Targa Resources Acquisition of Atlas Pipeline Partners, L.P. and Atlas Energy, L.P. October 2014
Additional Information Additional Information and Where to Find It In connection with the proposed transaction, Targa Resources Corp. (TRGP) will file with the U.S. Securities and Exchange Commission (the SEC) a registration statement on…
Targa + Atlas: Transaction Overview Targa Resources Partners LP (NYSE: NGLS; TRP or the Partnership) has executed a definitive agreement to acquire Atlas Pipeline Partners, L.P. (NYSE: APL) for 5.8 billion(1) 0.5846 NGLS common units…
Targa + Atlas: Benefits All Shareholders NGLS APL NGLS + Cash Complementary assets in attractive basins Immediate value uplift of 15% premium Higher distribution growth outlook Higher distribution growth outlook Scale and diversity…
Targa + Atlas: Strategic Highlights Already strong positions in Permian and Bakken enhanced with entry into Mississippi Lime and Eagle Ford 4 of the top 5 basins by active rig count and unconventional well spuds(1) Attractive…
Attractive Positions in Active Basins Mississippi Pro Forma Asset Highlights Lime 39 natural gas processing plants (6.9 Bcf/d gross processing capacity) Over 22,500 miles of natural gas and crude oil gathering pipeline Gross NGL…
World Class Permian Footprint Atlas WestTX system sits in the core of the Midland Combined Permian Footprint Basin between Targas existing SAOU and Sand Hills Legend systems Atlas Natural Gas Processing Plant Natural Gas Pipeline…
Leading Positions in Active Basins Atlas assets also provide exposure to significant drilling Combined Footprint activity in the Mississippi Lime, SCOOP, Arkoma Woodford Mississippi Lime Legend and Eagle Ford plays Atlas Largest…
Producer Activity Drives NGL Flows to Mont Belvieu Marcellus & Growing field NGL production Mississippi Lime Others increases NGL flows to Mont Rockies Belvieu Increased NGL production Woodford could support Targas existing and…
Increased Size and Scale Enhance Credit Profile Targa Atlas Pro Forma Targa (1) (2) (1) Market Cap 12 Billion 5 Billion 17 Billion (1) (2) (1) Enterprise Value 15 Billion 8 Billion 23 Billion 2014E EBITDA (MM) 925 - 975 Million…
Targas Track Record of Value Creation TRP Total Return Since 2010(1) TRP Distributions NGLS Out/(Under) Pro Forma 16% 3% 2% 21% 18% Performance vs. AMZ 60% 4.00 3.75 50% Annualized Distributions per LP Unit 3.50 40% 3.25…
Overview of Transaction Terms
NGLS Transaction Terms and Conditions NGLS acquires APL for total consideration of 5.8 billion(1) Includes 1.8 billion of APL debt at September 30, 2014 (1.55 billion senior notes in place; Transaction revolver repaid) Structure APLs…
TRGP Transaction Terms and Conditions ATLS Asset ATLS spins off all assets unrelated to APL prior to transaction Spin-Off Transaction TRGP acquires ATLS for total consideration of 1.9 billion(1) (post spin-off) Structure Includes…
Pro Forma Organizational and Capital Structure 750 million of new Term Loan B borrowings 92 million of existing revolver borrowings plus 115 million of new revolver borrowings under new 350 million revolver Targa Resources Corp.…
APL WestOK System Summary WestOK Asset Map Owner and operator of 5,700 miles of natural gas gathering pipelines located in the Anadarko Basin / Mississippi Lime (WestOK) APL connecting approximately a well a day behind system and is…
APL SouthOK System (Velma and Arkoma) Summary SouthOK Asset Map Owner and operator of 1,300 miles of natural gas gathering pipelines located in the Woodford Shale / SCOOP play consisting of the Velma and Arkoma Systems (1,200 miles and…
APL WestTX System Summary WestTX Asset Map 72.8% owner and operator of 3,600 miles of natural gas gathering pipelines located across seven counties in the Permian Basin in West Texas (WestTX) Minority interest owned by Pioneer Natural…
APL SouthTX System Summary SouthTX Asset Map South Texas gathering and processing assets (SouthTX) were acquired through the purchase of TEAK Midstream, L.L.C. Located in the wet gas / condensate window of the Eagle Ford Shale Silver…
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