Targa Resources Corp (TRGP) saw its stock soar 5.24% in pre-market trading following the release of its impressive third-quarter results and the announcement of a significant dividend increase planned for 2026. The pipeline operator's performance was bolstered by record volumes from the Permian Basin, showcasing the company's strong position in the midstream sector.

The company reported a third-quarter adjusted EBITDA of $1.27 billion, surpassing analysts' expectations of $1.21 billion. This stellar performance was driven by record natural gas inlet volumes in the Permian Basin, which rose about 11% to 6.62 billion cubic feet per day compared to the previous year. Additionally, natural gas liquids pipeline transportation volumes surged approximately 23% to 1,017 thousand barrels per day.

Looking ahead, Targa Resources expects its full-year adjusted EBITDA to be at the top end of its $4.65 billion to $4.85 billion range. The company also announced plans to recommend a 25% increase in its annual dividend to $5.00 per share in 2026, signaling confidence in its long-term financial outlook. Furthermore, Targa revealed plans to construct a new 275 million cubic feet per day natural gas processing plant in the Permian Delaware basin, set to begin operations in the first quarter of 2027, underlining its commitment to expanding its infrastructure to keep pace with the region's record output.