Targa Resources Investor Presentation Second Quarter 2012 August 6, 2012
Targa Resources - Overview 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…
The Targa Story Execution and Increasing Growth Industry Dynamics Favor Targas Integrated Midstream Platform Advances in E&P technology and strong oil and NGL prices drive drilling activity and volumes in gathering and processing…
Industry Dynamics Favor Targas Platform Advances in E&P technology and strong oil and NGL pricing drive producer activity E&P activity, largely in oil or liquids- rich resource plays, benefits Targa G&P volumes Oilier portion of…
Announced Partnership Growth Drivers Over 1.3 billion in announced projects and acquisitions contribute to increased scale and diversity CAPEX 2012 CAPEX Expected Primarily Growth Projects ( millions) ( millions) Completion Fee-Based…
Strong Distribution Growth and Coverage Ratio NGLS Annualized Distribution Per LP Unit 3.00 2011 Adjusted EBITDA increased 2.75 approximately 25% over 2010 2.57 Annualized Distributions per LP Unit 2.49 2.50 2.41 Expected…
Disciplined and Consistent Hedging Program NGL and Condensate Hedge Arrangements as of 6/30/2012 14,000 2.00 12,000 Weighted average price Volume (Bbls/d) 10,000 1.50 (/gallon) 8,000 1.00 6,000 4,000 0.50 2,000…
Solid Financial Profile Positions the Partnership for Growth Committed to maintaining relatively NGLS Leverage Ratio and Unit Price Since IPO conservative capital structure to 6.0x 45 underpin access to capital 5.5x Target leverage…
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: 3.5…
Business Division and Segment Review 15
Targas Integrated Midstream Platform LTM as of 6/30/2012 Segment Operating Margin Marketing and Distribution 15% Field G&P Logistics 39% Assets 22% Coastal G&P 24% 16
Gathering and Processing Division Gathering and Processing Highlights 20 natural gas processing plants 12,485 miles of natural gas pipeline 28 MBbl/d per day fractionation capacity at North Texas and LOU Leading position across…
Field Gathering and Processing Segment LTM as of 6/30/2012 Segment Operating Margin 2012 inlet volume expected to be approximately Marketing and 10% higher than 2011 Distribution 15% Field G&P Total of 9 plants with 847 MMcf/d of…
North Texas and SAOU Overview North Texas Operating Statistics North Texas 234 204 4,200 miles of gathering pipeline, two processing plants 180 26 with gross capacity of 278 MMcf/d and fractionation 163 174 162 capacity of 15…
Permian Business and Versado Overview Permian Business (primarily Sand Hills) Permian Operating Statistics 1,400 miles of pipeline and one processing plant with 134 138 gross capacity of 150 MMcf/d 129 120 118 Recovered GPM in the…
Coastal Gathering and Processing Segment LTM 6/30/2012 Segment Operating Margin Marketing and Distribution 15% Field G&P 39% Logistics Assets 22% Coastal G&P 24% LOU (Louisiana Operating Unit) Onshore gathering and…
Logistics and Marketing Division Logistics Assets Highlights The Partnership is the second largest operator of fractionation capacity in Mont Belvieu and Louisiana combined CBF, GCF and Mont Belvieu terminaling and fractionation…
Logistics Assets LTM 6/30/2012 Segment Operating Margin Logistics Assets Highlights Marketing and Distribution 15% Second largest operator of fractionation capacity in Mont Belvieu and Louisiana Field G&P 39% Targa Logistics…
Logistics Assets - Performance Trends CBF Y-grade Volumes MBbl/d 275 Y-grade fractionation at Mont Belvieu 250 reached full capacity in 2009 Mont Belvieu 225 Targas fractionation expansions Fractionation 200 78 MBbl/d CBF Train 3…
Environment Favors U.S. Propane / Butane Export Growth US Propane Favorably priced U.S. Gulf Coast propane and 60 0.70 butane exported predominantly to the Americas, 0.60 50 with spot opportunities to the Far East 0.50 40 0.40…
Current Capabilities and Projects 156MM in acquisitions in 2011 Announced 60 million of growth capital related to three terminals acquired in 2011 Pursuing additional acquisitions with similar characteristics and expansion…
Marketing and Distribution Segment LTM 6/30/2012 Segment Operating Margin Marketing NGL Marketing and Distribution Manage physical distribution of mixed NGLs 15% Field G&P and specification products using owned and 39% third…
Partnership Investment Highlights Advancements in geophysical, drilling and completion techniques drive drilling activity in oil and Favorable liquids rich gas plays Industry Activity and strong oil and NGL prices help drive volumes…
Appendix 29
Pro Forma Credit Metrics and Liquidity Pricing / Actual Q2 Actual Cash and Debt Maturity Coupon 3/31/12 Adjustments 6/30/12 Cash and cash equivalents 86.3 3.2 89.5 Senior Secured Debt Jul-15 L + 225 bps - 140.0 140.0 Total…
Non-GAAP Measures Reconciliation This presentation includes non-GAAP financial measures of Adjusted EBITDA, operating margin and distributable cash flow. The presentation provides reconciliations of these non-GAAP financial measures…
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 TRP: Three Months Ended Six Months Ended June 30, June 30, 2012…
Non-GAAP Measures Reconciliation Millions The following table presents a reconciliation of reported distributable cash flow to net income (loss) for the periods shown for TRP: Three Months Ended 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar…
Non-GAAP Measures Reconciliation 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 3/31/2011…
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