Targa Resources, Inc. · NYSE:TRGP
Targa Resources — Merger or Acquisition (June 2022)
10 slides from Targa Resources's merger presentation, Jun 17, 2022
Slide 1: Strategic Permian Basin Acquisition of Lucid Energy
Strategic Permian Basin Acquisition of Lucid Energy June 16, 2022 Targa Resources Corp. Exhibit 99.2
Slide 2: Forward Looking Statements
2 Forward Looking Statements Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts,
Slide 3: Key Acquisition Benefits
Key Acquisition Benefits $3.55 billion acquisition of leading G&P system in the Permian Basin increases Targa’s size and scale >600,000 dedicated acres, supplemented by significant volumes subject to minimum volume commitments, in the core of the Delaware Basin with breakeven oil prices of ~$40/bbl
Slide 4: Targa's G&P position spans some of the most active and economic producing basins
Targa’s G&P position spans some of the most active and economic producing basins in the lower 48 of the U.S. Lower 48 U.S. rig activity is concentrated in the Delaware and Midland basins, reflecting the strength of the underlying geological fundamentals Delaware – Premier Region of the Permian Basin
Slide 5: Strong Fundamentals Underpin Acquired Assets
Strong Fundamentals Underpin Acquired Assets Delaware Basin – North America’s premier resource play Highest performing wells; largest inventory of top-tier drilling locations Significant growth in number of wells connected on the acquired system since 2018 Growing share of Permian Basin drilling is
Slide 6: Targa's Pro Forma Position in the Delaware Basin
Targa’s Pro Forma Position in the Delaware Basin Includes the 230 Mmcf/d Red Hills VI plant, which is estimated to be in service September 2022. Long-term fixed-fee contracts Long-term dedications from high-quality producer customers Underpinned by >600,000 dedicated acres, supplemented with additio
Slide 7: Complements Targa's Wellhead to Water Permian NGL Strategy
Complements Targa’s Wellhead to Water NGL Permian Strategy Diverse and vertically integrated asset platform connects wellhead volumes with Gulf Coast and export markets Substantial natural gas gathering and processing in multiple basins 44 natural gas processing plants(1) ~9.1 Bcf/d gross processing
Slide 8: Maintaining Balance Sheet Strength
Maintaining Balance Sheet Strength Acquisition meaningfully increases Targa’s EBITDA growth trajectory while continuing to maintain balance sheet strength (1) Execution of recent transactions is expected to add ~$450MM of incremental adjusted EBITDA at an attractive ~6.5 times Sold GCX interest for
Slide 9: Non-GAAP Measures Reconciliation
Gains or losses on debt repurchases or early debt extinguishments. Noncontrolling interest portion of depreciation and amortization expense (including the effects of the impairment of long-lived assets on non-controlling interests). Non-GAAP Measures Reconciliation
Slide 10: Contact Information
Visit us at targaresources.com Contact Information: Email: InvestorRelations@targaresources.com Phone: (713) 584-1133 811 Louisiana Street Suite 2100 Houston, TX 77002