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June 2017 Investor Presentation – Targa Resources Corp.

Targa Resources Corp. · Jun 20, 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. June 2017 Investor Presentation – Targa Resources Corp. – slide 1
    Targa Resources Investor Presentation June 2017
  2. June 2017 Investor Presentation – Targa Resources Corp. – slide 2
    Executive Summary Targa Looking Forward In the first half of 2017, Targa announced some key strategic developments that will be integral to Targas continued growth into the future: Acquisition of attractive Delaware and Midland Basin…
  3. June 2017 Investor Presentation – Targa Resources Corp. – slide 3
    Targa is Positioned to Benefit from Key Domestic Themes Theme How Does Targa Benefit Higher natural gas inlet volumes Higher crude oil volumes Continued Strong Higher gross NGL production Outlook for Additional volumes available…
  4. June 2017 Investor Presentation – Targa Resources Corp. – slide 4
    Targa Positioning Relative to Potential Industry Headwinds Possible Headwind Targa Mitigants The Permian Basin is the best-positioned, most resilient and economic basin in the U.S. Approximately 70% of Targas 2017 G&P capex from…
  5. June 2017 Investor Presentation – Targa Resources Corp. – slide 5
    Projects in Core Growth Areas A Delaware Basin C Oklahoma & SouthTX Processing capacity SouthTX Raptor Plant (200 additions underway MMcf/d) complete (+310 MMcf/d) 2 new plants 60 MMcf/d expansion Oahu Plant 4Q17 underway (3Q17) C…
  6. June 2017 Investor Presentation – Targa Resources Corp. – slide 6
    2017 Announced Net Growth Capex 2017 net growth capex now estimated at 1.2 billion, based on the announced projects outlined below 70% of total G&P capex focused in the Permian; 80% of total project capex focused in the Permian…
  7. June 2017 Investor Presentation – Targa Resources Corp. – slide 7
    Capital Investments Underway Support Growth Outlook Increasing fee-based operating margin outlook underpinned by attractive organic growth projects underway and additional potential attractive growth capital investment opportunities…
  8. June 2017 Investor Presentation – Targa Resources Corp. – slide 8
    Long Term Growth Supported by Grand Prix NGL Pipeline Grand Prix On May 25, 2017, Targa announced plans to construct a 300 MBbl/d NGL pipeline (expandable to 550 MBbl/d) from the Permian Basin, through North Texas to Mont Belvieu, TX…
  9. June 2017 Investor Presentation – Targa Resources Corp. – slide 9
    Business Mix, Diversity and Fee-Based Margin Business Mix Segment Operating Margin(1) Downstream Operating Field G&P Operating Margin Margin 2017E(2) 2017E(2) 100% 100% 75% 45% 75% 55% 50% 50% 25% 25% 0% 0% Badlands…
  10. June 2017 Investor Presentation – Targa Resources Corp. – slide 10
    2Q 2017 and Full Year 2017 Expectations 2017E Adjusted EBITDA 2Q 2017E vs. 1Q 2017A Expectations (millions) Financial results in 2Q expected to be lower than 1Q 700 FY 2017E 1,130 due to the following factors: Lower LPG export volumes…
  11. June 2017 Investor Presentation – Targa Resources Corp. – slide 11
    Long-Term Financial Outlook Attractive projects and system expansions underway drive increasing system volume outlook, translating into increasing EBITDA outlook Permian volume growth drives 85% of expected EBITDA growth over the…
  12. June 2017 Investor Presentation – Targa Resources Corp. – slide 12
    Financial Position and Leverage Protecting the balance sheet and maintaining (1)(2) Senior Note Maturities balance sheet flexibility remain key objectives 1,600 75% of our senior notes mature in 2023 and beyond(2) In Q1 2017, repaid…
  13. June 2017 Investor Presentation – Targa Resources Corp. – slide 13
    Diversity and Scale Strengthen Cash Flow Stability 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 EBITDA…
  14. June 2017 Investor Presentation – Targa Resources Corp. – slide 14
    Targa Asset Position
  15. June 2017 Investor Presentation – Targa Resources Corp. – slide 15
    Corporate Structure TRC Public Shareholders (215,476,025 Shares)(1) Targa Resources Corp. TRC Revolving Credit Facility (NYSE: TRGP) Preferred (S&P: BB- Shareholders Moodys: Ba2) 100% Interest Senior Notes Targa…
  16. June 2017 Investor Presentation – Targa Resources Corp. – slide 16
    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…
  17. June 2017 Investor Presentation – Targa Resources Corp. – slide 17
    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…
  18. June 2017 Investor Presentation – Targa Resources Corp. – slide 18
    Targas Grand Prix NGL Pipeline Project On May 25, 2017, Targa announced plans to construct a 300 MBbl/d Rockies (expandable to 550 MBbl/d) common carrier pipeline (Grand Prix) from the Permian Basin through North Texas to Mont…
  19. June 2017 Investor Presentation – Targa Resources Corp. – slide 19
    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…
  20. June 2017 Investor Presentation – Targa Resources Corp. – slide 20
    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…
  21. June 2017 Investor Presentation – Targa Resources Corp. – slide 21
    Permian Acquisition Update Overall integration into Targas system proceeding well More rigs currently running on dedicated acreage than anticipated Fee-based margin contracts supported by approximately 13 year acreage dedications…
  22. June 2017 Investor Presentation – Targa Resources Corp. – slide 22
    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…
  23. June 2017 Investor Presentation – Targa Resources Corp. – slide 23
    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…
  24. June 2017 Investor Presentation – Targa Resources Corp. – slide 24
    Strategic Position in the Core of the Williston Basin Summary Asset Map and Rig Activity(1) 410 miles of crude gathering pipelines; 200 miles of natural gas gathering pipelines 90 MMcf/d of total natural gas processing capacity…
  25. June 2017 Investor Presentation – Targa Resources Corp. – slide 25
    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…
  26. June 2017 Investor Presentation – Targa Resources Corp. – slide 26
    SouthTX Well Positioned in the Eagle Ford Summary Asset Map and Rig Activity(1) Multi-county gathering system with interconnected Legend plants spanning the Eagle Ford Pipeline Active Rigs Growth driven by JV with Sanchez…
  27. June 2017 Investor Presentation – Targa Resources Corp. – slide 27
    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 Primarily Barnett Shale and Marble Falls Active Rigs (6/16/17) Processing…
  28. June 2017 Investor Presentation – Targa Resources Corp. – slide 28
    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 Primary growth driver will be SCOOP…
  29. June 2017 Investor Presentation – Targa Resources Corp. – slide 29
    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 (6/16/17) movement of upstream…
  30. June 2017 Investor Presentation – Targa Resources Corp. – slide 30
    G&P Volume Drives NGL Flows to Mont Belvieu Growing field NGL production increases NGL flows to Targas Rockies expanding Mont Belvieu and Galena Park presence Grand Prix NGL Pipeline will bring NGLs from the Permian Basin and…
  31. June 2017 Investor Presentation – Targa Resources Corp. – slide 31
    Downstream Capabilities Overview Downstream Businesses The Logistics and Marketing segment represents NGL Fractionation & Related Services approximately 45% of total operating margin(1) Strong fractionation position at Mont Belvieu…
  32. June 2017 Investor Presentation – Targa Resources Corp. – slide 32
    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…
  33. June 2017 Investor Presentation – Targa Resources Corp. – slide 33
    Targas Fractionation Assets Targa Fractionation Footprint Domestic Rig Count and NGL Supply 400 2,000 5,000 350 343 1,800 4,500 Liquids Production (MBbl/d) 350 299 309 305 1,600 4,000 288 Throughput (MBbls/d) 300 268…
  34. June 2017 Investor Presentation – Targa Resources Corp. – slide 34
    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…
  35. June 2017 Investor Presentation – Targa Resources Corp. – slide 35
    Downstream LPG Exports LPG Export Forecast(1) 100 90 LPG Exports (MMBbl/month) 80 70 60 50 40 30 20 10 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Saudi…
  36. June 2017 Investor Presentation – Targa Resources Corp. – slide 36
    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…
  37. June 2017 Investor Presentation – Targa Resources Corp. – slide 37
    Reconciliations
  38. June 2017 Investor Presentation – Targa Resources Corp. – slide 38
    Non-GAAP Reconciliations 2017, 2019 and 2021 Adjusted EBITDA The following table presents a reconciliation of Adjusted EBITDA for the periods shown for TRC: Year Ended December 31, Reconciliation of net income (loss) attributable…
  39. June 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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