Slide 1: Governance Engagement Deck April 2023
Governance Engagement Deck APRIL 2023 | TARGA RESOURCES CORP.
Slide 2: Important Additional Information and Forward Looking Statements
Important Additional Information and Forward Looking Statements Important Additional Information: Targa Resources Corp. (“Targa” or the “Company”), its directors and certain of its executive officers are participants in the solicitation of proxies from the Company’s stockholders in connection with i
Slide 3: Overview and Strategic Outlook
Overview and Strategic Outlook Integrated NGL business, coupled with strong business fundamentals support increasing cash flow outlook Diverse & Vertically Integrated Asset Platform Committed to safety, reliability § Targa’s operations connect natural gas and NGLs to markets with increasing demand a
Slide 4: 2022 in Review – Another Milestone Year for Targa
2022 in Review – Another Milestone Year for Targa Targa’s record operational and financial performance in 2022 provides significant momentum for 2023+ +36% +41% IG $542MM YoY increase in Targa’s YoY increase in Adjusted Upgraded to investment grade Aggregate capital returned to (1) at Fitch/Moody’s/
Slide 5: Sustainability Highlights
Sustainability Highlights Our Goals by 2025 (1) From 2021 Sustainability Report § Reduced combined Scope 1 and Scope 2 GHG intensity by 12% 0.08% § Reduced flaring volumes from emissions events by 40% Reduce our methane intensity to § Exported approximately 4.9 billion gallons of LPG globally in 202
Slide 6: Annual Meeting Overview
Annual Meeting Overview The Board of Directors invites Targa’s stockholders to the Company’s Annual Meeting on May 23, 2023, at 8:00 a.m. Central Time. The Annual Meeting is being held to vote on the five items below Proposal 1 – Election of Directors § Board Recommendation: FOR the election of Paul
Slide 7: Board Composition and Diversity
Board Composition and Diversity Targa’s Board of Directors possesses varied, diverse perspectives Board Gender Diversity Trend % Female 27% 27% 23% 20% 18% Demographic Background 10% Targa Board Tenure (Years)¹ 4 2 3 12 7 6 9 12 3 10 11 Gender (Male/Female) F M F M M M F M M M M Race / Ethnicity 201
Slide 8: Board Skillsets and Governance Practices
Board Skillsets and Governance Practices Targa’s Board of Directors maintains a diverse range of skills and experiences that lend themselves to effective corporate governance and protection of shareholders’ interests Oversight of Sustainability § Full Board reviews Targa’s sustainability progress on
Slide 9: Executive Compensation Practices
Executive Compensation Practices Executive Compensation Practices What We Do What We Don’t Do ü Provide majority of NEO compensation in the form of performance-based, × No hedging or pledging of Company stock at-risk, long-term compensation × No single-trigger change-in-control severance arrangement
Slide 10: Executive Compensation Structure
Executive Compensation Structure Guiding Principles Element Key Characteristics Performance Shareholder Competitiveness Accountability Alignment § Annual fixed cash compensation Base Salaryü § Critical factor in attracting and retaining qualified talent § Annual variable cash award Annual Incentives
Slide 11: Shareholder Proposal
Shareholder Proposal The Board of Directors unanimously recommends that stockholders vote AGAINST the shareholder proposal because: Targa’s disclosures and practices already substantially address what the proposal is asking for 1 (see next slide and appendix for additional detail) There are elements
Slide 12: Shareholder Proposal
Shareholder Proposal The Board of Directors unanimously recommends that stockholders vote AGAINST the shareholder proposal (1) Summary of Proponent’s Requests Targa’s Existing Practices (see appendix for additional detail) ü Asset Integrity Programü Centralized Gas Control Assess policy options to c
Slide 13: Appendix: Existing Programs and Efforts to Reduce Flared Volumes
Appendix: Existing Programs and Efforts to Reduce Flared Volumes INVESTOR PRESENTATION 13
Slide 14: Approach to Reducing Flared Volumes
Approach to Reducing Flared Volumes Targa is focused on safe and efficient operations. Capturing and processing gas is at the heart of our midstream operations As a responsible operator, we endeavor to reduce the environmental impact We explore innovative technologies to reduce of our operations whe
Slide 15: Maintenance's Role in Reducing Flaring
Maintenance’s Role in Reducing Flaring Targa’s comprehensive maintenance program includes preventative, predictive, and corrective maintenance to enable our equipment to operate safely and efficiently. Since midstream assets are regulated by federal and state agencies, our flares must meet stringent
Slide 16: Asset Integrity's Role in Reducing Flaring
Asset Integrity’s Role in Reducing Flaring Our Asset Integrity Program helps Targa operate in a reliable and responsible manner Project Anywhere Asset Integrity Management Enterprise Asset Management for a modern workforce Launched in 2021, Project Anywhere is a digital § We know that our assets mus
Slide 17: Management Practices to Reduce Flaring
Management Practices to Reduce Flaring Targa is focused on operating responsibly and aims to reduce emissions through various management practices including but not limited to: Our gas gathering systems are monitored by a centralized group that coordinates control of gas to residue gas markets, moni
Slide 18: Management Practices to Reduce Flaring (Cont.)
Management Practices to Reduce Flaring (Cont.) Each of these strategies helps Targa reduce flaring and minimize our environmental impact, while also improving our operational reliability, quality customer service, and bottom line Compressors, and their associated engines, are used to increase pressu
Slide 19: Communications with Our Upstream Customers
Communications with Our Upstream Customers Regular communications with our customers enables Targa to provide reliable customer service and energy We work closely with upstream operators to understand their forecasted volume along with their drilling plans. This helps us to: § Forecast and stay ahea
Slide 20: Appendix: Disclosure Frameworks and Non-GAAP Reconciliation
Appendix: Disclosure Frameworks and Non-GAAP Reconciliation INVESTOR PRESENTATION 20
Slide 21: TCFD
TCFD TCFD PILLAR RECOMMENDED DISCLOSURES LOCATION 2021 Sustainability Report pg. 10, 15, 24, 52 a. Describe the board’s oversight of climate-related risks and opportunities. Sustainability Committee Charter pg. 1 Governance b. Describe management’s role in assessing and managing climate-related risk
Slide 22: SASB Disclosure
SASB DISCLOSURE SASB TOPIC SASB CODE (A) ACCOUNTING METRIC LOCATION OR DIRECT ANSWER LEVEL Sustainability Report – subsections Environmental, Performance Data Tables, EIC Template V2.0. Gross global Scope 1 emissions, percentage methane, Percent methane only for current and previous EM-MD110a.1¹² Di
Slide 23: SASB (cont.)
SASB (cont.) DISCLOSURE SASB TOPIC SASB CODE (A) ACCOUNTING METRIC LOCATION OR DIRECT ANSWER LEVEL Amount of legal and regulatory fines and settlements from Competitive EM-MD520a.1 Federal pipeline and storage, rate, access, and pricing Not disclosed Not tracked Behavior regulations Number of report
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes adjusted EBITDA, a non-GAAP financial measure used by the Company. The following table provides a reconciliation of this non-GAAP financial measure to its most directly comparable GAAP measure. The Company utilizes non-GAAP measures to analyze t
Slide 25: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Year Ended December 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. 1,195.5 Interest (income) expense, net (1) 446.1 Income tax expense (benefi
Slide 26: 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 OFFICE: 713.584.1133 companies in North America. Our operations are critical to the efficient, safe