WASHINGTON (dpa-AFX) - Targa Resources Corp. (TRGP), a midstream energy company, on Monday announced new 20-year agreements with subsidiaries of ExxonMobil Holdings Corp. (XOM) for integrated natural gas gathering, processing and downstream services in the Permian Basin.
The company said that the agreements include new acreage dedications in the Permian Delaware and Midland basins through 2046.
The agreements include gathering, processing, treating, NGL transportation and fractionation services, along with 20-year NGL dedications to its logistics and transportation systems.
The company also announced three new natural gas processing plants in the Permian Delaware with aggregate capacity of about 825 million cubic feet per day.
The Wrangler, Ranger and Ranger II plants are expected to begin operations in the first half of 2028.
The company also announced a new approximately 70-mile natural gas pipeline, Bull Run II, to increase takeaway capacity to the Waha Hub.
The pipeline is expected to begin operations in the first half of 2028.
The company is evaluating up to five additional processing plants in the Permian Delaware and an additional fractionation train in Mont Belvieu.
Looking ahead, the company updated its full year 2026 growth capital estimate to approximately $5 billion, incorporating investments in the new Delaware processing plants, associated field capital and the Bull Run II pipeline.
Targa Resources closed trading 0.78% higher at $277.94 on the New York Stock Exchange. In the overnight, the stock traded 1.50% higher at $282.10.
ExxonMobil closed trading 0.85% higher at $161.46 on the New York Stock Exchange. In the overnight, the stock traded at 0.59% higher at $162.42.
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