Targa Resources Barclays CEO Energy-Power Conference September 11-12, 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: 5.2…
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 margin A Footprint in Multiple And a Leading Position at Drive Targas Shale / Resource Plays Mont Belvieu…
Targas Expanding G&P Footprint Advances in E&P technology deployed in multiple shale / resource plays across the U.S. Existing Gathering and Processing Division has over 12,500 miles of pipe Entry into Bakken Shale increases…
Permian Basin Growth Overview Growth Drivers Permian Horizontal/Directional Drilling Rigs(2) Spraberry/Wolfcamp is the second largest oil field in 250 the world with total recoverable reserves of 50 BBoe(1) 500 Improved drilling…
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 Barnett Shale and Marble Falls Driving Growth Most of Targas assets are located in the active liquids-rich portion of the Barnett shale, while also accessing new Marble Falls…
Badlands High-Quality, Fee-Based Assets System currently consists of oil gathering pipeline and terminal system and natural gas gathering and processing operations in the heart of Bakken and Three Forks System Map development…
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…
Galena Park Marine Terminal Expansion Mont Belvieu - Fractionator - Storage Wells - De-ethanizer Full Semi- Refrig 2 Full Refrig Refrig 1 LEGEND =Existing =Expansion 13
Demand for Exports Continues to Increase U.S. Propane(1) 60 0.80 0.70 U.S. Gulf Coast propane and butane are 50 0.60 favorably priced compared to world markets 40 0.50 0.40 Gulf Coast import/export expansions MMBbls /gallon…
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) Fee-based operating 92 margin expected to 88 continue to increase to 80 55%-65%+ in 2014 73 66 60 55 47 49…
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…
Targa Investment Highlights Diversified Midstream Platform Well positioned in U.S. shale / resource plays Leadership position at Mont Belvieu Increasing scale, diversity Badla and fee-based margin nds 1.7 billion announced…
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…
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% 25
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 1,347 MMcf/d Permian Basin activity dominated by oil shale / resource plays; SAOU,…
Badlands Access to a World Class Crude Oil Basin Daily production in the Williston Basin has grown over 140% the last two years with expectations for continued growth driven by: Strong oil focused drilling activity Favorable relative…
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…
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…
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…
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