Targa Resources Corp. (NYSE:TRGP) Investor Presentation March 2015
Targa Resources Corp. Targa Resources Corp. Annual Total Return Since IPO (NYSE: TRGP; TRC or the Company) 600% TRGP Alerian Index S&P 500 IPO December 2010 520% C-Corp 440% General Partner of NGLS 360% 280% Market Cap: 5.2…
Investment Highlights 2nd largest Permian G&P position across premier acreage Leading 2nd largest fractionation presence in Mont Belvieu Asset 2nd largest LPG export presence on U.S. Gulf Coast Position Mont Belvieu / Galena Park…
Strong Track Record of Cash Flow / Dividend Growth Since IPO, TRC has been in the high splits of the IDR tiers, meaning combined with the GP interest, 50%(1) of all cash distributed in a quarter by TRP goes to TRC after TRP has…
TRC Cash Flow Growth Drivers Growth in cash distributions received ultimately drives TRGP dividend growth 500 450 Impact of full IDR giveback roll-off 400 Impact of hypothetical 10% increase in TRP unit count Distributions to…
Offering Enhances Strong Credit Profile TRC Standalone Leverage(1) 4.5x 4.2x 4.0x TRC will use Offering proceeds 3.5x to repay Term Loan B / revolver 2.9x borrowings and maintain 2% GP 3.0x interest 2.5x 2.0x 1.5x 1.0x 0.5x 0.5x 0.0x…
Appendix
Targa Current Corporate Structure Targa Resources Corp. (NYSE: TRGP) 100% Indirect (TRC or the Company) Ownership 9.2% LP Interest (16,309,595 LP Units) Targa Resources GP LLC Public Unitholders 90.8% LP Interest…
Targa Resources Partners Targa Resources Partners LP Annual Total Return Since 2010 (NYSE: NGLS; TRP or the Partnership) 180% NGLS Alerian Index S&P 500 IPO February 2007 160% MLP 140% Owner/Operator of all assets 120% 100%…
TRP Capitalization ( millions) Actual APL Acquisition Pro Forma Offering Pro Forma Cash and Debt Maturity Coupon 12/31/2014 Adjustments(1) 12/31/2014 Adjustments(2) 12/31/2014 Cash and Cash Equivalents 72.3 9.6 81.9 81.9 Accounts…
TRC Capitalization Actual ATLS Pro Forma Offering Pro Forma Capitalization Maturity 12/31/2014 Acquisition 12/31/2014 Adjustments 12/31/2014 Cash and Cash Equivalents -- 8.7 16.8 25.5 25.5 Senior Secured Revolver (150 MM) Oct-17…
Targas Diversified Midstream Platform Well positioned in U.S. shale / resource plays Leadership position at Mont Belvieu Increasing scale, diversity and fee-based margin Over 1 billion of projects in service in 2013 and 1…
Attractive Positions in Oil and Liquids-Rich Basins Rig activity has decreased significantly across the U.S. Targas footprint has been impacted, but positioning in some of the best basins / areas will provide some…
Producer Activity Drives NGL Flows to Mont Belvieu Marcellus & Others Rockies Growing field NGL production increases NGL flows to Mont Belvieu Increased NGL production could support Targas existing and expanding Mont Belvieu and…
Strategic Focus 2015+ Capital Capital spending focused on efficiently meeting customer needs Investment Spending may be delayed/deferred to reflect lower activity levels, especially in Field G&P Efficiency Projects with greater cash…
Increasing Value through Organic Growth and Strategic Acquisitions Organic Growth Capex* TRP completed: TRP completed: TRP completed: TRP completed: TRP completed: CBF Train 3 GCF expansion CBF Train 4 200MMcf/d High Plains Badlands…
Major Announced Capital Projects Preliminary Preliminary Actual / Total Capex 2014 Capex 2015 Capex Expected Primarily Downstream Growth Projects ( millions) ( millions) ( millions) Completion Fee-Based (1) Petroleum Logistics…
Major Capital Projects Under Development Over 3 billion of additional opportunities are in various stages of development Opportunities include additional infrastructure in both G&P and Downstream In current environment, Targa is…
Business Mix, Diversity and Fee Based Margin Business Mix Field G&P Diversity 2014 Pro Forma Operating Margin 2014 Pro Forma Nat Gas Inlet Volumes 8% 17% 7% 7% 45% 55% 23% 14% 2% 5% 19% Downstream G&P SAOU Sand Hills…
Diversity and Scale Mitigate Commodity Price Changes Adjusted EBITDA vs. Commodity Prices Adjusted EBITDA WTI Crude Oil Prices Growth has been driven by investing 1,100 130 1,000 in the business, not by changes in 900 120 Crude…
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…
Non-GAAP Reconciliation 2014 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: Year Ended December 31, 2014 2013…
Non-GAAP 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 31-Mar…
Non-GAAP Reconciliation 2010-2011 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…
Non-GAAP Reconciliation 2012-2014 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 3/31/2012 6/30/2012 9/30/2012 12/31/2012…
Reconciliation of Total Pro Forma TRP Distributions(1) ( in Millions, except per unit data) Actual Actual Actual Actual Actual Pro Forma (1) Q4 2014 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Annualized Annualized Distributions to LP…
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