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RBC Capital Markets Midstream Conference – Targa Resources Corp.

Targa Resources Corp. · Nov 20, 2019 · 43 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. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 1
    Targa Resources Corp. RBC Capital Markets Midstream Conference November 20, 2019
  2. RBC Capital Markets Midstream Conference – 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. RBC Capital Markets Midstream Conference – 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. RBC Capital Markets Midstream Conference – 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. RBC Capital Markets Midstream Conference – 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. RBC Capital Markets Midstream Conference – 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 is largely…
  7. RBC Capital Markets Midstream Conference – 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. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 8
    Strengthening Financial Profile Increasing cash flows and strengthening dividend coverage are expected to continue to improve Increasing Adjusted EBITDA and cash flow outlook from recently completed growth projects provides strong…
  9. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 9
    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…
  10. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 10
    Integrated Infrastructure Platform
  11. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 11
    Permian Basin is a World Class Resource The Permian Basins multi-stack shale formation delivers low-cost, highly economic drilling inventory supporting a multi-decade growth platform Substantial Recoverable Resources(1) Basin…
  12. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 12
    Targas Premier Permian Infrastructure Asset position across the Midland and Delaware Basins offers competitive and integrated G&P, NGL transportation and fractionation services to producer customers Legend Active Rigs (10/18/19)…
  13. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 13
    Aggregator Of Permian Associated Gas Supply Targas 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…
  14. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 14
    Downstream Assets: Linking Supply to Demand Grand Prix Most flexible LPG Premier Superior connects growing export facility along Growing Targa and fractionation connectivity to NGL supply to NGL the US Gulf Coast; third-party NGL…
  15. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 15
    Growing NGL Production Feeds Targas Fractionation Assets Significant NGLs from Targa Permian Plants Robust Targa Fractionation Outlook Targa Fractionation Throughput Volume and Capacity(1) Net NGL Production 300 800 Train 8 700…
  16. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 16
    Growing NGL Production Feeds Grand Prix Grand Prix Deliveries into Mont Belvieu: During September 2019, Grand Prix deliveries into Mont Belvieu averaged 230 MBbl/d Permian Basin Grand Prix Volumes Expected to Continue to…
  17. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 17
    Organizational and Financial Information
  18. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 18
    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…
  19. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 19
    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% 55% / 45% 65% 25% 25% 35% 0%…
  20. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 20
    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…
  21. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 21
    Financial Position and Leverage Protecting the balance sheet while maintaining flexibility remain key objectives Strong available liquidity position of 1.9 billion Leverage metrics expected to improve as cash flow increases from new…
  22. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 22
    DevCo Joint Ventures Highly strategic pure-play Permian assets within the DevCo JVs are now online Targa retains the upside of projects given the flexibility to buy back the interests over time Targa has the option to acquire all or…
  23. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 23
    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…
  24. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 24
    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…
  25. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 25
    Gathering & Processing Segment
  26. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 26
    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…
  27. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 27
    Permian Midland Basin Summary Asset Map and Rig Activity(1) Interconnected WestTX and SAOU systems located across the Legend Active Rigs (10/18/19) core of the Midland Basin Processing Plant Processing Plant In Progress JV…
  28. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 28
    Permian Delaware Basin Summary Asset Map and Rig Activity(1) Interconnected Versado and Sand Hills capturing growing production Legend Active Rigs (10/18/19) from Delaware Basin (also connected to Permian - Midland) Processing…
  29. RBC Capital Markets Midstream Conference – 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 290 MMcf/d of natural gas processing capacity Fee-based…
  30. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 30
    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…
  31. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 31
    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…
  32. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 32
    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…
  33. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 33
    Downstream Segment
  34. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 34
    Downstream Capabilities Overview Downstream Businesses The Logistics and Marketing segment represents approximately 45% of NGL Transportation & Services total operating margin(1) (60% of Downstream)(1) Grand Prix NGL pipeline…
  35. RBC Capital Markets Midstream Conference – 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 Park presence Grand Prix brings NGLs from the Permian Basin, southern Oklahoma and North…
  36. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 36
    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…
  37. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 37
    Targas LPG Export Business LPG Exports by Destination(1) Propane and Butane Exports(1) 11% 23% 50% 39% 77% Rest of the World Latin America / South America Caribbean Propane Butane Galena Park LPG Export Volumes Fee…
  38. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 38
    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…
  39. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 39
    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…
  40. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 40
    Reconciliations
  41. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 41
    (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…
  42. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 42
    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:…
  43. RBC Capital Markets Midstream Conference – Targa Resources Corp. – slide 43
    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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