Targa Resources Investor Presentation Fourth Quarter 2013 February 13, 2014
Targa Resources Two Public Companies Targa Resources Partners LP Targa Resources Corp. (NYSE: NGLS; TRP or the Partnership) (NYSE: TRGP; TRC or the Company) IPO February 2007 IPO December 2010 MLP C-Corp Owner/Operator of all assets…
TRP and TRC Performance TRP Total Return Since 2010 TRP Distributions NGLS Out/(Under) 2.99 16% 3% 2% 21% 3.00 2.93 Performance vs. AMZ 2.86 60% 2.79 2.72 Annualized Distributions per LP Unit 2.75 2.65 2.57 2.49 50% 2.50…
Targa Corporate Structure Targa Resources Corp. (NYSE: TRGP) (TRC or the Company)(1) 100% Indirect Ownership 11.5% LP Interest (12,945,659 LP Units) Targa Resources GP LLC Public Unitholders 88.5% LP Interest 2.0% General…
Targas Diversified Midstream Platform Badlands 6
Well Positioned for 2014 and Beyond Investment Highlights Increasing scale and diversity Increasing fee-based A Strong Footprint in And a Leading Position at Drive Targas margin Active Basins Mont Belvieu Long-Term Growth…
Targas G&P Assets are Well Positioned Targas G&P assets are located in and around some of the most active shale / resource plays, which is driving continued growth and expansion Field G&P Field G&P assets are located Permian…
Producer Activity Drives NGL Flows to Mont Belvieu NGL flows to Mont Belvieu expected to increase Recent pipeline conversion announcements will bring additional NGL volumes from the Utica/ Marcellus to the Gulf Coast…
Major Announced Capital Projects Approximately 2 billion of announced projects online in 2013 and 2014 Over 1 billion of projects completed in 2013 and approximately 1 billion to be completed in 2014 Additional high quality growth…
Major Capital Projects Under Development Over 1.5 billion of additional opportunities are in various stages of development Opportunities include additional infrastructure in both G&P and Downstream Increasing NGL supplies across the…
Strong Growth in Fee-Based Margin Continues Increasing Fee-Based Margin Provides Additional Stability to Our Business ( in millions) Fee-based operating margin expected to continue to increase to 160 60%-65%+ in 2014 113…
Diversity and Scale Mitigate Commodity Price Changes Adjusted EBITDA(1) vs. Commodity Prices TRP benefits from multiple factors that help Adjusted EBITDA - Actual Adjusted EBITDA - Guidance mitigate commodity price volatility,…
Targa Leverage and Liquidity Liquidity(1) 1,200 TRP is well positioned with 776 million of 1,000 Total Liquidity available in Millions 800 In Q4 2013, raised gross proceeds of 142 600 million from equity issuances under…
TRP Capitalization and Liquidity ( in millions) Actual Actual Cash and Debt Maturity Coupon 9/30/2013 Adjustments 12/31/2013 Cash and Cash Equivalents 74.1 (16.6) 57.5 Accounts Receivable Securitization Dec-14 168.0 111.7 279.7…
Targa 2014 Annual Guidance Summary Financial FY 2014 Comments 2014 EBITDA ( in millions) 750+ Expect to be at or higher than 750 million Fee-Based Margin % 60% - 65% Growth Cap Ex - Announced Projects Only 650 Maintenance Cap Ex ( in…
Targa Investment Highlights Well positioned in U.S. Diversified Midstream Platform shale / resource plays Leadership position at Mont Belvieu Increasing scale, diversity and fee-based margin Approximately 2 billion in…
Business Division and Segment Review
Field Gathering and Processing Segment Field G&P Highlights Approximately 900 MMcf/d of gross processing capacity at the end of 2013, expanding to approximately 1,300 MMcf/d in 2014 Permian Basin activity dominated by oil shale /…
Targas Permian Basin Systems Across Broad Active Plays Permian Growth Continues 2013 inlet volumes were meaningfully higher than 2012 at SAOU and Sand Hills Versado volumes would have also been higher, but the fire at Saunders…
North Texas Well Positioned for Growth Rig Activity in North Texas(1) Liquids-Rich Barnett Shale and Marble Falls Driving Growth Targas assets are well positioned to access the active liquids-rich portion of the Barnett Shale…
Badlands High-Quality, Fee-Based Assets System currently consists of oil gathering System Map pipeline and terminal system, and natural gas gathering and processing operations, in McKenzie, Dunn and Mountrail Counties, North…
Coastal Gathering and Processing Segment Overview LOU (Louisiana Operating Unit) Processing Plants: Gillis (180 MMcf/d), Acadia (80 MMcf/d) and Big Lake (180 MMcf/d) Fractionation interconnected to LCF Traditional wellhead…
Logistics Assets Extensive Gulf Coast Footprint Fractionators Gross Net Capacity Capacity (MBbl/d) (MBbl/d)(1) CBF - Mont Belvieu Trains 1-3 253 223 Backend Capacity 40 35 Train 4 100 88 GCF - Mont Belvieu 125 47 Total - Mont…
Demand for Exports Continues to Increase U.S. Propane(1) 120 0.80 0.70 Historically, U.S. Gulf Coast propane and 100 butane have been favorably priced 0.60 0.50 compared to world markets MMBbls 80 /gal 0.40 60 0.30 In…
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…
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…
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…
Non-GAAP Reconciliation 2013 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 Year Ended December 31,…
Non-GAAP Reconciliation 2014 EBITDA The following table presents a reconciliation of 2014 projected Adjusted EBITDA to net income for NGLS: Twelve Months Ended December 31, 2014 Low Range High Range ( in millions) Reconciliation…
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 2012-2013 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…
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