Targa Resources Launches $1.5 Billion Dual-Tranche Bond Offering
The Houston-based midstream giant plans to use the proceeds partly to pay down existing debt and fund future capital investments.
February 27, 2026

Targa Resources Corp. has priced a major debt offering totaling $1.5 billion, split evenly across two series of senior notes with significantly different maturities, signaling the company’s intent to lock in long-term financing across multiple time horizons.
The Houston-based midstream energy company priced $750 million in senior notes carrying a 4.350% interest rate due in 2031, alongside another $750 million tranche bearing a 6.050% rate due in 2056. Both tranches were priced just below face value, at approximately 99.8% and 99.97% respectively. The transaction is expected to close on March 2, 2026, pending customary conditions.
Use of Proceeds
Targa indicated it intends to deploy the net proceeds for general corporate purposes, which may include:
- Repaying outstanding borrowings under its unsecured commercial paper program
- Retiring other existing debt obligations
- Potentially repurchasing or redeeming securities
- Funding capital expenditures or investments in its subsidiaries
The offering was conducted under an existing shelf registration statement previously filed with the U.S. Securities and Exchange Commission, making it part of a pre-approved financing framework rather than a one-off capital raise.
About Targa Resources
Targa Resources is one of North America’s largest independent midstream infrastructure companies, operating a broad portfolio of assets that gather, process, and transport natural gas and natural gas liquids. The company plays a central role in connecting domestic energy production to both U.S. and international markets, particularly as global demand grows for cleaner-burning fuels and industrial feedstocks.
Strategic Implications
The dual-tranche structure of the offering — pairing a medium-term note due in five years with an ultra-long 30-year bond — suggests Targa is strategically diversifying its debt maturity profile. The longer-dated 2056 notes, while carrying a higher coupon, provide the company with capital that won’t need to be refinanced for three decades, offering balance sheet stability as it continues to expand its infrastructure footprint.
Targa trades on the New York Stock Exchange under the ticker TRGP.