Acquisition of Saddle Buttes Williston Basin Assets 3
Transaction Overview Targa Resources Partners LP (Targa) has entered into a definitive agreement to acquire 100% of Saddle Butte Pipeline LLCs ownership of its Williston Basin crude oil pipeline and terminal system and natural gas…
Strategic Acquisition Highlights Bakken Shale projected to be among the fastest growing crude oil basins in the world Premier Location Crude oil focus and increased drilling efficiencies driving activity in the play in Bakken Shale…
Access to a World Class Crude Oil Basin Daily production in the Bakken Shale has grown over 60% the last two years with expectations for continued growth driven by: Ongoing shift to oil and liquids focused drilling Favorable relative…
Targas Expanded G&P Footprint into Bakken Shale Acquired Assets Entry into Bakken Shale increases Targas scale and diversity Additional exposure to domestic crude oil and liquids development Expands presence to service…
High-Quality, Fee-Based Assets System currently consists of crude oil pipeline and System Map terminal assets and natural gas gathering and processing operations in McKenzie and Dunn counties, North Dakota Construction began in late…
Significant Activity and Upside Potential for the System Total North Dakota Bakken Well Permits by Quarter production is expected to 500 453 increase by 60% or more 408 over the next five years 400 364 338 349 302 311 There are…
Shale / Resource Development Underpins Growth Investment Highlights Increasing scale and diversity A Footprint in Multiple And a Leading Position Drive Targas Increasing fee-based Shale / Resource Plays at Mont Belvieu…
Major Capital Projects Two new major projects announced in Q4 2012 and additional capex associated with acquired assets in Bakken Shale Approximately 1.9 billion in announced projects expected to be completed in 2012 through 2014…
Margin is Largely Fee-Based / Hedged Fee-Based Margin is Increasing on Both an Absolute and Proportional Basis ( millions) Capex projects with firm contracts provide clear visibility on increasing fee 90.00 100% operating margin…
Strong Distribution Growth and Coverage Ratio NGLS Annualized Distribution Per LP Unit 3.00 Strong distribution growth since 2010 2.75 2.65 2.57 Annualized Distributions per LP Unit 2.49 Expected 2012 distribution growth…
Solid Financial Profile Positions the Partnership for Growth Maintained relatively conservative capital structure NGLS Leverage Ratio and Unit Price Since IPO to underpin access to capital 6.0x 45 Target leverage ratio 3.0x - 4.0x…
Pro Forma Credit Metrics and Liquidity ( in millions) Pricing / Actual Pro Forma (1) Acquisition Pro Forma (2) Cash and Debt Maturity Coupon 9/30/12 Adjustments 9/30/12 Adjustments 9/30/12 Cash and Cash Equivalents 88.9 88.9 88.9…
Targa Investment Highlights Strong industry fundamentals High quality assets Well positioned in U.S. shale / resource plays Leadership position at Mont Belvieu Superior connectivity to markets Increasing scale and diversity…
Appendix 21
Non-GAAP Measures Reconciliation This presentation includes the non-GAAP financial measure of Adjusted EBITDA. The presentation provides a reconciliation of this non-GAAP financial measures to its most directly comparable financial…
Non-GAAP Measures Reconciliation EBITDA The following table presents a reconciliation of Adjusted EBITDA to net income (loss) for the periods shown for the Partnership. Pro Forma for the acquisition of Bakken Shale assets. Twelve…
Non-GAAP Measures Reconciliation EBITDA and Gross Margin The following table presents a reconciliation of Adjusted EBITDA and operating margin to net income (loss) for the periods shown for TRP: Three Months Ended Nine Months Ended…
Non-GAAP Measures Reconciliation - DCF Millions The following table presents a reconciliation of reported distributable cash flow to net income (loss) for the periods shown for TRP: Three Months Ended 31-Mar 30-Jun 30-Sep 31-Dec…
Non-GAAP Measures Reconciliation Fee Based Margin The following table presents a reconciliation of operating margin to net income (loss) for the periods shown for TRP: Three Months Ended 3/31/2010 6/30/2010 9/30/2010 12/31/2010…
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