Gathering & Processing Segment

Our 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.

We 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. We obtain additional natural gas and crude oil supply in our 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 commercial terms of natural gas gathering and processing arrangements and crude oil gathering are driven, in part, by capital costs, which are impacted by the proximity of systems to the supply source and by operating costs, which are impacted by operational efficiencies, facility design and economies of scale.

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. The natural gas processed in this segment is supplied through our gathering systems which, in aggregate, consist of approximately 31,600 miles of natural gas pipelines and include 54 owned and operated processing plants.

Permian Midland

The Permian Midland system consists of approximately 8,180 miles of natural gas gathering pipelines and 20 processing plants with an aggregate processing capacity of 4,119 MMcf/d, all located within the Permian Basin in West Texas. Seventeen of these plants and approximately 5,500 miles of gathering pipelines belong to a joint venture (“WestTX”). We have an approximate 72.8% ownership in WestTX with Exxon Mobil Corporation (“ExxonMobil”) owning the remaining interest.

In response to increasing production and to meet the infrastructure needs of producers, we are constructing the East Pembrook plant and the East Driver plant, each a 275 MMcf/d cryogenic natural gas processing plant, which are expected to begin operations in the second quarter of 2026 and the third quarter of 2026, respectively.

Permian Delaware

The Permian Delaware system consists of approximately 7,700 miles of natural gas gathering pipelines and 22 processing plants with an aggregate capacity of 4,007 MMcf/d, within the Delaware Basin and Central Basin in West Texas and Southeastern New Mexico, and includes aggregate gas treating capacity of 2.8 Bcf/d in addition to nine acid gas injection wells.

In response to increasing production and to meet the infrastructure needs of producers, we are constructing the Falcon II plant, the Copperhead plant, the Yeti plant and the Yeti II plant, each a 275 MMcf/d cryogenic natural gas processing plant, which are expected to begin operations in the first quarter of 2026, first quarter of 2027, third quarter of 2027 and fourth quarter of 2027, respectively.

Central

The Central system consists of approximately 14,800 miles of pipelines and 11 processing plants with an aggregate capacity of 1,955 MMcf/d, all located within the Eagle Ford Shale region, Fort Worth Basin, southern Oklahoma, north central Oklahoma and southern Kansas. Our central system includes our Centrahoma joint venture (“Centrahoma”), which is comprised of three separate processing plants with an aggregate processing capacity of 470 MMcf/d. We have a 60% ownership interest in Centrahoma with the remaining 40% interest owned by MPLX, LP.

Coastal

Our 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 America natural gas wells, and from deep shelf and deep-water Gulf of America production via connections to third-party pipelines or through pipelines owned by us. The Coastal system has an aggregate processing capacity of 930 MMcf/d and 11 MBbl/d of integrated fractionation capacity. The processing plants are comprised of one wholly-owned and operated plant and one partially owned and operated plant. Our 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 our Gillis plant.

Badlands

Our Badlands operations are located in the Bakken and Three Forks Shale plays of the Williston Basin in North Dakota. 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. Our 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.