Truist raised its price target on Targa Resources (NYSE: TRGP) to $345 from $312 on Sept. 21, reaffirming its Buy rating and citing the 20-year fee-based ExxonMobil agreement; the target implies more than 19% upside from then-current levels.
Truist said the agreement extends the contract runway and improves terms, while expanding Targa’s acreage dedications and gathering-and-processing inlet volumes. Targa plans three Delaware Basin gas-processing plants with combined capacity of about 825 million cubic feet per day, plus a 70-mile pipeline to the Waha hub backed by take-or-pay commitments.
Targa raised its 2026 growth-capital estimate to $5 billion for the plants, associated field work and pipeline; the projects are not expected to enter service until the first half of 2028, and the company says delays or cost overruns could reduce returns. Targa expects 2026 adjusted EBITDA at the top of its $5.7 billion-$5.9 billion guidance range, citing stronger first-half marketing margins and volume growth. It is also evaluating up to five more processing plants and a Mont Belvieu fractionation train.
