Targa Resources Investor Presentation Second Quarter 2015 August 4, 2015
Targa Resources Two Public Companies Targa Resources Partners LP Targa Resources Corp. (NYSE: NGLS; TRP or the Partnership) (NYSE: TRGP; TRC or the Company) IPO February 2007 IPO December 2010 MLP C-Corp Owner/Operator of all assets…
Targa Current Corporate Structure Targa Resources Corp. (NYSE: TRGP) (TRC or the Company) 100% Indirect Ownership 8.8% LP Interest (16,309,594 LP Units) Targa Resources GP LLC Public Unitholders 91.2% LP Interest…
Targas Diversified Midstream Platform Well positioned in U.S. shale / resource plays Leadership position at Mont Belvieu Increasing scale, diversity and fee- based margin Over 1 billion of projects in service in 2013 and 1…
Investment Highlights One of the largest Permian G&P positions across premier Leading acreage Asset 2nd largest fractionation presence in Mont Belvieu Position 2nd largest LPG export presence on U.S. Gulf Coast Mont Belvieu /…
Attractive Positions in Oil and Liquids-Rich Basins Rig activity has decreased significantly across the U.S. Targas footprint has been impacted, but positioning in some of the best basins / areas provides resiliency U.S.…
Producer Activity Drives NGL Flows to Mont Belvieu Marcellus & Others Rockies Growing field NGL production increases NGL flows to Mont Belvieu Increased NGL production could support Targas existing and expanding Mont Belvieu and…
Major Announced Capital Projects Expect 700 to 900 million of growth capex in 2015 Continuing to review appropriate sizing and timing of additional plant capacity and related infrastructure in North Dakota (Badlands) and the Permian…
Major Capital Projects Under Development Over 3 billion of additional opportunities are in various stages of development Opportunities include additional infrastructure in both G&P and Downstream In current environment, Targa is…
Strong Growth in Fee-Based Margin Continues Increasing Fee-Based Margin Provides Additional Stability to Our Business 250 ( in millions) 150% 235 227 140% 219 211 130% 200 187 120% Expect at least 70% fee- 110% 160 164 100%…
Diversity and Scale Mitigate Commodity Price Changes Adjusted EBITDA vs. Commodity Prices Adjusted EBITDA - Actual Adjusted EBITDA Annualized (1) WTI Crude Oil Prices - Quarter Realized WTI Crude Oil Prices Growth has been driven by…
Targa Leverage and Liquidity Liquidity(1) 1,400 Approximately 787 million of 1,200 current liquidity at quarter end 1,000 in Millions 800 From January through July 2015, received proceeds of 600 approximately 375 million…
TRP Capitalization ( millions) Actual Actual Cash and Debt Maturity Coupon 3/31/2015 Adjustments 6/30/2015 Cash and Cash Equivalents 63.5 22.0 85.5 Accounts Receivable Securitization Dec-15 197.9 (73.7) 124.2 Revolving Credit…
TRC Capitalization ( millions) Actual Actual Capitalization Maturity 3/31/2015 Adjustments 6/30/2015 Cash and Cash Equivalents -- 107.2 (87.0) 20.2 Senior Secured Revolver (670 MM) Feb-20 460.0 -- 460.0 Term Loan B Feb-22 242.0…
Guidance 2015 Guidance Comments Fee-Based Margin % 70% 2015 operating margin may Logistics & Marketing Division Operating Margin be modestly lower than 2014 3% - 5% growth average 2015 Field Inlet Volumes versus Q4 2014…
Targa Business Division and Segment Review
Extensive Field Gathering and Processing Position Summary Footprint Over 24,000 miles of pipeline across attractive positions in the Permian Basin, Eagle Ford Shale, Barnett Shale, Anadarko Basin, Ardmore Basin, Arkoma Basin and…
World Class Permian Footprint Summary Footprint Footprint includes approximately 10,500 miles of pipeline from the southeast of the Permian Basin to the northwest Targa is the second largest Permian gas processor with over 1.4…
Strong North Texas, SouthTX and Oklahoma Positions Summary Footprint Four footprints including over 13,000 miles of pipeline Over 1.8 Bcf/d of gross processing capacity 200 MMcf/d Longhorn, Silver Oak II, and Stonewall plants…
Strategic Position in the Core of the Williston Basin Summary Footprint System currently consists of oil gathering and terminaling and natural gas gathering and processing in McKenzie, Dunn and Mountrail Counties, ND Acquired in…
Well Positioned Along the Louisiana Gulf Coast Summary Footprint LOU (Louisiana Operating Unit) 440 MMcf/d of gas processing (180 MMcf/d Gillis plant, 80 MMcf/d Acadia plant and 180 MMcf/d Big Lake plant) Interconnected to Lake…
Logistics Assets Extensive Gulf Coast Footprint Fractionators Gross Net Capacity Capacity (MBbl/d) (MBbl/d)(2) CBF - Mont Belvieu(1) Trains 1-3 253 223 Backend Capacity 40 35 Train 4 100 88 GCF - Mont Belvieu 125 47 Total - Mont…
Galena Park Marine Terminal Effective Export Capacity Phase I expansion completed in September 2013 Phase II expansion completed in September 2014 Phase II expansion was completed in stages Additional 12 pipeline, refrigeration,…
Petroleum Logistics Highlights At TRPs Channelview and Patriot Terminals: Expanding presence along the Houston Ship Channel In 2014 completed construction of a new 8 bay truck rack and installed a marine vapor combustor for…
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…
Long and Short-Term Demand for Exports Continues U.S. Propane(1) U.S. Gulf Coast propane and butane have been favorably priced compared to world 160 0.80 markets over the last several years 140 0.70 0.60 YTD 2015, the spread…
Appendix
Non-GAAP Measures Reconciliation Adjusted EBITDA The Partnership defines Adjusted EBITDA as net income attributable to Targa Resources Partners LP before: interest; income taxes; depreciation and amortization; gains or losses on debt…
Non-GAAP Reconciliation Q2 2015 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 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 31-Mar…
Non-GAAP Reconciliation 2010-2012 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 3/31/2010 6/30/2010 9/30/2010 12/31/2010…
Non-GAAP Reconciliation 2013-2015 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 3/31/2013 6/30/2013 9/30/2013 12/31/2013…
Reconciliation of Total TRP Distributions ( in Millions, except per unit data) Actual Actual Actual Actual Q2 2015 Q4 2014 Q1 2015 Q2 2015 Annualized Distributions to LP Units 96.3 138.9 143.1 572.4 Distributions to GP Units 2.7…
Loading...
