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DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp.

Targa Resources Corp. · Oct 13, 2011 · 29 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. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 1
    Targa Resources Partners LP Deutsche Bank Leveraged Finance Conference October 11-13, 2011
  2. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 2
    Targa Resources - Overview 3
  3. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 3
    Position in the Midstream Natural Gas Industry The Partnership is one of the few midstream companies with leadership positions in both gathering and processing and NGL logistics Natural Gas Gathering and Processing Logisticsand…
  4. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 4
    The Targa Story Execution and Growth Industry Dynamics Favor Targas Platform Advances in E&P technology being applied to oil plays and combo oil-gas plays Strong oil and NGL prices drive drilling activity and volumes in gathering and…
  5. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 5
    Targa Corporate Structure Management & Public Warburg Pincus LLC Directors Shareholders TRGP 23.1% interest 2% GP interest 100% of IDRs (42,400,818 Common Shares) 11.6 MM LP units of NGLS Market Cap: 1.4 billion Targa Resources…
  6. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 6
    Industry Dynamics Impacting Platform Advances in petrophysical, drilling and completion techniques Strong oil and NGL prices Enhance producer economics and support throughput both in G&P and Downstream Frac spread drives…
  7. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 7
    Partnership Growth Drivers Strong fundamentals and positive industry dynamics create attractive growth opportunities Nearly 1 billion in announced projects and acquisitions Additional growth opportunities across all of Targas…
  8. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 8
    Solid Financial Profile Positions the Partnership for Growth Committed to maintaining relatively NGLS Leverage Ratio and Unit Price Since IPO 6.0x 40 conservative capital structure to Denotes equity 5.5x underpin access to capital…
  9. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 9
    TRP Credit Metrics and Liquidity ( in millions) Pricing / Actual Actual Current Capitalization Maturity Coupon 3/31/11 Changes 6/30/11 Cash and cash equivalents 63.6 9.5 73.1 Revolving Credit Facility (1,100) Jul-15 L + 225 bps…
  10. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 10
    Business Division and Segment Review 11
  11. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 11
    The Partnerships Business Unit Overview Division: Gas Gathering and Processing Logistics and Marketing Marketing & Segment: Field Coastal Logistics Assets Distribution Fractionation NGL Distribution & North Texas System Coastal…
  12. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 12
    The Partnerships Business and Contract Mix LTM 6/30/11 Segment Operating Margin Contract Discussion Points Marketing and Distribution Field Gathering and Processing contracts 18% are almost entirely POP (percent-of- proceeds) and…
  13. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 13
    Fee-based Contract Mix Increasing 80.00 100% Benzene Terminals 70.00 CBF Train 4 Propane Exports 60.00 CBF Train 3 75% Channelview ( millions) 49 50.00 45% 39 38 40 40.00 36 50% 37% 38% 35% 33% 30.00 27 30% 30% 20.00…
  14. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 14
    The Partnerships Operations Gathering and Processing Gathering and Processing Highlights 21 natural gas processing plants 12,485 miles of natural gas pipeline Leading position across Permian Basin benefitting from oil…
  15. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 15
    Field Gathering and Processing Segment Outlook Volume Growth Discussion Increasing volume growth North Texas and SAOU inlet volume growth of 9% and 14% over 1H 2010 Q2 2011 average inlet volume of 611 MMcf/d for the segment is 4%…
  16. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 16
    Coastal Gathering and Processing Segment Outlook Description Coastal Straddles (including VESCO) Positioned on mainline gas pipelines and process volumes of gas collected from multiple offshore producing areas Gross processing…
  17. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 17
    Gathering and Processing Contract Mix 1H 2011 Plant Inlet Volumes 1H 2011 Operating Margin Fee 3.7% POP 24.3% Coastal G&P Segment 37% Hybrid 37.4% POL Field G&P Segment 14.1% 63% KW/WHP 20.4% Contract Mix By…
  18. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 18
    Disciplined and Consistent Hedging Program NGL and Condensate Hedge Arrangements as of 6/30/2011 14,000 2.50 12,000 Weighted average price 2.00 Volume (Bbls/d) 10,000 1.50 (/gallon) 8,000 6,000 1.00 4,000 0.50…
  19. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 19
    Targas Operations Logistics, Marketing & Distribution Key Assets 800 miles of NGL pipeline 385 MBbl/d net fractionation and treating capacity 2.6 MMBbl above ground storage capacity 65 MMBbl salt dome storage capacity…
  20. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 20
    Logistics Assets - Performance Trends CBF Y-grade Volumes MBbl/d Y-grade fractionation at Mont Belvieu 250 reached full capacity in 2009 225 Targas fractionation expansions Mont Belvieu 200 Average 78 MBbl/d CBF Train 3…
  21. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 21
    Mont Belvieu Fractionation and NGL Pipeline Expansions 2,500 New fractionation capacity to accommodate 2123 increasing y-grade from Rocky Mountains, Mid- 2,000 Continent, Permian Basin and South Texas MB Frac Capacity NGL PL…
  22. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 22
    Logistics Assets Segment Overview Ethylene Production & Feedstock Flexibility Once feedstock supply is proved, ethylene manufacturing will increase capacity due to globally competitive cost position Ethane markets have been elastic…
  23. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 23
    Price Environment Favors US Export Growth US Propane * Shale production has filled US fractionation 45 0.25 capacity and encouraged investment in 40 0.20 35 expansions 0.15 per gallon 30 0.10 The result was a price that…
  24. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 24
    Targa Terminals (Crude and Refined Products) Targa Channelview Terminal - Houston Ship Channel Storage and terminaling facility with truck and barge transport capability 544 MBbl above ground storage: crude oil, blend stock, asphalt,…
  25. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 25
    Marketing and Distribution Segment Fee-based transportation services to refineries and petrochemical companies throughout the US Approximately 760 railcars leased and managed, 70 owned and leased transport tractors, 100 Transportation…
  26. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 26
    Partnership Investment Highlights Favorable Current industry dynamics across broader upstream and downstream energy value chain are Industry favorably impacting the Partnerships integrated G&P and Logistics and Marketing businesses…
  27. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 27
    Appendix 28
  28. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 28
    Non-GAAP Measures Reconciliation The following table presents a reconciliation of Adjusted EBITDA and operating margin to net income (loss) for the periods shown for NGLS. Three Months Ended Six Months Ended June 30, June 30, 2011…
  29. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Targa Resources Corp. – slide 29
    Non-GAAP Measures Reconciliation Millions The following table presents a reconciliation of reported distributable cash flow to net income (loss) for the period shown for NGLS. Three Months Ended 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar…

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