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (Millions USD) | % Change | | :--------------------------------------- | :--------------------------- | :--------------------------- | :-------------------- | :------- | | Sales of commodities | 7,520.7 | 6,909.3 | 611.4 | 8.8% | | Fees from midstream services | 1,300.9 | 1,215.1 | 85.8 | 7.1% | | Total revenues | 8,821.6 | 8,124.4 | 697.2 | 8.6% | | Product purchases and fuel | 5,693.8 | 5,415.4 | 278.4 | 5.1% | | Operating expenses | 627.2 | 568.7 | 58.5 | 10.3% | | Depreciation and amortization expense | 741.3 | 689.1 | 52.2 | 7.6% | | General and administrative expense | 189.5 | 184.8 | 4.7 | 2.5% | | Income (loss) from operations | 1,576.9 | 1,266.7 | 310.2 | 24.5% | | Interest expense, net | (415.5) | (404.6) | (10.9) | 2.7% | | Income tax (expense) benefit | (256.3) | (177.1) | (79.2) | 44.7% | | Net income (loss) attributable to Targa Resources Corp. | 899.6 | 573.7 | 325.9 | 56.8% | - For the three months ended June 30, 2025, commodity sales increased by **$669.6 million (23%)** due to higher NGL volumes, higher natural gas prices, and favorable hedge impacts, partially offset by lower NGL and condensate prices, while midstream service fees increased by **$28.5 million (5%)** due to higher gas gathering/processing and export volumes, despite lower transportation/fractionation fees from a planned turnaround[172](index=172&type=chunk)[173](index=173&type=chunk) - For the six months ended June 30, 2025, commodity sales increased by **$611.4 million (9%)** due to higher natural gas prices, NGL volumes, and favorable hedge impacts, partially offset by lower condensate prices and natural gas/condensate volumes, while midstream service fees increased by **$85.8 million (7%)** due to higher gas gathering/processing and export volumes, despite lower transportation/fractionation fees from a planned turnaround[179](index=179&type=chunk)[180](index=180&type=chunk) - Net income attributable to noncontrolling interests decreased significantly (**87%** for 3 months, **85%** for 6 months) primarily due to the Badlands Transaction in Q1 2025 and the CBF Acquisition in Q4 2024[178](index=178&type=chunk)[184](index=184&type=chunk) - A **$70.5 million premium** on repurchase of noncontrolling interests, net of tax, was recorded for the six months ended June 30, 2025, due to the Badlands Transaction[185](index=185&type=chunk) [Results of Operations—By Reportable Segment](index=47&type=section&id=Results%20of%20Operations%E2%80%94By%20Reportable%20Segment) This section provides a detailed analysis of the financial and operating performance of Targa's Gathering and Processing, Logistics and Transportation, and Other segments [Gathering and Processing Segment](index=47&type=section&id=Gathering%20and%20Processing%20Segment) This subsection analyzes the financial and operating performance of Targa's Gathering and Processing segment, including operating margin, expenses, and throughput volumes Gathering and Processing Segment Financial Performance | Metric (Millions USD) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (Millions USD) | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :-------------------- | :------- | | Operating margin | 587.6 | 572.6 | 15.0 | 2.6% | | Operating expenses | 219.4 | 205.7 | 13.7 | 6.7% | | Adjusted operating margin | 807.0 | 778.3 | 28.7 | 3.7% | | Metric (Millions USD) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (Millions USD) | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :-------------------- | :------- | | Operating margin | 1,189.8 | 1,128.9 | 60.9 | 5.4% | | Operating expenses | 427.6 | 393.7 | 33.9 | 8.6% | | Adjusted operating margin | 1,617.4 | 1,522.6 | 94.8 | 6.2% | - Adjusted operating margin increased primarily due to higher natural gas inlet volumes in the Permian Basin (up **11%** for 3 months, **11%** for 6 months), driven by new plant additions (Roadrunner II, Greenwood II, Bull Moose) and strong producer activity, partially offset by lower volumes in other areas[187](index=187&type=chunk)[193](index=193&type=chunk)[195](index=195&type=chunk) - Operating expenses increased due to higher volumes and multiple plant additions in the Permian[194](index=194&type=chunk)[196](index=196&type=chunk) Gathering and Processing Operating Statistics | Operating Statistics (MMcf/d) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (MMcf/d) | % Change | | :---------------------------- | :--------------------------- | :--------------------------- | :-------------- | :------- | | Total Permian Plant natural gas inlet | 6,278.0 | 5,671.5 | 606.5 | 10.7% | | Total Field Plant natural gas inlet | 7,495.2 | 6,923.2 | 572.0 | 8.3% | | Total Plant natural gas inlet | 7,894.0 | 7,390.2 | 503.8 | 6.8% | | Operating Statistics (MMcf/d) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (MMcf/d) | % Change | | :---------------------------- | :--------------------------- | :--------------------------- | :-------------- | :------- | | Total Permian Plant natural gas inlet | 6,142.8 | 5,533.3 | 609.5 | 11.0% | | Total Field Plant natural gas inlet | 7,312.5 | 6,751.0 | 561.5 | 8.3% | | Total Plant natural gas inlet | 7,711.3 | 7,246.8 | 464.5 | 6.4% | NGL Production | NGL Production (MBbl/d) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (MBbl/d) | % Change | | :---------------------- | :--------------------------- | :--------------------------- | :-------------- | :------- | | Total Permian | 856.8 | 788.6 | 68.2 | 8.6% | | Total Field | 993.6 | 931.3 | 62.3 | 6.7% | | Total | 1,025.2 | 965.7 | 59.5 | 6.2% | | NGL Production (MBbl/d) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (MBbl/d) | % Change | | :---------------------- | :--------------------------- | :--------------------------- | :-------------- | :------- | | Total Permian | 826.7 | 744.1 | 82.6 | 11.1% | | Total Field | 952.3 | 868.1 | 84.2 | 9.7% | | Total | 984.5 | 904.8 | 79.7 | 8.8% | [Logistics and Transportation Segment](index=49&type=section&id=Logistics%20and%20Transportation%20Segment) This subsection analyzes the financial and operating performance of Targa's Logistics and Transportation segment, including operating margin, expenses, and NGL volumes Logistics and Transportation Segment Financial Performance | Metric (Millions USD) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (Millions USD) | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :-------------------- | :------- | | Operating margin | 632.4 | 547.7 | 84.7 | 15.5% | | Operating expenses | 105.4 | 85.4 | 20.0 | 23.4% | | Adjusted operating margin | 737.8 | 633.1 | 104.7 | 16.5% | | Metric (Millions USD) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (Millions USD) | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :-------------------- | :------- | | Operating margin | 1,279.1 | 1,079.8 | 199.3 | 18.5% | | Operating expenses | 200.9 | 175.4 | 25.5 | 14.5% | | Adjusted operating margin | 1,480.0 | 1,255.2 | 224.8 | 17.9% | - Adjusted operating margin increased due to higher pipeline transportation and fractionation margin, and higher LPG export margin, driven by increased supply from Permian Gathering and Processing systems, full operation of Train 9 (Q2 2024), Daytona NGL Pipeline (Q3 2024), and Train 10 (Q4 2024), despite a planned turnaround at Mont Belvieu facilities[198](index=198&type=chunk)[199](index=199&type=chunk)[201](index=201&type=chunk) - Operating expenses increased due to system expansions and the planned turnaround[200](index=200&type=chunk)[202](index=202&type=chunk) Logistics and Transportation Operating Statistics | Operating Statistics (MBbl/d) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (MBbl/d) | % Change | | :---------------------------- | :--------------------------- | :--------------------------- | :-------------- | :------- | | NGL pipeline transportation volumes | 961.2 | 783.5 | 177.7 | 22.7% | | Fractionation volumes | 969.1 | 902.2 | 66.9 | 7.4% | | Export volumes | 423.1 | 394.1 | 29.0 | 7.4% | | NGL sales | 1,151.1 | 1,018.4 | 132.7 | 13.0% | | Operating Statistics (MBbl/d) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (MBbl/d) | % Change | | :---------------------------- | :--------------------------- | :--------------------------- | :-------------- | :------- | | NGL pipeline transportation volumes | 902.7 | 750.6 | 152.1 | 20.3% | | Fractionation volumes | 974.5 | 849.7 | 124.8 | 14.7% | | Export volumes | 435.3 | 416.6 | 18.7 | 4.5% | | NGL sales | 1,168.6 | 1,123.0 | 45.6 | 4.1% | [Other Segment](index=50&type=section&id=Other%20Segment) This subsection discusses the financial performance of the 'Other' segment, primarily reflecting mark-to-market gains/losses from derivative activities Other Segment Financial Performance | Metric (Millions USD) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (Millions USD) | | :-------------------- | :--------------------------- | :--------------------------- | :-------------------- | | Operating margin | 280.5 | (46.6) | 327.1 | | Adjusted operating margin | 280.5 | (46.6) | 327.1 | | Metric (Millions USD) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (Millions USD) | | :-------------------- | :--------------------------- | :--------------------------- | :-------------------- | | Operating margin | 31.7 | (68.7) | 100.4 | | Adjusted operating margin | 31.7 | (68.7) | 100.4 | - The 'Other' segment primarily reflects mark-to-market gains/losses from commodity derivative activities not designated as cash flow hedges, with the significant increase in operating margin for both periods due to favorable movements in these derivative contracts[203](index=203&type=chunk) [Our Liquidity and Capital Resources](index=50&type=section&id=Our%20Liquidity%20and%20Capital%20Resources) This section discusses Targa's liquidity sources, capital resources, and strategies for managing short-term and long-term financing needs - Targa's main liquidity sources are internally generated cash flows, borrowings under the TRGP Revolver, Commercial Paper Program, Securitization Facility, and access to debt/equity capital markets, which are believed sufficient to meet anticipated cash requirements for the next twelve months[204](index=204&type=chunk)[205](index=205&type=chunk) [Short-term Liquidity](index=50&type=section&id=Short-term%20Liquidity) This subsection provides an overview of Targa's short-term liquidity position, including cash on hand and available credit facilities Total Liquidity | Metric (Millions USD) | As of July 31, 2025 | | :---------------------------------------------------- | :------------------ | | Cash on hand | 190.2 | | Total availability under the Securitization Facility | 600.0 | | Total availability under the TRGP Revolver and Commercial Paper Program | 3,500.0 | | Outstanding borrowings under the Securitization Facility | (600.0) | | Outstanding borrowings under the TRGP Revolver and Commercial Paper Program | (1,035.0) | | Outstanding letters of credit under the TRGP Revolver | (26.7) | | **Total liquidity** | **2,628.5** | - As of July 31, 2025, Targa had **$2.6 billion** in total liquidity, with potential capital resources including an option to increase TRGP Revolver commitments by **$500.0 million**[206](index=206&type=chunk)[207](index=207&type=chunk) - As of June 30, 2025, Targa had **$9.4 million** in letters of credit outstanding under the TRGP Revolver to satisfy counterparty credit requirements[208](index=208&type=chunk) [Working Capital](index=52&type=section&id=Working%20Capital) This subsection analyzes changes in Targa's working capital and the factors influencing these changes - Working capital decreased by **$93.2 million** as of June 30, 2025, compared to December 31, 2024, primarily due to the reclassification of **$705.2 million** of 6.500% Notes due 2027 to Current debt obligations, partially offset by lower Securitization Facility outstanding balance, higher NGL inventory, and lower payables/accrued liabilities[210](index=210&type=chunk)[52](index=52&type=chunk) [Long-term Financing](index=52&type=section&id=Long-term%20Financing) This subsection discusses Targa's long-term financing strategies, including debt offerings and credit facility amendments - Targa's long-term financing includes potential funds from long-term debt, common/preferred stock issuance, or joint ventures, with a new **$3.5 billion** TRGP Revolver established in February 2025, and public offerings of Senior Unsecured Notes totaling **$3.5 billion** completed in February and June 2025, used for the Badlands Transaction, debt redemption, and general corporate purposes[211](index=211&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk) - In July 2025, the Partnership amended the Securitization Facility, extending its termination date to August 31, 2026[215](index=215&type=chunk) - Targa may redeem, purchase, or exchange outstanding debt in the future, depending on market conditions and liquidity requirements, with current debt balances not adversely affecting operations or growth[216](index=216&type=chunk)[217](index=217&type=chunk) [Compliance with Debt Covenants](index=54&type=section&id=Compliance%20with%20Debt%20Covenants) This subsection confirms Targa's adherence to all covenants in its various debt agreements - As of June 30, 2025, Targa and the Partnership were in compliance with all covenants in their various debt agreements[218](index=218&type=chunk) [Cash Flow Analysis](index=54&type=section&id=Cash%20Flow%20Analysis) This section provides a detailed analysis of Targa's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 [Cash Flows from Operating Activities](index=54&type=section&id=Cash%20Flows%20from%20Operating%20Activities) This subsection analyzes the factors contributing to changes in net cash provided by operating activities Net Cash Provided by Operating Activities | Metric (Millions USD) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (Millions USD) | % Change | | :---------------------------------------- | :--------------------------- | :--------------------------- | :-------------------- | :------- | | Net cash provided by operating activities | 1,812.7 | 1,780.9 | 31.8 | 1.8% | - The increase in net cash provided by operating activities was primarily due to higher collections from customers (increased revenues), offset by higher payments for product purchases, fuel, operating expenses, and lower hedge settlements, with a nonrecurring payment related to the Splitter Agreement in 2024 also impacting the comparison[221](index=221&type=chunk)[222](index=222&type=chunk) [Cash Flows from Investing Activities](index=54&type=section&id=Cash%20Flows%20from%20Investing%20Activities) This subsection analyzes the factors contributing to changes in net cash used in investing activities Net Cash Used in Investing Activities | Metric (Millions USD) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (Millions USD) | % Change | | :---------------------------------------- | :--------------------------- | :--------------------------- | :-------------------- | :------- | | Net cash used in investing activities | (1,770.1) | (1,427.7) | (342.4) | 24.0% | - The increase in net cash used in investing activities was due to higher outlays for major growth capital projects in 2025, particularly for construction in the Permian region and Mont Belvieu, Texas, and increased contributions to unconsolidated affiliates[225](index=225&type=chunk) [Cash Flows from Financing Activities](index=54&type=section&id=Cash%20Flows%20from%20Financing%20Activities) This subsection analyzes the factors contributing to changes in net cash provided by (used in) financing activities Net Cash Provided by (Used in) Financing Activities | Metric (Millions USD) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (Millions USD) | % Change | | :---------------------------------------- | :--------------------------- | :--------------------------- | :-------------------- | :------- | | Net cash provided by (used in) financing activities | (86.8) | (328.5) | 241.7 | (73.6%) | - The decrease in net cash used in financing activities was driven by higher proceeds from debt financings in 2025 (senior unsecured notes issuance) and lower distributions to noncontrolling interests (due to Badlands Transaction and CBF Acquisition), partially offset by higher repurchases of noncontrolling interests (Badlands Transaction) and increased dividends paid, noting that in 2024, the company fully repaid a **$1.5 billion** term loan facility[226](index=226&type=chunk) [Summarized Combined Financial Information for Guarantee of Securities of Subsidiaries](index=54&type=section&id=Summarized%20Combined%20Financial%20Information%20for%20Guarantee%20of%20Securities%20of%20Subsidiaries) This section provides summarized combined financial information for the Obligated Group, which guarantees Targa's senior unsecured notes - The Obligated Group (subsidiaries guaranteeing TRGP Revolver) also fully and unconditionally guarantees TRGP's senior unsecured notes, with supplemental summarized combined financial information provided in lieu of separate financial statements, with intercompany items eliminated and investments in non-guarantor subsidiaries excluded[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk) Obligated Group Financial Information | Metric (Millions USD) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total assets | 213.1 | 226.9 | | Total liabilities | 5,320.7 | 5,383.7 | | Total owners' equity (deficit) | (5,107.6) | (5,156.8) | | Metric (Millions USD) | 6 Months Ended June 30, 2025 | Year Ended December 31, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Operating income (loss) | (166.3) | (328.0) | | Net income (loss) | (298.7) | (583.0) | [Common Stock Dividends](index=55&type=section&id=Common%20Stock%20Dividends) This section discusses Targa's common stock dividend policy and recent dividend increases - Targa increased its common dividend to **$1.00 per share** (**$4.00 annualized**) effective Q1 2025, with future dividends dependent on financial condition, results, cash flow, capital expenditures, business prospects, and debt covenants[231](index=231&type=chunk) [Capital Expenditures](index=56&type=section&id=Capital%20Expenditures) This section provides a summary of Targa's growth and maintenance capital expenditures and cash outlays for capital projects Capital Expenditure Summary | Capital Expenditure Category (Millions USD) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (Millions USD) | % Change | | :------------------------------------------ | :--------------------------- | :--------------------------- | :-------------------- | :------- | | Growth | 1,403.8 | 1,470.2 | (66.4) | (4.5%) | | Main

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA for the second quarter of $1,163 million, an 18% increase year-over-year, primarily driven by higher Permian volumes and margin contributions from the Badlands assets [18][19][21] - The full-year 2025 adjusted EBITDA is estimated to be in the range of $4,650 million to $4,850 million [19] Business Line Data and Key Metrics Changes - In the Permian, natural gas inlet volumes averaged a record 6,300 million cubic feet per day in the second quarter, an 11% increase year-over-year [12] - NGL pipeline transportation volumes averaged a record 961,000 barrels per day, while fractionation volumes averaged 969,000 barrels per day during the second quarter [15][16] - The fractionation volumes were impacted by a planned turnaround, but are now exceeding 1,000,000 barrels per day post-turnaround [16] Market Data and Key Metrics Changes - The company noted that while the Permian rig count has softened, the number of rigs on its system remains largely unchanged, indicating stability in its operations [7] - The demand for natural gas and NGLs is expected to continue increasing, supported by strong customer performance across the value chain [10] Company Strategy and Development Direction - The company is focused on increasing adjusted EBITDA, common dividends per share, and reducing share count while maintaining a strong investment-grade balance sheet [10][21] - The company plans to invest in integrated growth opportunities and return increasing capital to shareholders over the long term [10][21] - The company is preparing for growth in 2027 and beyond by ordering long lead items for additional Permian plants [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong growth on the Permian system for the remainder of 2025 and into 2026, supported by ongoing discussions with producers [7][9] - The company highlighted its differentiated growth profile, outperforming crude and gas production growth rates over the past five years [8][9] Other Important Information - The company repurchased $324 million in common shares during the second quarter and authorized a new $1 billion share repurchase program [21][22] - The company expects net growth capital spending for 2025 to be approximately $3 billion, with maintenance capital spending of $250 million [20] Q&A Session Summary Question: Thoughts on outperforming the basin - Management noted that the combination of having the largest footprint and being over some of the best rock in the Midland and Delaware Basins contributes to their ability to outperform [25][26] Question: Outlook on NGL margins - Management indicated that they have a growing supply from their gas processing footprint and are well-positioned due to long-term contracts, despite concerns about overbuild and margin pressures [28][30] Question: Competition in the Northern Delaware - Management acknowledged increased competition but emphasized their established capabilities and long-term contracts that provide a competitive advantage [37][42] Question: Capital expenditures for 2026 - Management stated that they will assess producer budgeting cycles to inform their 2026 capital budget, but they expect to continue capital-efficient spending aligned with growth opportunities [46] Question: Confidence in future volume growth - Management expressed confidence based on observed volume ramp-up and the expected contributions from new processing plants coming online [54][56] Question: Expectations for Bull Run extension - Management described the Bull Run extension as a natural extension of their capabilities, supported by existing volumes and expected growth [60][61] Question: Balancing buybacks with other capital uses - Management emphasized an opportunistic approach to share repurchases while maintaining flexibility to invest in organic growth projects [62][64] Question: Performance of Badlands assets - Management confirmed that the Badlands transaction has met expectations, with overall volumes remaining flat but potential for future increases [69][70] Question: Approach to LPG export docks and competition - Management reiterated their strong position due to long-term contracts and the ability to meet growing global demand, despite new entrants in the market [81][83]