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First Quarter 2017 Investor Presentation – Targa Resources Corp.

Targa Resources Corp. · May 4, 2017 · 39 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 1
    Targa Resources Investor Presentation First Quarter 2017 May 4, 2017
  2. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 2
    Corporate Structure TRC Public Shareholders (198,104,266 Shares)(1) Targa Resources Corp. TRC Revolving Credit Facility (NYSE: TRGP) Preferred (S&P: BB- Shareholders Moodys: Ba2) 100% Interest Senior Notes Targa…
  3. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 3
    Strong Asset Base Poised for Growth A Strong Footprint in And a Leading Position at Drive Targas Active Basins Mont Belvieu Long-Term Growth Premier Permian Basin footprint Premier fractionation ownership Well positioned to…
  4. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 4
    Strategic Outlook Increasing producer activity drives the need for additional G&P infrastructure Adding over 1 Bcf/d of incremental natural gas processing capacity in 2017 and 2018 (1) Adding four new plants and 775 MMcf/d of…
  5. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 5
    Attractive Asset Footprint Targas assets are positioned in some of the best U.S. basins (Permian - Midland, Permian Delaware, STACK, SCOOP, Bakken and Eagle Ford) Integration of G&P and Downstream assets continued area of…
  6. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 6
    Business Mix, Diversity and Fee-Based Margin Business Mix Field G&P Diversity Operating Margin(1) Q1 2017 Natural Gas Inlet Volumes 2% 10% 15% 45% 27% 16% 55% 11% 5% 6% 7% Downstream G&P SAOU * WestTX * Sand Hills *…
  7. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 7
    Financial Position and Leverage (1) Senior Note Maturities Protecting the balance sheet and maintaining 1,600 70% of our senior notes mature in 2023 and beyond balance sheet flexibility remain key objectives Senior Note…
  8. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 8
    Diversity and Scale Help Mitigate Commodity Price Changes Growth has been driven primarily by investing in Adjusted EBITDA vs. Commodity Prices the business, not by changes in commodity prices Adjusted EBITDA - Actual YTD Adjusted…
  9. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 9
    2017 Announced Net Growth Capex With the continued growth in upstream activity around our G&P systems, we now estimate 960 million of 2017 net growth capex from the projects outlined below Adding additional gas processing capacity to…
  10. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 10
    Operational and Financial Expectations LPG Export Substantially contracted over the long term at attractive rates Contracts Expect a mix of long-term and short-term volumes moving across our dock, proving potential for volume at…
  11. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 11
    Attractive Asset Footprint
  12. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 12
    Extensive Field Gathering and Processing Position Summary Footprint Over 26,000 miles of pipeline across attractive positions 4.7 Bcf/d of gross processing capacity(2)(3)(4) Acquired additional Delaware and Midland Basin assets on…
  13. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 13
    Premier Permian Position Legend Active Rigs (4/18/17) 2 million dedicated Processing Plant Processing Plant In acres from a diverse Progress group of producers Crude Terminal Pipeline Pipeline In Progress (1) 2.5 Bcf/d(1) of total…
  14. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 14
    Permian Midland Summary (WestTX and SAOU systems) Summary Asset Map and Rig Activity(1) Legend WestTX and SAOU systems located across the core Active Rigs (4/18/17) of the Midland Basin Processing Plant Processing Plant In Operate…
  15. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 15
    Permian Delaware Summary (Versado and Sand Hills systems) Summary Asset Map and Rig Activity(1) Versado and Sand Hills capturing growing production Legend Active Rigs (4/18/17) from increasingly active Delaware Basin Processing…
  16. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 16
    Strategic Position in the Core of the Williston Basin Summary Asset Map and Rig Activity(1) Core position in McKenzie, Dunn and Mountrail counties 410 miles of crude gathering pipelines 200 miles of natural gas gathering…
  17. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 17
    Leading Oklahoma, North Texas and South Texas Positions Summary Footprint Four asset regions which include approximately 14,000 miles of pipeline Over 2.1 Bcf/d of gross processing capacity(2) 15 processing plants across the…
  18. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 18
    SouthTX Sanchez Energy Corp. JV Driving Growth Summary Asset Map and Rig Activity(1) JV agreements with Sanchez Energy Corp. (NYSE:SN) Legend executed in October 2015 Pipeline Active Rigs (4/18/17) Gathering JV interest…
  19. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 19
    North Texas Exposed to Barnett Shale and Marble Falls Summary Asset Map and Rig Activity(1) 478 MMcf/d of gross processing capacity Legend Pipeline Active Rigs Primarily Barnett Shale and Marble Falls (4/18/17) Processing…
  20. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 20
    SouthOK Exposure to Increasing SCOOP Activity Summary Asset Map and Rig Activity(1) 580 MMcf/d of gross processing capacity System well positioned to benefit from increasing SCOOP activity Currently building a line to benefit…
  21. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 21
    WestOK Positioned for STACK Growth Summary Asset Map and Rig Activity(1) 460 MMcf/d of gross processing capacity Legend Pipeline Positioned to benefit from the continued northwest Active Rigs (4/18/17) movement of upstream…
  22. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 22
    Producer Activity Drives NGL Flows to Mont Belvieu Growing field NGL production increases NGL flows to Mont Belvieu Rockies Increased NGL production will support Targas expanding Mont Belvieu and Galena Park presence…
  23. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 23
    Downstream Capabilities Overview Downstream Businesses The Logistics and Marketing segment represents NGL Fractionation / Storage approximately 45% of total operating margin(1) Strong fractionation asset position at Mont Belvieu and…
  24. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 24
    Logistics Assets Extensive Gulf Coast Footprint Fractionators Gross Net Capacity Capacity (MBbl/d) (MBbl/d)(1) CBF - Mont Belvieu Trains 1-3 253 223 Backend Capacity 40 35 Train 4 100 88 Train 5 100 88 GCF - Mont Belvieu 125 49…
  25. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 25
    Targas Fractionation Assets Targa Fractionation Footprint Domestic Rig Count and NGL Supply 400 2,000 5,000 350 343 350 1,800 4,500 Liquids Production (MBbl/d) 299 309 305 1,600 4,000 288 Throughput (MBbls/d) 300 268…
  26. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 26
    Targas LPG Export Business LPG Exports by Destination(1) Propane and Butane Exports(1) 15% 30% 50% 85% 20% Latin America/South America Caribbean Rest of the World Propane Butanes Galena Park LPG Export Volumes Fee…
  27. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 27
    Additional Information
  28. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 28
    Q1 2017 Permian Acquisition Earn-Out Structure Potential earn-out payments are based on realized gross margin(1) on existing contracts as of February 28, 2017 for the Permian Basin assets acquired on March 1, 2017 565 million of…
  29. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 29
    Noble Crude and Condensate Splitter Project Events and Non-GAAP Accounting Treatment Summary Announced an agreement with Noble Americas Corp., a subsidiary of Noble Group Ltd. (Noble), to March 31, 2014 construct a 35 Mbbl/d…
  30. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 30
    TRC Update Operating Margin 350 1,400 300 299 306 1,2141,221 300 1,200 1,076 250 1,000 in milions in milions 200 191 176 800 640 674 682 142 157 150 130 600 574 548 109 395 100 400 50 200 0 0 (1) (1) G&P…
  31. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 31
    Consolidated Capitalization ( in millions) Cash and Debt Maturity Coupon 12/31/2016 Adjustments 3/1/2017 Cash and Cash Equivalents 73.5 6.5 80.0 TRP Accounts Receivable Securitization Dec-17 275.0 10.0 285.0 TRP Revolving Credit…
  32. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 32
    Dynamics of the LPG Market VLGC Freight Rates(1) Increasing VLGC Fleet(2) 1.80 0.35 350 1.60 +5 0.30 Baltic Shipping Rate (/gal) +11 MB Propane Price (/gal) 1.40 300 +22 0.25 287 1.20 +50 282 271 Number of…
  33. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 33
    Coastal Gulf Coast Footprint Summary Footprint Asset position represents a competitively advantaged straddle option on Gulf of Mexico activity over time LOU (Louisiana Operating Unit) 440 MMcf/d of gas processing (180 MMcf/d…
  34. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 34
    Reconciliations
  35. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 35
    Non-GAAP Measures Reconciliation Adjusted EBITDA - The Company defines Adjusted EBITDA as net income (loss) available to TRC before: interest; income taxes; depreciation and amortization; impairment of goodwill; gains or losses on debt…
  36. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 36
    Non-GAAP Measures Reconciliation Distributable Cash Flow - The Company defines distributable cash flow as Adjusted EBITDA less distributions to TRP preferred limited partners, the Splitter Agreement adjustments, cash interest expense on…
  37. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 37
    Non-GAAP Reconciliations Q1 2017 EBITDA and DCF The following table presents a reconciliation of Adjusted EBITDA and Distributable Cash Flow for the periods shown for TRC: Three Months Ended March 31, 2017 2016 ( in millions)…
  38. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 38
    Non-GAAP Reconciliations Q1 2017 Gross Margin The following table presents a reconciliation of net income (loss) to operating margin and gross margin for the periods shown for TRC: Three Months Ended March 31, 2017 2016 ( in…
  39. First Quarter 2017 Investor Presentation – Targa Resources Corp. – slide 39
    1000 Louisiana Suite 4300 Houston, TX 77002 Phone: (713) 584-1000 Email: InvestorRelationstargaresources.com Website: www.targaresources.com

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