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February 2018 Investor Presentation – Targa Resources Corp.

Targa Resources Corp. · Feb 28, 2018 · 46 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. February 2018 Investor Presentation – Targa Resources Corp. – slide 1
    Targa Resources Corp. Investor Presentation February 2018
  2. February 2018 Investor Presentation – Targa Resources Corp. – slide 2
    Investment Highlights Positioned for Premier Asset Visible Financial Long-Term Position Growth Discipline Success Integrated Capital investments Strong balance Investments align midstream asset underway support sheet and liquidity…
  3. February 2018 Investor Presentation – Targa Resources Corp. – slide 3
    Integrated and Diverse Asset Footprint Integrated Midstream Platform Connects Lowest Cost Supply Growth to Key Demand Markets Substantial gas processing in top-tier basins 10.0 Bcf/d gross processing capacity and growing(1)…
  4. February 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 2018E(1) Operating Margin 2018E(1) 100% 100% 75% 75% 65% 50% 35% 50% 25% 25%…
  5. February 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. February 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. February 2018 Investor Presentation – Targa Resources Corp. – slide 7
    Premier Permian Position Legend Active Rigs (2/5/18) Processing Plant Multi-plant, multi- Processing Plant In Progress system Permian Crude Terminal footprint, Pipeline Pipeline In Progress complemented by Grand Prix NGL…
  8. February 2018 Investor Presentation – Targa Resources Corp. – slide 8
    Downstream Assets: Linking Supply to Demand Most flexible LPG Grand Prix to connect Superior connectivity export facility along Premier fractionation growing NGL supply to growing the US Gulf Coast; ownership position in to NGL…
  9. February 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. February 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 Hickory Hills Plant 4Q18 Oahu Plant 1Q18 C Wildcat Plant 2Q18 New…
  11. February 2018 Investor Presentation – Targa Resources Corp. – slide 11
    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…
  12. February 2018 Investor Presentation – Targa Resources Corp. – slide 12
    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 Permian Basin Enhances Targas competitive capabilities to move…
  13. February 2018 Investor Presentation – Targa Resources Corp. – slide 13
    Gulf Coast Express Pipeline (GCX) 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…
  14. February 2018 Investor Presentation – Targa Resources Corp. – slide 14
    Longer-Term Financial Outlook Attractive projects and system expansions underway expected to drive increasing system volumes, translating into increasing EBITDA outlook Permian volume growth drives 85% of expected EBITDA growth over…
  15. February 2018 Investor Presentation – Targa Resources Corp. – slide 15
    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…
  16. February 2018 Investor Presentation – Targa Resources Corp. – slide 16
    Organizational and Financial Information
  17. February 2018 Investor Presentation – Targa Resources Corp. – slide 17
    Corporate Structure TRC Public Shareholders (218,830,282 Shares)(1) Targa Resources Corp. TRC Revolving Credit Facility (NYSE: TRGP) Preferred (S&P: BB- Shareholders Moodys: Ba2) 100% Interest Senior Notes Targa…
  18. February 2018 Investor Presentation – Targa Resources Corp. – slide 18
    2018 Expectations and Long-Term Outlook Financial Expectations Long-Term ( in millions, unless otherwise noted) FY 2018E Outlook (1) Significant growth expected over time Adjusted EBITDA 1,225 - 1,325 +12% YoY increase as capital…
  19. February 2018 Investor Presentation – Targa Resources Corp. – slide 19
    2018 Announced Net Growth Capex 2018E net growth capex based on announced projects after DevCo JVs estimated at 1.6 billion Total Net 2018E Net Expected Primarily ( in millions) Location Capex Capex Completion Fee-Based 200 MMcf/d…
  20. February 2018 Investor Presentation – Targa Resources Corp. – slide 20
    Development Joint Ventures Overview & Key Terms On February 6th, Targa announced the formation of 1.1 billion(1) of DevCo JVs with Stonepeak Infrastructure Partners DevCo JV Assets Grand Prix DevCo 20% interest in Grand Prix…
  21. February 2018 Investor Presentation – Targa Resources Corp. – slide 21
    Development Joint Ventures Benefits 1.1(1) Billion of Development Joint Ventures Significantly Reduce Equity Needs For 2018 and 2019 No dilution to Targas existing shareholders and does not reduce dividend coverage during…
  22. February 2018 Investor Presentation – Targa Resources Corp. – slide 22
    2018 Financing Overview 2018E net growth capex estimated at 1.6 billion (pro forma DevCo JVs), based on announced projects DevCo JVs provide approximately 550 million(1) of capital in 2018, reducing total net growth capex from 2…
  23. February 2018 Investor Presentation – Targa Resources Corp. – slide 23
    Financial Position and Leverage Leverage and Liquidity Protecting the balance sheet and maintaining balance sheet flexibility Leverage Available Liquidity(1) 6.0x remain key objectives TRP Compliance Covenant 2,200 2,100 2,000…
  24. February 2018 Investor Presentation – Targa Resources Corp. – slide 24
    Diversity and Scale Help Mitigate Commodity Price Changes Adjusted EBITDA vs. Commodity Prices Growth has been driven primarily by investing in Adjusted EBITDA - Actual Forecasted Adjusted EBITDA the business, not by changes in…
  25. February 2018 Investor Presentation – Targa Resources Corp. – slide 25
    Gathering & Processing Segment
  26. February 2018 Investor Presentation – Targa Resources Corp. – slide 26
    Extensive Field Gathering and Processing Position Summary Footprint 5.5 Bcf/d of gross processing capacity(1)(2)(3)(4)(5) Over 2 million dedicated acres in the Permian Basin; significant acreage positions in the Bakken, SCOOP, STACK…
  27. February 2018 Investor Presentation – Targa Resources Corp. – slide 27
    Permian Midland Basin Summary Asset Map and Rig Activity(1) Interconnected WestTX and SAOU systems located Legend Active Rigs (2/5/18) across the core of the Midland Basin Processing Plant JV between Targa (72.8% ownership and…
  28. February 2018 Investor Presentation – Targa Resources Corp. – slide 28
    Permian Delaware Basin Summary Asset Map and Rig Activity(1) Interconnected Versado and Sand Hills capturing Legend Active Rigs (2/5/18) growing production from increasingly active Delaware Processing Plant Basin (also connected…
  29. February 2018 Investor Presentation – Targa Resources Corp. – slide 29
    Strategic Position in the Core of the Bakken Summary Asset Map and Rig Activity(1) 460 miles of crude gathering pipelines; 200 miles of natural gas gathering pipelines 90 MMcf/d of natural gas processing capacity, expanding to 290…
  30. February 2018 Investor Presentation – Targa Resources Corp. – slide 30
    Leading Oklahoma, NorthTX and SouthTX Positions Summary Footprint Four asset areas, which include 13,400 miles of pipe Over 2.3 Bcf/d of gross processing capacity(1) 16 processing plants across the liquids-rich Anadarko Basin…
  31. February 2018 Investor Presentation – Targa Resources Corp. – slide 31
    SouthOK and WestOK Summary Asset Map and Rig Activity(1) - SouthOK SouthOK consists of 710 MMcf/d of gross processing capacity well positioned to benefit from increasing SCOOP and Arkoma Woodford activity Majority fee-based…
  32. February 2018 Investor Presentation – Targa Resources Corp. – slide 32
    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 (2/5/18) Primarily POP contracts…
  33. February 2018 Investor Presentation – Targa Resources Corp. – slide 33
    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…
  34. February 2018 Investor Presentation – Targa Resources Corp. – slide 34
    Downstream Segment
  35. February 2018 Investor Presentation – Targa Resources Corp. – slide 35
    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 Grand Prix will bring NGLs from the Permian Basin and North Texas and…
  36. February 2018 Investor Presentation – Targa Resources Corp. – slide 36
    Downstream Capabilities Overview Downstream Businesses The Logistics and Marketing segment represents NGL Fractionation & Related Services (65% of Downstream)(1) approximately 35% of total operating margin(1) Strong fractionation…
  37. February 2018 Investor Presentation – Targa Resources Corp. – slide 37
    Logistics Assets Exceedingly Difficult to Duplicate Fractionators Gross Net Capacity Capacity (MBbl/d) (MBbl/d)(1) Mont Belvieu(1) CBF - Trains 1-3 253 223 CBF - Backend Capacity 40 35 CBF - Train 4 100 88 CBF - Train 5 100 88…
  38. February 2018 Investor Presentation – Targa Resources Corp. – slide 38
    Targas Fractionation Assets Targa Fractionation Footprint Domestic Rig Count and NGL Supply 2,000 5,000 Liquids Production (MBbl/d) 400 1,800 4,500 350 343 354 350 1,600 4,000 309 Throughput (MBbls/d) 299 288 300 1,400…
  39. February 2018 Investor Presentation – Targa Resources Corp. – slide 39
    Targas LPG Export Business LPG Exports by Destination(1) Propane and Butane Exports(1) 15% 35% 45% 20% 85% Latin America/South America Caribbean Rest of the World Propane Butanes Galena Park LPG Export Volumes Fee based…
  40. February 2018 Investor Presentation – Targa Resources Corp. – slide 40
    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…
  41. February 2018 Investor Presentation – Targa Resources Corp. – slide 41
    Reconciliations
  42. February 2018 Investor Presentation – Targa Resources Corp. – slide 42
    Non-GAAP Reconciliations 2014 to 2017 Adjusted EBITDA Year Ended December 31, Reconciliation of net income (loss) attributable to TRC to 2017 2016 2015 2014 Adjusted EBITDA (in millions) Net income (loss) to Targa Resources Corp.…
  43. February 2018 Investor Presentation – Targa Resources Corp. – slide 43
    Non-GAAP Reconciliations 2007 to 2013 Adjusted EBITDA targaresources.com NYSE: TRGP 45
  44. February 2018 Investor Presentation – Targa Resources Corp. – slide 44
    Non-GAAP Reconciliations Estimated 2018 Adjusted EBITDA The following table presents a reconciliation of Adjusted EBITDA for the periods shown for TRC: Year Ended December 31, 2018 Reconciliation of net income (loss) attributable…
  45. February 2018 Investor Presentation – Targa Resources Corp. – slide 45
    Non-GAAP Reconciliations Estimated 2019 and 2021 Adjusted EBITDA(1) The following table presents a reconciliation of Adjusted EBITDA for the periods shown for TRC: Year Ended December 31, Reconciliation of net income (loss)…
  46. February 2018 Investor Presentation – Targa Resources Corp. – slide 46
    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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