Targa Resources Corp.’s gas processing and NGL segment saw its strongest three-month quarter, driving the midstream company’s adjusted EBITDA to a record $1.07 billion, according to its Nov. 5. earnings report.

“We were expecting growth this year, but not that level of growth,” said Matt Meloy, Targa CEO and director. “So, we think that really just puts us in a good position as we go forward.”

Targa’s adjusted core profit hit $1.07 billion in the reported quarter, compared to analysts’ estimate of $1.01 billion.

Targa plans to continue developing its gas processing and transport infrastructure. The company reported record NGL transportation and fractionation volumes in the Permian Basin, where associated natural gas production continues to rise as E&Ps focus on crude.

In September, the company completed its Daytona NGL Pipeline expansion. The 400,000-bbl/d line transports products from gas processing plants in the Permian to Targa’s Grand Prix pipeline in North Texas.  

The company also said it completed the 275 MMcf/d Greenwood II natural gas processing plant in the Midland Basin and placed in service its 120,000 bbl/d Train 10 fractionator in Mont Belvieu, in the Houston area.

Executives are moving forward with plans for two new gas processing plants in the Permian with a capacity of 275 MMcf/d each.

“Given the anticipated growth in our Permian G&P business and corresponding plant additions, our outlook for NGL supply growth is robust, and our downstream system expansions are very much needed to handle growth from our systems,” said Jen Kneale, Targa’s president of finance and administration.

For the quarter, Truist Securities rated Targa stock as a “buy” in a quick analysis of the report.

“Continued record Permian production volumes means continued record Targa NGL transportation and fractionation volumes,” Truist analysts said. “The company’s low double-digit Permian volume not only sets up for strong end to the year but also positions 2025 better than most were previously forecasting.”

The company declared a quarterly cash dividend of $0.75 per common share, or $3 per common share on an annualized basis, for the third quarter. Targa repurchased 1.15 million shares of its common stock during the period at a weighted average per share price of $146.02 for a total net cost of $167.9 million, executives reported.

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