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October 2019 Investor Presentation – Targa Resources Corp.

Targa Resources Corp. · Oct 1, 2019 · 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. October 2019 Investor Presentation – Targa Resources Corp. – slide 1
    Targa Resources Corp. Investor Presentation October 2019
  2. October 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 10.8 Bcf/d gross processing…
  3. October 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. October 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 One of the largest G&P Capital investments Strong track-record of Asset platform aligns positions…
  5. October 2019 Investor Presentation – Targa Resources Corp. – slide 5
    Integrated Platform Supports Increasing Fee-Based Profile Business Mix and Fee-Based Profile(1) Business Mix 2019E Fee-Based Profile 2019E Permian Basin Fractionation Gathering & Processing(2) Bakken Grand Prix Fractionation 75%…
  6. October 2019 Investor Presentation – Targa Resources Corp. – slide 6
    Strategic Outlook Focus in recent years has been to transform into a fully integrated midstream company with scale and asset diversity Premier Asset Transformation of asset footprint from growth capital investments largely complete…
  7. October 2019 Investor Presentation – Targa Resources Corp. – slide 7
    Next Phase: Optimize and Continue to Invest in Asset Base Focus On Operating Our Business and Assets More Efficiently Continue to focus on safety and improvement across all business functions in the Company Optimizing our integrated…
  8. October 2019 Investor Presentation – Targa Resources Corp. – slide 8
    2019 Announced Net Growth Capex 2019E net growth capex based on announced projects estimated at 2.4 billion With the vast majority of announced projects now online, Targas 2020E net growth capex is estimated to be significantly lower…
  9. October 2019 Investor Presentation – Targa Resources Corp. – slide 9
    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…
  10. October 2019 Investor Presentation – Targa Resources Corp. – slide 10
    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…
  11. October 2019 Investor Presentation – Targa Resources Corp. – slide 11
    Integrated Infrastructure Platform
  12. October 2019 Investor Presentation – Targa Resources Corp. – slide 12
    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…
  13. October 2019 Investor Presentation – Targa Resources Corp. – slide 13
    Targas Premier Permian Infrastructure Legend Active Rigs (7/18/19) Processing Plant Processing Plant In Progress Multi-plant, multi-system Crude Terminal Permian footprint, Existing Gathering Pipeline Grand Prix complemented…
  14. October 2019 Investor Presentation – Targa Resources Corp. – slide 14
    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 4,000 Gateway Plant Midland…
  15. October 2019 Investor Presentation – Targa Resources Corp. – slide 15
    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…
  16. October 2019 Investor Presentation – Targa Resources Corp. – slide 16
    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) Train 8 800 300 700 Train 7 250…
  17. October 2019 Investor Presentation – Targa Resources Corp. – slide 17
    Targas Grand Prix NGL Pipeline Online in Q3 2019 Expect volumes to increase to 200 MBbl/d in September 2019, with volumes further increasing through the balance of the year and into 2020 Strategic Rationale: Permian Basin…
  18. October 2019 Investor Presentation – Targa Resources Corp. – slide 18
    Strategic Residue Takeaway Gulf Coast Express (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…
  19. October 2019 Investor Presentation – Targa Resources Corp. – slide 19
    Organizational and Financial Information
  20. October 2019 Investor Presentation – Targa Resources Corp. – slide 20
    Corporate Structure TRC Public Shareholders (232.8 million shares)(1) Targa Resources Corp. (NYSE: TRGP) TRC Revolving Credit Facility (S&P: BB Preferred Moodys: Ba2) Shareholders 100% Interest Senior Notes Targa…
  21. October 2019 Investor Presentation – Targa Resources Corp. – slide 21
    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…
  22. October 2019 Investor Presentation – Targa Resources Corp. – slide 22
    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%…
  23. October 2019 Investor Presentation – Targa Resources Corp. – slide 23
    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,…
  24. October 2019 Investor Presentation – Targa Resources Corp. – slide 24
    Financial Position and Leverage Protecting the balance sheet while maintaining flexibility remain key objectives Strong available liquidity position of 2.4 billion Leverage and Liquidity Senior Note Maturities Leverage(1) Available…
  25. October 2019 Investor Presentation – Targa Resources Corp. – slide 25
    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…
  26. October 2019 Investor Presentation – Targa Resources Corp. – slide 26
    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…
  27. October 2019 Investor Presentation – Targa Resources Corp. – slide 27
    Gathering & Processing Segment
  28. October 2019 Investor Presentation – Targa Resources Corp. – slide 28
    Extensive Field Gathering and Processing Position Summary Footprint 6.3 Bcf/d of gross processing capacity(1)(2)(3) Significant acreage dedications in the Permian Basin, Bakken, SCOOP, STACK and Eagle Ford G&P capacity additions…
  29. October 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 (7/18/19) core of the Midland Basin Processing Plant Processing Plant In Progress JV between…
  30. October 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 production Legend from increasingly active Delaware Basin (also connected to Permian - Active Rigs (7/18/19)…
  31. October 2019 Investor Presentation – Targa Resources Corp. – slide 31
    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 290 MMcf/d of natural gas processing capacity Fee-based…
  32. October 2019 Investor Presentation – Targa Resources Corp. – slide 32
    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…
  33. October 2019 Investor Presentation – Targa Resources Corp. – slide 33
    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 Pipeline and Marble Falls play Active Rigs (7/18/19) Primarily POP…
  34. October 2019 Investor Presentation – Targa Resources Corp. – slide 34
    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,…
  35. October 2019 Investor Presentation – Targa Resources Corp. – slide 35
    Downstream Segment
  36. October 2019 Investor Presentation – Targa Resources Corp. – slide 36
    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) Grand Prix NGL pipeline…
  37. October 2019 Investor Presentation – Targa Resources Corp. – slide 37
    G&P Volume Drives NGL Flows to Mont Belvieu Growing field NGL production increases NGL flows to Targas expanding Mont Belvieu and Galena Park presence Grand Prix brings NGLs from the Permian Basin, southern Oklahoma and North…
  38. October 2019 Investor Presentation – Targa Resources Corp. – slide 38
    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) 2019…
  39. October 2019 Investor Presentation – Targa Resources Corp. – slide 39
    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…
  40. October 2019 Investor Presentation – Targa Resources Corp. – slide 40
    Targas LPG Export Business LPG Exports by Destination(1) Propane and Butane Exports(1) 22% 47% 42% 78% 12% Latin America / South America Caribbean Rest of the World Propane Butane Galena Park LPG Export Volumes Fee…
  41. October 2019 Investor Presentation – Targa Resources Corp. – slide 41
    U.S. and Global LPG Export Fundamentals LPG Exports by Origin(1) 160 LPG Exports (MMBbl/month) 140 120 100 80 60 40 20 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024…
  42. October 2019 Investor Presentation – Targa Resources Corp. – slide 42
    Global LPG Demand Global LPG Demand by Sector(1) 450 400 Million Metric Tons 350 300 250 200 150 100 50 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 Industrial Engine fuel Other Refinery Manufactured gas Price…
  43. October 2019 Investor Presentation – Targa Resources Corp. – slide 43
    Reconciliations
  44. October 2019 Investor Presentation – Targa Resources Corp. – slide 44
    (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…
  45. October 2019 Investor Presentation – Targa Resources Corp. – slide 45
    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:…
  46. October 2019 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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