(Reuters) -Pipeline operator Targa Resources ( TRGP ) beat second-quarter adjusted core profit estimates, driven by record-high volumes of natural gas and natural gas liquids transported through its system.

The company also announced a new $1.0 billion share repurchase program in addition to its previous $1 billion plan.

Shares were up 2.6% at $167.32 in premarket trading.

Demand for natural gas has risen in recent quarters, driven by surging power demand from energy-hungry data centers and growing domestic consumption, helping firms like Targa, which transport natural gas.

In April, the U.S. Energy Information Administration said U.S. power consumption will hit new record highs in 2025 and 2026, on the back of data centers dedicated to AI and cryptocurrency.

The company's quarterly Permian natural gas inlet volumes rose about 11% to a record 6.28 billion cubic feet per day from a year earlier, while NGL pipeline transportation volumes surged about 23% also to a record 961,200 barrels per day.

The Houston, Texas-based company's adjusted core profit rose 18% to $1.16 billion for the quarter ended June 30, from a year earlier, beating analysts' average estimate of $1.14 billion, according to LSEG data.

Total revenue rose 20% to $4.26 billion, helped by higher NGL volumes and natural gas prices, though partially offset by lower NGL prices.

Targa supplies natural gas and NGLs to key markets through its network of gathering and processing assets across the Permian Basin, Eagle Ford Shale, Bakken Shale and other major U.S. oil and gas regions.

The company transports, processes and fractionates NGLs into component products like ethane, propane and butane.