On August 18, Targa Resources rose 6.46% in regular trading, trading at $296.64/share, with turnover of $148 million. The rally was driven by the announcement of two 20-year fee-based midstream service agreements with ExxonMobil and plans to construct three new natural gas processing facilities in the Permian Delaware Basin.

The agreements establish an extensive new area of mutual interest, further consolidating Targa's integrated asset footprint in the core Permian producing region. The new facilities will support ExxonMobil's production growth plans in the area, employing advanced technology to ensure operational efficiency. Goldman Sachs subsequently raised its price target on Targa to $310 from $298, maintaining a Buy rating, with the consensus mean target now at $304.50.

The announcement builds on strong operational momentum. Targa reported Q2 net income of $764.6 million, up 21.5% year-over-year, significantly beating the $612 million consensus estimate. Management guided full-year adjusted EBITDA toward the high end of the $5.7-$5.9 billion range, supported by low double-digit Permian volume growth.

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