Targa Resources NAPTP Presentation May 22-23, 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: 5.0…
Targas Corporate Structure Targa Resources Corp. 100% Indirect (NYSE: TRGP) Ownership (TRC or the Company)(1) 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 Badlands Acquisition multiple shale / resource Premier location in premier oil basin plays across the U.S. Premium, recently built assets Approximately 300,000…
Badlands Highlights Bakken Shale projected to be among the fastest growing crude oil basins in the world Premier Crude oil focus, completion technology improvements and increased drilling efficiencies driving activity in location in…
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 System Map Additional…
Permian Basin Growth Overview Growth Drivers Permian Horizontal/Directional Drilling Rigs(2) Spraberry/Wolfcamp is the second largest oil field in the world with total recoverable reserves of 50 BBoe(1) 500 Improved drilling…
Targas Permian Basin System and Broad Active Plays Permian Growth Continues Current footprint includes 6,395 miles of pipeline and 630 MMcf/d gross processing capacity Versado Q1 2013 inlet volumes of 450 MMcf/d 2013 inlet volumes…
North Texas Well Positioned for Growth Liquids-Rich Portion of Barnett Shale Driving Growth Most of Targas assets are located in the liquids-rich portion of the Barnett shale, where the majority of new permit activity is occurring…
Producer Activity Drives NGL Flows to Mont Belvieu Increased NGL supplies flow to Mont Belvieu Most NGL pipelines into Mont Belvieu have been close to 100% utilization with additional pipeline capacity coming on line in 2013 and…
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(1) 60 1.00 U.S. Gulf Coast propane and butane are 0.90 favorably priced compared to world 50 0.80 markets 0.70 40 0.60 Gulf Coast import/export expansions per gallon…
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…
Major Capital Projects Announced Approximately 1.7 billion in announced projects expected to be completed in 2013 and 2014 Over 1.2 billion of projects planned in service in 2013 and 500 million in 2014 Additional high quality…
Margin is Largely Fee-Based / Hedged Fee-Based Margin is Increasing on Both an Absolute and Proportional Basis ( in millions) 92 Fee-based operating 80 margin expected to 73 continue to increase to 66 55%-65%+ over next 60…
Distribution and Dividend Growth NGLS Annualized Distribution Per LP Unit Expected NGLS 2013 distribution growth of approximately 10% to 12% 3.00 2.79 Ability to continue increasing distribution as 2.72 Annualized Distributions…
Financial Profile Positions the Partnership for Growth Current capital structure and liquidity underpin access to capital NGLS Compliance Leverage Ratio Target leverage ratio 3x - 4x Debt/EBITDA 6.0x Actual leverage history at low…
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 Pro Forma Capitalization and Liquidity ( in millions) Actual Q2 '13 Financing Pro Forma Cash and Debt Maturity Coupon 3/31/2013 Adjustments(1) 3/31/2013 Cash and Cash Equivalents 102.1 102.1 Accounts Receivable Securitization…
Targas Diversified Midstream Platform Badlands LTM as of 3/31/2013 Segment Operating Margin Marketing and Distribution 18% Field G&P 38% Logistics Assets 30% Coastal G&P 14% 26
Field Gathering and Processing Segment Field G&P Highlights 10 plants with 927 MMcf/d of gross processing capacity with expansions underway 30 MMcf/d expansion completed at SAOU during Q1 2013 Permian Basin activity dominated by…
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…
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 March 31, 2013 2012…
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…
Loading...
