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WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp

Targa Resources Partners Lp · Dec 4, 2012 · 31 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. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 1
    Targa Resources Wells Fargo Securities Pipeline, MLP and Energy Symposium December 4, 2012
  2. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 2
    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: 3.6…
  3. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 3
    Shale / Resource Development Underpins Growth Investment Highlights Increasing scale and diversity Increasing fee-based A Footprint in Multiple And a Leading Position Drive Targas margin Shale / Resource Plays at Mont Belvieu…
  4. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 4
    Bakken Shale Midstream Acquisition - Transaction Overview The Partnership has agreed to acquire midstream assets in the Williston Basin for 950 million expected to close by end of 2012 Premier Bakken Shale projected to be among the…
  5. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 5
    High-Quality, Fee-Based Assets System currently consists of crude oil pipeline and terminal assets and natural gas gathering and processing operations in McKenzie and Dunn counties, North Dakota System Map Construction began in…
  6. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 6
    Significant Activity and Upside Potential for the System Total North Dakota Bakken Well Permits by Quarter production is expected to 500 453 increase by 60% or more 408 over the next five years 400 364 338 349 302 311 There are…
  7. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 7
    Targas Expanding G&P Footprint Advances in E&P technology deployed in Bakken Shale multiple shale / resource Midstream Acquisition plays across the U.S. Existing Gathering and Processing Division has 20 plants and 12,500 miles…
  8. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 8
    Producer Activity Drives NGL Flows to Mont Belvieu Mont Belvieu is the premier NGL market hub Increased NGL supplies flow to Mont Belvieu Currently, most NGL pipelines into Mont Belvieu are close to 100% utilization with…
  9. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 9
    Major Capital Projects Two new major projects announced in Q4 2012 and additional capex associated with midstream acquisition in Bakken Shale Approximately 1.9 billion in announced projects expected to be completed in 2012 through…
  10. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 10
    New Major Project Approvals SAOU High Plains Plant Capex: 225 million Expected completion: mid-2014 Additional 200 MMcf/d brings total capacity at SAOU to 369 MMcf/d Expected GPM in the 5.0 7.0 range New plant creates capacity…
  11. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 11
    Margin is Largely Fee-Based / Hedged Fee-Based Margin is Increasing on Both an Absolute and Proportional Basis ( millions) Capex projects with firm contracts provide clear visibility on increasing 90.00 100% fee operating margin…
  12. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 12
    Diversity and Scale Mitigate Commodity Price Changes Adjusted EBITDA EBITDA vs.vs. Crude Crude Oil Oil Pricing Pricing TRPs scale, increasing fee-based %, prudent 600 130 hedging and business diversity mitigate TRPs 500 120…
  13. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 13
    Strong Distribution Growth and Coverage Ratio NGLS Annualized Distribution Per LP Unit 3.00 Expected 2012 distribution growth 2.75 2.65 of 10% to 15% 2.57 Annualized Distributions per LP Unit 2.49 2.50 2.41 Continued…
  14. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 14
    Solid Financial Profile Positions the Partnership for Growth Maintained relatively conservative capital structure NGLS Leverage Ratio and Unit Price Since IPO to underpin access to capital 6.0x 45 Target leverage ratio 3.0x - 4.0x…
  15. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 15
    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…
  16. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 16
    Additional Information 17
  17. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 17
    Targa Corporate Structure Management & Public Warburg Pincus LLC Directors(1) Shareholders 11.2% interest(1) 11.1% interest(2) 77.7% interest (42,492,913 Common Shares) Targa Resources Corp. 100% Indirect Ownership (NYSE:…
  18. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 18
    Targas Integrated Midstream Platform LTM as of 9/30/2012 Segment Operating Margin Marketing and Distribution 15% Field G&P 39% Logistics Assets 21% Coastal G&P 25% 19
  19. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 19
    Field Gathering and Processing Segment Field G&P Highlights Currently 9 plants with 847 MMcf/d of gross processing capacity Field G&P segment equity volumes are well hedged Permian Basin activity dominated by shale/resource plays;…
  20. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 20
    SAOU Overview Highlights SAOU System Well Connects 400 1,670 miles of gathering pipelines and three processing plants with gross capacity of 139 MMcf/d, Conger 350 restarted in May 2011 300 33 compressor stations, 58 compressors…
  21. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 21
    Sand Hills Overview Highlights Sand Hills Well Permits(1) Midland, Upton, Loving, Reeves and Ward Ector, 2500 1,400 miles of pipeline and one processing plant with gross capacity of 150 MMcf/d 2000 Recovered GPM in the 4.5 8.0…
  22. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 22
    North Texas Growth Update Highlights North Texas Well Permits (1) Montague, Cooke, Clay and Wise 1000 4,200 miles of gathering pipeline reaching 13 counties; two processing plants with capacity of 278 800 Well Permits MMcf/d;…
  23. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 23
    Coastal Gathering and Processing Segment Overview LOU (Louisiana Operating Unit) Processing Plants: Gillis (180 MMcf/d), Acadia (80 MMcf/d) Recovering 2.0 GPM Gathering System: 700 miles, very competitive Supply Sources: well head,…
  24. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 24
    Logistics Assets Pipeline Capacity vs Fractionation Capacity Logistics Assets Highlights 2,500 Second largest owner and operator of fractionation capacity in Mont Belvieu and Louisiana Current pipeline constraints into Mont Belvieu…
  25. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 25
    Logistics Assets - Performance Trends 400 CBF Y-Grade Volumes MBbl/d 350 Y-grade fractionation at Mont Belvieu reached full 300 Mont Belvieu capacity in 2009 Fractionation 250 Capacity at Full 200 Expansions backed by long…
  26. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 26
    Gulf Coast is the Demand Center for NGLs 80% of North American petrochemical capacity is in the Gulf Coast Much of U.S. NGL supply complex is interconnected with the Gulf Coast petrochemical complex Targa has a significant…
  27. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 27
    Demand for Exports Continues to Increase U.S. Propane U.S. Gulf Coast propane and butane are 60 0.70 favorably priced compared to world 0.60 50 markets 0.50 40 0.40 Propane exports increased 10x since MMBbls per gallon…
  28. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 28
    Targa Galena Park Terminal and Mont Belvieu Connections International Export Project Expanded Total capex: 480 million Includes additional pipeline and dock to continue and grow small and mid-size ship business, currently 1…
  29. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 29
    Petroleum Logistics - Current Capabilities and Projects 156 million in acquisitions in 2011 Announced 105 million of growth capital related to three terminals acquired in 2011 Pursuing additional acquisitions with similar…
  30. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 30
    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…
  31. WELLS FARGO SECURITIES PIPELINE MLP AND ENERGY SYMPOSIUM – Targa Resources Partners Lp – slide 31
    Pro Forma Credit Metrics and Liquidity ( in millions) Pricing / Actual Pro Forma (1) Acquisition Pro Forma (2) Cash and Debt Maturity Coupon 9/30/12 Adjustments 9/30/12 Adjustments 9/30/12 Cash and Cash Equivalents 88.9 88.9 88.9…

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