TRGP · 8-K · 20260806PR336525

Operating Expense Trends

Targa Resources Corp. · 2026-08-06 · Importance 36 · Surprise 14 · In source text

Second-quarter operating expenses increased 9% year over year to $354.1 million, while six-month operating expenses increased 10% to $687.8 million. Quarterly general and administrative expense increased 14% to $108.1 million, driven primarily by higher compensation and benefits. Operating expense growth reflected higher labor and maintenance costs, taxes, system expansions, and the acquisition of certain Permian Basin assets, partly offset by lower compressor rental costs. Depreciation and amortization increased 21% to $453.1 million in the quarter and 19% to $879.1 million for the first six months because of Permian asset acquisitions, higher finance-lease amortization, and system expansions.

Key facts

• For 2026 estimated depreciation and amortization expense is $1,785.0 million in the company’s estimated adjusted EBITDA reconciliation. source
• Product purchases and fuel in Q2 2026 were $2,302.0 million, down $134.0 million or 6% from $2,436.0 million in Q2 2025. source
• Depreciation and amortization expense in Q2 2026 was $453.1 million, up $79.4 million or 21% from $373.7 million in Q2 2025. source
• General and administrative expense in Q2 2026 was $108.1 million, up $13.1 million or 14% from $95.0 million in Q2 2025. source
• Operating expenses in Q2 2026 were $354.1 million, up $30.5 million or 9% from $323.6 million in Q2 2025. source
• The increase in operating expenses for the company was primarily due to higher labor and maintenance costs in part due to system expansions, and the acquisition of certain assets in the Permian Basin. source
• The increase in depreciation and amortization expense was primarily due to the acquisition of certain assets in the Permian Basin, higher amortization of right-of-use assets for finance leases, and the impact of system expansions. source

Impact estimates