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January 2018 Investor Presentation – Targa Resources Corp.

Targa Resources Corp. · Jan 31, 2018 · 41 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. January 2018 Investor Presentation – Targa Resources Corp. – slide 1
    Targa Resources Corp. Investor Presentation January 2018
  2. January 2018 Investor Presentation – Targa Resources Corp. – slide 2
    Investment Highlights Positioned for Premier Asset Visible Growth Financial Long-Term Position Discipline Success Integrated Capital investments Strong balance Investments align midstream asset underway support sheet and liquidity…
  3. January 2018 Investor Presentation – Targa Resources Corp. – slide 3
    Integrated and Diverse Asset Footprint Integrated Midstream Platform Connects Domestic Supply Growth to Key Demand Markets Substantial gas processing in top-tier basins 9.2 Bcf/d gross processing capacity and growing(1)…
  4. January 2018 Investor Presentation – Targa Resources Corp. – slide 4
    Business Mix, Diversity and Fee-Based Margin Business Mix Segment Operating Margin(1) Downstream Field Gathering & Processing Operating Margin 2017E(1) Operating Margin 2017E(1) 100% 100% 75% 75% 60% 50% 40% 50% 25% 25%…
  5. January 2018 Investor Presentation – Targa Resources Corp. – slide 5
    Targa Growth Backed by Strong Fundamentals US NGL Production from Key Basins 5,000,000 Targa G&P assets positioned in active 4,000,000 basins(1) Domestic BBL/Day 3,000,000 Significant access to NGL supply growth supply…
  6. January 2018 Investor Presentation – Targa Resources Corp. – slide 6
    Targa is Positioned to Benefit from Key Domestic Energy Themes Theme Targa Benefits Higher crude oil volumes Higher natural gas inlet volumes Continued Strong Higher gross NGL production Outlook for Additional volumes for Targas…
  7. January 2018 Investor Presentation – Targa Resources Corp. – slide 7
    Premier Permian Position Legend Active Rigs (9/28/17) Processing Plant Multi-plant, multi- Processing Plant In Progress system Permian Crude Terminal footprint, Pipeline Pipeline In Progress complemented by Grand Prix NGL…
  8. January 2018 Investor Presentation – Targa Resources Corp. – slide 8
    Downstream Assets: Linking Supply to Demand Most flexible LPG Grand Prix NGL Superior connectivity export facility along Pipeline to connect Premier fractionation to growing the US Gulf Coast; growing NGL supply ownership…
  9. January 2018 Investor Presentation – Targa Resources Corp. – slide 9
    Strategic Outlook Invest in projects that leverage existing Targa infrastructure and further strengthen competitive advantage 80% of announced growth capital program focused on the Permian Basin(1) Increasing producer volumes…
  10. January 2018 Investor Presentation – Targa Resources Corp. – slide 10
    Projects in Core Growth Areas A Delaware Basin CC Oklahoma & SouthTX Processing capacity STACK/SCOOP G&P additions underway opportunities (+310 MMcf/d) 2 new plants New pipelines and Oahu Plant 4Q17 C compression to bring on…
  11. January 2018 Investor Presentation – Targa Resources Corp. – slide 11
    2017 Announced Net Growth Capex 2017 net growth capex estimated at 1.3 billion, based on the announced projects outlined below 70% total G&P capex focused on the Permian; 80% of total project capex focused on the Permian Includes 275…
  12. January 2018 Investor Presentation – Targa Resources Corp. – slide 12
    Capital Investments Support Growth Outlook An increasing fee-based and operating margin outlook underpinned by attractive organic growth projects underway and additional potential attractive growth capital investment opportunities…
  13. January 2018 Investor Presentation – Targa Resources Corp. – slide 13
    Targas Grand Prix NGL Pipeline Project Strategic Rationale: Largest G&P position in Permian Basin will direct significant volumes to Grand Prix over the long-term Enhances Targas competitive capabilities to move volumes from the…
  14. January 2018 Investor Presentation – Targa Resources Corp. – slide 14
    Gulf Coast Express Pipeline Delaware Basin Strategic Rationale: Midland Basin Secures reliable takeaway for increased natural gas production from the Permian Basin to premium markets along the Texas Gulf Coast Further enhances…
  15. January 2018 Investor Presentation – Targa Resources Corp. – slide 15
    Longer-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…
  16. January 2018 Investor Presentation – Targa Resources Corp. – slide 16
    Key Takeaways Right assets in the right places - integrated G&P asset platform in Strategically top-tier basins, with premier connectivity to demand markets Located Assets G&P volume growth bolsters Downstream asset utilization and…
  17. January 2018 Investor Presentation – Targa Resources Corp. – slide 17
    Organizational and Financial Information
  18. January 2018 Investor Presentation – Targa Resources Corp. – slide 18
    Corporate Structure TRC Public Shareholders (215,632,882 Shares)(1) Targa Resources Corp. TRC Revolving Credit Facility (NYSE: TRGP) Preferred (S&P: BB- Shareholders Moodys: Ba2) 100% Interest Senior Notes Targa…
  19. January 2018 Investor Presentation – Targa Resources Corp. – slide 19
    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 Forecasted…
  20. January 2018 Investor Presentation – Targa Resources Corp. – slide 20
    Financial Position and Leverage Leverage and Liquidity Protecting the balance sheet and maintaining balance sheet flexibility remain Leverage Available Liquidity(1) 2,200 key objectives 6.0x TRP Compliance Covenant 2,000 Strong…
  21. January 2018 Investor Presentation – Targa Resources Corp. – slide 21
    Gathering & Processing Segment
  22. January 2018 Investor Presentation – Targa Resources Corp. – slide 22
    Extensive Field Gathering and Processing Position Summary Footprint 4.7 Bcf/d of gross processing capacity(1)(2)(3) 2 million dedicated acres in the Permian Basin; significant acreage positions in the Bakken, SCOOP, STACK and Eagle…
  23. January 2018 Investor Presentation – Targa Resources Corp. – slide 23
    Permian Midland Basin Summary Asset Map and Rig Activity(1) Legend Interconnected WestTX and SAOU systems located Active Rigs (9/28/17) across the core of the Midland Basin Processing Plant Processing Plant In JV between Targa…
  24. January 2018 Investor Presentation – Targa Resources Corp. – slide 24
    Permian Delaware Basin Summary Asset Map and Rig Activity(1) Legend Interconnected Versado and Sand Hills capturing Active Rigs (9/28/17) growing production from increasingly active Delaware Processing Plant Basin (also connected…
  25. January 2018 Investor Presentation – Targa Resources Corp. – slide 25
    Strategic Position in the Core of the Bakken 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 Fee-based…
  26. January 2018 Investor Presentation – Targa Resources Corp. – slide 26
    Leading Oklahoma, NorthTX and SouthTX Positions Summary Footprint Four asset areas, which include approximately 14,000 miles of pipeline Over 2.1 Bcf/d of gross processing capacity(1) 15 processing plants across the liquids-rich…
  27. January 2018 Investor Presentation – Targa Resources Corp. – slide 27
    SouthOK and 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 Recently…
  28. January 2018 Investor Presentation – Targa Resources Corp. – slide 28
    NorthTX and SouthTX Summary Asset Map and Rig Activity(1) North Texas North Texas consists of 478 MMcf/d processing capacity Legend in the Barnett Shale and Marble Falls play Pipeline Active Rigs Primarily POP contracts with…
  29. January 2018 Investor Presentation – Targa Resources Corp. – slide 29
    Coastal G&P 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 Gillis…
  30. January 2018 Investor Presentation – Targa Resources Corp. – slide 30
    Downstream Segment
  31. January 2018 Investor Presentation – Targa Resources Corp. – slide 31
    G&P Volume Drives NGL Flows to Mont Belvieu Growing field NGL production increases NGL flows to Targas expanding Mont Belvieu and Galena Rockies Park presence Targas Grand Prix NGL Pipeline will bring NGLs from the Permian…
  32. January 2018 Investor Presentation – Targa Resources Corp. – slide 32
    Downstream Capabilities Overview Downstream Businesses The Logistics and Marketing segment represents NGL Fractionation & Related Services (55% of Downstream)(1) approximately 40% of total operating margin(1) Strong fractionation…
  33. January 2018 Investor Presentation – Targa Resources Corp. – slide 33
    Logistics Assets Exceedingly Difficult to Duplicate Fractionators Gross Net Capacity Capacity (MBbl/d) (MBbl/d)(1) (1) Trains 1-3 253 223 CBF - Mont Belvieu Backend Capacity 40 35 Train 4 100 88 Train 5 100 88 GCF - Mont…
  34. January 2018 Investor Presentation – Targa Resources Corp. – slide 34
    Targas Fractionation Assets Targa Fractionation Footprint Domestic Rig Count and NGL Supply 400.0 2,000 5,000 350 Liquids Production (MBbl/d) 343 329 350.0 1,800 4,500 299 309 Throughput (MBbls/d) 300.0 288 1,600 4,000…
  35. January 2018 Investor Presentation – Targa Resources Corp. – slide 35
    Targas LPG Export Business LPG Exports by Destination(1) Propane and Butane Exports(1) 15% 40% 40% 85% 20% Latin America/South America Caribbean Rest of the World Propane Butanes Galena Park LPG Export Volumes Fee based…
  36. January 2018 Investor Presentation – Targa Resources Corp. – slide 36
    Downstream US and Global LPG Exports LPG Export Forecast(1) 100 LPG Exports (MMBbl/month) 90 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…
  37. January 2018 Investor Presentation – Targa Resources Corp. – slide 37
    Reconciliations
  38. January 2018 Investor Presentation – Targa Resources Corp. – slide 38
    Non-GAAP Reconciliations 2014 to 2016 Adjusted EBITDA targaresources.com NYSE: TRGP (1) 2017 net income attributable to TRC does not include contributions from the Condensate Splitter Project, in 2019 and 2021 net income…
  39. January 2018 Investor Presentation – Targa Resources Corp. – slide 39
    Non-GAAP Reconciliations 2007 to 2013 Adjusted EBITDA targaresources.com NYSE: TRGP 41
  40. January 2018 Investor Presentation – Targa Resources Corp. – slide 40
    Non-GAAP Reconciliations Estimated 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)…
  41. January 2018 Investor Presentation – Targa Resources Corp. – slide 41
    Visit us at targaresources.com Contact Information: Email: InvestorRelationstargaresources.com Phone: (713) 584-1000 811 Louisiana Street Suite 2100 Houston, TX 77002

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