Targa Resources Partners LP NAPTP Presentation May 23, 2012
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…
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: 3.7…
The Targa Story Execution and Growth Strong Industry Dynamics Favor Targas Diverse and Integrated Midstream Platform Advances in E&P technology and strong oil and NGL prices drive drilling activity and volumes in gathering and…
Targas Integrated Midstream Platform LTM as of 3/31/2012 Segment Operating Margin Marketing and Distribution 15% Field G&P Logistics 38% Assets 21% Coastal G&P 26% 6
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…
Environment Favors U.S. Propane/ Butane Export Growth US Propane Favorably priced U.S. Gulf Coast propane and 45 0.80 butane exported predominantly to the Americas, 40 0.70 with spot opportunities to the Far East 35 0.60 30 0.50…
Partnership Growth Drivers Strong fundamentals and positive industry dynamics create attractive growth opportunities Organic growth projects and acquisitions contribute to increased scale and diversity 290 million Growth CAPEX placed…
Strong Distribution Growth and Coverage Ratio NGLS Annualized Distribution Per LP Unit Q1 2012 Adjusted EBITDA increased 3.00 35% over Q1 2011 2.75 Expected 10% to 15% distribution Annualized Distributions per LP Unit 2.49…
Diversity Drives EBITDA Stability TRPs scale, prudent hedging and business EBITDA vs. Crude Oil Pricing diversity have largely insulated TRP from 600 130 movements in crude and natural gas prices 120 500 Field G&P segment 110…
Solid Financial Profile Positions the Partnership for Growth Committed to maintaining relatively conservative capital structure to underpin access to capital NGLS Leverage Ratio and Unit Price Since IPO Target leverage ratio 3.0x -…
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…
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 3/31/2012 Segment Operating Margin 2012 inlet volume expected to be approximately Marketing and 10% higher than 2011 Distribution 15% Field G&P SAOU: Expected to exceed 38%…
Disciplined Hedging Program NGL and Condensate Hedge Arrangements as of 3/31/2012 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 2,000 0 0.00…
Coastal Gathering and Processing Segment LTM 3/31/2012 Segment Operating Margin Marketing and Distribution 15% Field G&P 38% Logistics Assets 21% Coastal G&P 26% 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 3/31/2012 Segment Operating Margin Logistics Assets Highlights Marketing and Distribution Second largest operator of fractionation capacity 15% in Mont Belvieu and Louisiana Field G&P 38% Targa Logistics…
Logistics Assets - Performance Trends CBF Y-grade Volumes MBbl/d 275 Y-grade fractionation at Mont Belvieu reached full capacity in 250 2009 Mont Belvieu 225 Fractionation 200 Targas fractionation expansions 78 MBbl/d CBF Train…
Petroleum Logistics [127MM in acquisitions in 2011] Majority of revenue generated through fixed-fee contracts based on volume capacity with take-or-pay features Favorable global supply-demand dynamics and increased need for…
Marketing and Distribution Segment Wholesale Propane Sell propane (to multi-state, independent retailers and industrial accounts) on a fixed or posted price at delivery Remote managed inventory sold at an index plus All price…
Pro Forma Credit Metrics and Liquidity ( in millions) Pricing / Actual Q1 Actual Cash and Debt Maturity Coupon 12/31/11 Adjustments 3/31/12 Cash and cash equivalents 55.6 30.7 86.3 Senior Secured Debt Jul-15 L + 225 bps - (498.0)…
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 March 31, 2011 2010 ( in millions)…
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 6/30/2011…
Loading...
