Targa Resources USCA Corporate Access Day January 24, 2017
Table of Contents Two Separate Sets of Material Follow: 1) Targa Resources Corp. Expands Premier Permian Footprint with Acquisition of Delaware and Midland Basin Assets 2) Targa Resources Investor Presentation
Targa Resources Corp. Expands Premier Permian Footprint with Acquisition of Delaware and Midland Basin Assets Originally Published 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…
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…
Targa Resources Investor Presentation January 24, 2017
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 Disciplined balance sheet…
Targa Permian Footprint Pro Forma for Outrigger Est. Gross Processing Capacity Crude Storage Capacity Miles of Crude Gathering (MMcf/d) Miles of Pipeline (MBbls) Pipelines SAOU 369 1,650 WestTX (1) 1,075 4,050 Sand Hills 165…
Strategic Position in the Core of the Williston Basin Summary Asset Map and Rig Activity(1) Core position in McKenzie, Legend Dunn and Mountrail counties Targa Crude Pipeline 374 miles of crude gathering Targa Gas pipelines…
Leading Oklahoma, North Texas and South Texas Positions Summary Footprint Four footprints including approximately 13,000 miles of pipeline Over 2.1 Bcf/d of gross processing capacity (2) Announced a joint venture with Sanchez…
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 Targa Pipeline Gathering JV interest subsequently acquired by…
North Texas Exposed to Barnett Shale and Marble Falls Summary Asset Map and Rig Activity(1) 478 MMcf/d of gross processing capacity Primarily Barnett Shale and Marble Falls Customers are a combination of larger independent…
SouthOK Exposure to Increasing SCOOP Activity Summary Asset Map and Rig Activity(1) 580 MMcf/d of gross processing capacity Velma system well positioned to benefit from increasing SCOOP activity Primary growth driver will be…
WestOK Positioned for STACK Growth Summary Asset Map and Rig Activity(1) 460 MMcf/d of gross processing capacity Legend Targa Pipeline Declining Mississippi Lime activity has impacted Active Rigs volumes (10/18/16) Targa…
Producer Activity Drives NGL Flows to Mont Belvieu Growing field NGL production Rockies increases NGL flows to Mont Belvieu Increased NGL production will support Targas expanding Mont Belvieu and Galena Park presence…
Downstream Capabilities Overview Downstream Businesses Assets include: NGL Fractionation / Storage Attractive fractionation footprint at Mont Belvieu and Lake Leading Mont Belvieu (and Lake Charles) footprint with Charles underground…
Targas LPG Export Business LPG Exports by Destination(1) Propane and Butane Exports(1) 26% 15% 51% 23% 85% Latin America/South America Caribbean Rest of the World Propane Butanes Galena Park LPG Export Volumes Fee…
Positioning and Strategy Looking Forward G&P growth driven by producers with assets in some of the most economic basins in the world Focus on continuing to grow in Permian (Midland Basin, Delaware Basin), STACK, SCOOP and Bakken…
Additional Information
Targas Corporate Structure TRC Public Shareholders (180,827,459 Shares)(1) Targa Resources Corp. TRC Closed in March 2016 Term Loan B (NYSE: TRGP) Preferred 1 billion Series A Preferred Stock Revolving Credit Facility (S&P:…
Leverage and Financial Position Protecting and improving the balance sheet has Senior Note Maturities (1) remained a focus 2,000 76% of our senior notes are set to mature in Senior Note Maturities ( in MM) In September, Targa…
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. March 31, 2014 (Noble), to construct a 35 Mbbl/d…
Revisions to Q3 10Q - Reported NGL Futures Notional Volumes As of September 30 2016, we had the following futures positions on ICE; which are derivative instruments designated as hedging instruments that will settle during the years…
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