Targa Resources gains after Exxon boosts Permian output plans

Targa Resources

09/12/2025 15:50

** U.S.-listed shares of pipeline operator Targa Resources TRGP.N up 3% at $183.54

** RBC Capital Markets views Exxon Mobil's XOM.N updated outlook for 2026 to be beneficial for TRGP

** XOM's plan now calls for a doubling of Permian Basin production to ~2.5 million barrels of oil production per day, which represents a 200,000 boepd increase from prior plan

** RBC notes that Targa has exposure to the largest and best capitalized producers in the Permian Basin that generally drill through near term commodity price fluctuation

** Exxon's stronger long-term production and export outlook will drive higher, more durable volumes across Targa's Permian and Gulf Coast midstream system

** 21 of 23 brokerages rate the stock "buy" or higher and 2 "hold"; median PT is $200- data compiled by LSEG

** Including session's moves, TRGP up 3.1% YTD

 (Reporting by Dharna Bafna in Bengaluru)

 ((Dharna.bafna@thomsonreuters.com))