Targa Resources Corp. (Targa) provider of midstream services and is one of the largest independent infrastructure companies in North America. The company own, operate, acquire, and develop a diversified portfolio of complementary domestic infrastructure assets.
The company engages primarily in the business of gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL...
Targa Resources Corp. (Targa) provider of midstream services and is one of the largest independent infrastructure companies in North America. The company own, operate, acquire, and develop a diversified portfolio of complementary domestic infrastructure assets.
The company engages primarily in the business of gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including services to LPG exporters; and gathering, storing, terminaling, and purchasing and selling crude oil.
Segments
The company operated through primary segments: Gathering and Processing, and Logistics and Transportation (also referred to as its Downstream Business).
Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast.
Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling, and marketing of NGLs and NGL products, including services to LPG exporters and certain natural gas supply and marketing activities in support of its other businesses. The Logistics and Transportation segment also includes the Grand Prix NGL Pipeline (Grand Prix), which connects its gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with the company’s Downstream facilities in Mont Belvieu, Texas. The company’s Downstream facilities are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana.
Growth Drivers, Competitive Strengths and Strategies
The company’s strategies based on the company’s growth drivers, competitive strengths and strategies outlined below.
The company provides a comprehensive package of services to natural gas and crude oil producers. These services are essential to gather, process, treat, purchase and sell and transport wellhead gas to meet pipeline standards; extract, transport and fractionate NGLs for sale into petrochemical, industrial, commercial and export markets; and gather and/or purchase and sell crude oil.
The company’s transportation assets further enhance its integrated midstream service offerings across the NGL and natural gas value chain by linking supply to key markets. Grand Prix connects many of the company gathering and processing positions, including the Permian Basin, with the company’s Downstream facilities in Mont Belvieu, Texas, the major U.S. NGL market hub. Additionally, the company integrated Mont Belvieu and Galena Park Marine Terminal assets allow it to provide the raw product, fractionation, storage, interconnected terminaling, refrigeration and ship loading capabilities to support exports by third-party customers.
The company’s gatherings and processing infrastructure is located in attractive oil and gas producing basins and is well positioned within each of those basins.
The company’s fractionation assets are primarily located in key NGL market centers and are near and connected to key consumers of NGL products, including the petrochemical and industrial markets. The company’s logistics assets, including fractionation facilities, storage wells, its low ethane propane de-ethanizers, and its Galena Park Marine Terminal and related pipeline systems and interconnects, include connections to several mixed NGL (mixed NGLs or Y-grade) supply pipelines, storage, interconnection and takeaway pipelines and other transportation infrastructure. The location and interconnectivity of these assets are not easily replicated, and the company has additional capability to expand their capacity.
The company’s gatherings and processing systems and logistics and transportation assets consist of high-quality, well-maintained facilities, resulting in low-cost, efficient operations. Advanced technologies have been implemented for processing plants (primarily cryogenic units utilizing centralized control systems), measurement systems (essentially all electronic and electronically linked to a central database) and operations and maintenance management systems to manage work orders and implement preventative maintenance schedules (computerized maintenance management systems). These applications have allowed proactive management of the company’s operations resulting in lower costs and minimal downtime.
The company believes that its strategy, combined with its high-quality asset portfolio, allows it to generate attractive cash flows. Geographic, business and customer diversity enhances its cash flow profile. The company provides its services under predominantly fee-based contract terms to a diverse mix of customers across its areas of operation. The company’s Gathering and Processing segment contract mix has increasing components of fee-based margin driven by fees added to percent-of-proceeds contracts for natural gas treating and compression; new/amended contracts with a combination of percent-of-proceeds and fee-based components, including fee floors; and fee-based gas gathering and processing and crude oil gathering contracts. Contracts for the Coastal portion of its Gathering and Processing segment are primarily hybrid contracts (percent-of-liquids with a fee floor) or percent-of-liquids contracts (whereby it receive an agreed upon percentage of the actual proceeds of the NGLs).
Business Operations
The company operations are reported in two segments: Gathering and Processing, and Logistics and Transportation (also referred to as the Downstream Business).
Gathering and Processing Segment
The company’s Gathering and Processing segment consists of gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas and gathering, storing, terminaling and purchasing and selling crude oil. The gathering or purchasing of natural gas consists of aggregating natural gas produced from various wells through varying diameter gathering lines to processing plants. Natural gas has a widely varying composition depending on the field, the formation and the reservoir from which it is produced. The processing of natural gas consists of the extraction of embedded NGLs and the removal of water vapor and other contaminants to form a stream of marketable natural gas, commonly referred to as residue gas, and a stream of mixed NGLs. Once processed, the residue gas is transported to markets through residue gas pipelines. End-users of residue gas include large commercial and industrial customers, as well as natural gas and electric utilities serving individual consumers. It sells its residue gas either directly to such end-users or to marketers into intrastate or interstate pipelines, which are typically located in proximity or with ready access to its facilities. The gathering or purchasing of crude oil consists of aggregating crude oil production through its pipeline gathering systems, which deliver crude oil to a combination of other pipelines, rail and truck.
The company continually seek new supplies of natural gas and crude oil, both to offset the natural decline in production from connected wells and to increase throughput volumes. The company obtains additional natural gas and crude oil supply in its operating areas by contracting for production from new wells or by capturing existing production currently gathered by others. Competition for new natural gas and crude oil supplies is based primarily on location of assets, commercial terms including pre-existing contracts, service levels and access to markets.
The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays) and in the onshore and near offshore regions of the Louisiana Gulf Coast. The natural gas processed in this segment is supplied through its gathering systems which, in aggregate, consist of approximately 31,200 miles of natural gas pipelines and include 53 owned and operated processing plants.
The Gathering and Processing segment’s operations consist of Permian Midland and Permian Delaware (also referred to as Permian), SouthTX, North Texas, SouthOK, WestOK (also referred to as Central), Coastal and Badlands, each as described below:
Permian Midland
The Permian Midland system consists of approximately 7,600 miles of natural gas gathering pipelines and 19 processing plants with an aggregate processing capacity of 3,844 MMcf/d, all located within the Permian Basin in West Texas. Eleven of these plants and approximately 5,300 miles of gathering pipelines belong to a joint venture (WestTX), in which it has an approximate 72.8% ownership. Exxon Mobil Corporation (ExxonMobil) owns the remaining interest in the WestTX system.
In response to increasing production and to meet the infrastructure needs of producers, the company is constructing the Pembrook II plant, East Pembrook plant and East Driver plant, each a 275 MMcf/d cryogenic natural gas processing plant, which are expected to begin operations in the fourth quarter of 2025, the second quarter of 2026 and the third quarter of 2026, respectively.
Permian Delaware
The Permian Delaware system consists of approximately 7,400 miles of natural gas gathering pipelines and 17 processing plants with an aggregate capacity of 3,285 MMcf/d, within the Delaware Basin and Central Basin in West Texas and Southeastern New Mexico and includes aggregate gas treating capacity of 2,337 MMcf/d in addition to six acid gas injection wells.
In response to increasing production and to meet the infrastructure needs of producers, the company is constructing the Bull Moose II plant and the Falcon II plant, each a 275 MMcf/d cryogenic natural gas processing plant, which are expected to begin operations in the first quarter of 2026 and the second quarter of 2026, respectively.
SouthTX
The South Texas system contains approximately 2,100 miles of high-pressure and low-pressure gathering and transmission pipelines and three natural gas processing plants in the Eagle Ford Shale with an aggregate processing capacity of 660 MMcf/d. The South Texas system processes natural gas through the Silver Oak I, Silver Oak II and Raptor gas processing plants.
North Texas
North Texas includes the Chico gathering system in the Fort Worth Basin, which consists of approximately 4,700 miles of pipelines gathering wellhead natural gas from the Barnett Shale and Marble Falls plays for processing at the Chico plant with a processing capacity of 265 MMcf/d.
SouthOK
The SouthOK gathering system consists of approximately 1,600 miles of pipelines in 12 counties in the Ardmore and Anadarko Basins and includes the Golden Trend, SCOOP, and Woodford Shale areas of southern Oklahoma.
The SouthOK gathering system includes five separate processing plants with an aggregate processing capacity of 630 MMcf/d, including: the Stonewall, Hickory Hills and Tupelo facilities, which are owned by the ocmpany’s Centrahoma Joint Venture (Centrahoma), and its wholly owned Velma and Velma V-60 plants. It has a 60% ownership interest in Centrahoma. The remaining 40% ownership interest in Centrahoma is owned by MPLX, LP.
WestOK
The WestOK gathering system consists of approximately 6,500 miles of pipelines in 14 counties in north central Oklahoma and southern Kansas’ Anadarko Basin and includes the Woodford shale and STACK.
The WestOK system has an aggregate processing capacity of 400 MMcf/d with two separate cryogenic natural gas processing plants known as the Waynoka I and Waynoka II facilities.
Coastal
The company’s Coastal assets consist of approximately 1,000 miles of onshore gathering system pipelines located in Louisiana to gather and process natural gas produced from shallow-water central and western Gulf of Mexico natural gas wells, and from deep shelf and deep-water Gulf of Mexico production via connections to third-party pipelines or through pipelines owned by it. The Coastal system has an aggregate processing capacity of 2,025 MMcf/d and 11 MBbl/d of integrated fractionation capacity. The processing plants are comprised of three wholly owned and operated plants, one partially owned and operated plant, and one partially owned, non-operated plant. The company’s Coastal plants have access to markets across the U.S. through the interstate natural gas pipelines to which they are interconnected. The industry continues to rationalize gas processing capacity along the western Louisiana Gulf Coast with most of the producer volumes going to more efficient plants, such as its Lowry and Gillis plants.
Badlands
The company’s Badlands operations are in the Bakken and Three Forks Shale plays of the Williston Basin in North Dakota. Targa owns 55% of Targa Badlands through a joint venture with Blackstone. Targa Badlands pays a minimum quarterly distribution (MQD) to Blackstone and Targa, with Blackstone having a priority right to the MQDs. Additionally, Blackstone’s capital contributions have a liquidation preference upon a sale of Targa Badlands. Targa Badlands is a discrete entity, and the assets and credit of Targa Badlands are not available to satisfy the debts and other obligations of Targa or its other subsidiaries. Following the closing of the Badlands Transaction, it will own 100% of the interest in Targa Badlands.
Targa Badlands includes approximately 500 miles of crude oil gathering pipelines, 120 MBbl of operational crude oil storage capacity at the Johnsons Corner Terminal, 30 MBbl of operational crude oil storage capacity at the Alexander Terminal, 30 MBbl of operational crude oil storage capacity at New Town and 25 MBbl of operational crude oil storage capacity at Stanley. The company’s Targa Badlands assets also include approximately 300 miles of natural gas gathering pipelines and the Little Missouri I-III natural gas processing plants, which have a processing capacity of 90 MMcf/d. Additionally, Targa operates the 200 MMcf/d Little Missouri 4 plant (LM4 plant), in which Targa Badlands and Hess Midstream Partners LP each own a 50% interest.
Logistics and Transportation Segment
The company’s Logistics and Transportation segment includes the activities and assets necessary to transport and convert mixed NGLs into NGL products and includes other assets and value-added services described below. The Logistics and Transportation segment also includes Grand Prix and associated assets, which are generally connected to and supplied in part by its Gathering and Processing segment. The company’s Downstream facilities are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana. The company’s fractionation, pipeline transportation, storage and terminaling businesses include 2,600 miles of company-owned pipelines to transport mixed NGLs and specification products.
The Logistics and Transportation segment also transports, distributes, purchases, sells, and markets NGLs via terminals and transportation assets across the U.S .The company owns or market products at terminal facilities in a number of states, including Alabama, Arizona, California, Florida, Indiana, Kentucky, Louisiana, Mississippi, New Jersey, North Carolina, Pennsylvania, Tennessee, Texas and Washington. The geographic diversity of its assets provides direct access to many NGL customers as well as markets via trucks, barges, ships, rail cars and open-access regulated NGL pipelines owned by third parties.
Transportation Pipelines
The company’s primary pipeline asset is Grand Prix, which connects its gathering and processing positions throughout the Permian Basin, North Texas, and Southern Oklahoma (as well as third-party positions) to its fractionation and storage complex in the NGL market hub at Mont Belvieu, Texas. Grand Prix has the capacity to transport up to 1,000 MBbl/d of NGLs into Mont Belvieu. The company’s new Daytona NGL Pipeline is an addition to Grand Prix. In January 2023, the company announced and closed on the acquisition of Blackstone Energy Partners’ 25% interest in Grand Prix Pipeline LLC (the Grand Prix Transaction). Following the closing of the Grand Prix Transaction, it own 100% of Grand Prix.
Through its 50% ownership interest in Cayenne Pipeline, LLC (Cayenne), it operates the Cayenne pipeline, which transports mixed NGLs from VESCO in Venice, Louisiana, to an interconnection with a third-party NGL pipeline in Toca, Louisiana.
Fractionation
After being extracted in the field, mixed NGLs are typically transported to a centralized facility for fractionation where the mixed NGLs are separated into discrete NGL products: ethane, ethane-propane mix, propane, normal butane, iso-butane and natural gasoline.
The company believes that sufficient volumes of mixed NGLs will be available for fractionation in commercially viable quantities for the foreseeable future due to historical increases in NGL production from shale plays and other shale-technology-driven resource plays in areas of the U.S. that include Texas, New Mexico, Oklahoma and the Rockies and certain other basins accessed by pipelines to Mont Belvieu, as well as from conventional production of NGLs in areas such as the Permian Basin, Mid-Continent, East Texas, South Louisiana and shelf and deep-water Gulf of Mexico.
Although competition for NGL fractionation services is primarily based on the fractionation fee, the ability of an NGL fractionator to obtain mixed NGLs and distribute NGL products is also an important competitive factor. This ability is a function of the existence of storage infrastructure and supply and market connectivity necessary to conduct such operations. We believe that the location, scope and capability of its logistics assets, including its transportation and distribution systems, give it access to both substantial sources of mixed NGLs and a large number of end-use markets.
At its Mont Belvieu operated facility, it has nine wholly-owned fractionation trains, representing an aggregate capacity of 963.0 MBbl/d and Train 7, a 120 MBbl/d fractionation train, which is a joint venture between Targa and The Williams Companies, Inc., where Targa owns an 80% equity interest. Certain fractionation-related infrastructure for Train 7, such as storage caverns and brine handling, were funded and are owned 100% by Targa. The company’s fractionation trains are fully integrated with its existing Gulf Coast NGL storage, terminaling and delivery infrastructure, which includes an extensive network of connections to key petrochemical and industrial customers as well as its LPG export terminal at Galena Park on the Houston Ship Channel.
The company is also constructing Trains 11 and 12, both of which are wholly-owned 150 MBbl/d fractionation trains, at its Mont Belvieu operated facility, which are expected to begin operations in the third quarter of 2026 and the first quarter of 2027, respectively.
The company additionally have a wholly owned and operated fractionation facility in Lake Charles, Louisiana, representing a capacity of 55.0 MBbl/d.
The company holds an equity investment in GCF, also located at Mont Belvieu. In January 2021, the GCF facility was temporarily idled. The company assumed operatorship of GCF in the first half of 2021. It expects the reactivation of GCF to be complete and the facility to be operational in the first quarter of 2025.
The company also owns fractionation assets in Monument, New Mexico, and Gillis, Louisiana, which are included in its Gathering and Processing segment. In addition, it has a natural gasoline hydrotreater at Mont Belvieu, Texas, with a capacity of 35.0 MBbl/d that removes sulfur from natural gasoline, allowing customers to meet stringent fuel content standards.
NGL Storage and Terminaling
In general, the company’s NGL storage assets provide warehousing of mixed NGLs, NGL products and petrochemical products in underground wells, which allows for the injection and withdrawal of such products at various times in order to meet supply and demand cycles. Similarly, its terminaling operations provide the inbound/outbound logistics and warehousing of mixed NGLs, NGL products and petrochemical products in above-ground storage tanks. The company’s NGL underground storage and terminaling facilities serve single markets, such as propane, as well as multiple products and markets. For example, the Mont Belvieu and Galena Park facilities has extensive pipeline connections for mixed NGL supply and delivery of component NGLs, including Grand Prix. In addition, some of its facilities are connected to marine, rail and truck loading and unloading facilities that provide services and products to its customers. It provides long and short-term storage and terminaling services and throughput capability to third-party customers for a fee.
Across the Logistics and Transportation segment, the company owns 35 storage wells at its facilities with a gross NGL storage capacity of approximately 81 MMBbl and operate seven non-owned wells. The usage of these wells may be limited by brine handling capacity, which is utilized to displace NGLs from storage.
The company operates its storage and terminaling facilities to supports its key fractionation facilities at Mont Belvieu and Lake Charles for receipt of mixed NGLs and storage of fractionated NGLs to service the petrochemical, refinery, export and heating customers/markets as well as the company’s wholesale domestic terminals that focus on logistics to service the heating market customer base. The company’s international export assets include its facilities at both Mont Belvieu and the Galena Park Marine Terminal near Houston, Texas, which have the capability to load propane, butanes and international grade low ethane propane. The export facilities have an effective export capacity of approximately 13.5 MMBbl per month, subject to a mix of propane and butane demand, vessel size and availability of supply, and a variety of other factors. The company has the capability to load VLGC vessels, alongside small and medium sized export vessels. It continues to experience demand growth for U.S.-based NGLs (both propane and butane) for export into international markets.
NGL Distribution and Marketing
The company markets its own NGL production and purchase component NGL products from other NGL producers and marketers for resale. It also purchases NGL products for resale in its Logistics and Transportation segment.
The company generally purchase mixed NGLs at a monthly pricing index less applicable fractionation, transportation and marketing fees and resell these component products to petrochemical manufacturers, refiners and other marketing and retail companies. This is primarily a physical settlement business in which it earns margins from purchasing and selling NGL products from customers under contract. It also earns margins by purchasing and reselling NGL products in the spot and forward physical markets.
Wholesale Domestic Marketing
The company’s wholesale domestic propane marketing operations primarily sell propane and related logistics services to major multi-state retailers, independent retailers and other end-users. The company’s propane supply originates from both its refinery/gas supply contracts and its other owned or managed Logistics and Transportation assets. It sells propane at a fixed posted price or at a market index basis at the time of delivery and in some circumstances, it earns margins on a netback basis.
The wholesale domestic propane marketing business is significantly impacted by seasonal and weather-driven demand, particularly in the winter, which can impact the price and volume of propane sold in the markets it serves.
Refinery Services
The company’s refinery services business, the company typically provides NGL balancing services through contractual arrangements with refiners in several locations to purchase and/or market propane and to supply butanes. The company uses its commercial transportation assets (discussed below) and contract for and the company the storage, transportation and distribution assets included in the company’s Logistics and Transportation segment to assist refinery customers in managing their NGL product demand and production schedules. This includes both feedstocks consumed in refinery processes and the excess NGLs produced by other refining processes. Under typical netback purchase contracts, it retains a portion of the resale price of NGL sales or receive a fixed minimum fee per gallon on products sold. Under netback sales contracts, fees are earned for locating and supplying NGL feedstocks to the refineries based on a percentage of the cost to obtain such supply or a minimum fee per gallon.
Key factors impacting the results of the company’s refinery services business include production volumes, prices of propane and butanes, as well as its ability to perform receipt, delivery and transportation services to meet refinery demand.
Commercial Transportation
The company’s NGL transportation and distribution infrastructure includes a wide range of assets supporting both third-party customers and the delivery requirements of the company’s marketing and asset management business. It provides fee-based transportation services to refineries and petrochemical companies throughout the Gulf Coast area. The company’s assets are also deployed to serve its wholesale domestic distribution terminals, fractionation facilities, underground storage facilities and pipeline injection terminals. These distribution assets provide a variety of ways to transport products to and from its customers.
As of December 31, 2024, the company lease and manage 531 railcars and 131 tractors, and own eight tractors, six vacuum trucks, and two pressurized NGL barges.
Natural Gas Marketing
The company also markets natural gas available to it from the Gathering and Processing segment, purchase and resell natural gas in selected U.S. markets and manage the scheduling and logistics for these activities.
Seasonality
The company’s business is impacted by seasonality. The markets and prices for natural gas, NGLs and crude oil depend upon factors beyond its control. These factors include supply and demand for these commodities, which fluctuates with changes in market and economic conditions, and other factors, including:
The impact of seasonality and weather, including severe weather conditions and other natural disasters, such as flooding, droughts and winter storms, the frequency, severity and impact of which could be increased by the effects of climate change; general economic conditions and economic conditions impacting its primary markets, including the impact of proposed tariffs, inflation and increases in interest rates and associated changes in monetary policy; the economic conditions of its customers; the level of domestic crude oil and natural gas production and consumption; the availability of imported natural gas, liquefied natural gas, NGLs and crude oil; actions taken by major foreign oil and gas producing nations; the availability of local, intrastate and interstate transportation systems and storage for residue natural gas and NGLs; the availability of domestic storage for crude oil; the availability and marketing of competitive fuels and/or feedstocks; the impact of energy conservation efforts, including the promotion of the transition to a low carbon economy; stockholder activism and activities by non-governmental organizations to limit certain sources of funding for the energy sector or restrict the exploration, development and production of crude oil and natural gas; and the extent and nature of governmental regulation and taxation, including those related to the prorationing of oil and gas production.
Acquisitions
On July 31, 2024, the company entered into an agreement with WPC Parent, LLC (WPC) to move forward with the construction of the Blackcomb pipeline. The Blackcomb pipeline is designed to transport up to 2.5 Bcf/d of natural gas through approximately 365 miles of 42-inch pipeline from the Permian Basin in West Texas to the Agua Dulce area in South Texas and is expected to be in service in the second half of 2026, pending the receipt of customary regulatory and other approvals. The Blackcomb pipeline is held by a joint venture (Blackcomb), which is owned 70.0% by WPC, 17.5% by Targa, and 12.5% by MPLX LP. WPC is a joint venture owned 50.6% by WhiteWater Midstream, LLC, 30.4% by MPLX LP, and 19.0% by Enbridge Inc. It applies the equity method of accounting for Blackcomb. During 2024, it made capital contributions of $28.7 million to Blackcomb and paid $1.6 million in associated professional and legal fees.
On December 16, 2024, the company completed the acquisition of the remaining 12% membership interest in Cedar Bayou Fractionators, L.P. (CBF) from its joint venture partner for cash consideration of $111.6 million (the CBF Acquisition).
On February 18, 2025, the company entered into an agreement with funds managed by Blackstone to acquire their 45% interest in Targa Badlands LLC (Targa Badlands) for aggregate consideration of approximately $1.8 billion (the Badlands Transaction). Following the closing of the Badlands Transaction, it will own 100% of the interest in Targa Badlands.
Regulation of Operations
Targa NGL Pipeline Company LLC (Targa NGL), Targa Gulf Coast NGL Pipeline LLC (Targa Gulf Coast), and Grand Prix Pipeline LLC (Grand Prix Pipeline) have interstate NGL pipelines that are considered common carrier pipelines subject to regulation by FERC under the Interstate Commerce Act (the ICA).
The company’s intrastate natural gas pipelines in North Dakota are subject to the various regulations of the State of North Dakota. In addition, various federal agencies within the U.S. Department of the Interior, particularly the federal Bureau of Land Management (BLM), Office of Natural Resources Revenue (formerly the Minerals Management Service) and the Bureau of Indian Affairs, as well as the Three Affiliated Tribes, promulgate and enforce regulations pertaining to operations on the Fort Berthold Indian Reservation. The Three Affiliated Tribes is a sovereign nation having the right to enforce certain laws and regulations independent from federal, state and local statutes and regulations.
The company’s intrastate natural gas pipelines located in Texas are regulated by the Railroad Commission of Texas (the RRC) and may be required to have tariffs on file with the RRC. Some of these Texas intrastate pipelines also transport natural gas in interstate commerce pursuant to Section 311 of the Natural Gas Policy Act of 1978 (NGPA). Under Sections 311 and 601 of the NGPA, an intrastate pipeline may transport natural gas in interstate commerce without becoming subject to FERC regulation as a natural-gas company under the NGA but must file the terms and conditions of transportation of natural gas under authority of Section 311 with FERC, and these terms and conditions must be fair and equitable. Specifically, during 2024, TPL SouthTex Transmission Company LP, Midland-Permian Pipeline LLC, Delaware-Permian Pipeline LLC and Targa SouthTex Mustang Transmission Ltd. provided NGPA Section 311 service.
The company’s Louisiana intrastate pipeline, Targa Louisiana Intrastate LLC, and the rates and terms of service on the pipeline may be subject to regulation by the Office of Conservation of the Louisiana Department of Natural Resources (DNR).
Many of the company’s natural gas, NGL and crude oil pipelines are subject to regulation by the federal Pipeline and Hazardous Materials Safety Administration (PHMSA), an agency of the U.S. Department of Transportation (DOT), under the Natural Gas Pipeline Safety Act of 1968, as amended (NGPSA), with respect to natural gas, and the Hazardous Liquids Pipeline Safety Act of 1979, as amended (HLPSA), with respect to crude oil, NGLs and condensates. The NGPSA and HLPSA govern the design, installation, testing, construction, operation, replacement and management of natural gas, crude oil, NGL and condensate pipeline facilities. It has obtained a certificate of public convenience and necessity from FERC waiving certain of the Commission’s tariff and rate regulations.
History
Targa Resources Corp., a publicly traded Delaware corporation, was founded in 2005. The company was incorporated in 2005.
