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August 2017 Investor Presentation – Targa Resources Corp.

Targa Resources Corp. · Aug 21, 2017 · 43 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. August 2017 Investor Presentation – Targa Resources Corp. – slide 1
    Targa Resources Corp. Investor Presentation August 2017
  2. August 2017 Investor Presentation – Targa Resources Corp. – slide 2
    Strategic Update 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 assets connected…
  3. August 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. August 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. August 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 C underway…
  6. August 2017 Investor Presentation – Targa Resources Corp. – slide 6
    2017 Announced Net Growth Capex 2017 net growth capex now estimated at 1.4 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. August 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. August 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. August 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(1) 2017E(1) 100% 100% 75% 75% 40% 50% 50% 60% 25% 25% 0% 0% (2) Badlands…
  10. August 2017 Investor Presentation – Targa Resources Corp. – slide 10
    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…
  11. August 2017 Investor Presentation – Targa Resources Corp. – slide 11
    Financial Position and Leverage (1) Senior Note Maturities Protecting the balance sheet and maintaining 1,600 balance sheet flexibility remain key objectives 73% of our senior notes mature in 2023 and beyond Senior Note…
  12. August 2017 Investor Presentation – Targa Resources Corp. – slide 12
    Targa Asset Position
  13. August 2017 Investor Presentation – Targa Resources Corp. – slide 13
    Corporate Structure TRC Public Shareholders (215,605,062 Shares)(1) Targa Resources Corp. TRC Revolving Credit Facility (NYSE: TRGP) Preferred (S&P: BB- Shareholders Moodys: Ba2) 100% Interest Senior Notes Targa…
  14. August 2017 Investor Presentation – Targa Resources Corp. – slide 14
    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…
  15. August 2017 Investor Presentation – Targa Resources Corp. – slide 15
    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…
  16. August 2017 Investor Presentation – Targa Resources Corp. – slide 16
    Targas Grand Prix NGL Pipeline Project Strategic Rationale: Rockies Bolsters growing midstream G&P position in Delaware & Midland Basins 2.5 Bcf/d of total Targa processing capacity in Permian basin by 3Q18 Enhances Targas…
  17. August 2017 Investor Presentation – Targa Resources Corp. – slide 17
    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…
  18. August 2017 Investor Presentation – Targa Resources Corp. – slide 18
    Premier Permian Position Legend Active Rigs (7/20/17) 2 million dedicated Processing Plant acres from a diverse Processing Plant In Progress group of producers Crude Terminal Pipeline Pipeline In Progress (1) 2.5 Bcf/d(1) of total…
  19. August 2017 Investor Presentation – Targa Resources Corp. – slide 19
    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…
  20. August 2017 Investor Presentation – Targa Resources Corp. – slide 20
    Permian Midland Summary (WestTX and SAOU systems) Summary Asset Map and Rig Activity(1) WestTX and SAOU systems located across the core Legend Active Rigs (7/20/17) of the Midland Basin Processing Plant Processing Plant In Operate…
  21. August 2017 Investor Presentation – Targa Resources Corp. – slide 21
    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 (7/20/17) from increasingly active Delaware Basin Processing…
  22. August 2017 Investor Presentation – Targa Resources Corp. – slide 22
    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…
  23. August 2017 Investor Presentation – Targa Resources Corp. – slide 23
    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…
  24. August 2017 Investor Presentation – Targa Resources Corp. – slide 24
    SouthTX & NorthTX Summary Asset Map and Rig Activity(1) - SouthTX Legend SouthTX consists of multi-county gathering system Pipeline with interconnected plants spanning the Eagle Ford Active Rigs (7/20/17) Growth driven by JV with…
  25. August 2017 Investor Presentation – Targa Resources Corp. – slide 25
    SouthOK & WestOK Summary Asset Map and Rig Activity(1) - SouthOK SouthOK consists of 580 MMcf/d of gross processing capacity well positioned to benefit from increasing SCOOP activity Majority fee-based contracts Currently building…
  26. August 2017 Investor Presentation – Targa Resources Corp. – slide 26
    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…
  27. August 2017 Investor Presentation – Targa Resources Corp. – slide 27
    Downstream Capabilities Overview Downstream Businesses The Logistics and Marketing segment represents NGL Fractionation & Related Services approximately 40% of total operating margin(1) Strong fractionation position at Mont Belvieu…
  28. August 2017 Investor Presentation – Targa Resources Corp. – slide 28
    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…
  29. August 2017 Investor Presentation – Targa Resources Corp. – slide 29
    Targas Fractionation Assets Targa Fractionation Footprint Domestic Rig Count and NGL Supply 400.0 2,000 5,000 350 343 350.0 339 1,800 4,500 Liquids Production (MBbl/d) 299 309 288 1,600 4,000 Throughput (MBbls/d) 300.0…
  30. August 2017 Investor Presentation – Targa Resources Corp. – slide 30
    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 based…
  31. August 2017 Investor Presentation – Targa Resources Corp. – slide 31
    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…
  32. August 2017 Investor Presentation – Targa Resources Corp. – slide 32
    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…
  33. August 2017 Investor Presentation – Targa Resources Corp. – slide 33
    Additional Information 2Q 2017
  34. August 2017 Investor Presentation – Targa Resources Corp. – slide 34
    Financial Performance - 2Q 2017 Business Mix Segment Operating Margin 2Q 2017(1) Downstream Operating Field G&P Operating Margin Margin 2Q 2017 2Q 2017(3) 100% 100% 75% 40% 75% 50% 50% 60% 25% 25% 0% 0% Badlands…
  35. August 2017 Investor Presentation – Targa Resources Corp. – slide 35
    Operational Performance Gathering & Processing Segment 2Q17 Highlights: Field G&P Natural Gas Inlet Volumes and Field G&P Natural Gas Inlet NGL Production(3) 9.5% sequential increase in Permian volumes reflects 3,000 300 NGL…
  36. August 2017 Investor Presentation – Targa Resources Corp. – slide 36
    Operational Performance Downstream Segment 2Q17 Highlights: Targa Fractionation Volumes 400 Fractionation 350 11% sequential increase in fractionation volumes 339 330 Throughput (MBbls/d) 300 313 305 reflects growth in Field…
  37. August 2017 Investor Presentation – Targa Resources Corp. – slide 37
    Operating Segment Performance 2Q 2017 vs. 1Q 2017 Variances Gathering & Processing segment operating margin decreased 3.9 million + Higher Permian volumes and the inclusion of the recent Permian acquisition + Higher Badlands gas…
  38. August 2017 Investor Presentation – Targa Resources Corp. – slide 38
    Full Year 2017 Expectations 2017E Adjusted EBITDA On-Track to Meet Full Year 2017 Expectations (millions) FY 2017E 1,130mm 600 2017E Total Field G&P Natural Gas Inlet Volumes on-track to increase 10% vs. 500 average 2016 535 53%…
  39. August 2017 Investor Presentation – Targa Resources Corp. – slide 39
    Reconciliations
  40. August 2017 Investor Presentation – Targa Resources Corp. – slide 40
    Non-GAAP Reconciliations 2014 to 2016 Adjusted EBITDA Year Ended December 31, Reconciliation of net income (loss) attributable to TRC to Adjusted 2016 2015 2014 EBITDA (in millions) Net income (loss) to Targa Resources Corp.…
  41. August 2017 Investor Presentation – Targa Resources Corp. – slide 41
    Non-GAAP Reconciliations 2017 Adjusted EBITDA The following table presents a reconciliation of Adjusted EBITDA for the periods shown for TRC: Six Months Ended Reconciliation of net income (loss) attributable to TRC June 30, 2017…
  42. August 2017 Investor Presentation – Targa Resources Corp. – slide 42
    Non-GAAP Reconciliations Forecasted 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)…
  43. August 2017 Investor Presentation – Targa Resources Corp. – slide 43
    1000 Louisiana Suite 4300 Houston, TX 77002 Phone: (713) 584-1000 Email: InvestorRelationstargaresources.com Website: www.targaresources.com

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