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Investor Presentation – Targa Resources Corp.

Targa Resources Corp. · Nov 8, 2018 · 50 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. Investor Presentation – Targa Resources Corp. – slide 1
    Targa Resources Corp. Investor Presentation November 2018
  2. 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. Investor Presentation – Targa Resources Corp. – slide 3
    Premier Integrated and Diverse Asset Footprint Integrated Midstream Platform Connects Lowest Cost Supply Growth to Key Demand Markets Substantial gas processing in top-tier basins 10.5 Bcf/d gross processing capacity and…
  4. Investor Presentation – Targa Resources Corp. – slide 4
    Targa Business Overview Large-Cap Integrated Midstream Service Provider Across Natural Gas and NGL Value Chain Domestic Demand Centers Domestic and Intl Demand Centers Power Plants / Generation Petrochemical Facilities Residue…
  5. Investor Presentation – Targa Resources Corp. – slide 5
    Strategic Outlook Investing 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…
  6. Investor Presentation – Targa Resources Corp. – slide 6
    Permian Leads Domestic Production Growth Lower 48 Onshore Tight Oil Production Targa Asset Position 3,000 120 Permian Targa is one of the largest Use of horizontal drilling Permian Rig Count Oct 2018: gatherers and processors of…
  7. Investor Presentation – Targa Resources Corp. – slide 7
    Targas Premier Permian Position Legend Active Rigs (10/22/18) Processing Plant Processing Plant In Progress Multi-plant, multi- Crude Terminal system Permian Existing Gathering Pipeline footprint, Grand Prix In Progress Targa…
  8. Investor Presentation – Targa Resources Corp. – slide 8
    Significant NGLs from Targa Permian Plants Gross NGL Production (MBbl/d) NGL production from Targas G&P footprint is expected to continue 300 to significantly increase Targas annual gross Permian 250 NGL production has grown by…
  9. Investor Presentation – Targa Resources Corp. – slide 9
    Targas Growing NGL Footprint Increasing NGL production directs increasing volumes to Grand Prix and Targas Downstream complex in Mont Belvieu Availability for Targa manages significant NGLs from its Existing Plants Total Gross NGL…
  10. Investor Presentation – Targa Resources Corp. – slide 10
    Targas Grand Prix NGL Pipeline Project Grand Prix connects growing supply to premier NGL hub at Mont Belvieu Targa has the largest G&P position in the Permian Basin supported by substantial acreage dedications, in addition to its G&P…
  11. Investor Presentation – Targa Resources Corp. – slide 11
    Targas Fractionation Footprint Grand Prix further bolsters volumes to Targas Mont Belvieu fractionation complex Grand Prix will direct significant NGL volumes to Targas fractionation complex from the Permian, southern Oklahoma and…
  12. Investor Presentation – Targa Resources Corp. – slide 12
    Delaware Basin Processing Expansions Legend Long-term fee-based agreements to provide Active Rigs (10/22/18) Processing Plant integrated midstream services Processing Plant In Progress Crude Terminal Targa entered into long-term…
  13. Investor Presentation – Targa Resources Corp. – slide 13
    Strategic Residue Takeaway - 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. Investor Presentation – Targa Resources Corp. – slide 14
    Strategic Residue Takeaway - Whistler PL Project Whistler Pipeline Proposed Route Proposed Project Overview: Delaware Basin Midland Basin 450-mile, 42 intrastate gas pipeline and associated facilities originating from the Waha Hub…
  15. Investor Presentation – Targa Resources Corp. – slide 15
    Infrastructure Investments Focused on the Permian An increasing fee-based and operating margin outlook underpinned by attractive organic growth projects underway, with 80%(1) of total project capex focused on the Permian Basin…
  16. Investor Presentation – Targa Resources Corp. – slide 16
    Investments in Oklahoma, Bakken and Eagle Ford Infrastructure investments in Oklahoma, Bakken and Eagle Ford support growing production Joint venture arrangements enhance project returns and support capital efficiency In-Service…
  17. Investor Presentation – Targa Resources Corp. – slide 17
    High Visibility to Rapidly Increasing EBITDA Given the strength of fundamentals across Targas areas of operation and a portfolio of attractive capital projects currently underway, Targa estimates significant year-over-year EBITDA…
  18. Investor Presentation – Targa Resources Corp. – slide 18
    2018 Announced Net Growth Capex 2018E net growth capex based on announced projects after DevCo JVs estimated at 2.4 billion; 85% of total G&P capex focused on the Permian; 80%(1) of total project capex focused on the Permian Total Net…
  19. Investor Presentation – Targa Resources Corp. – slide 19
    Financing Overview 1 billion raised YTD 2018 from successful multi-faceted financing strategy DevCo JVs announced in February 2018 reimbursed Targa for 190 million of capital already spent, and Stonepeak to fund 360 million of…
  20. Investor Presentation – Targa Resources Corp. – slide 20
    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 Premier position in the Permian Basin G&P volume growth…
  21. Investor Presentation – Targa Resources Corp. – slide 21
    Organizational and Financial Information
  22. Investor Presentation – Targa Resources Corp. – slide 22
    Corporate Structure TRC Public Shareholders (229.3 million shares)(1) Targa Resources Corp. TRC Revolving Credit Facility (NYSE: TRGP) Preferred (S&P: BB Shareholders Moodys: Ba2) 100% Interest Senior Notes Targa…
  23. Investor Presentation – Targa Resources Corp. – slide 23
    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%…
  24. Investor Presentation – Targa Resources Corp. – slide 24
    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…
  25. Investor Presentation – Targa Resources Corp. – slide 25
    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…
  26. Investor Presentation – Targa Resources Corp. – slide 26
    Financial Position and Leverage Leverage and Liquidity Protecting the balance sheet and Leverage Available Liquidity maintaining balance sheet flexibility 3,500 6.0x TRP Compliance Covenant remain key objectives 3,100 3,000…
  27. Investor Presentation – Targa Resources Corp. – slide 27
    Diversity and Scale Help Mitigate Commodity Price Changes Adjusted EBITDA vs. Commodity Prices Growth has been driven primarily by investing Adjusted EBITDA - Actual Forecasted Adjusted EBITDA in the business, not by changes in…
  28. Investor Presentation – Targa Resources Corp. – slide 28
    Gathering & Processing Segment
  29. Investor Presentation – Targa Resources Corp. – slide 29
    Extensive Field Gathering and Processing Position Summary Footprint 6.0 Bcf/d of gross processing capacity(1)(2)(3)(4) Significant acreage dedications in the Permian Basin, Bakken, SCOOP, STACK and Eagle Ford G&P capacity additions…
  30. Investor Presentation – Targa Resources Corp. – slide 30
    Permian Midland Basin Summary Asset Map and Rig Activity(1) Legend Interconnected WestTX and SAOU systems located Active Rigs (10/22/18) across the core of the Midland Basin Processing Plant Processing Plant In Progress JV between…
  31. Investor Presentation – Targa Resources Corp. – slide 31
    Permian Delaware Basin Summary Asset Map and Rig Activity(1) Interconnected Versado and Sand Hills capturing Legend Active Rigs (10/22/18) growing production from increasingly active Delaware Processing Plant Basin (also connected…
  32. Investor Presentation – Targa Resources Corp. – slide 32
    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…
  33. Investor Presentation – Targa Resources Corp. – slide 33
    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 16 processing plants across the liquids-rich Anadarko Basin…
  34. Investor Presentation – Targa Resources Corp. – slide 34
    WestOK and SouthOK Summary Asset Map and Rig Activity(1) WestOK WestOK consists of 458 MMcf/d of processing capacity positioned to benefit from the continued northwest movement of upstream activity targeting the STACK Majority of…
  35. Investor Presentation – Targa Resources Corp. – slide 35
    North Texas and SouthTX Summary Asset Map and Rig Activity(1) North Texas North Texas consists of 478 MMcf/d processing capacity in Legend the Barnett Shale and Marble Falls play Pipeline Primarily POP contracts with fee-based…
  36. Investor Presentation – Targa Resources Corp. – slide 36
    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…
  37. Investor Presentation – Targa Resources Corp. – slide 37
    Downstream Segment
  38. Investor Presentation – Targa Resources Corp. – slide 38
    Downstream Assets: Linking Supply to Demand Grand Prix to Superior Most flexible LPG connect growing Premier export facility along Growing Targa and connectivity to NGL supply to NGL fractionation the US Gulf Coast; third-party…
  39. Investor Presentation – Targa Resources Corp. – slide 39
    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, southern Oklahoma…
  40. Investor Presentation – Targa Resources Corp. – slide 40
    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…
  41. Investor Presentation – Targa Resources Corp. – slide 41
    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…
  42. Investor Presentation – Targa Resources Corp. – slide 42
    Targas Fractionation Assets Targa Fractionation Footprint Domestic Rig Count and NGL Supply 500 1,200 6,000 455 450 1,000 5,000 Liquids Production (MBbl/d) 400 Throughput (MBbls/d) 350 343 354 350 800 4,000 299 309…
  43. Investor Presentation – Targa Resources Corp. – slide 43
    Targas LPG Export Business LPG Exports by Destination(1) Propane and Butane Exports(1) 20% 35% 50% 15% 80% Latin America/South America Caribbean Rest of the World Propane Butanes Galena Park LPG Export Volumes Fee…
  44. Investor Presentation – Targa Resources Corp. – slide 44
    Downstream US and Global LPG Exports LPG Export Forecast(1) 120 LPG Exports (MMBbl/month) 100 80 60 40 20 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025…
  45. Investor Presentation – Targa Resources Corp. – slide 45
    Reconciliations targaresources.com NYSE: TRGP
  46. Investor Presentation – Targa Resources Corp. – slide 46
    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.…
  47. Investor Presentation – Targa Resources Corp. – slide 47
    Non-GAAP Reconciliations 2007 to 2013 Adjusted EBITDA targaresources.com NYSE: TRGP 49
  48. Investor Presentation – Targa Resources Corp. – slide 48
    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…
  49. Investor Presentation – Targa Resources Corp. – slide 49
    Non-GAAP Reconciliations Estimated 2019, 2020 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)…
  50. Investor Presentation – Targa Resources Corp. – slide 50
    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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