Slide 1: Second Quarter 2024 Earnings Supplement
Second Quarter 2024 Earnings Supplement August 1, 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: Q2 2024 Highlights
Q2 2024 Highlights Record quarterly adjusted EBITDA of $984mm driven by record Permian, NGL transportation, and fractionation volumes >> Operational Performance 〉 Record Permian natural gas inlet volumes 〉 Record NGL transportation volumes 〉 Record fractionation volumes >> Growth Capital Program Exe
Slide 4: 2024 Updated Financial Outlook
2024 Updated Financial Outlook Increasing FY 2024 adjusted EBITDA estimate +5%, driven by higher anticipated Permian and integrated system volumes Updated 2024 Estimates +13%(1) YoY growth in Adjusted EBITDA driven by: ✓ Higher volume growth across Targa’s Permian footprint Adjusted EBITDA(1) $3,950
Slide 5: Integrated Growth Opportunities Generate Strong ROIC
Integrated Growth Opportunities Generate Strong ROIC Higher volume growth on Targa’s Permian systems necessitating acceleration of capital spending at attractive returns 2024E Net Growth Capex Estimate 2025E Net Growth Capex Estimate ~$2.7B $2.5B(1) ~$1.7B ~$1.4B Feb-24 Acceleration Acceleration Oth
Slide 6: Operational Performance – Gathering & Processing Segment
Operational Performance – Gathering & Processing Segment 2Q24 Highlights Field G&P Natural Gas Inlet Volumes and NGL Production Field G&P Natural Gas Inlet Volumes 7,000 1,000 ▪ Record Targa volumes in the Permian Basin attributable to continued strong activity levels across Permian Midland and 1,25
Slide 7: Operational Performance – Logistics & Transportation Segment
Operational Performance – Logistics & Transportation Segment 2Q24 Highlights NGL Pipeline Transportation, Fractionation, and LPG Export Services ▪ Record NGL pipeline transportation and fractionation volumes driven by higher supply primarily from Targa’s Permian G&P systems 〉 120 MBbl/d Train 9 frac
Slide 8: Financial Performance – 2Q 2024 vs. 2Q 2023
Financial Performance – 2Q 2024 vs. 2Q 2023 25% increase in adjusted EBITDA(1) G&P segment operating margin increased $70 million(2) L&T segment operating margin increased $140 million + Higher Permian inlet volumes driven by system expansions and continued strong producer + Higher NGL pipeline tran
Slide 9: Financial Performance – 2Q 2024 vs. 1Q 2024
Financial Performance – 2Q 2024 vs. 1Q 2024 2% increase in adjusted EBITDA(1) G&P segment operating margin increased $16 million(2) L&T segment operating margin increased $16 million + Higher Permian inlet volumes driven by system expansions and continued strong producer + Higher NGL pipeline transp
Slide 10: Business Mix – 2Q 2024
Business Mix – 2Q 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 2Q24A Central Marketing & Other (2) Badlan
Slide 11: Appendix and Reconciliations
Appendix and Reconciliations Q2 2024 EARNINGS SUPPLEMENT PRESENTATION 11
Slide 12: Hedge Disclosures
Hedge Disclosures Hedges provide cash flow stability and reduce exposure to commodity prices on non-fee-based G&P contract exposure; Non-fee G&P margin now hedged ~90% through 2026 FIXED PRICE SWAPS Volumes Hedged Wtd. Avg. Hedge Price Volumes Hedged Wtd. Avg. Hedge Price Aug – Dec 2024(2) 2025(2) N
Slide 13: 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 14: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended, June 30, 2024 March 31, 2024 June 30, 2023 (in millions) Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA Net income (loss) attributable to Targa Resources Corp. $ 298.5 $ 275.2 $ 329.3 Interest (income)
Slide 15: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended, June 30, 2024 March 31, 2024 June 30, 2023 (in millions) Gathering and Processing Segment Operating margin $ 572.6 $ 556.4 $ 502.5 Operating expenses 205.7 188.1 189.8 Adjusted operating margin $ 778.3 $ 744.5 $ 692.3 Logistics and Transportation
Slide 16: 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. $ 1,355.0 (1) Interest expense, net 790.0 Income tax expense 360.0 Depreciation an
Slide 17: 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