Targa Resources Investor Presentation Second Quarter 2014 August 1, 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(1) TRP Distributions NGLS Out/(Under) 16% 3% 2% 21% 21% 3.25 3.12 Performance vs. AMZ 3.05 60% 2.99 2.93 Annualized Distributions per LP Unit 3.00 2.86 2.79 2.72 50% 2.75…
Targa Corporate Structure Targa Resources Corp. (NYSE: TRGP) 100% Indirect (TRC or the Company)(1) Ownership 11.3% LP Interest (12,945,659 LP Units) Targa Resources GP LLC Public Unitholders 88.7% LP Interest 2.0% General…
Targas Diversified Midstream Platform Operating Margin(1) (1) Operating margin percentages based on LTM as of June 30, 2014 6
Well Positioned for 2014 and Beyond Investment Highlights Increasing scale and diversity Increasing fee-based margin A Strong Footprint in And a Leading Position at Drive Targas Active Basins Mont Belvieu Long-Term Growth…
Targas G&P Assets are Well Positioned Targas G&P assets are Field G&P located in and around some Permian: Leadership of the most active shale / positions across the resource plays, which is basin (east, southwest and west) driving…
Producer Activity Drives NGL Flows to Mont Belvieu NGL flows to Mont Belvieu expected to increase Pipeline conversions may bring additional NGL volumes from the Utica/ Marcellus to the Gulf Coast Petrochemical investments,…
Major Announced Capital Projects Approximately 2.6 billion of announced projects completed or ongoing 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 2.0 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 200 187 150% continue to increase to 140% 180 130%…
Diversity and Scale Mitigate Commodity Price Changes Adjusted EBITDA vs. Commodity Prices Growth has been driven by investing in the Adjusted EBITDA - Actual Adjusted EBITDA - Guidance business, not by changes in commodity prices WTI…
Targa Leverage and Liquidity Liquidity(1) 1,200 TRP is well positioned with 678 million of 1,000 Total Liquidity available 800 in Millions YTD through July 2014, raised net proceeds of 600 180 million from equity issuances…
TRP Capitalization and Liquidity Actual Actual Cash and Debt Maturity Coupon 3/31/2014 Adjustments 6/30/2014 Cash and Cash Equivalents 81.4 (14.1) 67.3 Accounts Receivable Securitization Dec-14 233.5 0.8 234.3 Revolving Credit Facility…
Targa 2014 Annual Guidance Summary Financial FY 2014 Comments 2014 EBITDA ( in millions) 925 - 975 Fee-Based Margin % 60% - 65% Growth Cap Ex - Announced Projects Only 780 Maintenance Cap Ex ( in millions) 90 TRP Distribution…
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 2.6 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 1,340 MMcf/d in 2014(2) Permian Basin activity dominated by oil shale…
Targas Permian Basin Systems Across Broad Active Plays Permian Growth Continues 2014 inlet volumes are expected to be meaningfully higher than 2013 in each of SAOU, Sand Hills and Versado More horizontal wells are accelerating…
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 and…
Badlands High-Quality, Fee-Based Assets System Map System currently consists of oil gathering pipeline and terminal system, and natural gas gathering and processing operations, in 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 (180 MMcf/d) Fractionation interconnected to LCF Traditional wellhead…
Logistics Assets Extensive Gulf Coast Footprint Fractionators Gross Net Capacity Capacity (MBbl/d) (MBbl/d)(2) CBF - Mont Belvieu(1) Trains 1-3 253 223 Backend Capacity 40 35 Train 4 100 88 GCF - Mont Belvieu 125 47 Total - Mont…
Targas Galena Park Marine Terminal Effective Export Capacity Phase I expansion completed in September 2013 Phase II expansion is being completed in stages Additional 12 pipeline, refrigeration, and new VLGC- capable dock are…
Demand for Exports Continues to Increase U.S. Propane(1) Historically, U.S. Gulf Coast propane and butane have been favorably 120 0.80 priced compared to world markets 0.70 100 0.60 During the first half of 2014, the spread 0.50…
Petroleum Logistics Highlights In March 2014, announced the approval of construction of a 35 MBbl/d condensate splitter at TRPs Channelview Terminal (Houston) TRP has begun permitting, and expects the splitter to be in- service 18…
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 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: Three Months Ended March 31, 2014 2013 (…
Non-GAAP Reconciliation 2014 EBITDA The following table presents a reconciliation of 2014 projected Adjusted EBITDA to net income for NGLS: Twelve Months Ended 12/31/2014 Low Range High Range ( in millions) Reconciliation of net…
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: ( in millions) 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 30-Jun 30-Sep…
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…
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