Slide 1: Third Quarter 2024 Earnings Supplement
Third Quarter 2024 Earnings Supplement November 5, 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: Q3 2024 Highlights
Q3 2024 Highlights Record quarterly adjusted EBITDA of ~$1.1 billion driven by record Permian, NGL transportation, and fractionation volumes ▪ Operational Performance 〉 Record Permian natural gas inlet volumes, +18% YoY 〉 Record NGL transportation volumes 〉 Record fractionation volumes ▪ Growth Capi
Slide 4: Operational Performance – Gathering & Processing Segment
Operational Performance – Gathering & Processing Segment 3Q24 Highlights Field G&P Natural Gas Inlet Volumes and NGL Production Field G&P Natural Gas Inlet Volumes 8,000 1,000 ▪ Record Targa volumes in the Permian Basin attributable to 900 continued strong activity levels across Permian Midland and
Slide 5: Operational Performance – Logistics & Transportation Segment
Operational Performance – Logistics & Transportation Segment 3Q24 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 6: Financial Performance – 3Q 2024 vs. 3Q 2023
Financial Performance – 3Q 2024 vs. 3Q 2023 27% increase in adjusted EBITDA(1) , 00 ,000 00 00 700 $ in millions 00 500 00 00 200 00 0 2 G&P G&P L&T L&T G&A and Other 2 Ad usted EB TDA Ad usted Operating Margin Opex Ad usted Operating Margin Opex Ad usted EB TDA G&P segment operating margin increase
Slide 7: Financial Performance – 3Q 2024 vs. 2Q 2024
Financial Performance – 3Q 2024 vs. 2Q 2024 9% increase in adjusted EBITDA(1) , 00 ,000 00 00 700 $ in millions 00 500 00 00 200 00 0 2 2 G&P G&P L&T L&T G&A and Other 2 Ad usted EB TDA Ad usted Operating Margin Opex Ad usted Operating Margin Opex Ad usted EB TDA G&P segment operating margin increas
Slide 8: Business Mix – 3Q 2024
Business Mix – 3Q 2024 Field Gathering & Processing Business Mix – Segment Logistics & Transportation Operating Margin(1) Operating Margin Operating Margin 100% 100% 75% 75% 50% 49% / 51% 50% 25% 25% 0% Gathering & Processing Logistics & Transportation 0% 1 Other (2) Marketing &3Q24A Central LPG Exp
Slide 9: Appendix and Reconciliations
Appendix and Reconciliations Q3 2024 EARNINGS SUPPLEMENT PRESENTATION 9
Slide 10: 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 is hedged ~90% through 2026 FIXED PRICE SWAPS Volumes Hedged Wtd. Avg. Hedge Price Volumes Hedged Wtd. Avg. Hedge Price Oct – Dec 2024(2) 2025(2) Na
Slide 11: 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 12: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended, September 30, 2024 June 30, 2024 September 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. $ 387.4 $ 298.5 $ 220.0 Interest
Slide 13: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation ` Three Months Ended, September 30, 2024 June 30, 2024 September 30, 2023 (in millions) Gathering and Processing Segment Operating margin $ 584.3 $ 572.6 $ 505.0 Operating expenses 203.7 205.7 189.6 Adjusted operating margin $ 788.0 $ 778.3 $ 694.6 Logistics and Tran
Slide 14: 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. $ 1,370.0 Interest expense, net (1) 765.0 Income tax expense 375.0 Depreciation an
Slide 15: 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