Targa Resources Investor Presentation Fourth Quarter 2012 February 14, 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: 4.3…
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…
Bakken Shale Midstream Acquisition - Transaction Overview The Partnership acquired midstream assets in the Williston Basin in Q4 2012, renamed Targa Badlands Bakken Shale projected to be among the fastest growing crude oil basins in…
Targa Badlands - High-Quality, Fee-Based Assets System currently consists of oil gathering pipeline and terminal system and natural gas gathering and processing operations in McKenzie and Dunn counties, North Dakota Additional…
Targas Expanding G&P Footprint Advances in E&P technology deployed in Badlands Acquisition multiple shale / resource plays across the U.S. Existing Gathering and Processing Division has over 12,500 miles of pipe Entry into…
Producer Activity Drives NGL Flows to Mont Belvieu Increased NGL supplies flow to Mont Belvieu Most NGL pipelines into Mont Belvieu are close to 100% utilization with additional pipeline capacity coming on line in 2013 and 2014…
Major Capital Projects Approximately 1.7 billion in announced projects expected to be completed in 2013 and 2014 Over 1.1 billion of projects planned in service in 2013 Additional high quality growth projects under development for…
Margin is Largely Fee-Based / Hedged Fee-Based Margin is Increasing on Both an Absolute and Proportional Basis ( millions) 90.00 100% 80.00 80 Pro forma for the Badlands 73 acquisition, fee-based operating 70.00 66 margin…
Distribution Growth and Coverage Ratio NGLS Annualized Distribution Per LP Unit Expected 2013 distribution growth of 3.00 approximately 10% to 12% 2.75 2.72 2.65 2.57 Annualized Distributions per LP Unit Ability to continue…
Financial Profile Positions the Partnership for Growth Current capital structure and liquidity underpins NGLS Leverage Ratio and Unit Price Since IPO access to capital Target leverage ratio 3.0x - 4.0x Debt/EBITDA 6.0x 45 5.5x…
TRP Pro Forma Capitalization and Liquidity ( in millions) Q1 '13 Financing Pro Forma Cash and Debt Maturity Coupon Q4 2012 Adjustments (1) 12/31/12 Cash and Cash Equivalents 68.0 68.0 Accounts Receivable Securitization Jan-14 -…
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…
Business Division and Segment Review 18
Targas Integrated Midstream Platform Year Ended 12/31/2012 Segment Operating Margin Marketing and Distribution 17% Field G&P 39% Logistics Assets 27% Coastal G&P 17% 19
Field Gathering and Processing Segment Field G&P Highlights Targa Badlands included in the Field G&P segment 10 plants with 897 MMcf/d of gross processing capacity with expansions underway: North TX 200 MMcf/d (Longhorn Plant) SAOU…
Targas Permian Basin Systems and Broad Active Plays SAOU All oil wells with associated gas and NGLs Total 2012 well connects of 302 Versado Higher number of horizontal well connects 30 MMcf/d processing capacity expansion on line…
North Texas Well Positioned for Growth Most of assets located in liquids-rich portion of Barnett shale New Marble Falls play in Jack and Palo Pinto counties Recovered GPM in the 4.0 5.0 range which enhances producer drilling…
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: 13 MBbl/d, interconnected to LCF Traditional…
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…
Demand for Exports Continues to Increase U.S. Propane 60 0.80 Increasing U.S. production and a 0.70 50 0.60 favorable international price delta has 40 0.50 led to increased exports per gallon 0.40 30 0.30 mmbbls…
Petroleum Logistics - Current Capabilities and Projects Announced 105 million of growth capital related to three terminals acquired in 2011 Recently completed 35 million expansion of Targa Sound 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…
Appendix 28
Non-GAAP Measures Reconciliation EBITDA The following table presents a reconciliation of Adjusted EBITDA to net income (loss) for the periods shown for the Partnership. Pro Forma for the acquisition of Bakken Shale assets. Twelve…
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 Year Ended December…
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…
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…
Loading...
