Targa Resources gains after Exxon boosts Permian output plans

U.S.-listed shares of pipeline operator Targa Resources TRGP.N up 3% at $183.54

RBC Capital Markets views Exxon Mobil's XOM.N updated outlook for 2026 to be beneficial for TRGP

XOM's plan now calls for a doubling of Permian Basin production to ~2.5 million barrels of oil production per day, which represents a 200,000 boepd increase from prior plan

RBC notes that Targa has exposure to the largest and best capitalized producers in the Permian Basin that generally drill through near term commodity price fluctuation

Exxon's stronger long-term production and export outlook will drive higher, more durable volumes across Targa's Permian and Gulf Coast midstream system

21 of 23 brokerages rate the stock "buy" or higher and 2 "hold"; median PT is $200- data compiled by LSEG

Including session's moves, TRGP up 3.1% YTD