Targa Resources Signs 20-Year Permian Basin Deal With ExxonMobil

Targa Resources Corp. entered into new 20-year agreements with subsidiaries of ExxonMobil Holdings Corp. for integrated natural gas gathering, processing, and downstream services in the Permian Basin. The contracts, which run through 2046, include acreage dedications in the Permian Delaware and Midland basins, as well as NGL transportation and fractionation services.

To support these agreements, Targa Resources announced the construction of the Bull Run II pipeline and three new natural gas processing plants named Wrangler, Ranger, and Ranger II. These facilities are expected to be operational by the first half of 2028.

As a result of these expansions, Targa Resources increased its full-year 2026 growth capital estimate to approximately $5 billion. The company is also evaluating the addition of a fractionation train in Mont Belvieu and up to five more processing plants in the Permian Delaware.