Targa Resources Investor Presentation January 15, 2015
Additional Information Additional Information and Where to Find It In connection with the proposed transaction, Targa Resources Corp. (TRC) will file with the U.S. Securities and Exchange Commission (the SEC) a registration statement on…
Targa Overview Targa Resources Corp. (NYSE: TRGP) 100% Indirect (TRC or the Company)(1) Ownership 11.2% LP Interest (12,945,659 LP Units) Targa Resources GP LLC Public Unitholders 88.8% LP Interest 2.0% General…
Targas Diversified Midstream Platform Operating Margin(1) (1) Operating margin percentages based on LTM as of September 30, 2014 5
Well Positioned for 2015 and Beyond Positioning Pro Forma for Targa/Atlas Transaction: Expect to close Q1 2015 An even stronger footprint in active basins modest change in fee based margin % and G&P % Additional NGL…
Major Announced Capital Projects and Preliminary 2015 Capex Over 1 billion of projects completed in 2013 and approximately 1 billion completed in 2014 Additional high quality growth projects under development for 2015 and beyond, with…
Major Capital Projects Under Development In current environment, Targa is focused on capital efficiency and flexibility Over 2 billion of additional opportunities are in various stages of development Opportunities include additional…
Strong Growth in Fee-Based Margin Continues Increasing Fee-Based Margin Provides Additional Stability to Our Business ( in millions) Fee-based operating 211 150% margin expected to 200 187 140% continue to increase to 130% 164…
Diversity and Scale Mitigate Commodity Price Changes Growth has been driven by investing in the Adjusted EBITDA vs. Commodity Prices business, not by changes in commodity prices Adjusted EBITDA - Actual Adjusted EBITDA - Guidance WTI…
Targa/Atlas Transaction
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: 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…
Targa + Atlas: 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…
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 More than 75% of the…
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 & Mississippi Lime Others Growing field NGL Rockies production increases NGL flows to Mont Belvieu Woodford Increased NGL production could support Targas SCOOP…
Targa + Atlas: Increased Size and Scale Enhance Credit Profile Targa Atlas Pro Forma Targa Market Cap 10 Billion(1) 3 Billion(2) 13 Billion(1) (1) (2) (1) Enterprise Value 13 Billion 6 Billion 19 Billion 2014E EBITDA (MM) 925 -…
Targa + Atlas: Pro Forma Volumes and Adjusted EBITDA Field G&P Inlet Volumes (MMcf/d) 2,500 2,325 2,095 2,000 Field G&P Inlet Volumes (MMcf/d) 1,605 1,452 1,500 1,315 1,161 923 1,000 549 500 780 873 612 682…
Pro Forma Capitalization ( millions) As of September 30, 2014 Adjustments As Adjusted 800MM 800MM Notes As Capitalization Rate Maturity Notes Issued Redeem 7.875% Notes APL Merger Issued January Pro Forma Reported Oct 2014…
Targa Business Division and Segment Review
Field Gathering and Processing Segment Field G&P Highlights Approximately 900 MMcf/d of gross processing capacity at the end of 2013, expanding to approximately 1,340 MMcf/d in 2014(2) Permian Basin activity dominated by oil shale…
Targas Permian Basin Systems Across Broad Active Plays Permian Growth Continues 2014 inlet volumes are expected to be meaningfully higher than 2013 in each of SAOU, Sand Hills and Versado More horizontal wells are accelerating…
North Texas Well Positioned for Growth Rig Activity in North Texas(1) Liquids-Rich Barnett Shale and Marble Falls Driving Growth Targas assets are well positioned to access the active liquids-rich portion of the Barnett Shale and…
Badlands High-Quality, Fee-Based Assets System currently consists of oil gathering System Map pipeline and terminal system, and natural gas gathering and processing operations, in McKenzie, Dunn and Mountrail Counties, North Dakota…
Coastal Gathering and Processing Segment Overview LOU (Louisiana Operating Unit) Processing Plants: Gillis (180 MMcf/d), Acadia (80 MMcf/d) and Big Lake (180 MMcf/d) Fractionation interconnected to LCF Traditional wellhead…
Logistics Assets Extensive Gulf Coast Footprint Fractionators Gross Net Capacity Capacity (MBbl/d) (MBbl/d)(2) CBF - Mont Belvieu(1) Trains 1-3 253 223 Backend Capacity 40 35 Train 4 100 88 GCF - Mont Belvieu 125 47 Total -…
Targas Galena Park Marine Terminal Effective Export Capacity Phase I expansion completed in September 2013 Phase II was fully completed in September 2014 Phase II expansion was completed in stages Additional 12 pipeline,…
Demand for Exports Continues to Increase U.S. Propane(1) 120 0.80 0.70 Historically, U.S. Gulf Coast propane 100 0.60 and butane have been favorably 80 0.50 priced compared to world markets 0.40 60 0.30 Year to date 2014, the…
Petroleum Logistics Highlights Expanding TRPs Channelview Terminal In March 2014, announced the approval to construct a 35 MBbl/d condensate splitter at TRPs Channelview Terminal (Houston) TRP has filed the permit, and expects the…
Marketing and Distribution Segment Marketing and Distribution Highlights NGL and Natural Gas Marketing Manage physical distribution of mixed NGLs and specification products using owned and third party facilities Manage inventories…
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…
Appendix
Non-GAAP Measures Reconciliation Adjusted EBITDA The Partnership and Targa define Adjusted EBITDA as net income attributable to Targa Resources Partners LP before: interest; income taxes; depreciation and amortization; gains or losses on…
Non-GAAP Reconciliation 2010-2011 Fee-Based Margin The following table presents a reconciliation of operating margin to net income (loss) for the periods shown for TRP: Three Months Ended 3/31/2010 6/30/2010 9/30/2010 12/31/2010…
Non-GAAP Reconciliation 2012-2014 Fee-Based Margin The following table presents a reconciliation of operating margin to net income (loss) for the periods shown for TRP: Three Months Ended 3/31/2012 6/30/2012 9/30/2012 12/31/2012…
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