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    Targa Resources (TRGP) Secures 230 Megawatts For Permian Basin Expansion

    Simply Wall St·09/25/2026 11:22:21
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    • Targa Resources (NYSE:TRGP) agreed a long term power supply deal with PROPWR to support its Permian Basin build out.
    • The PROPWR unit of ProPetro plans to deliver about 230 megawatts of power capacity to Targa's natural gas processing operations.
    • The arrangement is designed to match Targa's growing electricity needs for new and existing processing facilities in the Permian region.
    • The long term PROPWR power commitment for Targa's Permian expansion is important, but it should not dominate your whole investment view. Our analysis turns up 3 warning signs for Targa Resources as well.

    To put this power agreement in context, consider how other energy and infrastructure players are positioning around grid capacity and electrification through 39 power grid technology and infrastructure stocks.

    NYSE:TRGP Earnings & Revenue Growth as at Sep 2026
    NYSE:TRGP Earnings & Revenue Growth as at Sep 2026

    Targa Resources runs a large network of U.S. midstream assets that gather, process, and move natural gas and related products. Reliable electricity for its Permian facilities ties directly into how efficiently those plants can run and how much volume they can handle.

    3 things going right for Targa Resources that this headline doesn't cover.

    How the PROPWR deal feeds into the Targa Resources growth story

    Targa Resources' Narrative leans on building out Permian gas infrastructure and export capacity under long term, fee based contracts, so locking in dedicated power is really about protecting that build program from future bottlenecks.

    "Substantial investment in integrated export infrastructure, including the expansion and debottlenecking of LPG export facilities and new fractionation trains, directly leverages rising international and petrochemical sector demand for U.S. NGLs..."

    See how the full story points towards a $319 fair value for Targa Resources.

    The PROPWR commitment plugs into that plan as enabling infrastructure. It supports Targa Resources' push to keep new Permian plants and related assets running consistently, which matters if the thesis relies on higher throughput and operating leverage rather than commodity swings. It also reinforces the focus on contracted services by pairing long term midstream agreements with long term power supply.

    This is not a new chapter of the story so much as an execution detail that either keeps the existing Narrative intact or exposes it. If rising competition from peers like Enterprise Products Partners or MPLX pressures fees or volumes, then locked in power alone cannot offset the risks analysts already flag around debt levels and potential overbuild.

    In the end, this power deal matters only to the extent that you think Targa Resources' broader build out and contract heavy model continues to justify the growth path set out in its Narrative.

    Add Targa Resources to your Watchlist and get alerts as these catalysts play out.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.