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February 2019 Investor Presentation – Targa Resources Corp.

Targa Resources Corp. · Feb 20, 2019 · 47 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 2019 Investor Presentation – Targa Resources Corp. – slide 1
    Targa Resources Corp. Investor Presentation February 2019
  2. February 2019 Investor Presentation – Targa Resources Corp. – slide 2
    Premier Energy Infrastructure Company Diverse Asset Platform Connects Low Cost Natural Gas and NGL Supply Growth to Key Demand Markets Substantial natural gas gathering & processing in top-tier basins 10.5 Bcf/d gross processing…
  3. February 2019 Investor Presentation – Targa Resources Corp. – slide 3
    Targa Business Overview Portfolio of Integrated Assets Across Natural Gas and Natural Gas Liquids Value Chain Residue Natural Gas Domestic Residue Demand Centers Domestic NGL Demand Centers Power Plants / Generation Petrochemical…
  4. February 2019 Investor Presentation – Targa Resources Corp. – slide 4
    A Core Energy Infrastructure Holding Positioned for Premier Asset Visible Financial Long-Term Position Growth Discipline Success Integrated asset Capital investments Strong track-record of Asset platform aligns platform in…
  5. February 2019 Investor Presentation – Targa Resources Corp. – slide 5
    Business Profile Supports Sustainable Growing EBITDA Business Mix and Fee-Based Profile(1) Business Mix Fee-Based Profile Permian Basin Fractionation Gathering & Processing(2) Bakken Grand Prix Fractionation 75% SouthOK / WestOK…
  6. February 2019 Investor Presentation – Targa Resources Corp. – slide 6
    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) Premier Asset Position…
  7. February 2019 Investor Presentation – Targa Resources Corp. – slide 7
    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…
  8. February 2019 Investor Presentation – Targa Resources Corp. – slide 8
    Investments in Oklahoma and Bakken Infrastructure investments in Oklahoma and Bakken support growing production Joint venture and contracting arrangements enhance project returns and support capital efficiency Oklahoma and Bakken…
  9. February 2019 Investor Presentation – Targa Resources Corp. – slide 9
    2019 Announced Net Growth Capex 2019E net growth capex based on announced projects estimated at 2.3 billion 2019E Expected Primarily ( in millions) Location Net Growth Capex Completion Fee-Based 250 MMcf/d WestTX Hopson Plant and…
  10. February 2019 Investor Presentation – Targa Resources Corp. – slide 10
    Badlands Minority Interest Sale - Transaction Overview In February 2019, Targa entered into definitive agreements to sell a 45% interest in Badlands(1) to funds managed by GSO Capital Partners and Blackstone Tactical Opportunities…
  11. February 2019 Investor Presentation – Targa Resources Corp. – slide 11
    Significant Progress Made YTD on 2019 Financing Plan 2019 net growth capex is currently estimated to be 2.3 billion, based on announced projects Raised 1.6 billion in proceeds from 45% minority interest sale in Badlands Over 2.5…
  12. February 2019 Investor Presentation – Targa Resources Corp. – slide 12
    Key Takeaways Integrated & Right assets in the right places - premier position in the Permian Basin and G&P volume Strategically growth further increases Downstream asset utilization Located Assets Grand Prix NGL Pipeline bolsters…
  13. February 2019 Investor Presentation – Targa Resources Corp. – slide 13
    Integrated Infrastructure Platform
  14. February 2019 Investor Presentation – Targa Resources Corp. – slide 14
    Permian Basin Leads Diverse Domestic Production Growth Targas asset footprint provides best-in-class, pure-play Permian integrated infrastructure Lower 48 Onshore Tight Oil Production 3,000 120 Use of horizontal drilling Permian Rig…
  15. February 2019 Investor Presentation – Targa Resources Corp. – slide 15
    Targas Premier Permian Infrastructure Legend Active Rigs (1/28/19) Processing Plant Processing Plant In Progress Multi-plant, multi-system Crude Terminal Permian footprint, Existing Gathering Pipeline Grand Prix In Progress…
  16. February 2019 Investor Presentation – Targa Resources Corp. – slide 16
    Aggregator Of Permian Associated Gas Supply Permian natural gas processing expansions are driven by producer needs for incremental infrastructure, resulting in increasing NGL supply managed by Targa Peregrine Plant Delaware 3,500…
  17. February 2019 Investor Presentation – Targa Resources Corp. – slide 17
    Downstream Assets: Linking Supply to Demand Grand Prix to Most flexible LPG Premier Superior connect growing export facility along Growing Targa and fractionation connectivity to NGL supply to NGL the US Gulf Coast; third-party…
  18. February 2019 Investor Presentation – Targa Resources Corp. – slide 18
    NGL Growth Feeds Targas Fractionation Assets Significant NGLs from Targa Permian Plants Robust Targa Fractionation Outlook Gross NGL Production Targa Fractionation Throughput Volume and Capacity(1) 300 800 Train 8 700 Train 7 250…
  19. February 2019 Investor Presentation – Targa Resources Corp. – slide 19
    Targas Grand Prix NGL Pipeline Project Grand Prix connects growing supply to premier NGL hub at Mont Belvieu Targas G&P position in the Permian Basin supported by substantial acreage dedications, in addition to its G&P positions in…
  20. February 2019 Investor Presentation – Targa Resources Corp. – slide 20
    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…
  21. February 2019 Investor Presentation – Targa Resources Corp. – slide 21
    Organizational and Financial Information
  22. February 2019 Investor Presentation – Targa Resources Corp. – slide 22
    Corporate Structure TRC Public Shareholders (232.1 million shares)(1) Targa Resources Corp. (NYSE: TRGP) TRC Revolving Credit Facility (S&P: BB Preferred Moodys: Ba2) Shareholders 100% Interest Senior Notes Targa…
  23. February 2019 Investor Presentation – Targa Resources Corp. – slide 23
    2019 Financial and Operational Expectations Financial Expectations ( in millions, unless otherwise noted) FY 2019E(1) Adjusted EBITDA is expected to Adjusted EBITDA 1,300 - 1,400 ramp in the second half of 2019 as significant growth…
  24. February 2019 Investor Presentation – Targa Resources Corp. – slide 24
    Business Mix and Hedging Program Business Mix Field Gathering & Processing Segment Operating Margin(1) Downstream Operating Margin 2019E(1) Operating Margin 2019E(1) 100% 100% 75% 75% 50% 50% 60% / 40% 65% 25% 25% 35% 0% 0%…
  25. February 2019 Investor Presentation – Targa Resources Corp. – slide 25
    Financial Position and Leverage Protecting the balance sheet and maintaining Leverage and Liquidity balance sheet flexibility remain key objectives Leverage Available Liquidity(1) (2) Proven track record of accessing both public and…
  26. February 2019 Investor Presentation – Targa Resources Corp. – slide 26
    Longer-Term Outlook (Published November 2018) 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…
  27. February 2019 Investor Presentation – Targa Resources Corp. – slide 27
    Gathering & Processing Segment 28
  28. February 2019 Investor Presentation – Targa Resources Corp. – slide 28
    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…
  29. February 2019 Investor Presentation – Targa Resources Corp. – slide 29
    Permian Midland Basin Summary Asset Map and Rig Activity(1) Interconnected WestTX and SAOU systems located across the Legend Active Rigs (1/28/19) core of the Midland Basin Processing Plant Processing Plant In Progress JV between…
  30. February 2019 Investor Presentation – Targa Resources Corp. – slide 30
    Permian Delaware Basin Summary Asset Map and Rig Activity(1) Interconnected Versado and Sand Hills capturing growing Legend Active Rigs (1/28/19) production from increasingly active Delaware Basin (also Processing Plant connected…
  31. February 2019 Investor Presentation – Targa Resources Corp. – slide 31
    Delaware Basin Commercial Execution Long-term fee-based agreements with Asset Map and Rig Activity(1) Large Investment Grade Energy Company Legend Active Rigs (1/28/19) In early 2018, Targa entered into long-term fee-based…
  32. February 2019 Investor Presentation – Targa Resources Corp. – slide 32
    Strategic Position in the Core of the Bakken Summary Asset Map and Rig Activity(1) In February 2019, announced a JV to sell a 45% interest in Badlands to Blackstone (expected to close in 2Q 2019) 460 miles of crude gathering…
  33. February 2019 Investor Presentation – Targa Resources Corp. – slide 33
    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…
  34. February 2019 Investor Presentation – Targa Resources Corp. – slide 34
    North Texas and SouthTX Summary Asset Map and Rig Activity(1) North Texas North Texas consists of 478 MMcf/d processing capacity in the Barnett Shale Legend and Marble Falls play Pipeline Active Rigs Primarily POP contracts with…
  35. February 2019 Investor Presentation – Targa Resources Corp. – slide 35
    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 plant,…
  36. February 2019 Investor Presentation – Targa Resources Corp. – slide 36
    Downstream Segment
  37. February 2019 Investor Presentation – Targa Resources Corp. – slide 37
    Downstream Capabilities Overview Downstream Businesses The Logistics and Marketing segment represents approximately 40% of NGL Fractionation & Related Services (40% of Downstream)(1) total operating margin(1) Strong fractionation…
  38. February 2019 Investor Presentation – Targa Resources Corp. – slide 38
    G&P Volume Drives NGL Flows to Mont Belvieu Growing field NGL production increases NGL flows to Targas expanding Mont Rockies Belvieu and Galena Park presence Grand Prix will bring NGLs from the Permian Basin, southern Oklahoma…
  39. February 2019 Investor Presentation – Targa Resources Corp. – slide 39
    Growing NGL Footprint Feeds Grand Prix Increasing NGL production directs increasing volumes to Grand Prix and Targas Downstream complex in Mont Belvieu Availability for Existing Plants Total Gross NGL Production (MBbl/d)(1) 2018…
  40. February 2019 Investor Presentation – Targa Resources Corp. – slide 40
    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…
  41. February 2019 Investor Presentation – Targa Resources Corp. – slide 41
    Targas LPG Export Business LPG Exports by Destination(1) Propane and Butane Exports(1) 20% 40% 45% 80% 15% Latin America/South America Caribbean Rest of the World Propane Butanes Galena Park LPG Export Volumes Fee based…
  42. February 2019 Investor Presentation – Targa Resources Corp. – slide 42
    Reconciliations
  43. February 2019 Investor Presentation – Targa Resources Corp. – slide 43
    Non-GAAP Reconciliations - 2014 to 2018 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) attributable to TRC to…
  44. February 2019 Investor Presentation – Targa Resources Corp. – slide 44
    Non-GAAP Reconciliations - 2007 to 2013 Adjusted EBITDA The following table presents a reconciliation of Adjusted EBITDA for the periods shown for TRC: targaresources.com NYSE TRGP 46
  45. February 2019 Investor Presentation – Targa Resources Corp. – slide 45
    (1) Non-GAAP Reconciliations - Estimated 2019 Adjusted EBITDA The following table presents a reconciliation of estimated Adjusted EBITDA for the periods shown for TRC: Year Ended December 31, Reconciliation of estimated net…
  46. February 2019 Investor Presentation – Targa Resources Corp. – slide 46
    Longer-Term Outlook (Published November 2018) Non-GAAP Reconciliations - Estimated 2020 and 2021 Adjusted EBITDA The following table presents a reconciliation of estimated Adjusted EBITDA for the periods shown for TRC:…
  47. February 2019 Investor Presentation – Targa Resources Corp. – slide 47
    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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