Slides
Page 1
Third Quarter 2026 Earnings Supplement November 5, 2026 | TARGA RESOURCES CORP.
Page 2
Forward Looking Statements 2 Certain statements in this presentation are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding the Company’s projected financial performance, capital spending, payment of future dividends and stock repurchase activity. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, actions taken by other countries with significant hydrocarbon production, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of the Company’s completion of capital projects and business development efforts, including the Company’s realization of the expected benefits on long-term commercial agreements, the expected growth of volumes on the Company’s systems, the impact of significant public health crises, commodity price volatility due to ongoing or new global conflicts, changes in laws and regulations, particularly with regard to taxes, tariffs and international trade, and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. We use any of the following to comply with our disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. We routinely post important information on our website at www.targaresources.com, including information that may be deemed to be material. We encourage investors and others interested in the company to monitor these distribution channels for material disclosures. 3Q 2026 EARNINGS SUPPLEMENT PRESENTATION
Page 3
+ Higher Permian inlet volumes, driving higher fee-based margin + Acquisition of certain assets in the Permian − Higher operating expenses due to higher volumes and multiple plant additions − Higher operating expenses from the acquisition of certain assets in the Permian Financial Performance – 3Q 2026 vs. 3Q 2025 3 Note: This slide contains non-GAAP measures. A reconciliation of all non-GAAP financial measures used in this presentation to th eir nearest comparable GAAP financial measure is included at the end of this presentation. (1) Inclusive of realized hedge gain/(loss). 18% increase in Adjusted EBITDA ($ in Millions) 3Q 2026 EARNINGS SUPPLEMENT PRESENTATION L&T segment operating margin increased $61 million G&P segment operating margin increased $176 million(1) + Higher NGL pipeline transportation and fractionation volumes + Higher marketing margin − Higher operating expenses associated with repairs and maintenance and compensation and benefits, including costs related to system expansions $1,275 $1,504 3Q25 Adj. EBITDA G&P Adj. Op Margin G&P Opex L&T Adj. Op Margin L&T Opex G&A and Other 3Q26 Adj. EBITDA $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800
Page 4
Financial Performance – 3Q 2026 vs. 2Q 2026 4 Note: This slide contains non-GAAP measures. A reconciliation of all non-GAAP financial measures used in this presentation to th eir nearest comparable GAAP financial measure is included at the end of this presentation. (1) Inclusive of realized hedge gain/(loss). + Higher Permian inlet volumes, driving higher fee-based margin + Higher realized natural gas and NGL prices − Higher operating expenses due to higher compensation and labor 3Q 2026 EARNINGS SUPPLEMENT PRESENTATION 6% decrease in Adjusted EBITDA ($ in Millions) G&P segment operating margin increased $81 million(1) + Higher NGL pipeline transportation and fractionation volumes − Lower marketing margin due to fewer optimization opportunities − Lower LPG export volumes and fees L&T segment operating margin decreased $177 million $1,603 $1,504 2Q26 Adj. EBITDA G&P Adj. Op Margin G&P Opex L&T Adj. Op Margin L&T Opex G&A and Other 3Q26 Adj. EBITDA $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800
Page 5
6,622 6,651 6,730 7,187 7,537 1,201 1,203 1,154 1,144 1,141 0 200 400 600 800 1,000 1,200 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 3Q25 4Q25 1Q26 2Q26 3Q26 NGL Production (MBbl/d) MMcf/d Permian Central and Badlands NGL Production 1,017 1,049 1,017 1,099 1,172 0 200 400 600 800 1,000 1,200 3Q25 4Q25 1Q26 2Q26 3Q26 MBbl/d 1,134 1,144 1,145 1,206 1,262 0 200 400 600 800 1,000 1,200 1,400 3Q25 4Q25 1Q26 2Q26 3Q26 MBbl/d 12.5 13.5 13.1 14.8 13.7 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 3Q25 4Q25 1Q26 2Q26 3Q26 MMBbl/Month Operational Performance 5 Field G&P Natural Gas Inlet Volumes 3Q 2026 EARNINGS SUPPLEMENT PRESENTATION (1) Targa G&P volumes were impacted by severe winter weather events in 1Q26 which also impacted NGL transportation and fractionat ion volumes. LPG export volumes were impacted by an unplanned outage at a portion of our export facilities late in 1Q26. NGL Pipeline Transportation Volumes Fractionation Volumes Export Volumes (1) (1) (1) (1)
Page 6
51% 49% Gathering & Processing Logistics & Transportation 0% 25% 50% 75% 100% 3Q26Marketing and Other LPG Exports NGL Transportation & Services Business Mix – 3Q 2026 6 (1) Fully consolidated operating margin and excludes Coastal. (2) Marketing & Other includes Domestic NGL Marketing, Wholesale Propane, Refinery Services, Commercial Transportation, and Gas M arketing. Field Gathering & Processing Operating Margin(1) Business Mix – Segment Operating Margin Logistics & Transportation Operating Margin 3Q 2026 EARNINGS SUPPLEMENT PRESENTATION (2)0% 25% 50% 75% 100% 3Q26 Permian Central & Badlands
Page 7
0% 25% 50% 75% 100% YTD - 3Q26Marketing and Other LPG Exports NGL Transportation & Services Business Mix – YTD 2026 7 (1) Fully consolidated operating margin and excludes Coastal. (2) Marketing & Other includes Domestic NGL Marketing, Wholesale Propane, Refinery Services, Commercial Transportation, and Gas M arketing. Field Gathering & Processing Operating Margin(1) Business Mix – Segment Operating Margin Logistics & Transportation Operating Margin 3Q 2026 EARNINGS SUPPLEMENT PRESENTATION (2) 0% 25% 50% 75% 100% YTD - 3Q26Permian Central & Badlands 47% 53% Gathering & Processing Logistics & Transportation
Page 8
Increased 2026 Outlook 8 Adjusted EBITDA Net Growth Capital 2026 Outlook Net Maintenance Capital $250MM >$6,000MM ~$5,000MM Fee-based(1) Fee-Based Commodity Sensitivity (Hedged) Commodity Sensitivity (Unhedged) 90%+ Note: This slide contains non-GAAP measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measure is included at the end of this presentation. Estimated FY26 adjusted EBITDA is based on a range of commodity price scenarios. (1) Based on 2026E adjusted operating margin. ✓ Strength in marketing and optimization opportunities in 1H26 ✓ Meaningful growth across Targa’s Permian G&P footprint ✓ Record volumes through Targa’s integrated NGL system >21% Adjusted EBITDA Growth Expected in 2026 3Q 2026 EARNINGS SUPPLEMENT PRESENTATION
Page 9
9 Appendix and Reconciliations 3Q 2026 EARNINGS SUPPLEMENT PRESENTATION
Page 10
Non-GAAP Financial Measures This presentation includes the Company’s non-GAAP financial measures: adjusted EBITDA and adjusted operating margin. The following tables provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The Company utilizes non-GAAP measures to analyze the Company’s performance. Adjusted EBITDA and adjusted operating margin (segment) are non-GAAP measures. The GAAP measures most directly comparable to these non-GAAP measures are income (loss) from operations, Net income (loss) attributable to Targa Resources Corp. and segment operating margin. These non-GAAP measures should not be considered as an alternative to GAAP measures and have important limitations as analytical tools. Investors should not consider these measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Additionally, because the Company’s non-GAAP measures exclude some, but not all, items that affect income and segment operating margin, and are defined differently by different companies within the Company’s industry, the Company’s definitions may not be comparable with similarly titled measures of other companies, thereby diminishing their utility. Management compensates for the limitations of the Company’s non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating these insights into the Company’s decision-making processes. Adjusted EBITDA The Company defines adjusted EBITDA as Net income (loss) attributable to Targa Resources Corp. before interest, income taxes, depreciation and amortization, and other items that the Company believes should be adjusted consistent with the Company’s core operating performance. The adjusting items are detailed in the adjusted EBITDA reconciliation table and its footnotes. Adjusted EBITDA is used as a supplemental financial measure by the Company and by external users of the Company’s financial statements such as investors, commercial banks and others to measure the ability of the Company’s assets to generate cash sufficient to pay interest costs, support the Company’s indebtedness and pay dividends to the Company’s investors. Adjusted Operating Margin The Company defines adjusted operating margin for our segments as revenues less product purchases and fuel. It is impacted by volumes and commodity prices as well as by our contract mix and commodity hedging program. Gathering and Processing adjusted operating margin consists primarily of: Service fees related to natural gas and crude oil gathering, treating and processing; and revenues from the sale of natural gas, condensate, crude oil and NGLs less producer settlements, fuel and transport and the Company’s equity volume hedge settlements. Logistics and Transportation adjusted operating margin consists primarily of: Service fees (including the pass-through of energy costs included in fee rates); system product gains and losses; and NGL and natural gas sales, less NGL and natural gas purchases, fuel, third-party transportation costs and the net inventory change. Adjusted operating margin for the Company’s segments provides useful information to investors because it is used as a supplemental financial measure by management and by external users of our financial statements, including investors and commercial banks, to assess: The financial performance of the Company’s assets without regard to financing methods, capital structure or historical cost basis; the Company’s operating performance and return on capital as compared to other companies in the midstream energy sector, without regard to financing or capital structure; and the viability of capital expenditure projects and acquisitions and the overall rates of return on alternative investment opportunities. 103Q 2026 EARNINGS SUPPLEMENT PRESENTATION
Page 11
Non-GAAP Measures Reconciliation 11 (1) Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amorti zation expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest accounting.3Q 2026 EARNINGS SUPPLEMENT PRESENTATION September 30, 2026 June 30, 2026 September 30, 2025 Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA Net income (loss) attributable to Targa Resources Corp. 658.2$ 764.6$ 478.4$ Interest (income) expense, net 232.8 236.6 221.3 Income tax expense (benefit) 174.7 227.2 134.3 Depreciation and amortization expense 459.6 453.1 383.5 (Gain) loss on sale or disposition of assets (3.6) (0.8) (4.2) Write-down of assets 2.4 0.7 1.5 (Gain) loss from financing activities 0.1 — 1.9 Equity (earnings) loss (10.2) (7.8) (6.4) Distributions from unconsolidated affiliates 8.1 7.2 7.6 Change in contingent consideration 22.6 0.5 — Compensation on equity grants 17.4 18.0 17.5 Risk management activities (63.1) (103.1) 36.5 Noncontrolling interests adjustments (1) 5.3 6.9 2.9 Adjusted EBITDA 1,504.3$ 1,603.1$ 1,274.8$ Three Months Ended, (in millions)
Page 12
Non-GAAP Measures Reconciliation 123Q 2026 EARNINGS SUPPLEMENT PRESENTATION September 30, 2026 June 30, 2026 September 30, 2025 Gathering and Processing Segment Operating margin 813.6$ 732.6$ 637.6$ Operating expenses 256.3 240.9 236.1 Adjusted operating margin 1,069.9$ 973.5$ 873.7$ Logistics and Transportation Segment Operating margin 771.0$ 948.3$ 710.2$ Operating expenses 117.1 114.3 98.6 Adjusted operating margin 888.1$ 1,062.6$ 808.8$ Three Months Ended, (in millions)
Page 13
Non-GAAP Measures Reconciliation 133Q 2026 EARNINGS SUPPLEMENT PRESENTATION (1) Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amorti zation expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest accounting. Full Year 2026E Reconciliation of Estimated Net Income attributable to Targa Resources Corp. to Estimated Adjusted EBITDA Net income (loss) attributable to Targa Resources Corp. 2,490$ Interest (income) expense, net 940 Income tax expense (benefit) 720 Depreciation and amortization expense 1,790 Equity (earnings) loss (35) Distributions from unconsolidated affiliates 30 Compensation on equity grants 80 Risk management and other (25) Noncontrolling interests adjustments(1) 10 Estimated Adjusted EBITDA 6,000$
Page 14
Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company’s assets connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuels and feedstocks. 14 3Q 2026 EARNINGS SUPPLEMENT PRESENTATION INVESTORRELATIONS@TARGARESOURCES.COM WWW.TARGARESOURCES.COM