((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
Targa Resources TRGP.N beat Wall Street estimates for third-quarter core profit on Tuesday, benefiting from higher volumes of natural gas and natural gas liquids transported through its pipelines.
U.S. pipeline operators are seeing strong demand for their infrastructure as oil and gas production continues to increase in the Permian Basin, which accounts for half of the nation's crude oil production.
Targa's total quarterly natural gas sales volume increased 3% year-on-year to 2.84 billion British thermal units per day (BBtu/d), while total entries natural gas for processing increased 18% in the Permian Basin.
Natural gas liquids (NGL) pipeline volumes increased approximately 26% to 829,200 barrels per day in the quarter ended September 30. NGLs are liquid hydrocarbons such as ethane, propane and butane, which are used as fuels for heating, refrigeration and gasoline blending, among others.
The company expects full-year adjusted core earnings to be higher than the upper end of the previously forecast range of $3.95 billion to $4.05 billion.
Targa, headquartered in Houston, Texas, also said it would build two natural gas processing plants in the Permian Basin, which straddles New Mexico and Texas, in response to increased production. .
On an adjusted basis, its core profit was $1.07 billion in the reported quarter, compared to analysts' estimate of $1.01 billion, according to data compiled by LSEG.
The company's quarterly net income attributable to common shareholders increased 76% from last year to $387.4 million.
