Targa Resources Partners LP Citigroup MLP and Midstream Infrastructure Conference August 24 25, 2011
Targa Resources - Overview 3
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…
The Targa Story Execution and Growth Targa has clearly demonstrated a powerful, post drop-down growth strategy 1 billion in acquisitions and expansion expenditures completed over the last 18 months Expansion projects completed on time…
Targa Corporate Structure Management & Public Warburg Pincus LLC Directors Shareholders 23.2% interest (42,349,738 Common Shares) TRGP Targa Resources Corp. 2% GP interest (NYSE: TRGP) 100% of IDRs 100% Indirect Ownership…
Industry Dynamics Impacting Platform Advances in petrophysical, drilling and completion techniques Strong oil and NGL prices Enhance producer economics and support throughput both in G&P and Downstream Frac spread drives…
Partnership Growth Drivers Strong fundamentals and positive industry dynamics create additional organic growth opportunities with attractive returns: CAPEX Project ( Millions) CBF Train 4 expansion (100 MBbl/d) 360 Approved Organic…
Solid Financial Profile Positions the Partnership for Growth NGLS Leverage Ratio and Unit Price Since IPO Committed to maintaining relatively 6.0x 40 conservative capital structure to underpin 5.5x Denotes equity issuance access…
Focus on Disciplined Capex CBF Train 4 100 MBbl/d expansion anchored by multi-year supply agreement with DCP Midstream LLC (BBB/NR) CBF Train 3 78 MBbl/d low cost expansion anchored by 10-year fee-based contract with ONEOK (BBB/Baa2)…
TRP Credit Metrics and Liquidity ( in millions) Pricing / Actual Actual Current Capitalization Maturity Coupon 3/31/11 Changes 6/30/11 Cash and cash equivalents 63.6 9.5 73.1 Revolving Credit Facility (1,100) Jul-15 L + 225 bps…
Business Division and Segment Review 12
The Partnerships Business and Contract Mix LTM 6/30/11 Segment Operating Margin Contract Discussion Points Marketing and Distribution Field Gathering and Processing contracts 18% are almost entirely POP (percent-of- proceeds) and…
The Partnerships Business Unit Overview Division: Gas Gathering and Processing Logistics and Marketing Marketing & Segment: Field Coastal Logistics Assets Distribution Fractionation NGL Distribution & North Texas System Coastal…
Fee-based Contract Mix Percentage Increasing Over 45% of total operating margin could be fee based over the next 3+ years 2013 - 2014+: The announced 100 MBbl/d CBF Train 4 expansion and potential expansion of import / export…
The Partnerships Operations Gathering and Processing Gathering and Processing Highlights 21 natural gas processing plants 12,417 miles of natural gas pipeline Leading position across Permian Basin benefitting from oil…
Field Gathering and Processing Segment Outlook Four Field Segment Assets 2011 Inlet Volume Outlook by All Located in Texas and New Mexico Businesses Compared to 2010 SAOU: Meaningfully higher Permian Business: Meet or exceed…
Coastal Gathering and Processing Segment Outlook Description Coastal Straddles (including VESCO) Positioned on mainline gas pipelines and process volumes of gas collected from multiple offshore producing areas Gross processing…
Gathering and Processing Contract Mix 1H 2011 Plant Inlet Volumes 1H 2011 Operating Margin Fee 3.7% POP 24.3% Coastal G&P Segment 37% Hybrid 37.4% POL Field G&P Segment 14.1% 63% KW/WHP 20.4% Contract Mix By…
Disciplined and Consistent Hedging Program NGL and Condensate Hedge Arrangements as of 6/30/2011 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…
The Partnerships Operations Logistics and Marketing Key Assets 800 miles of NGL pipeline 385 MBbl/d net fractionation and treating capacity 1.4 MMBbl above ground storage capacity 65 MMBbl salt dome storage capacity…
Logistics Assets Segment Overview Logistics Assets Strategically Located Logistics Assets Highlights Difficult to replicate Integrated asset base Belvieu fractionation: full and expanding 78 MBbl/d CBF Train 3 expansion, completed…
Logistics Assets - Performance Trends CBF Y-grade Volumes MBbl/d Y-grade fractionation capacity 250 utilization at majority-owned CBF reached 100% in 2009; other Mont 225 Belvieu fractionators full Mont Belvieu 200 Average…
Marketing and Distribution Segment Fee-based transportation services to refineries and petrochemical companies throughout the U.S. Approximately 760 railcars leased and managed, 70 owned and leased transport tractors, 100…
Partnership Investment Highlights Favorable Current industry dynamics across broader upstream and downstream energy value chain are Industry favorably impacting the Partnerships integrated G&P and Logistics and Marketing businesses…
Appendix 26
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 NGLS. Three Months Ended Six Months Ended June 30, June 30, 2011…
Non-GAAP Measures Reconciliation Millions The following table presents a reconciliation of reported distributable cash flow to net income (loss) for the period shown for NGLS. Three Months Ended 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar…
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