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4Q 2019 Earnings Presentation – Targa Resources Corp.

Targa Resources Corp. · Feb 20, 2020 · 42 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. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 1
    Targa Resources Corp. Investor Presentation February 2020
  2. 4Q 2019 Earnings 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. 4Q 2019 Earnings 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. 4Q 2019 Earnings 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 Integrated asset positions in the…
  5. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 5
    Integrated Platform Supports Increasing Fee-Based Profile Business Mix and Fee-Based Profile(1) Business Mix 2020E Fee-Based Profile 2020E Permian Basin Fractionation Gathering & Processing(2) Fractionation Bakken Grand Prix 80%…
  6. 4Q 2019 Earnings 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 is largely…
  7. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 7
    Strategic Outlook Current Areas of Focus Focus on Operating our Business and Assets More Efficiently Continue to focus on safety and improvement across all Targa business functions Optimize across individual assets and our integrated…
  8. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 8
    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…
  9. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 9
    Integrated Infrastructure Platform
  10. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 10
    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…
  11. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 11
    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 (1/31/20)…
  12. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 12
    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…
  13. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 13
    Downstream Assets: Linking Supply to Demand Grand Prix Premier Superior Most flexible LPG connects growing Growing Targa and fractionation connectivity to export facility along NGL supply to NGL third-party NGL ownership position…
  14. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 14
    Growing NGL Production Feeds Targas Fractionation Assets Significant NGLs from Targa Permian Plants Robust Targa Fractionation Outlook Net NGL Production Targa Fractionation Throughput Volume and Capacity(1) 350 Train 8 800 700…
  15. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 15
    Growing NGL Production Feeds Grand Prix Grand Prix deliveries into Mont Belvieu averaged 266 MBbl/d in Q4 2019 Permian Basin Grand Prix Volumes Expected to Continue to Increase: Incremental Targa Permian processing plant…
  16. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 16
    Financial and ESG Information
  17. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 17
    Corporate Structure TRC Public Shareholders (233.0 million shares)(1) Targa Resources Corp. (NYSE: TRGP) TRC Revolving Credit Facility (S&P: BB Preferred Moodys: Ba2) Shareholders 100% Interest Senior Notes Targa…
  18. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 18
    2020 Financial and Operational Estimates Financial Estimates FY 2020E +18%(3) increase in YoY Adjusted EBITDA driven by full year contribution ( in millions, unless otherwise noted) from projects online in 2019 and contribution from…
  19. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 19
    2020 Net Growth Capex Estimate Capital Expenditure Estimates FY 2020E ( in millions, unless otherwise noted) Net Growth Capital Expenditures 1,200 - 1,300 Gathering & Processing (1) 700 Logistics & Transportation (Downstream)…
  20. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 20
    Prudent Risk Management Hedging Program Further Strengthens Cash Flow Stability Field G&P Hedging Update Commodity Price Sensitivity 2020 2021 Volumes Exposure Wtd. Avg. Volumes Exposure Wtd. Avg. 2020E Adj. EBITDA Commodity…
  21. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 21
    Financial Position and Leverage Protecting the balance sheet while maintaining flexibility remain key objectives Strong available liquidity position of 2.7 billion Leverage metrics expected to improve as cash flow increases from new…
  22. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 22
    DevCo Joint Ventures Highly strategic and largely Permian supply driven 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…
  23. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 23
    Targa Sustainability and ESG Safety, Environmental, Social and Governance Targa is a leading energy infrastructure company focused on the transportation and storage of energy products, including natural gas. Our operations are…
  24. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 24
    The U.S. is a Leader in Production of Natural Gas The U.S. leads the world in crude oil and natural gas production Cleaner burning natural gas has displaced coal as the leading source of power generation Increasing use of natural gas…
  25. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 25
    Global Demand for Natural Gas and LPG Continues to Increase Targa helps deliver efficient and reliable energy to the U.S. and to rest of the world safely Natural gas consumption is estimated to increase by 40% between now and…
  26. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 26
    LPGs Advance Progress Towards U.N. Sustainability Goals The United Nations Sustainable Development Goals (SDGs) are to address all three dimensions of sustainable development (environmental, economic and social) and are integrated…
  27. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 27
    Targa is Well Positioned to Support Global Energy Needs Targa exported 3.1 billion gallons of LPGs globally in 2018 which helped reduce global CO2 missions Targa is one of the largest aggregators of associated gas across the Permian…
  28. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 28
    Gathering & Processing Segment
  29. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 29
    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…
  30. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 30
    Permian Midland and Delaware G&P Permian Midland(1) Permian Delaware(1) Legend Active Rigs (1/31/20) 1.3 Bcf/d of natural gas Legend Active Rigs (1/31/20) Processing Plant processing capacity, Processing Plant Processing Plant In…
  31. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 31
    Badlands G&P - 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…
  32. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 32
    Central G&P Footprint Oklahoma Summary WestOK(1) SouthOK(1) WestOK consists of 458 MMcf/d of processing capacity positioned to benefit from upstream activity targeting the STACK Mix of fee-based and POP contracts SouthOK consists…
  33. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 33
    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…
  34. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 34
    Logistics & Transportation Segment
  35. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 35
    Downstream Capabilities Overview Downstream Businesses The Logistics and Transportation segment represents approximately NGL Transportation & Services 50% of total operating margin(1) Grand Prix NGL pipeline integrating Targas G&P…
  36. 4Q 2019 Earnings Presentation – 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. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 37
    Targas LPG Export Business LPG Exports by Destination(1) Propane and Butane Exports(1) 10% 25% 35% 55% 75% Rest of World Latin America / South America Caribbean Propane Butane Galena Park LPG Export Volumes Fee based…
  38. 4Q 2019 Earnings Presentation – 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. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 39
    Global LPG Demand Global LPG Demand by Sector(1) 16,000 14,000 12,000 10,000 MBbl/d 8,000 6,000 4,000 2,000 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Industrial Engine Fuel Other Demand Refinery…
  40. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 40
    Reconciliations
  41. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 41
    (1) Non-GAAP Reconciliations - Estimated 2020 Adjusted EBITDA The following table presents a reconciliation of estimated Adjusted EBITDA for the periods shown for TRC: Reconciliation of estimated net income attributable to Full…
  42. 4Q 2019 Earnings Presentation – Targa Resources Corp. – slide 42
    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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