Targa Resources (TRGP) has drawn fresh attention after signing new long-term, fee-based agreements with ExxonMobil subsidiaries in the Permian Basin, backed by 20-year acreage and NGL dedications.

The ExxonMobil agreements land at a time when Targa Resources’ share price has risen strongly over 2026, with a year to date share price return of 48.81% and a 1 year total shareholder return of 76.29%, pointing to strong momentum built over several years.

If you want to see how other energy infrastructure plays are shaping up alongside Targa’s latest move, it could be worth reviewing the 39 power grid technology and infrastructure stocks

Targa Resources now sits at the intersection of a sharp share price move and fresh 20 year ExxonMobil commitments. Is the current valuation mostly about sentiment, or does it still line up with the underlying cash generation story?

Most Popular Narrative: 6.5% Undervalued

Targa Resources last closed at $277.94, while the most followed narrative pegs fair value at about $297 per share, putting recent ExxonMobil contracts into a sharper pricing context.

Substantial investment in integrated export infrastructure, including the expansion and debottlenecking of LPG export facilities and new fractionation trains, directly leverages rising international and petrochemical sector demand for U.S. NGLs, creating long-term opportunities to enhance utilization and operating leverage, which should support higher earnings and margins.

Want to see what is baked into that fair value for Targa Resources? The narrative leans heavily on volume growth, export throughput and a richer profit profile. Curious which long term cash flow assumptions really carry the model.

Result: Fair Value of $297.29 (UNDERVALUED)

However, the Targa Resources narrative still leans on bullish assumptions that could be tested if Permian competition erodes fees or if midstream overbuild pressures export margins.

Another View on Targa Resources Valuation

The SWS DCF model presents a very different picture for Targa Resources. It suggests a future cash flow value of about $562.59 per share versus the current $277.94, which screens as undervalued and is far above the $297 fair value narrative. Which lens do you trust more for long term decisions?

Next Steps

If the mixed signals around Targa Resources leave you unsure, that is a useful starting point rather than a problem. Move quickly from headlines to hard data, then weigh the 3 key rewards and 2 important warning signs

Looking for more investment ideas beyond Targa Resources?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.