Targa Resources Corp. Expands Premier Permian Footprint with Acquisition of Delaware and Midland Basin Assets January 23, 2017
Transaction Overview Targa Resources Corp. (NYSE: TRGP) (Targa or the Company) has executed definitive agreements for its subsidiary, Targa Resources Partners LP, to acquire 100% of the membership interests of Outrigger Delaware…
Strategic Rationale Assets, Operations and Contracts Highly Complementary to Connected systems allow for operational and capital efficiencies Existing Targa Expect to immediately connect Outrigger Delaware assets to Sand Hills and…
Strategic Rationale Structure and Financial Impact Initial 565 million of initial consideration represents an 9x 2017E EBITDA multiple Consideration Expect to fund through capital markets activities and borrowings from the TRP…
Further Expansion of Targas Premier Permian Position Legend 65% of active Permian Expect to connect Active Rigs (1/13/17) rigs are on or within 10 Outrigger Midland Targa Processing Plant miles of pro forma assets to WestTX…
Pro Forma Targa Delaware Basin Assets Highlights Over 5,000 miles of pipeline across 3 systems (Outrigger Delaware, Legend Sand Hills and Versado) Active Rigs (1/13/17) Expect to connect Outrigger Delaware assets to Sand Hills…
Pro Forma Targa Midland Basin Assets Highlights Over 5,500 miles of pipeline across 3 systems (Outrigger Midland, WestTX and SAOU) Legend Active Rigs Expect to connect Outrigger Midland assets to (1/13/17) Targa existing WestTX…
Summary Earn-Out Structure Potential earn-out payments are based on realized gross margin(1) on existing contracts as of the estimated close for the Outrigger Delaware and Outrigger Midland assets 565 million of Initial…
Appendix
Permian Basin Production Forecasts and Rig Activity Delaware Basin Production Forecast(1) Rig Activity (Trough vs. Today)(2) 275 268 1,800 17% Estimated Crude Production CAGR 8,000 250 1,600 7,000 18% Estimated Gas Production CAGR…
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