Slide 1: First Quarter 2024 Earnings Supplement
First Quarter 2024 Earnings Supplement May 2, 2024 | TARGA RESOURCES CORP.
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation 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 fac
Slide 3: Q1 2024 Highlights
Q1 2024 Highlights Record quarterly adjusted EBITDA of $966mm driven by record Permian and LPG export volumes >> Operational execution 〉 Record Permian natural gas inlet volumes 〉 Record LPG export volumes 〉 Producer activity continued to be robust despite the impact of harsh winter weather in Janua
Slide 4: Operational Performance – Gathering & Processing Segment
Operational Performance – Gathering & Processing Segment 1Q24 Highlights Field G&P Natural Gas Inlet Volumes and NGL Production Field G&P Natural Gas Inlet Volumes 900 ▪ Record Targa volumes in the Permian Basin attributable to 6,400 1,260 1,184 continued strong activity levels across Permian Midlan
Slide 5: Operational Performance – Logistics & Transportation Segment
Operational Performance – Logistics & Transportation Segment 1Q24 Highlights NGL Pipeline Transportation, Fractionation, and LPG Export Services ▪ Strong NGL pipeline transportation volumes despite the impacts of harsh winter weather in January, which reduced G&P supply volumes ▪ Reduced fractionati
Slide 6: Financial Performance – 1Q 2024 vs. 1Q 2023
Financial Performance – 1Q 2024 vs. 1Q 2023 3% increase in adjusted EBITDA(1) G&P segment operating margin increased $18 million(2) L&T segment operating margin increased $3 million + Higher Permian inlet volumes driven by system expansions and continued strong producer + Higher NGL pipeline transpo
Slide 7: Financial Performance – 1Q 2024 vs. 4Q 2023
Financial Performance – 1Q 2024 vs. 4Q 2023 1% increase in adjusted EBITDA(1) G&P segment operating margin increased $20 million(2) L&T segment operating margin decreased $22 million + Higher Permian inlet volumes driven by system expansions and continued strong producer - Lower fractionation volume
Slide 8: Business Mix – 1Q 2024
Business Mix – 1Q 2024 Field Gathering & Processing Business Mix – Segment Logistics & Transportation Operating Margin(1) Operating Margin Operating Margin 100% 100% 75% 75% 50% 51% / 49% 50% 25% 25% 0% Gathering & Processing Logistics & Transportation 0% 1 1Q24A Central Marketing & Other (2) Badlan
Slide 9: Appendix and Reconciliations
Appendix and Reconciliations Q1 2024 EARNINGS SUPPLEMENT PRESENTATION 9
Slide 10: Hedge Disclosures
Hedge Disclosures Hedges provide cash flow stability and reduce exposure to commodity prices on non fee-based G&P contract exposure FIXED PRICE SWAPS Volumes Hedged Wtd. Avg. Hedge Price Volumes Hedged Wtd. Avg. Hedge Price Apr – Dec 2024 2025 Natural Gas 100,136 $2.93 63,156 $3.42 (MMBtu/d; $/MMBtu
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes the Company’s non-GAAP financial measures: adjusted EBITDA and adjusted operating margin. The following tables provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The Company utilizes non
Slide 12: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended, March 31, 2024 December 31, 2023 March 31, 2023 (in millions) Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA Net income (loss) attributable to Targa Resources Corp. $ 275.2 $ 299.6 $ 497.0 Interest (in
Slide 13: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended, March 31, 2024 December 31, 2023 March 31, 2023 (in millions) Gathering and Processing Segment Operating margin $ 556.4 $ 536.3 $ 538.4 Operating expenses 188.1 185.7 181.4 Adjusted operating margin $ 744.5 $ 722.0 $ 719.8 Logistics and Transporta
Slide 14: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Full Year 2024E (in millions) Reconciliation of Estimated Net Income attributable to Targa Resources Corp. to Estimated Adjusted EBITDA Net income attributable to Targa Resources Corp. $ 1,215.0 Interest expense, net (1) 790.0 Income tax expense 365.0 Depreciation an
Slide 15: General Inquiries / Corporate Headquarters
GENERAL INQUIRIES/CORPORATE HEADQUARTERS 811 LOUISIANA STREET, SUITE 2100 HOUSTON, TX 77002 Targa is a leading provider of midstream services and is one of the largest independent midstream PHONE: 713.584.1133 infrastructure companies in North America. Our operations are critical to the efficient, s