Targa Resources Raises Quarterly Dividend 25% to $1.00, Plans $5.00 Annual for 2026
Targa Resources Corp., a natural gas and natural gas liquids infrastructure company, declared a quarterly cash dividend of $1.00 per share for the fourth quarter of 2025, up from $0.80 in the prior period. The company plans to increase its annual dividend to $5.00 per share for 2026.
Targa Resources Corp. (NYSE: TRGP), a natural gas and natural gas liquids infrastructure company, declared a quarterly cash dividend of $1.00 per share for the fourth quarter of 2025, representing a 25% increase from the previous quarterly dividend of $0.80. The payment totaled approximately $215 million distributed to shareholders on February 13, 2026. Read more dividend announcements.
The company announced it intends to recommend an annual dividend of $5.00 per share for 2026 to its Board of Directors, maintaining the 25% increase over the 2025 annual rate of $4.00. The first payment under the new annual rate is scheduled for May 2026.
| Dividend Details | Information |
|---|---|
| Amount | $1.00 per share |
| Annualized Rate | $4.00 per share |
| Frequency | Quarterly |
| Record Date | January 30, 2026 |
| Payment Date | February 13, 2026 |
| Previous Amount | $0.80 per share |
Capital Expenditures and Earnings Guidance
Targa Resources projected full-year 2026 adjusted EBITDA between $5.4 billion and $5.6 billion, representing an 11% increase over 2025 results. The company expects to deploy approximately $4.5 billion in net growth capital expenditures during 2026.
The company reported record fourth-quarter 2025 adjusted EBITDA of $1.341 billion, up 5% from the third quarter. Chief Executive Officer Matt Meloy attributed the strong performance to Targa's position in the Permian Basin and upcoming completion of downstream capital projects in the second half of 2027.
Recent Expansions and Acquisitions
Targa completed its Bull Moose II processing plant in the Permian Delaware Basin in October 2025 and closed two bolt-on acquisitions in the Permian Basin in December 2025. In January 2026, the company completed its acquisition of Stakeholder Midstream.
The company announced plans for a new processing plant in Permian Delaware called Yeti II and ordered long-lead items for two additional processing plants in the Permian. Targa also announced a new fractionator in Mont Belvieu, Texas, designated Train 13.
Fourth-quarter Permian volumes included record natural gas inlet volumes but experienced temporary curtailments by certain producer customers responding to periods of negative Waha natural gas prices during the quarter.
Share Repurchase Activity
During the fourth quarter of 2025, Targa repurchased 226,987 shares at a weighted average price of $163.01 per share, totaling $37 million. For the full year 2025, the company bought back 3.77 million shares at a weighted average price of $170.45, spending $642 million. As of December 31, 2025, $1.37 billion remained available under the company's share repurchase programs.