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Targa expands Permian midstream footprint with ExxonMobil 20-year deals

The agreements include three new Delaware Basin gas processing plants and a new Bull Run II pipeline, both targeted to be in service in the first half of 2028.

Reported · Written up by our desk · Fund Industry

Targa Resources announced a major infrastructure expansion after securing long-term, fee-based agreements with ExxonMobil across the Permian Delaware and Midland basins, aimed at expanding processing, transportation, and cash-flow visibility for midstream investors, according to ETF Trends.

The 20-year integrated contracts include new and extended acreage dedications in both basins and cover not only gathering and natural gas processing, but also long-term natural gas liquids volumes for downstream transportation and fractionation.

To support ExxonMobil volume growth, Targa plans to add three new natural gas processing plants in the Delaware Basin, Wrangler, Ranger, and Ranger II, which together are expected to provide about 825 million cubic feet per day of aggregate processing capacity, with in-service dates set for the first half of 2028.

Targa also plans Bull Run II, a roughly 70-mile pipeline intended to relieve regional congestion by expanding takeaway capacity to the Waha Hub by the first half of 2028, and it raised its FY26 net growth capital projection to roughly $5 billion from about $4.5 billion. ETF Trends noted Targa is a top-10 holding in the Alerian Energy Infrastructure ETF (ENFR).

Latest closeNat gas $2.715 ▼0.4%

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