TRGP · 10-Q · 2026Q2 · Full report
Commodity Price Volatility
Targa Resources Corp. · 2026-08-06 · Importance 44 · Surprise 24 · In source text
Targa hedges portions of its natural gas, NGL and condensate equity volumes, future commodity purchases and sales, and natural gas transportation basis risk to reduce operating cash-flow volatility. For the six months ended June 30, 2026, non-hedge derivative activities produced a $311.6 million loss, primarily from unfavorable movements in natural gas forward basis prices. The derivative portfolio had a $125.6 million net liability at June 30, 2026, and a 10% increase in forward natural gas, NGL and crude oil prices would have increased the net liability to $306.2 million, while a 10% decrease would have produced a $55.0 million net asset.
Key facts
- If forward pricing on natural gas, NGLs and crude oil were to increase by 10%, the fair value result would be a net liability of $306.2 million. source
- If forward pricing on natural gas, NGLs and crude oil were to decrease by 10%, the fair value result would be a net asset of $55.0 million. source
- Six months ended June 30, 2026 Commodity sales decrease was driven by lower natural gas and NGL prices of $1,309.2 million and unfavorable hedges of $244.1 million, partially offset by higher volumes which added $899.6 million and higher condensate prices $70.5 million source
- Three months ended June 30, 2026 lower natural gas prices reduced commodity sales by $784.8 million while higher NGL and condensate prices increased commodity sales by $597.8 million and higher volumes increased commodity sales by $435.2 million source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | negative | realized | -29.5% | Six months ended June 30, 2026 Commodity sales decrease was driven by lower natural gas and NGL prices of $1,309.2 million and unfavorable… |
| revenue | positive | realized | +20.3% | Six months ended June 30, 2026 Commodity sales decrease was driven by lower natural gas and NGL prices of $1,309.2 million and unfavorable… |
| revenue | negative | realized | -17.7% | Three months ended June 30, 2026 lower natural gas prices reduced commodity sales by $784.8 million while higher NGL and condensate prices… |
| revenue | positive | realized | +13.5% | Three months ended June 30, 2026 lower natural gas prices reduced commodity sales by $784.8 million while higher NGL and condensate prices… |
| revenue | positive | realized | +9.8% | Three months ended June 30, 2026 lower natural gas prices reduced commodity sales by $784.8 million while higher NGL and condensate prices… |
| revenue | negative | realized | -5.5% | Six months ended June 30, 2026 Commodity sales decrease was driven by lower natural gas and NGL prices of $1,309.2 million and unfavorable… |
| revenue | positive | realized | +1.6% | Six months ended June 30, 2026 Commodity sales decrease was driven by lower natural gas and NGL prices of $1,309.2 million and unfavorable… |
| liability | negative | contingent | -0.2% | If forward pricing on natural gas, NGLs and crude oil were to increase by 10%, the fair value result would be a net liability of $306.2… |
| assets | positive | contingent | +0.0% | If forward pricing on natural gas, NGLs and crude oil were to decrease by 10%, the fair value result would be a net asset of $55.0 million. |