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Targa says Wrangler, Ranger and Ranger II are planned with approximately 825 MMcf/d of combined processing capacity, while Bull Run II is expected to provide takeaway to the Waha Hub.
Published by Allstream Insiders
Allstream Insiders Summary
Targa Resources has executed new 20-year, fee-based midstream agreements with subsidiaries of ExxonMobil covering Permian Basin production across natural gas gathering, processing, treating, natural gas liquids transportation and fractionation services.
The agreements add significant acreage dedications in the Delaware and Midland basins and establish service terms through 2046. Targa also announced three new natural gas processing plants in the Permian Delaware—Wrangler, Ranger and Ranger II—with approximately 825 million cubic feet per day of combined processing capacity.
Targa expects the three plants to enter service during the first half of 2028. The company also announced the approximately 70-mile Bull Run II residue-gas pipeline, which is expected to move natural gas from the new processing plants to the Waha Hub under take-or-pay commitments.
Expected investment in the new plants, associated field capital and Bull Run II is included in Targa’s updated estimate of approximately $5 billion in 2026 net growth capital. The $5 billion is a companywide estimate and is not the disclosed cost of the ExxonMobil agreements or the four newly announced projects.
What Do Targa’s 20-Year Agreements with ExxonMobil Cover?
Targa’s agreements with ExxonMobil subsidiaries cover long-term, fee-based midstream services across both sides of the Permian Basin.
In the Permian Delaware, the agreements establish significant new acreage dedications for:
- Natural gas gathering
- Natural gas processing
- Natural gas treating
- Natural gas liquids transportation
- Natural gas liquids fractionation
Those Delaware Basin service agreements extend through 2046.
In the Permian Midland, Targa said the agreements add new acreage dedications and extend existing fee-floor gathering and processing agreements through 2046.
The agreements also include 20-year natural gas liquids dedications to Targa’s logistics and transportation systems across both the Delaware and Midland basins.
Targa did not disclose the number of dedicated acres, expected production volumes, fee levels or total contract value in the announcement.
“We are excited to meaningfully expand our strategic relationship with ExxonMobil,” Targa Chief Executive Officer Matt Meloy said.
Targa Plans 825 MMcf/d Across Wrangler, Ranger and Ranger II
Targa announced the Wrangler, Ranger and Ranger II natural gas processing plants to accommodate customer production growth and the new commercial agreements.
Targa reported approximately 825 MMcf/d of aggregate processing capacity across the three planned additions in the Permian Delaware. The company expects the plants to be in service during the first half of 2028.
The release does not assign an individual capacity or capital cost to each plant. Allstream is therefore reporting only the company-disclosed aggregate capacity.
| Processing project | Basin | Company-reported capacity | Company-targeted service period |
|---|---|---|---|
| Wrangler | Permian Delaware | Part of approximately 825 MMcf/d combined | First half of 2028 |
| Ranger | Permian Delaware | Part of approximately 825 MMcf/d combined | First half of 2028 |
| Ranger II | Permian Delaware | Part of approximately 825 MMcf/d combined | First half of 2028 |
| Combined additions | Permian Delaware | Approximately 825 MMcf/d | First half of 2028 |
Targa did not identify individual plant sites, counties, construction contractors, technology providers, equipment suppliers or procurement schedules in the release.
Targa Plans Bull Run II Connection to the Waha Hub
Targa also announced the Bull Run II residue-gas pipeline as part of its Permian Delaware Bull Run system.
Targa said the approximately 70-mile natural gas pipeline will provide takeaway capacity from the new plant additions to the Waha Hub and will be supported by take-or-pay commitments. The company did not identify the commitment counterparties.
The company expects Bull Run II to begin operations during the first half of 2028, the same service period it currently targets for the three processing plants.
Targa did not disclose the pipeline’s diameter, transportation capacity, route, project cost, permitting status or construction start date. The announced service date remains a company expectation rather than a completed milestone.
Targa Updates 2026 Growth Capital Estimate to Approximately $5 Billion
Targa updated its full-year 2026 net growth capital estimate to approximately $5 billion.
The revised companywide estimate incorporates anticipated investment in:
- Wrangler, Ranger and Ranger II
- Incremental field infrastructure associated with the new plants and commercial agreements
- Bull Run II
Targa did not allocate the $5 billion estimate among the three plants, Bull Run II or its other projects. The figure should therefore not be presented as the construction value of the ExxonMobil-backed infrastructure alone.
The company also did not disclose a dollar value for the ExxonMobil agreements.
Up to Five Additional Plants Remain Under Evaluation
Targa said it is evaluating up to five additional natural gas processing plants in the Permian Delaware to accommodate expected longer-term production growth.
The company is also evaluating the timing of another fractionation train at its Mont Belvieu complex.
Neither disclosure represents an announced construction decision. Targa did not provide names, capacities, costs, schedules or approval status for the five potential processing plants or the possible fractionation train.
These evaluation-stage opportunities should be tracked separately from Wrangler, Ranger, Ranger II and Bull Run II, which Targa announced as new projects with targeted service timing.
Targa Project and Agreement Tracker
| Agreement or project | Scope | Commercial or project status | Company-reported timing |
|---|---|---|---|
| ExxonMobil Permian Delaware agreements | Gathering, processing, treating, NGL transportation and fractionation | Executed 20-year fee-based agreements with new acreage dedications | Through 2046 |
| ExxonMobil Permian Midland agreements | New acreage dedications and extension of existing fee-floor gathering and processing agreements | Executed agreements | Through 2046 |
| Permian NGL dedication | NGL transportation and fractionation across the Delaware and Midland basins | Executed 20-year dedication | Through 2046 |
| Wrangler, Ranger and Ranger II | Three Permian Delaware processing plants; approximately 825 MMcf/d combined | Announced projects | First half of 2028 |
| Bull Run II | Approximately 70-mile residue-gas pipeline from the new plants to Waha | Announced project supported by take-or-pay commitments | First half of 2028 |
| Up to five additional Delaware plants | Longer-term processing additions | Evaluation only | Not disclosed |
| Additional Mont Belvieu fractionator | Potential fractionation expansion | Timing under evaluation | Not disclosed |
| 2026 net growth capital | Companywide growth program | Updated estimate of approximately $5 billion | Full-year 2026 estimate |
Allstream Insiders Perspective
Targa links the new infrastructure additions to 20-year fee-based agreements and said Bull Run II will be supported by take-or-pay commitments. Those disclosures provide long-term commercial support, but they do not guarantee project completion or the announced schedule.
The announced project scope consists of three processing plants totaling approximately 825 MMcf/d and one approximately 70-mile residue-gas pipeline. Targa currently targets the first half of 2028 for the plants and pipeline.
The follow-on development pipeline is less certain. Targa is evaluating up to five additional Delaware Basin plants and another Mont Belvieu fractionator, but the company has not announced construction decisions, schedules or budgets for those potential additions.
The approximately $5 billion 2026 net growth capital estimate is a companywide forecast and does not establish the cost of the ExxonMobil-related projects. Project-level capital values, contractor selections and procurement packages remain undisclosed.
