Targa Resources Goldman Sachs Global Energy Conference 2015 January 7-8, 2015
Additional Information Additional Information and Where to Find It In connection with the proposed transaction, Targa Resources Corp. (TRC) will file with the U.S. Securities and Exchange Commission (the SEC) a registration statement on…
Targa Resources Two Public Companies TRP Annual Total Return Since 2010 TRP Distributions NGLS Out/(Under) 16% 3% 2% 21% (9)% 3.50 Performance vs. AMZ 60% 3.19 3.12 Annualized Distributions per LP Unit 3.25 3.05 2.93 2.99…
Targas Diversified Midstream Platform Operating Margin(1) (1) Operating margin percentages based on LTM as of September 30, 2014 5
Well Positioned for 2015 and Beyond Positioning Pro Forma for Targa/Atlas Transaction: Expect to close Q1 2015 An even stronger footprint in active basins modest change in fee based margin % and G&P % Additional NGL…
2014 End of Year Challenges Continue into 2015 Beginning in Q4 2014, the significant drop and resulting uncertainty in commodity prices is impacting producers, and therefore Targa and other midstream companies Resulting difficulty…
Major Announced Capital Projects and Preliminary 2015 Capex Over 1 billion of projects completed in 2013 and approximately 1 billion completed in 2014 Additional high quality growth projects under development for 2015 and beyond, with…
Major Capital Projects Under Development In current environment, Targa is focused on capital efficiency and flexibility Over 2 billion of additional opportunities are in various stages of development Opportunities include additional…
Diversity and Scale Mitigate Commodity Price Changes Growth has been driven by investing in the Adjusted EBITDA vs. Commodity Prices business, not by changes in commodity prices Adjusted EBITDA - Actual Adjusted EBITDA - Guidance WTI…
Targa Leverage and Liquidity Liquidity(1) 1,200 Completed 800 million 4.125% unsecured notes offering in 1,000 October 2014 800 Pro forma for offering, liquidity as of in Millions September 30, 2014 is 1.45 billion 600…
Targa + Atlas: Transaction Overview Targa Resources Partners LP (NYSE: NGLS; TRP or the Partnership) has executed a definitive agreement to acquire Atlas Pipeline Partners, L.P. (NYSE: APL) for 5.8 billion(1) 0.5846 NGLS common…
Targa + Atlas: Attractive Positions in Active Basins Mississippi Pro Forma Asset Highlights Lime 39 natural gas processing plants (6.9 Bcf/d gross processing capacity) Over 22,500 miles of natural gas and crude oil gathering…
World Class Permian Footprint Atlas WestTX system sits in the core of the Midland Combined Permian Footprint Basin between Targas existing SAOU and Sand Hills Legend systems Atlas Natural Gas Processing Plant More than 75% of the…
Leading Positions in Active Basins Atlas assets also provide exposure to significant drilling Combined Footprint activity in the Mississippi Lime, SCOOP, Arkoma Woodford Mississippi Lime Legend and Eagle Ford plays Atlas Largest…
Producer Activity Drives NGL Flows to Mont Belvieu Marcellus & Mississippi Lime Others Growing field NGL Rockies production increases NGL flows to Mont Belvieu Woodford Increased NGL production could support Targas SCOOP…
Targa + Atlas: Increased Size and Scale Enhance Credit Profile Targa Atlas Pro Forma Targa Market Cap 10 Billion(1) 3 Billion(2) 13 Billion(1) Enterprise Value 13 Billion(1) 6 Billion(2) 19 Billion(1) 2014E EBITDA (MM) 925 - 975…
Targa + Atlas: Strategic Highlights Already strong positions in Permian and Bakken enhanced with entry into Mississippi Lime and Eagle Ford 4 of the top 5 basins by active rig count and unconventional well spuds(1) Attractive…
Targa Resources Diversified MLP with Increased Scale Creates 11th largest diversified MLP on EBITDA basis (upper mid-cap / lower large-cap MLP) MLPs Ranked by 2015E EBITDA(1) 8,000 6,000 millions 4,000 2,000…
Targa + Atlas: Current Commodity Price Environment Despite the current and forward commodity price environment being weaker than when the Targa/Atlas transaction was announced on October 13, 2014, we maintain the pro forma distribution…
Targa Investment Highlights Well positioned in U.S. shale / resource plays, with an even stronger footprint in active basins with close of the Targa/Atlas transaction Leadership position at Mont Belvieu and associated LPG…
Appendix
Non-GAAP Measures Reconciliation Adjusted EBITDA The Partnership and Targa define Adjusted EBITDA as net income attributable to Targa Resources Partners LP before: interest; income taxes; depreciation and amortization; gains or losses on…
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