Targa Resources Signs 20-Year Agreements With ExxonMobil, Plans Three New Permian Gas Plants
By Anvee Bhutani
Targa Resources said it signed 20-year agreements with ExxonMobil to provide natural-gas gathering, processing and downstream services in the Permian Basin and plans to build three new processing plants in the region.
The agreements expand Targa's relationship with ExxonMobil, adding acreage in the Permian Delaware and Midland basins and extending existing Midland agreements through 2046. The deals also include 20-year commitments for NGL transportation and fractionation services.
Targa said it will build the Wrangler, Ranger and Ranger II natural-gas processing plants in the Permian Delaware, with combined processing capacity of 825 million cubic feet a day. The plants are expected to enter service in the first half of 2028.
The company is also planning a 70-mile natural-gas pipeline, known as Bull Run II, to transport gas from the new plants 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.
Targa said it is evaluating as many as five additional processing plants in the Permian Delaware to accommodate longer-term production growth, as well as the timing of an additional fractionation train in Mont Belvieu, Texas.
The company raised its estimate for 2026 growth capital to $5 billion, incorporating investment in the new Delaware processing plants, associated field capital and the Bull Run II pipeline.
Chief Executive Matt Meloy said the expanded relationship with ExxonMobil is expected to contribute to Targa's growth rate into the next decade and support longer-term adjusted free cash flow growth.
Write to Anvee Bhutani at anvee.bhutani@wsj.com
(END) Dow Jones Newswires
August 17, 2026 17:11 ET (21:11 GMT)
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