Targa Resources, Inc. · NYSE:TRGP
Targa Resources — Q1 2023 Earnings Presentation
16 slides from Targa Resources's earnings presentation, May 4, 2023
Slide 1: First Quarter 2023 Earnings Supplement
First Quarter 2023 Earnings Supplement MAY 4, 2023 | 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 2023 Highlights
Q1 2023 Highlights Continuing to execute on our strategic priorities >> Strong financial and operational execution 〉 Record high quarterly adjusted EBITDA of $941 MM(1), +12% QoQ 〉 Record Permian natural gas inlet volumes of 4.8 Bcf/d 〉 Record NGL pipeline transportation and fractionation volumes 〉
Slide 4: 2023 – Targa Momentum Continues
2023 – Targa Momentum Continues Integrated NGL business and strong business fundamentals expected to drive increasing cash flow outlook +10% +24% +43% Strong and flexible YoY increase in Permian YoY increase in YoY increase to quarterly natural gas volumes(1) Adjusted EBITDA(2) cash dividend IG bala
Slide 5: Operational Performance – Gathering & Processing Segment
Operational Performance – Gathering & Processing Segment 1Q23 Highlights Field G&P Natural Gas Inlet Volumes and NGL Production Field G&P Natural Gas Inlet Volumes ▪ Record Targa volumes in the Permian Basin attributable to continued 6,400 900 robust activity levels across Permian Midland and Permia
Slide 6: Operational Performance – Logistics & Transportation Segment
Operational Performance – Logistics & Transportation Segment 1Q23 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 ▪ Strong LPG export volum
Slide 7: Financial Performance – 1Q 2023 vs. 1Q 2022
Financial Performance – 1Q 2023 vs. 1Q 2022 50% increase in adjusted EBITDA(1) G&P segment operating margin increased $141 million(2) L&T segment operating margin increased $177 million + Higher natural gas inlet volumes and higher fees + Higher marketing margin due to greater optimization opportuni
Slide 8: Financial Performance – 1Q 2023 vs. 4Q 2022
Financial Performance – 1Q 2023 vs. 4Q 2022 12% increase in adjusted EBITDA(1) G&P segment operating margin decreased $6 million(2) L&T segment operating margin increased $87 million − Lower commodity prices + Higher marketing margin due to greater optimization opportunities + Higher Permian natural
Slide 9: Business Mix – 1Q 2023
Business Mix – 1Q 2023 Field Gathering & Processing Business Mix – Segment Logistics & Transportation Operating Margin Operating Margin Operating Margin 100% 100% 75% 75% 50% 50% / 50% 50% 25% 25% 0% 0% 1 Central 1Q23A Marketing & Other(2) Badlands (1) LPG Exports Gathering & Processing Logistics &
Slide 10: 2023 Financial and Operational Outlook
2023 Financial and Operational Outlook Q1 2023 EARNINGS SUPPLEMENT PRESENTATION 10
Slide 11: Targa Full Year 2023 Financial and Operational Estimates
Targa Full Year 2023 Financial and Operational Estimates +24% year-over-year increase in estimated adjusted EBITDA is backed by volume-driven Permian growth(1)(2) FINANCIAL METRICS 2023 ESTIMATES YoY increase in 2023 adjusted Adjusted EBITDA(1)(2) $3,500 - $3,700 million EBITDA estimate driven by: N
Slide 12: Reconciliations
Reconciliations Q1 2023 EARNINGS SUPPLEMENT PRESENTATION 12
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 (segment). The following tables provide reconciliations of adjusted EBITDA to its most directly comparable GAAP measure. The Company utilizes non-GAAP measu
Slide 14: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended, March 31, 2023 December 31, 2022 March 31, 2022 (in millions) Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA Net income (loss) attributable to Targa Resources Corp. $ 497.0 $ 318.0 $ 88.0 Interest (inc
Slide 15: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Full Year 2023E (in millions) Reconciliation of Estimated Net Income attributable to Targa Resources Corp. to Estimated Adjusted EBITDA Net income attributable to Targa Resources Corp. $ 1,390.0 Interest expense, net 680.0 Income tax expense 400.0 Depreciation and am
Slide 16: General Inquiries/Corporate Headquarters
GENERAL INQUIRIES/CORPORATE HEADQUARTERS 811 LOUISIANA STREET, SUITE 2100 HOUSTON, TX 77002 Targa is a leading provider of midstream services as one of the largest independent midstream infrastructure PHONE: 713.584.1133 companies in North America. Our operations are critical to the efficient, safe,