Targa Resources Corp. has entered a series of new 20-year, fee-based agreements with ExxonMobil Corp. subsidiaries for integrated midstream and downstream services in the Permian basin aimed at supporting the global major's ongoing development of production acreage in the Delaware and Midland basins.

Announced in mid-August, the newly signed deals will extend its existing arrangements with ExxonMobil covering natural gas gathering, processing, treating, NGL transportation, and fractionation services through 2046, Targa said in a release Aug. 17.

Alongside establishing an extensive new area of mutual interest (AMI) between ExxonMobil and Targa across the Permian Delaware, the agreements also add new acreage dedications and extend gathering-processing agreements to the parties’ existing AMI in the Permian Midland, according to the midstream company.

In a separate presentation to investors on Aug. 17, Targa noted ExxonMobil’s plan for its Permian production to exceed 2.5 million boe/d beyond 2030.

“We expect this expansion of our strategic relationship with ExxonMobil to meaningfully add to Targa’s strong growth rate well into the next decade and bolster our outlook for durable and growing adjusted free cash flow over the long term,” said Matt Meloy, Targa’s chief executive officer.

Upon announcing the extended agreements with ExxonMobil, Targa said it also plans to add 825 MMcfd of fresh gas processing capacity in the Delaware basin spread across three new plants, including the 275-MMcfd Wrangler, 275-MMcfd Ranger, and 275-MMcfd Ranger II plants.

All three plants are scheduled to enter service during first-half 2028, Targa said.

Already the largest gas processor in the Permian, the operator said it also is studying the possibility of as many as five more Delaware processing plants to support longer-term production growth in the region.

In tandem with expansion of its gas processing capabilities, Targa revealed plans for construction of the 70-mile Bull Run II residue-gas pipeline that will connect the new processing capacity with the Waha Hub. Scheduled to begin operations in first-half 2028, the Bull Run II line will be backed by take-or-pay commitments, according to the company.

Targa increased its estimate for 2026 net growth capital to about $5 billion, which includes the three processing plants, associated field infrastructure, and Bull Run II.

Targa’s previously announced Buffalo Run project combined with the company’s 43-mile, 42-in. Bull Run line extension that aim improve access to downstream markets—including connectivity to the Waha hub—as well as increase flow assurance and system reliability, remains on target to enter service early 2028, according to the operator.

The Bull Run line extension is currently scheduled to be operational by first-quarter 2027, according to Targa’s August investor presentation.