Targa Resources Investor Presentation Second Quarter 2013 August 1, 2013
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: 5.3…
Targa Corporate Structure Targa Resources Corp. (NYSE: TRGP) (TRC or the Company)(1) 100% Indirect Ownership 12.3% LP Interest (12,945,659 LP Units) Public Unitholders Targa Resources GP LLC 85.7% LP Interest 2.0% General…
Shale / Resource Development Underpins Growth Investment Highlights Increasing scale and diversity Increasing fee-based A Footprint in Multiple And a Leading Position at Drive Targas margin Shale / Resource Plays Mont Belvieu…
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 Multiple pipeline and…
Producer Activity Drives NGL Flows to Mont Belvieu Increased NGL supplies flow to Mont Belvieu Targas CBF Train 4 is operational, increasing Targas net fractionation capacity to 447 MBbl/d Targas International Export project…
Major Capital Projects Announced Approximately 1.7 billion in announced projects expected to be completed in 2013 and 2014 Approximately 1.0 billion of projects planned in service in 2013 and 700 million in 2014 Additional high…
Margin is Largely Fee-Based / Hedged Increasing Fee-Based Margin Provides Stability to Our Business ( in millions) 92 Fee-based operating 88 margin expected to 80 continue to increase to 73 55%-65%+ in 2014 66 60 55 47 49 45…
Diversity and Scale Mitigate Commodity Price Changes Adjusted EBITDA vs. Crude Oil Pricing TRPs scale, increasing fee-based margin, prudent hedging and business diversity 700 130 600 120 mitigate exposure to movements in crude,…
Distribution and Dividend Growth NGLS Annualized Distribution Per LP Unit Expected NGLS 2013 distribution growth of 3.00 approximately 10% to 12% 2.79 2.86 2.72 2.75 2.65 Ability to continue increasing distributions 2.57…
Financial Profile Positions the Partnership for Growth Current capital structure and liquidity underpin NGLS Compliance Leverage Ratio access to capital 6.0x Target leverage ratio 3x - 4x Debt/EBITDA 5.0x Actual leverage history…
TRP Capitalization and Liquidity March 31, June 30, Cash and Debt Maturity Coupon 2013 Adjustments 2013 Cash and Cash Equivalents 102.1 (29.4) 72.7 Accounts Receivable Securitization Jan-14 111.4 13.9 125.3 Senior Secured Debt…
Targa Investment Highlights Strong industry fundamentals High quality assets Well positioned in U.S. shale / resource plays Leadership position at Mont Belvieu Superior connectivity to markets Increasing scale and diversity…
Business Division and Segment Review
Targas Diversified Midstream Platform Badlands LTM as of 6/30/2013 Segment Operating Margin Marketing and Distribution 18% Field G&P 39% Logistics Assets 31% Coastal G&P 12% 17
Field Gathering and Processing Segment Field G&P Highlights 10 plants with 897 MMcf/d of gross processing capacity at the end of 2012, expanding to more than 1,300 MMcf/d Permian Basin activity dominated by oil shale / resource…
Targas Permian Basin Systems and Broad Active Plays Permian Growth Continues Current footprint across the basin includes 6,395 miles of pipeline and 629 MMcf/d gross processing capacity Versado Q2 2013 inlet volumes of 488 MMcf/d…
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…
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…
Badlands High-Quality, Fee-Based Assets System currently consists of oil gathering pipeline and terminal system and natural gas gathering and processing operations in System Map McKenzie, Dunn and Mountrail counties, North Dakota…
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 interconnected to LCF Traditional wellhead…
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…
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…
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 28
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…
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 Six Months Ended June…
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…
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…
Loading...
