Nov 5 (Reuters) -

Pipeline operator Targa Resources ( TRGP ) beat estimates

for third-quarter adjusted core profit on Wednesday, boosted by

record natural gas and liquids volumes from the Permian basin.

Its shares rose 1.3% in premarket trading, as the company

also announced plans to raise its annual dividend by 25% to $5

per share in 2026.

U.S. midstream companies such as Targa and peer Kinder

Morgan ( KMI ) are benefiting from a surge in oil and gas

production in the Permian basin, as well as rising natgas demand

from LNG export facilities and increased power generation tied

to AI operations, cryptocurrency mining and data centers.

Targa said it expects full-year adjusted core profit around

the top end of its $4.65 billion to $4.85 billion range.

Its quarterly Permian natural gas inlet volumes rose about

11% to 6.62 billion cubic feet per day (cfpd) from a year

earlier, while natgas liquids pipeline transportation volumes

surged about 23% to 1,017 thousand barrels per day.

The company also announced the construction of a 275 million

cfpd natural gas processing plant in the Permian Delaware in New

Mexico, expected to begin operations in the first quarter of

2027.

Targa has been pushing to expand its infrastructure

footprint with new projects aimed at keeping pace with record

output from the Permian basin.

The Houston, Texas-based company reported an adjusted core

profit of $1.27 billion for the quarter ended September 30,

compared with estimates of $1.21 billion, according to data

compiled by LSEG.