Targa Resources Corp. (TRGP): Business Model Canvas [Dec-2025 Updated]

You're digging into how Targa Resources Corp. actually makes its money, and honestly, looking at their operations reveals a textbook midstream powerhouse built on integration and scale. As someone who spent years mapping these energy plays, I can tell you their success is cemented in connecting the Permian wellhead to the Gulf Coast-handling everything from gas processing to NGL export-all while projecting an Adjusted EBITDA near the top end of the $4.65 billion to $4.85 billion range for 2025 on $17.38 billion in revenue. This Business Model Canvas distills exactly how they deploy an estimated $3.3 billion in growth capital and manage their vast infrastructure. Keep reading below to see the nine essential building blocks defining this strategy.

Targa Resources Corp. (TRGP) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Targa Resources Corp. relies on to move and process energy, so let's break down the key players that make the infrastructure run.

The relationships with oil and gas producers are cemented by long-term agreements, which is how Targa Resources Corp. secures its cash flow. For example, the recent acquisition of Stakeholder Midstream LLC brings with it long-term, fee-based contracts covering roughly 170,000 dedicated acres in the Permian Basin. This is the kind of acreage dedication that gives you confidence in future volumes.

Targa Resources Corp. actively partners on major infrastructure, sharing investment and risk. You see this in their history, like the joint venture structure that resulted in Targa owning a 75 percent interest in its Grand Prix NGL Pipeline and a 25 percent equity interest in the Gulf Coast Express Pipeline. They also collaborate with entities like MPLX LP and WhiteWater Midstream on systems such as the Traverse natural gas pipeline.

Financing these massive projects requires strong ties to financial institutions. As of June 30, 2025, Targa Resources Corp. reported total consolidated liquidity of approximately $3.5 billion. That liquidity pool included $2.8 billion available under the TRGP Revolver and $600.0 million under the Securitization Facility. Targa planned to use this strong liquidity position, including its existing $3.5 billion revolving credit facility, to fund the Stakeholder acquisition.

The December 2025 agreement to acquire Stakeholder Midstream LLC for $1.25 billion in cash is a prime example of a strategic partnership consolidation. This deal adds assets anchored by long-term contracts and is expected to generate about $200 million in annual unlevered adjusted free cash flow.

Here's a quick look at what the Stakeholder acquisition brings to the partnership portfolio:

• Approximately 480 miles of natural gas pipelines.
• 180 million cubic feet per day (MMcf/d) of cryogenic processing capacity.
• Carbon Capture and Sequestration (CCUS) activities generating 45Q tax credits.
• A purchase price representing about 6 times the estimated 2026 unlevered adjusted free cash flow.

To keep up with producer activity, Targa Resources Corp. relies on Engineering, Procurement, and Construction (EPC) firms to execute rapid expansion. Industrial Info is tracking more than $3.7 billion worth of active and planned projects from Targa, with more than half dedicated to plant expansions. Targa plans to build over 2 Bcf/d of gas processing capacity in the Permian from year-end 2022 through 2025. The Falcon II Plant, for instance, is a 275 MMcf/d project in the Delaware Basin with an expected start-up in the second quarter of 2026.

You can see the scale of Targa Resources Corp.'s capital deployment related to these partners and projects in the table below:

The relationships with producers are further supported by Targa's integrated network, which connects supply to markets. For example, the Daytona NGL Pipeline, a major expansion, is designed to carry up to 550,000 barrels per day (BBL/d) of NGLs from the Permian to Mont Belvieu.

The company's overall infrastructure footprint, which underpins these partnerships, includes approximately 31,200 miles of natural gas pipelines and 53 natural gas processing plants. Specifically in the Permian Midland system, Targa Resources Corp. operates about 7,600 miles of gathering pipelines and 20 processing plants with an aggregate capacity of 4,119 MMcf/d.

Finance: draft 13-week cash view by Friday.

Targa Resources Corp. (TRGP) - Canvas Business Model: Key Activities

Natural gas gathering, treating, and cryogenic processing operations are central to Targa Resources Corp.'s activities, primarily in the Permian Basin of West Texas and Southeast New Mexico.

For the third quarter of 2025, Permian natural gas inlet volumes averaged a record 6.6 billion cubic feet per day. This represented an 11% increase versus the prior year. Targa Resources Corp. is currently constructing five new gas processing plants in the Permian, which will add an aggregate inlet capacity of 1.4 billion cubic feet per day over the next two years. The Bull Moose II plant, a 275 MMcf/d cryogenic natural gas processing plant, commenced operations in October 2025. The Pembrook II plant, also 275 MMcf/d, came online in the third quarter of 2025. The planned Yeti plant will add another 275 MMcf/d capacity, expected online in the third quarter of 2027. Targa Resources Corp. is the region's largest sour gas treater, with a total of 2.3 Bcf/d of centralized amine treatment capacity in the basin.

The acquisition of Stakeholder Midstream, announced in December 2025, adds approximately 180 million cubic feet per day of both cryogenic natural gas processing and sour treating capacity. Targa Resources Corp.'s total consolidated liquidity as of June 30, 2025, was approximately $3.5 billion.

NGL fractionation at Mont Belvieu and transportation via Grand Prix pipeline form the Logistics and Transportation segment's core. Targa Resources Corp.'s primary pipeline asset, Grand Prix, has the capacity to transport up to 1,000 MBbl/d of NGLs into Mont Belvieu. Targa Resources Corp. currently transports about 1,000 MBbl/d in its existing NGL transportation system. For the second quarter of 2025, NGL pipeline transportation volumes reached a record 961,200 barrels per day. Fractionation capacity expansion at Mont Belvieu includes Train 9 (120,000 BBL/d) and Train 10 (120,000 BBL/d), bringing the complex's total NGL output to 1.06 million BBL/d. The Daytona NGL Pipeline expansion, designed to carry up to 550,000 barrels per day, is expected to finish construction toward the end of 2025.

Crude oil gathering and terminaling services are also a key activity, particularly within the Targa Badlands assets. The Targa Badlands system includes approximately 500 miles of crude oil gathering pipelines. Operational crude oil storage capacity at the Johnsons Corner Terminal is 120 MBbl. For the second quarter of 2025, condensate sales per day were reported at 20.1 millions of barrels of oil per day.

• Targa Badlands crude oil storage capacity at Alexander Terminal: 30 MBbl.
• Targa Badlands crude oil storage capacity at New Town: 30 MBbl.
• Targa Badlands crude oil storage capacity at Stanley: 25 MBbl.

Strategic growth capital deployment for 2025 is substantial. Targa Resources Corp. estimates its full year 2025 net growth capital expenditures to be approximately $3.3 billion. The estimate for 2025 net maintenance capital expenditures remains at approximately $250 million. The company announced a new $1.0 billion common share repurchase program in August 2025, in addition to the existing program. As of September 30, 2025, Targa Resources Corp. had repurchased shares for a total net cost of $604.8 million year-to-date.

Commodity marketing and risk management (hedging) activities are integrated within the Logistics and Transportation segment. The sequential increase in adjusted operating margin for the Logistics and Transportation segment in the third quarter of 2025 was driven by higher marketing margin. Targa Resources Corp. reported third quarter 2025 adjusted EBITDA of $1,274.8 million.

Finance: review the impact of the December 2025 Stakeholder Midstream acquisition on Q4 2025 marketing margin projections by next Tuesday.

Targa Resources Corp. (TRGP) - Canvas Business Model: Key Resources

You're looking at the core assets that make Targa Resources Corp. run, the physical and financial bedrock supporting its midstream operations as of late 2025. Honestly, these numbers show a company heavily invested in capturing growth right at the source in the Permian Basin and moving that product to the coast for export.

Extensive Permian Basin G&P footprint and capacity expansion is clearly a major focus. Targa Resources Corp. just closed on a significant bolt-on acquisition in December 2025, buying Stakeholder Midstream LLC for $1.25 billion in cash. This deal immediately adds roughly 480 miles of natural gas gathering lines and 180 MMcf/d of cryogenic processing and sour-gas treating capacity, anchored by contracts across about 170,000 dedicated acres. To handle the surging volumes, Targa Resources Corp. is currently constructing five new gas processing plants in the Permian, which will add an aggregate inlet capacity of 1.4 Bcf/d over the next couple of years. The company's 2025 net growth capital expenditures are estimated to hit approximately $3.3 billion to support this buildout. Targa Resources Corp. already transports about 1 million barrels per day (MMBbl/d) of NGLs on its existing system, which includes the Pembrook II plant that started up in the third quarter of 2025.

The connectivity from the wellhead to the Gulf Coast is secured by the Grand Prix NGL Pipeline. Targa Resources Corp. now holds 100 percent ownership of this asset, having completed the purchase of the final 25 percent stake in early 2023. The pipeline itself is approximately 1,200 miles long, connecting supply points across the Permian Basin, North Texas, and Southern Oklahoma to Mont Belvieu. At capacity, Grand Prix can move up to 1,000 MBbl/d of NGLs. Furthermore, the Daytona NGL Pipeline expansion, designed to carry up to 550,000 BBL/d of NGLs from the Permian to Grand Prix in North Texas, was placed into service toward the end of 2025.

The destination for much of this product is the Mont Belvieu fractionation and LPG export complex. Targa Resources Corp. operates a massive processing footprint here, with net aggregate fractionation capacity standing at 1.2 MMBbl/d, plus another 0.3 MMBbl/d under construction. The wholly-owned nine fractionation trains at the operated facility account for 963.0 MBbl/d. The completion of Train 9 (120,000 BBL/d) and Train 10 (120,000 BBL/d) brought the total NGL output to 1.06 million BBL/d. For exports, the facilities at Mont Belvieu and Galena Park have an effective export capacity of about 13.5 MMBbl per month, which is set to increase to 19 MMBbl per month by the third quarter of 2027.

The sheer scale of Targa Resources Corp.'s operations is reflected in its balance sheet. The Total consolidated assets as of the quarter ending September 30, 2025, reached $24.175B, a significant increase from the $20.672B reported for full year 2023. This scale supports an estimated 2025 full-year Adjusted EBITDA in the range of $4.65 billion to $4.85 billion. The company's total consolidated debt as of September 30, 2025, was $17,431.3 million.

The physical assets and their capacities can be summarized like this:

The Skilled workforce for complex midstream operations is implied by the massive capital deployment and the complexity of the assets. For instance, the 2025 net growth capital expenditure budget of approximately $3.3 billion, which includes spending for projects like the Delaware Express and Train 12, requires significant engineering, project management, and operational expertise to execute and manage safely.

• Targa Resources Corp. 2025 estimated net maintenance capital expenditures: $250 million.
• Targa Resources Corp. 2025 estimated full-year Adjusted EBITDA range: $4.65 billion to $4.85 billion.
• Total consolidated liquidity as of September 30, 2025: approximately $2.3 billion.
• Total consolidated debt as of September 30, 2025: $17,431.3 million.

Targa Resources Corp. (TRGP) - Canvas Business Model: Value Propositions

You're looking for the concrete numbers that define Targa Resources Corp.'s value to its customers and the market as of late 2025. Honestly, it's all about integration, capacity, and financial discipline.

Integrated wellhead-to-water midstream service strategy

Targa Resources Corp. offers a comprehensive 'wellhead-to-water' strategy, connecting production basins to end markets through its integrated network. This system is divided into two main segments: Gathering and Processing (G&P) and Logistics and Transportation (L&T). The G&P segment alone involves approximately 31,200 miles of natural gas pipelines feeding into 53 natural gas processing plants.

Key operational metrics from Q3 2025 demonstrate this scale:

Reliable, high-capacity NGL transportation and export access

The value proposition here is moving large volumes of Natural Gas Liquids (NGLs) reliably to domestic and international buyers. The company's infrastructure connects directly to major hubs like Mont Belvieu on the Houston Ship Channel.

• NGL Pipeline Transportation averaged a record 1.02 million barrels per day in Q3 2025.
• Fractionation capacity handled a record 1.13 million barrels per day in Q3 2025.
• LPG Export Loadings averaged 12.5 million barrels per month in Q3 2025.

Enhanced sour gas treating and CCUS capabilities via acquisition

The acquisition of Stakeholder Midstream, announced for $1.25 billion in cash, directly bolsters capabilities aligned with cleaner energy infrastructure. This bolt-on deal adds assets that will supplement Targa Resources Corp.'s existing footprint.

• Acquisition adds 180 MMcf/d of cryogenic processing and sour gas treating capacity.
• Adds carbon capture infrastructure generating federal 45Q tax credits.
• The acquired system is supported by long-term, fee-based contracts across approximately 170,000 dedicated acres.

Financial stability with investment-grade leverage target (3.0x to 4.0x)

Targa Resources Corp. maintains a commitment to a strong balance sheet, which underpins its ability to invest and return capital. The company expects to remain within its stated long-term leverage target range even after the acquisition.

Here's the quick math on financial positioning as of late 2025:

• Long-term leverage target range: 3.0x to 4.0x.
• Pro forma consolidated leverage ratio at end of Q3 2025: Approximately 3.6x.
• Full-year 2025 Adjusted EBITDA guidance is near the top end of $4.65 billion to $4.85 billion.
• Net growth capital expenditures estimate for 2025: Approximately $3.3 billion.

Scalable infrastructure to handle Permian volume growth (e.g., 7% expected growth)

The value proposition is rooted in Targa Resources Corp.'s ability to handle increasing production from the prolific Permian Basin. The company is actively commissioning and planning expansions to meet this demand.

The Permian system is showing clear momentum:

• Permian inlet volumes averaged a record 6.3 Bcf/d in Q2 2025, up 11% year/year.
• Q3 2025 Permian natural gas inlet volumes hit a record 6,622 MMcf/d.
• Third party forecasts suggest 7% growth in Permian associated gas over the next five years.
• New capacity additions include the 275 MMcf/d Bull Moose II plant, which commenced operations in October 2025.

Finance: draft 13-week cash view by Friday.

Targa Resources Corp. (TRGP) - Canvas Business Model: Customer Relationships

You're looking at how Targa Resources Corp. locks in volume and revenue, which is key for any midstream player. The relationships are built on securing long-term commitments right at the source.

Long-term, fee-based contracts to ensure volume stability form the bedrock of Targa Resources Corp.'s revenue predictability. The recent agreement to acquire Stakeholder Midstream, announced in December 2025, exemplifies this strategy, adding assets anchored by long-term, fee-based contracts covering approximately 170,000 dedicated acres in the Permian Basin. These acquired assets are projected to generate annual unlevered adjusted free cash flow of around $200 million. The deal valuation itself reflects this stability, representing about six times the estimated 2026 unlevered adjusted free cash flow. This focus on contracted volume helps Targa Resources Corp. maintain its financial footing, even when commodity prices fluctuate.

For the largest energy players, the relationship moves into a dedicated, high-touch area. The concentration of business shows where that focus lies: Targa Resources Corp.'s Top 20 customers represent ~90% of Targa's Permian volumes, according to September 2025 data. This level of concentration necessitates dedicated account management, ensuring Targa Resources Corp. is deeply integrated into the operational planning of its biggest partners. The CEO noted familiarity with acquired assets and strong relationships with some of the largest producers on the system, which is defintely a core relationship asset.

The service model shifts slightly when dealing with smaller, independent exploration companies, focusing more on providing flexible, producer-focused solutions to get their product to market. This is supported by Targa Resources Corp.'s continuous capital deployment aimed at customer needs. For instance, in November 2025, Targa announced the construction of the new Copperhead natural gas processing plant in the Permian Delaware, expected to begin operations in the first quarter of 2027.

This infrastructure build-out is a direct result of strategic alignment with customers' drilling and production schedules. Targa Resources Corp. is building capacity to meet forecasted growth, aiming to drive record Permian NGL pipeline transportation and fractionation volumes in 2025. The consultative approach for infrastructure planning involves understanding where producers plan to drill next so that Targa Resources Corp. can position its gathering and processing assets accordingly.

Here are some key figures related to Targa Resources Corp.'s scale and recent relationship-driven activity as of late 2025:

The relationship strategy is supported by significant financial backing and a commitment to growth capital:

• New common share repurchase program authorized in August 2025 for up to $1.0 billion.
• Quarterly cash dividend declared for Q3 2025 at $1.00 per common share ($4.00 annualized).
• Estimated 2025 net growth capital expenditures are approximately $3.3 billion.
• The company repurchased 1.96 million shares in Q2 2025 at a weighted average price of $165.86.

The focus remains on securing long-term commitments that translate directly into stable cash flows, which is what the acquisition of assets with long-term, fee-based contracts is all about.

Targa Resources Corp. (TRGP) - Canvas Business Model: Channels

You're looking at the physical arteries that move Targa Resources Corp.'s product from the wellhead to the market, and these assets are definitely running at capacity as of late 2025.

The company's natural gas gathering and processing systems are heavily concentrated in key basins. As of the third quarter of 2025, Targa Resources Corp. reported that its Permian natural gas inlet volumes hit a record average of 6.6 billion cubic feet per day. This volume represented an 11% increase year-over-year, and management sees at least 10% growth in those Permian volumes for the full year 2025. New processing capacity came online to support this, with the Pembrook II plant starting up in the third quarter and the Bull Moose II plant commencing operations in October 2025. Furthermore, Targa Resources Corp. is building out its footprint with several projects, including the Copperhead plant (275 MMcf/d, expected Q1 2027) and the Yeti plant (275 MMcf/d, expected Q3 2027) in the Permian Delaware.

The movement of Natural Gas Liquids (NGLs) relies on critical pipelines, most notably the Grand Prix system. This pipeline connects Targa Resources Corp.'s gathering and processing positions across the Permian Basin, North Texas, and Southern Oklahoma to the Mont Belvieu hub. Grand Prix has the capacity to move up to 1,000 MBbl/d of NGLs. To handle further growth, Targa Resources Corp. announced the Speedway NGL Pipeline in late 2025, which will initially carry 500,000 barrels per day (MBbl/d), expandable to 1 million barrels per day (MMBbl/d), with an estimated cost of $1.6 billion and an expected in-service date of the third quarter of 2027. The Logistics and Transportation segment, which houses these pipelines, saw its NGL pipeline transportation volumes average a record 1.02 million barrels per day in Q3 2025.

Fractionation facilities at Mont Belvieu, the U.S. NGL hub, are essential for turning mixed NGLs into marketable products. Targa Resources Corp. operates a net aggregate fractionation capacity of 1.2 MMBbl/d, with an additional 0.3 MMBbl/d under construction. The Q3 2025 fractionation volumes were a record, averaging 1.13 million barrels per day, recovering sharply after planned maintenance earlier in the year. At the core Mont Belvieu facility, Targa Resources Corp. has nine wholly-owned fractionation trains with an aggregate capacity of 963.0 MBbl/d, plus an 80% interest in a 120 MBbl/d joint venture train. Future capacity additions include Train 11 (150 MBbl/d, expected Q2 2026) and Train 12 (150 MBbl/d, expected Q1 2027).

Access to the international market is channeled through LPG export terminals. Targa Resources Corp.'s export facilities at Mont Belvieu and the Galena Park Marine Terminal had an effective export capacity of approximately 13.5 MMBbl per month during the third quarter of 2025, with average loadings at 12.5 million barrels per month for that period. An expansion of LPG export capabilities at Galena Park is underway, which is set to increase this effective capacity to 19 MMBbl per month by the third quarter of 2027.

The Gathering and Processing segment also includes crude oil gathering and terminaling assets. While specific terminaling throughput numbers aren't detailed for late 2025, the acquisition of Stakeholder Midstream for $1.25 billion, expected to close in Q1 2026, specifically enhances the crude gathering and storage services in the Permian Basin. This acquisition adds a small crude oil gathering system to Targa Resources Corp.'s portfolio.

These physical channels are driving the financial results, with Targa Resources Corp. estimating full year 2025 Adjusted EBITDA to be around the top end of the $4.65 billion to $4.85 billion range. The 2025 net growth capital spending estimate is approximately $3.3 billion, with net maintenance capital spending estimated at $250 million.

You can see the scale of the operation just by the throughput numbers. The Logistics and Transportation segment posted record NGL pipeline transportation volumes of 1.02 million barrels per day in the third quarter. The capital required to maintain and expand this network is significant, with 2025 net growth capital spending estimated around $3.3 billion.

• Permian Basin Gathering Pipeline Miles (pre-Stakeholder): Approximately 7,400 miles.
• Total Permian Processing Plants (pre-Stakeholder): 18 facilities.
• Mont Belvieu Wholly-Owned Fractionation Trains: 9 trains.
• New Fractionation Capacity Under Construction: 300 MBbl/d (Trains 11 and 12).
• Speedway NGL Pipeline Estimated Cost: $1.6 billion.
• Stakeholder Midstream Acquisition Cost: $1.25 billion in cash.
• Estimated 2025 Maintenance Capex: $250 million.

Targa Resources Corp. (TRGP) - Canvas Business Model: Customer Segments

You're looking at the core groups Targa Resources Corp. relies on to move and process the energy products they handle. Honestly, their business is built on long-term relationships with producers and end-users across the midstream value chain.

Targa Resources Corp.'s overall financial scale in late 2025 shows the size of the market they serve. The revenue for the twelve months ending September 30, 2025, was $17.378B. For the full year 2025, the company estimates its adjusted EBITDA will be around the top end of its $4.65 billion to $4.85 billion range. This scale is supported by strong operational performance, with Q3 2025 adjusted EBITDA hitting $1,274.8 million.

Here's a look at the key customer segments Targa Resources Corp. serves:

• Independent Oil and Gas Exploration and Production (E&P) Companies: These producers are the source of the natural gas and NGLs Targa gathers and processes, especially in key basins like the Permian.
• Large Integrated Energy Corporations: These major players also rely on Targa's infrastructure for midstream services across their vast asset bases.
• Domestic Refineries and Petrochemical Manufacturers: These customers take the processed products, including NGLs, that Targa transports and fractionates.
• International Liquefied Petroleum Gas (LPG) Exporters: Targa supports these customers with record LPG export volumes forecasted for 2025 relative to 2024 records.
• Multi-state and independent propane retailers: These are served through Targa's Wholesale Propane business, which falls under the Marketing & Other category.

The focus on expanding in the Permian Basin, evidenced by the announced acquisition of Stakeholder Midstream for $1.25 billion cash, shows a direct commitment to serving the E&P customer base there. Stakeholder's assets include long-term acreage dedications of approximately 170,000 acres.

The following table summarizes some of Targa Resources Corp.'s key financial metrics as of late 2025, which underpins the capacity to serve these segments:

Targa Resources Corp. continues to invest in infrastructure to support volume growth from its upstream customers. For instance, they commenced operations at a new 275 million cubic feet per day (MMcf/d) plant in the Permian Delaware in October 2025. The acquisition of Stakeholder adds assets with a capacity of 180 million cubic feet per day.

The company's valuation metrics as of mid-2025 reflect market sentiment toward these customer-driven operations:

• P/E Ratio (ttm): 23.69
• P/S Ratio: 2.2
• P/B Ratio: 13.91

The Logistics and Transportation segment, which serves the LPG exporters and other downstream customers, saw record NGL transportation and fractionation volumes in Q3 2025. The company expects to recommend an annual common dividend per share of $5.00 in 2026, a 25% increase to the 2025 level.

Targa Resources Corp. (TRGP) - Canvas Business Model: Cost Structure

You're looking at the major drains on Targa Resources Corp.'s cash flow, the elements that keep that massive midstream network running. Honestly, the cost structure is dominated by the sheer scale of their assets and their aggressive growth strategy.

Significant Growth Capital Expenditures

The commitment to expansion is a huge cost driver. Targa Resources Corp. estimates its full-year 2025 net growth capital expenditures to be approximately $3.3 billion. This spending is tied directly to building out their footprint, especially in the Permian Basin, with projects like the new Yeti plant announced in September 2025.

High Fixed Costs from Operating and Maintaining Vast Pipeline Infrastructure

Operating the network of pipelines, fractionators, and terminals involves substantial, relatively fixed expenses. For the third quarter of 2025, Targa Resources Corp. reported operating expenses of $333.5 million. This figure reflects the ongoing costs associated with running their Gathering and Processing (G&P) and Logistics and Transportation (L&T) segments, which include labor, routine maintenance, and administrative overhead for their extensive physical plant.

• Q3 2025 Operating Expenses: $333.5 million
• Q2 2025 Operating Expenses: $323.6 million

Interest Expense on Total Consolidated Debt

Servicing the debt load required to finance this infrastructure is a non-negotiable cost. As of September 30, 2025, Targa Resources Corp.'s total consolidated debt stood at $17,431.3 million. For the third quarter of 2025 alone, the reported interest expense, net, was $221.3 million.

Product Purchase Costs

For the Logistics and Transportation segment, a significant variable cost comes from purchasing products for resale or to meet contractual obligations. In the second quarter of 2025, Targa Resources Corp. incurred product costs of $2.4 billion. This number fluctuates based on commodity volumes and market prices, which is why management focuses on Adjusted Operating Margin (revenues less product purchases and fuel) to assess segment performance.

Net Maintenance Capital Expenditures

Keeping the existing assets running safely and reliably requires dedicated spending, separate from growth projects. Targa Resources Corp. estimates its net maintenance capital expenditures for the full year 2025 to remain unchanged at approximately $250 million. This is the baseline spending necessary to avoid asset degradation and maintain current service levels.

Here's the quick math on the two main capital buckets for 2025:

What this estimate hides is the timing risk; if any of those growth projects slip, the cash outflow timing shifts, which impacts near-term liquidity management.

Finance: draft 13-week cash view by Friday.

Targa Resources Corp. (TRGP) - Canvas Business Model: Revenue Streams

The revenue streams for Targa Resources Corp. are fundamentally split between stable, contracted service fees and revenues tied to the sale of commodities. This structure is designed to provide resilience, though commodity exposure remains a factor.

Fee-based revenues from gathering, processing, and transportation services form the core of Targa Resources Corp.'s income stability. Management has highlighted a strong fee-based mix greater than 90%, which underpins confidence in the outlook for the second half of 2025 and into 2026.

Commodity sales of natural gas, NGLs, and crude oil account for the remaining portion of revenue, which is inherently more exposed to market price fluctuations. Based on the fee-based mix, this segment represents less than 10% of the total revenue base.

The operational scale supporting these revenue streams is significant, as evidenced by the latest reported quarterly metrics:

Fractionation and terminaling fees, including LPG export fees, are embedded within the fee-based revenue segment, driven by throughput volumes. Targa Resources Corp. reported record NGL transportation and fractionation volumes during the third quarter of 2025.

You can see the direct contribution from these activities in the quarterly performance:

• Record NGL pipeline transportation volumes in Q3 2025 drove sequential upside in the Logistics and Transportation segment margin.
• Record fractionation volumes in Q3 2025 also contributed to the sequential increase in segment adjusted operating margin.
• The company is actively expanding capacity, having commenced operations at its new 275 million cubic feet per day Bull Moose II plant in October 2025.

The overall financial expectation for the year reflects this operational strength. Targa Resources Corp. now estimates full year 2025 adjusted EBITDA to be around the top end of its $4.65 billion to $4.85 billion range. This is supported by the Total consolidated revenue of $17.38 billion for the last twelve months ending September 30, 2025.

Finance: draft the 2026 revenue projection model based on announced project timelines by Friday.