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JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp.

Targa Resources Corp. · Jul 11, 2013 · 33 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 1
    Targa Resources J.P. Morgan 2nd Annual Utility & Midstream 1x1 Corporate Access Day July 11, 2013
  2. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 2
    Targa Resources Two Public Companies Targa Resources Partners LP Targa Resources Corp. (NYSE: NGLS) (NYSE: TRGP) IPO February 2007 IPO December 2010 MLP C-Corp Owner/Operator of all assets General Partner of NGLS Market Cap: 5.5…
  3. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 3
    Targas Corporate Structure Targa Resources Corp. 100% Indirect (NYSE: TRGP) Ownership (TRC or the Company)(1) 12.3% LP Interest (12,945,659 LP Units) Public Unitholders Targa Resources GP LLC 85.7% LP Interest 2.0% General…
  4. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 4
    Shale / Resource Development Underpins Growth Investment Highlights Increasing scale and diversity Increasing fee-based margin A Footprint in Multiple And a Leading Position at Drive Targas Shale / Resource Plays Mont Belvieu…
  5. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 5
    Targas Expanding G&P Footprint Advances in E&P technology deployed in Badlands Acquisition multiple shale / resource Premier location in premier oil basin plays across the U.S. Premium, recently built assets Approximately 300,000…
  6. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 6
    Badlands Highlights Bakken Shale projected to be among the fastest growing crude oil basins in the world Premier Crude oil focus, completion technology improvements and increased drilling efficiencies driving activity in location in…
  7. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 7
    Badlands High-Quality, Fee-Based Assets System currently consists of oil gathering pipeline and terminal system and natural gas gathering and processing operations in McKenzie and Dunn counties, North Dakota System Map Additional…
  8. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 8
    Permian Basin Growth Overview Growth Drivers Permian Horizontal/Directional Drilling Rigs(2) Spraberry/Wolfcamp is the second largest oil field in the world with total recoverable reserves of 50 BBoe(1) 500 Improved drilling…
  9. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 9
    Targas Permian Basin Systems and Broad Active Plays Permian Growth Continues Current footprint across the basin includes 6,395 miles of pipeline and 630 MMcf/d gross processing capacity Versado Q1 2013 inlet volumes of 450 MMcf/d…
  10. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 10
    North Texas Well Positioned for Growth Liquids-Rich Portion of Barnett Shale Driving Growth Most of Targas assets are located in the active liquids-rich portion of the Barnett shale, while also accessing new Marble Falls play…
  11. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 11
    Producer Activity Drives NGL Flows to Mont Belvieu Increased NGL supplies flow to Mont Belvieu Targas CBF Train 4 delivered on time and is being commissioned, with additional projects under consideration Targas International…
  12. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 12
    Logistics Assets Logistics Assets Highlights Second largest owner and operator of fractionation capacity in Mont Belvieu and Louisiana Pipeline constraints into Mont Belvieu are alleviated as pipelines come online Targa Logistics…
  13. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 13
    Demand for Exports Continues to Increase U.S. Propane(1) 60 1.00 U.S. Gulf Coast propane and butane are 0.90 favorably priced compared to world 50 0.80 markets 0.70 40 0.60 Gulf Coast import/export expansions per gallon…
  14. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 14
    Petroleum Logistics - Current Capabilities and Projects Announced 105 million of growth capital related to three terminals acquired in 2011 Completed 35 million expansion of Targa Sound in Q1 2013 to connect with a local products…
  15. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 15
    Major Capital Projects Announced Approximately 1.7 billion in announced projects expected to be completed in 2013 and 2014 Over 1.2 billion of projects planned in service in 2013 and 500 million in 2014 Additional high quality…
  16. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 16
    Margin is Largely Fee-Based / Hedged Fee-Based Margin is Increasing on Both an Absolute and Proportional Basis ( in millions) 92 Fee-based operating 80 margin expected to 73 continue to increase to 66 55%-65%+ over next 60…
  17. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 17
    Diversity and Scale Mitigate Commodity Price Changes Adjusted EBITDA EBITDA vs.vs. Crude Crude Oil Oil Pricing Pricing TRPs scale, increasing fee-based margin, 700 130 prudent hedging and business diversity 120 600 mitigate…
  18. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 18
    Distribution and Dividend Growth NGLS Annualized Distribution Per LP Unit Expected NGLS 2013 distribution growth of approximately 10% to 12% 3.00 2.79 Ability to continue increasing distribution as 2.72 Annualized Distributions…
  19. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 19
    Financial Profile Positions the Partnership for Growth Current capital structure and liquidity underpin access to capital NGLS Compliance Leverage Ratio Target leverage ratio 3x - 4x Debt/EBITDA 6.0x Actual leverage history at low…
  20. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 20
    Targa Investment Highlights Diversified Midstream Platform Well positioned in U.S. shale / resource plays Leadership position at Mont Belvieu Increasing scale, diversity Badla and fee-based margin nds 1.7 billion announced…
  21. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 21
    Q&A 22
  22. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 22
    Additional Information 23
  23. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 23
    TRP Quarterly Update 160 600 Q1 2011 Q1 2012 Q1 2013 145 FY 2011 FY 2012 LTM Q1 2013 132 515 140 491 502 500 120 107 106 in millions 96 400 in milions 100 86 337 337 354 334 76 310 80 70 300 55 238 60 200 40…
  24. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 24
    TRP Pro Forma Capitalization and Liquidity ( in millions) Actual Q2 '13 Financing Pro Forma Cash and Debt Maturity Coupon 3/31/2013 Adjustments(1) 3/31/2013 Cash and Cash Equivalents 102.1 102.1 Accounts Receivable Securitization…
  25. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 25
    Targas Diversified Midstream Platform Badlands LTM as of 3/31/2013 Segment Operating Margin Marketing and Distribution 18% Field G&P 38% Logistics Assets 30% Coastal G&P 14% 26
  26. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 26
    Field Gathering and Processing Segment Field G&P Highlights 10 plants with 927 MMcf/d of gross processing capacity with expansions underway 30 MMcf/d expansion completed at SAOU during Q1 2013 Permian Basin activity dominated by…
  27. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 27
    Coastal Gathering and Processing Segment Overview LOU (Louisiana Operating Unit) Processing Plants: Gillis (180 MMcf/d), Acadia (80 MMcf/d), and Big Lake (200 MMcf/d) Fractionation: 13 MBbl/d, interconnected to LCF Traditional…
  28. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 28
    Marketing and Distribution Segment Marketing and Distribution Highlights NGL and Natural Gas Marketing Manage physical distribution of mixed NGLs and specification products using owned and third party facilities Manage inventories…
  29. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 29
    Non-GAAP Measures Reconciliation Adjusted EBITDA The Partnership and Targa define Adjusted EBITDA as net income before: interest; income taxes; depreciation and amortization; gains or losses on debt repurchases and redemptions; early…
  30. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 30
    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 March 31, 2013 2012…
  31. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 31
    Non-GAAP Measures Reconciliation DCF The following table presents a reconciliation of reported distributable cash flow to net income (loss) for the periods shown for TRP: Three Months Ended ( in millions) 31-Mar 30-Jun 30-Sep 31-Dec…
  32. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 32
    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 ( in millions) 3/31/2010 6/30/2010 9/30/2010…
  33. JP MORGAN 2ND ANNUAL UTILITY & MIDSTREAM 1X1 CORPORATE ACCESS DAY – Targa Resources Corp. – slide 33
    1000 Louisiana Suite 4300 Houston, TX 77002 Phone: (713) 584-1000 Email: InvestorRelationstargaresources.com Website: www.targaresources.com 35

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