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Targa Expands ExxonMobil Permian Deal With 20-Year Agreements

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US-based midstream company Targa Resources signed new 20-year, fee-based midstream agreements with ExxonMobil (XOM) subsidiaries, expanding their strategic relationship across the Permian Basin, Targa said in a statement on Monday.

The agreements cover natural gas gathering and processing, treating, natural gas liquids transportation and fractionation through 2046.

In the Permian Delaware, Targa will receive significant new acreage dedications, while in the Permian Midland, the companies will add acreage and extend existing gathering and processing agreements through 2046. Both areas include 20-year NGL dedications to Targa's logistics and transportation systems.

Targa also announced plans for three new natural gas processing plants in the Delaware Basin, Wrangler, Ranger and Ranger II, with combined capacity of about 825 million cubic feet per day.

The plants are expected to enter service in the first half of 2028. The company is evaluating up to five additional plants to meet longer-term production growth.

The company also plans to build Bull Run II, a roughly 70-mile natural gas pipeline designed to increase takeaway capacity to the Waha Hub.

The pipeline, backed by take-or-pay commitments, is expected to begin operations in the first half of 2028.

Targa said the new agreements are expected to contribute to volume growth across its integrated Permian infrastructure and strengthen its long-term growth outlook.

The company raised its estimate for 2026 growth capital to about $5 billion, reflecting investments in the new Delaware processing plants, related field infrastructure and the Bull Run II pipeline.

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