TRGP · 10-Q · 2026Q3 · Full report
Commodity Derivative Volatility
Targa Resources Corp. · 2026-11-05 · Importance 57 · Surprise 64
At September 30, 2026, Targa’s commodity derivatives had a net fair-value liability of $272.5 million, compared with $66.9 million at December 31, 2025. A 10% increase in forward natural gas, NGL, and crude oil prices would increase the modeled net liability to $477.9 million, while a 10% decrease would reduce it to $67.1 million. Nine-month non-hedge derivative activity recorded a $256.9 million loss in revenue, compared with a $152.1 million loss in the prior-year period; third-quarter activity was a $54.7 million gain. Targa expected to reclassify $98.1 million of net deferred commodity hedge losses into earnings over the next twelve months.
Key facts
- A 10% increase in forward natural gas, NGL, and crude oil prices would result in a derivative net liability of $477.9 million. source
- A 10% decrease in forward natural gas, NGL, and crude oil prices would result in a derivative net liability of $67.1 million. source
- As of September 30, 2026, Targa expected to reclassify $98.1 million of commodity-hedge deferred net losses into pretax earnings over the next 12 months. source
- At September 30, 2026, Targa reported a $207.0 million after-tax loss in other comprehensive income from commodity hedging contracts for the nine months ended, comprising a $227.4 million loss from fair-value changes partly offset by $20.4 million of settlements reclassified to revenues. source
- As of September 30, 2026, commodity derivatives had a net fair-value liability of $272.5 million. source
- As of September 30, 2026, Targa’s maximum hedge period for variability in future cash flows extended through 2029. source
- Targa entered into derivative instruments to hedge commodity price exposure on a portion of future commodity purchases and sales and natural gas transportation basis risk within Logistics and Transportation. source
- For the three months ended September 30, 2026, Targa recorded net unrealized mark-to-market gains primarily driven by favorable movements in natural gas forward basis prices on open positions. source