Targa Resources, Inc. · NYSE:TRGP
Targa Resources — Investor Presentation (May 2022)
24 slides from Targa Resources's investor presentation, May 2022
Slide 1: Targa Resources Corp. Investor Presentation
Targa Resources Corp. Investor Presentation May 2022
Slide 2: Forward Looking Statements and Corporate Structure
Forward Looking Statements and Corporate Structure Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Targa Corporate Structure and Section 21E of the Securities Exchange Act of 1934, as amended. All statem
Slide 3: Premier Midstream Infrastructure Company
Premier Midstream Infrastructure Company Integrated assets that connect natural gas and NGL supply to domestic and international demand markets Wellhead to Water Solution Substantial natural gas gathering and processing in multiple basins Ability to Collect Fees at Multiple Points as Molecules Move
Slide 4: Strategic Outlook
Strategic Outlook Integrated NGL business, coupled with strong business fundamentals support increasing cash flow outlook Diverse & Vertically Integrated Asset Platform Committed to safety, reliability ▪ Targa’s operations connect natural gas and NGLs to markets with increasing demand and environmen
Slide 5: FCF Profile Drives Longer Term Financial Flexibility
FCF Profile Drives Longer Term Financial Flexibility Maintaining balance sheet strength and financial flexibility over the long-term remain a key priority ▪ Continuing to invest in attractive organic growth projects ▪ Strong business performance and embedded operating leverage driving adjusted EBITD
Slide 6: 2022 Financial and Operational Estimates (as Presented in Feb'22)
2022 Financial and Operational Estimates (as Presented in Feb’22) If prices continue to average around today’s prices for 2022, Targa expects to exceed the top end of its full year adjusted EBITDA range Financial Metrics 2022 Estimates Adjusted EBITDA $2,300 - $2,500 million(1) Significant YoY growt
Slide 7: Integrated Platform Supports Fee-Based Profile
Integrated Platform Supports Fee-Based Profile Durable earnings power from significant fee-based margin across Targa businesses Segment Business Mix 2022E(1) Fee-Based Profile 2022E(1) Permian Basin Pipeline Transportation Gathering & Processing(2) Pipeline Transportation Badlands Fractionation Frac
Slide 8: Risk Management
Risk Management Risk management framework further strengthens cash flow stability Credit Risk Management Revenue from Top 25 Customers(1) ▪ Gathering & Processing ► Targa is predominantly in a net payable position to its G&P ► ~80% of revenue from top 25 20% customers is investment customers ► Diver
Slide 9: Integrated Infrastructure Platform
Integrated Infrastructure Platform
Slide 10: Permian Basin is a World-Class Resource
Permian Basin is a World-Class Resource Targa’s leadership position in the Permian and integrated platform provide reliable access to NGL hub in Mont Belvieu Permian Crude Oil Production Forecast(1) Permian Gross Gas and NGL Production Forecast(1) 8.0 35.0 4.0 Current: ~5.0 MMBbl/d Current: ~20 Bcf/
Slide 11: Targa's Premier Permian Asset Footprint
Targa’s Premier Permian Asset Footprint Super-system across the Midland and Delaware Basins with significant access to NGL supply Legend Active Rigs Processing Plant Multi-plant, multi-system Permian Processing Plant In Progress Crude Terminal footprint, complemented by Grand Existing Gathering Pipe
Slide 12: Permian Midland Expansions
Permian Midland Expansions Midland Basin processing expansions provide attractive integrated returns Strategic Merits ✓ To support increasing activity and production outlooks, Targa is adding an incremental 550 MMcf/d of natural gas processing capacity in the Midland Basin – Legacy I plant in 4Q22;
Slide 13: Permian Delaware Expansion
Permian Delaware Expansion Expansion provides attractive integrated returns and enhances operational performance Strategic Merits ✓ New 275 MMcf/d plant (Midway plant) in the Permian Delaware expected to begin operations 3Q23 Midway plant ✓ Modernized equipment to enhance operational performance, re
Slide 14: NGL Production Feeds Logistics & Transportation Assets
NGL Production Feeds Logistics & Transportation Assets Grand Prix NGL Pipeline connects and directs significant NGL volumes to Targa’s fractionation complex in Mont Belvieu Significant NGLs from Targa Permian Plants Grand Prix NGL Pipeline 450 +10% 400 +12% +22% 350 Permian Basin 300 up to 550 MBbl/
Slide 15: NGL Market Hub With Global Reach
NGL Market Hub With Global Reach Logistics assets exceedingly difficult to replicate, fee-based businesses, with significant take-or-pay Premier Fractionation Ownership Position in Mont Belvieu LPG Export Services Business Connects to Global Demand ▪ Mont Belvieu is the U.S. NGL market hub developed
Slide 16: ESG – Environmental, Social, Governance
ESG – Environmental, Social, Governance Targa is part of the energy infrastructure that is delivering safe, reliable energy to global communities Environment & Safety Social We recognize that our We employ a talented and commitment to implement dedicated workforce and are programs and practices
Slide 17: We Own and Operate Critical Infrastructure
We Own and Operate Critical Infrastructure Our operations are essential to the efficient, safe, and reliable delivery of energy across the U.S. and increasingly the world ▪ Targa’s operations connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuel and
Slide 18: Global Demand Outlook and the Call on U.S. Supply
Global Demand Outlook and the Call on U.S. Supply Increasing global energy demand requires diverse supply source; U.S. exports expected to fuel future energy needs Global Energy Demand by Fuel(1) U.S. Natural Gas and Natural Gas Liquids Supply Growth(2) 6.0 Billion tons oil equivalent (Btoe) 50.0 Qu
Slide 19: Targa is Well-Positioned to Support Global Energy Needs
Targa is Well-Positioned to Support Global Energy Needs Targa’s facilities exported ~4.9 billion gallons of LPGs globally in 2021 and helped reduce global CO2 emissions ▪ LPGs are replacing biomass in many rural communities, and LPG Use of LPGs Provides Emission Reductions demand is growing in China
Slide 20: Reconciliations
@ TARGA Reconciliations
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes the Company’s non-GAAP financial measures: adjusted EBITDA, distributable cash flow, adjusted free cash flow and adjusted operating margin (segment). The following tables provide reconciliations of these non-GAAP financial measures to their most
Slide 22: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Year Ended December 31, 2021 2020 2019 (In millions) Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow Net income (loss) attributable to Targa Resources Corp. $ 71.2 $ (1,
Slide 23: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Reconciliation of Estimated Net Income attributable to Targa Full Year 2022E Resources Corp. to Estimated Adjusted EBITDA (In millions) Net income (loss) attributable to Targa Resources Corp. 1,260.0 Interest (income) expense, net 350.0 Income tax expense (benefit) 2
Slide 24: Visit us at targaresources.com
Visit us at targaresources.com Contact Information: Email: InvestorRelations@targaresources.com Phone: (713) 584-1133 811 Louisiana Street Suite 2100 Houston, TX 77002