Targa Resources (TRGP) is extending its growth runway as new commercial agreements and projects support continued expansion in the Permian Basin, RBC Capital Markets said.

The company recently announced 20-year Permian agreements with Exxon Mobil (XOM), including new acreage dedications. These should benefit Targa across its integrated infrastructure footprint, the investment firm said in a note Wednesday.

The analysts said Targa also announced three new natural gas processing plants, expected to come online in H1 2028, along with a new 70-mile natural gas pipeline to support customer agreements.

The company raised its 2026 growth capital spending guidance by $500 million to account for spending on these new projects, the analysts added.

The analysts added that they believe the announced projects can support growth through at least 2030. They are introducing EBITDA estimates of $8.24 billion for 2029 and $8.85 billion for 2030, implying a five-year compound annual growth rate of about 12% through 2030.

RBC reiterated its outperform rating on Targa Resources and raised its price target to $338 from $312.

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