Targa Resources, Inc. · NYSE:TRGP
Targa Resources — Q3 2023 Earnings Presentation
14 slides from Targa Resources's earnings presentation, Nov 2, 2023
Slide 1: Third Quarter 2023 Earnings Supplement
Third Quarter 2023 Earnings Supplement November 2, 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: Q3 2023 Update
Q3 2023 Update Record NGL pipeline transportation volumes, increasing LPG export volumes, higher realized commodity prices and higher fees drove a sequential increase in adjusted EBITDA >> Operational execution 〉 Record NGL pipeline transportation volumes 〉 LPG export volumes higher sequentially due
Slide 4: Operational Performance – Gathering & Processing Segment
Operational Performance – Gathering & Processing Segment 3Q23 Highlights Field G&P Natural Gas Inlet Volumes and NGL Production Field G&P Natural Gas Inlet Volumes ▪ Q3 Permian volumes impacted by the extended stretch of intense 6,400 900 heat in Texas and New Mexico that impacted Targa and our 1,31
Slide 5: Operational Performance – Logistics & Transportation Segment
Operational Performance – Logistics & Transportation Segment 3Q23 Highlights NGL Pipeline Transportation, Fractionation, and LPG Export Services ▪ Record NGL pipeline transportation volumes ▪ Fractionation complex continuing to run near capacity; awaiting expansions to come online in early 2024 ▪ LP
Slide 6: Financial Performance – 3Q 2023 vs. 3Q 2022
Financial Performance – 3Q 2023 vs. 3Q 2022 9% increase in adjusted EBITDA(1) G&P segment operating margin decreased $60 million(2) L&T segment operating margin increased $117 million − Lower commodity prices + Higher NGL pipeline transportation and fractionation volumes + Higher Permian volumes dri
Slide 7: Financial Performance – 3Q 2023 vs. 2Q 2023
Financial Performance – 3Q 2023 vs. 2Q 2023 6% increase in adjusted EBITDA(1) G&P segment operating margin increased $3 million(2) L&T segment operating margin increased $49 million + Higher commodity prices + Higher NGL pipeline transportation volumes + Higher Central region volumes + Higher market
Slide 8: Business Mix – 3Q 2023
Business Mix – 3Q 2023 Field Gathering & Processing Business Mix – Segment Logistics & Transportation Operating Margin(1) Operating Margin Operating Margin 100% 100% 75% 75% 50% 52% / 48% 50% 25% 25% 0% Gathering & Processing Logistics & Transportation 0% 1 3Q22A Central Marketing & Other(2) Badland
Slide 9: Reconciliations
Reconciliations Q3 2023 EARNINGS SUPPLEMENT PRESENTATION 9
Slide 10: 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 and adjusted operating margin to their respective most directly comparable GAAP m
Slide 11: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended, September 30, 2023 June 30, 2023 September 30, 2022 (in millions) Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA Net income (loss) attributable to Targa Resources Corp. $ 220.0 $ 329.3 $ 193.1 Interest
Slide 12: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended, September 30, 2023 June 30, 2023 September 30, 2022 (in millions) Gathering and Processing Segment Operating margin $ 505.0 $ 502.5 $ 564.6 Operating expenses 189.6 189.8 176.6 Adjusted operating margin $ 694.6 $ 692.3 $ 741.2 Logistics and Transp
Slide 13: 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. $ 1,403.0 Interest expense, net 700.0 Income tax expense 400.0 Depreciation and am
Slide 14: 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