Targa Resources Corp. J.P. Morgan Energy Conference June 18, 2019
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…
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…
A Core Energy Infrastructure Holding Positioned for Premier Asset Visible Financial Long-Term Position Growth Discipline Success Largest G&P position Capital investments Strong track-record of Asset platform aligns in the…
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…
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…
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…
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…
2019 Announced Net Growth Capex 2019E net growth capex based on announced projects estimated at 2.3 billion With the vast majority of announced projects on-track to begin operations in 2019, Targas 2020E net growth capex is estimated…
Strengthening Financial Profile 2019 estimated equity financing needs substantially met from the closing of the sale of a 45% interest in the Badlands for 1.6 billion Line of sight to strengthening dividend coverage and increasing…
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…
Integrated Infrastructure Platform
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 4,000 Use of horizontal drilling Permian Rig…
Targas Premier Permian Infrastructure Legend Active Rigs (4/22/19) Processing Plant Processing Plant In Progress Multi-plant, multi-system Crude Terminal Permian footprint, Existing Gathering Pipeline Grand Prix complemented…
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…
Downstream Assets: Linking Supply to Demand Grand Prix to Most flexible LPG Premier Superior connect growing export facility along Growing Targa and connectivity to NGL supply to NGL fractionation the US Gulf Coast; third-party…
NGL Growth Feeds Targas Fractionation Assets Significant NGLs from Targa Permian Plants Robust Targa Fractionation Outlook Net NGL Production Targa Fractionation Throughput Volume and Capacity(1) 800 Train 8 300 700 Train 7 250…
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…
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…
2019 Financial and Operational Expectations(1) Financial Expectations ( in millions, unless otherwise noted) FY 2019E(2) Adjusted EBITDA is expected to Adjusted EBITDA 1,300 - 1,400 ramp in the second half of 2019 as significant…
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%…
Badlands Minority Interest Sale - Transaction Overview Targa closed on the sale of a 45% interest in Badlands(1) to funds managed by GSO Capital Partners and Blackstone Tactical Opportunities (collectively Blackstone) for 1.6 billion…
Financial Position and Leverage Protecting the balance sheet and maintaining Leverage and Liquidity balance sheet flexibility remain key objectives Leverage(1) 4,000 Available Liquidity(1) 6.0x 3,400 Proven track record of…
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…
Sustainability and ESG Safety, Environmental, Social and Governance As an energy infrastructure company focused on the transportation and storage of energy products, our operations are essential to the delivery of energy…
Gathering & Processing Segment
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…
Permian Midland Basin Summary Asset Map and Rig Activity(1) Interconnected WestTX and SAOU systems located across the Legend Active Rigs (4/22/19) core of the Midland Basin Processing Plant Processing Plant In Progress JV between…
Permian Delaware Basin Summary Asset Map and Rig Activity(1) Interconnected Versado and Sand Hills capturing growing Legend Active Rigs (4/22/19) production from increasingly active Delaware Basin (also Processing Plant connected…
Delaware Basin Commercial Execution Long-term fee-based agreements with Asset Map and Rig Activity(1) Large Investment Grade Energy Company Legend Active Rigs (4/22/19) Processing Plant In early 2018, Targa entered into long-term…
Strategic Position in the Core of the Bakken Summary Asset Map and Rig Activity(1) JV asset with Blackstone 460 miles of crude gathering pipelines; 200 miles of natural gas gathering pipelines 90 MMcf/d of natural gas processing…
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…
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…
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,…
Downstream Segment
Downstream Capabilities Overview Downstream Businesses The Logistics and Marketing segment represents approximately 40% of NGL Transportation & Services total operating margin(1) (60% of Downstream)(1) 1,200 mile NGL pipeline…
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 and…
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…
Targas LPG Export Business LPG Exports by Destination(1) Propane and Butane Exports(1) 20% 42% 46% 80% 12% Latin America / South America Caribbean Rest of the World Propane Butane Galena Park LPG Export Volumes Fee…
Reconciliations
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…
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 47
(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…
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:…
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