Targa Resources, Inc. · NYSE:TRGP
Targa Resources — Investor Presentation (January 2023)
26 slides from Targa Resources's investor presentation, January 2023
Slide 1: Targa Resources Corp. Investor Presentation January 2023
Targa Resources Corp. Investor Presentation January 2023
Slide 2: Forward Looking Statements and Corporate Structure
Forward Looking Statements and Corporate Structure Certain statements in this presentation are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as Targa Corporate Structure amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All s
Slide 3: Targa is a Leading Infrastructure Company
Targa is a Leading Infrastructure Company Premier Permian Basin Natural Gas Gathering and Processing Assets ▪ Largest gatherer and processor of natural gas in one of the top resource plays in the world ▪ Producer customers have decades of attractive development inventory ▪ Delaware Basin acquisition
Slide 4: Targa Acquires 25% Interest in Grand Prix NGL Pipeline
Targa Acquires 25% Interest in Grand Prix NGL Pipeline Acquisition further simplifies Targa while also increasing fee-based margin and providing additional cash flow stability Strategic Principles Transaction Overview ▪ In January 2023, Targa completed the acquisition of Blackstone’s 25% interest in
Slide 5: Molecules Move Through Targa's System
Significant Growth Across Integrated Asset Footprint Assets connect key U.S. 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
Slide 6: Strong Balance Sheet Drives Longer Term Financial Flexibility
Strong Balance Sheet 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 investments driving adjusted EBITDA growt
Slide 7: Full Year 2022 Financial Estimates
Full Year 2022 Financial Estimates On-track to deliver significant year-over-year estimated adjusted EBITDA growth Announced Estimated Financial Metrics 2022 Estimates Major Capital Projects In-Service Date Adjusted EBITDA(1) $2,850 - $2,950 million Permian Midland Net Growth Capex $1,100 - $1,200 m
Slide 8: 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 9: 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 customers 20% customers is from IG ► Diverse
Slide 10: Integrated Infrastructure Platform
Integrated Infrastructure Platform
Slide 11: Permian Basin is a World-Class Resource
Permian Basin is a World-Class Resource Targa’s leadership position in the Permian and integrated platform move significant liquids to NGL hub in Mont Belvieu Permian Crude Oil Production Forecast(1) Permian Gross Gas and NGL Production Forecast(1) 8.0 35.0 4.5 Current: ~5.4 MMBbl/d Current: ~21 Bcf
Slide 12: Targa's Premier Permian Asset Footprint
Targa’s Premier Permian Asset Footprint Recent Delaware Basin acquisition further enhance systems across the Midland and Delaware Basins Legend Active Rigs Processing Plant Multi-plant, multi-system Permian Processing Plant In Progress footprint, complemented by Grand Crude Terminal Prix and Daytona
Slide 13: 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 II plant in 2Q23;
Slide 14: Permian Delaware Expansions
Permian Delaware Expansions Expansions provides attractive integrated returns and enhances operational performance Wildcat II plant Strategic Merits Midway plant Midway plant ▪ Construction continues on the new 275 MMcf/d plant (Midway) to replace Sand Hills plant and is expected to begin operations
Slide 15: Targa's NGL Pipeline Transportation System
Targa’s NGL Pipeline Transportation System Targa is expanding its NGL takeaway from the Permian to support growth from Targa’s assets and its future plant additions Legacy plant Heim plant Announced Targa plant construction underway: ▪ Legacy II plant 2Q23 Gateway plant ▪ Midway plant 2Q23 Falcon pl
Slide 16: NGL Production Feeds Logistics & Transportation Assets
NGL Production Feeds Logistics & Transportation Assets Targa’s NGL pipelines connect and direct significant NGL volumes to its fractionation complex in Mont Belvieu Significant NGLs from Targa Permian Plants Targa’s NGL Transportation Pipelines 600 +41% 500 +12% 400 +22% Permian Basin MBbl/d 300 up
Slide 17: 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 18: 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 19: ESG Approach – Delivering Energy Sustainably
ESG Approach – Delivering Energy Sustainably Targa is part of the energy infrastructure that is delivering safe, reliable energy to global communities Environmental Stewardship Safety Leadership We are focused on minimizing our We know that our success as a impact on the environment and company hing
Slide 20: 2021 Sustainability Highlights
2021 Sustainability Highlights ▪ Reduced scope 1 plus scope 2 GHG intensity by 12% Our Goals by 2025 ▪ Reduced flaring volumes from emissions events by 40% .08% Reduce our methane intensity to 0.08% for our ▪ Exported approximately 4.9 billion gallons of LPG globally in 2021 that gathering and boost
Slide 21: 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 22: Reconciliations
@ TARGA Reconciliations
Slide 23: 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 24: 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 25: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Full Year 2022E (in millions) Reconciliation of Estimated Net Income attributable to Targa Resources Corp. to Estimated Adjusted EBITDA Net income attributable to Targa Resources Corp. $ 1,245.0 Interest expense, net 400.0 Income tax expense 340.0 Depreciation and am
Slide 26: 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
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