Investing.com — Targa Resources Corp. () shares climbed 2.7% in after-hours trading Monday following the announcement of new 20-year midstream agreements with ExxonMobil subsidiaries.
The Houston-based company signed long-term fee-based agreements with ExxonMobil for integrated natural gas gathering and processing and downstream services in the Permian Basin. The agreements establish an extensive area of mutual interest across the Permian Delaware for gathering and processing, and downstream services through 2046.
In the Permian Delaware, the agreements add acreage dedications for integrated fee-based services, including gathering, processing, treating, NGL transportation, and fractionation. In the Permian Midland, the agreements add new acreage dedications and extend existing fee-floor gathering and processing agreements through 2046. Both basins include 20-year NGL dedications to Targa’s logistics and transportation systems.
To support the agreements, Targa announced three new natural gas processing plants in the Permian Delaware: the Wrangler, Ranger and Ranger II plants, with aggregate capacity of approximately 825 million cubic feet per day. The plants are expected to be in service in the first half of 2028. The company is evaluating up to five additional processing plants to accommodate expected production growth.
Targa also announced a new approximately 70-mile natural gas pipeline in the Permian Delaware, called Bull Run II, to increase natural gas takeaway capacity to the Waha Hub. The pipeline is expected to begin operations in the first half of 2028 and will be supported by take or pay commitments.
The company updated its full year 2026 net growth capital estimate to approximately $5.0 billion, incorporating expected investment in the new Delaware processing plants, incremental associated field capital, and the Bull Run II pipeline.
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