Targa Resources, Inc. · NYSE:TRGP
Targa Resources — Investor Presentation (March 2025)
31 slides from Targa Resources's investor presentation, March 2025
Slide 1: Investor Presentation
Investor Presentation March 2025 | TARGA RESOURCES CORP.
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fac
Slide 3: Why Targa?
Why Targa? Best-in-class assets, excellent long-term growth profile, and demonstrated track record of creating shareholder value Generating Differentiated A Compelling Attractive Returns Asset Footprint Value Proposition High returns on invested Largest natural gas processor Industry leading Adjuste
Slide 4: A Compelling Growth Profile Over the Last Years
A Compelling Growth Profile Over the Last 5 Years Targa’s performance and growth outlook provides strong momentum in 2025 and beyond 23% 24% 21% Permian Volume Adjusted EBITDA Return on Growth CAGR Growth CAGR Invested Capital(1) $3.1B $60B IG Capital Returned to Enterprise Value(3) Credit Ratings S
Slide 5: Strength of Investment Returns Driving Significant Outperformance
Strength of Investment Returns Driving Significant Outperformance Attractive integrated opportunities and growth outlook position Targa to continue to create shareholder value 600% 500% $13.1B $2.7B 21% 418% Adjusted EBITDA Return on Total Shareholder Net Investments(1) 400% Growth(1) Invested Capit
Slide 6: Targa’s Volume Growth Outpacing the Permian Basin
Targa’s Volume Growth Outpacing the Permian Basin Permian Basin is poised for continued growth, driving increasing demand for Targa’s midstream services Targa Outperforming Permian Basin Production 300 280 ✓ Best in-class Permian G&P assets ✓ Millions of dedicated acres +186% ~60% ✓ High-quality IG
Slide 7: Differentiated Footprint Driving Continued Commercial Success
Differentiated Footprint Driving Continued Commercial Success Three large deals in the Delaware illustrate Targa’s overall strong customer value proposition Targa’s Permian Delaware Footprint (20 plants, 4.1 Bcf/d)(1) Legend Processing Plant Processing Plant In Progress Existing Gathering Pipeline N
Slide 8: Best-in-Class Gas Treating System in the Delaware Basin
Best-in-Class Gas Treating System in the Delaware Basin Differentiated system in the Delaware accommodating growing producer volumes that require treating ▪ Targa’s track record of treating natural gas in the Delaware Basin continues to Treating Capabilities in Delaware Basin drive incremental comme
Slide 9: Fully Integrated Wellhead-to-Water NGL Solution
Fully Integrated Wellhead-to-Water NGL Solution Our assets and operations connect natural gas and NGLs to markets with growing demand for cleaner fuels and feedstocks NGL Pipeline Transportation Largest Permian Premier NGL Fractionation Connected to Domestic Connects Key Supply to NGL Natural Gas Pr
Slide 10: G&P Volume Growth Driving Significant Volumes Downstream
G&P Volume Growth Driving Significant Volumes Downstream Expanding in-basin NGL transportation capabilities within the Delaware Delaware Express Delaware Express and Future Optionality ▪ Existing segments of Grand Prix in the Delaware are approaching capacity ▪ Adding new 30” 100-mile expansion of G
Slide 11: Leading EBITDA Growth Versus Peers
Leading EBITDA Growth Versus Peers Premier Permian footprint, integrated wellhead-to-water system and 90%+ fee-based formula position Targa for success 30% Trailing 5-Year Adjusted EBITDA CAGR 25% 20% Best-in-class customers and growing Permian Basin footprint driving continued differentiated growth
Slide 12: Leading ROIC Versus Peers
Leading ROIC Versus Peers Targa has demonstrated industry leading returns and expects the trend to continue 30% Trailing 5-Year ROIC 25% Investing in core projects along our integrated footprint continuing to drive attractive returns 20% 15% 10% Peer Average 5% 0% TRGP Peer A Peer B Peer C Peer D Pe
Slide 13: Proven Record of Growth
Proven Record of Growth Increasing volume trajectory through Targa’s fee-based integrated NGL infrastructure footprint fuels growth in 2025 and beyond Permian Natural Gas Inlet Volumes(1) NGL Pipeline Transportation(1)(2) +26% 800 6,400 +14% 700 5,600 Inlet Volumes (MMcf/d) 600 4,800 500 MBbl/d 4,00
Slide 14: Track Record of Strong Financial Performance
Track Record of Strong Financial Performance Integrated NGL business and supportive business fundamentals drive increasing cash flow outlook and return of capital Industry Leading Adjusted EBITDA Growth(1) $5.00 Growing Annual Dividends per Share(2) $5.0 Annual Common Dividend/Share +17% $4.00 $4.0
Slide 15: Organic Growth and Select M&A Driving EBITDA Higher
Organic Growth and Select M&A Driving EBITDA Higher Strong track record of generating attractive returns on capital through organic growth and M&A Growing Permian production driving attractive integrated investment opportunities $5.0 $5.0 Adjusted EBITDA growth in 2025, 2026 and beyond: $4.0 $4.0 ✓
Slide 16: Leading Return of Capital Outlook
Leading Return of Capital Outlook Differentiated growth position drives increasing return of capital 40-50% 33% $755MM 3.4x Adjusted CFFO Dividend growth Record share repurchases Leverage comfortably within expected to be returned across in 2025(1) in 2024 3.0-4.0x multi-year horizon long-term targe
Slide 17: 2025 Outlook
2025 Outlook Increasing system volumes drive strong projected growth in Adjusted EBITDA 2025 Outlook Key Adjusted EBITDA Growth Drivers: ✓ Continued Permian volume growth Adjusted EBITDA $4,650 - $4,850 million ✓ NGL transport volumes increasing YoY Net Growth Capex $2,600 - $2,800 million ✓ Fractio
Slide 18: Integrated Growth Opportunities
Integrated Growth Opportunities Volume growth and commercial wins accelerating capital on Permian G&P and downstream opportunities $3,000 2025E Net Growth Capex Outlook $2.6B – $2.8B $2,500 $2,000 $ in millions $1.7B $1,500 $1,000 $500 $0 1 2024 August 2 Plant 3 Downstream 4 Commercial 5 2025 Februa
Slide 19: Targa’s Strong Permian Position
Targa’s Strong Permian Position INVESTOR PRESENTATION
Slide 20: Strength, Size and Scale of the Permian Basin
Strength, Size and Scale of the Permian Basin Only shale basin that can provide meaningful crude oil, associated gas and NGL production growth Permian Gross Natural Gas Production Outlook Increasing GOR and GPM Driving Strong NGL Production Growth +9 Bcf/d 40 6.0x 35 +11 Bcf/d 5.5x 30 ~10% 5.0x Grow
Slide 21: Premier Permian Asset Footprint
Premier Permian Asset Footprint ▪ Best-in-class producer customers with strong scale Legend ▪ Several million dedicated acres Processing Plant Processing Plant In Progress ▪ Over 8,000 receipt points Crude Terminal Existing Gathering Pipeline ▪ Decades of core drilling inventory NGL Pipelines ▪ Larg
Slide 22: Investing in Attractive Projects Driven by Permian Volume Growth
Investing in Attractive Projects Driven by Permian Volume Growth Organic investments across Targa’s integrated NGL business expected to drive strong return on invested capital Gathering & Processing Logistics & Transportation ▪ Currently adding +1.7 Bcf/d of gas processing capacity in the Permian in
Slide 23: Natural Gas Demand Growth Requires Continued Investment in Infrastructure
Natural Gas Demand Growth Requires Continued Investment in Infrastructure Incremental production from the Permian and other shale basins will be needed to support increasing natural gas demand Demand forecasted to increase by Projected Lower 48 Natural Gas Demand Growth (Bcf/d) 23 – 29 Bcf/d through
Slide 24: U.S. LPG Exports – A Sensible Energy Solution
U.S. LPG Exports – A Sensible Energy Solution LPGs provide a cleaner, affordable and reliable energy solution that saves lives! Waterborne LPG Exports by Country 2,500 2016 2017 2018 2019 2020 2021 2022 2023 2024 ▪ The U.S. is the leading exporter of global waterborne LPG, cost advantaged supply ▪ L
Slide 25: Strong LPG Fundamentals Supportive of Increased Exports
Strong LPG Fundamentals Supportive of Increased Exports Targa’s wellhead to water NGL strategy adds significant barrels into its system that are available for export Diverse Demand for 3US Gulf Coast LPG Exports Global LPG Demand LTM PADD LPG Exports 14.0 LatAm & Carribean 12.0 8% 12% Europe +4% 11%
Slide 26: A Leading Infrastructure Company
A Leading Infrastructure Company ~33,800 Miles Natural Gas and NGL Pipelines 13.1 Bcf/d Gas Processing Capacity(1) ~1.0 MMBbl/d NGL Transport Capacity Galena Park 1.5 MMBbl/d Fractionation Capacity(2) 19 MMBbl/mo LPG Export Capacity(3) (1) Gross processing capacity; includes plants under constructio
Slide 27: Appendix and Reconciliations
Appendix and Reconciliations INVESTOR PRESENTATION
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes the Company’s non-GAAP financial measures: adjusted EBITDA, adjusted cash flow from operations, and adjusted free cash flow. The following tables provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP
Slide 29: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Year Ended December 31, 2024 2023 2022 2021 2020 2019 (In millions) Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA Net income (loss) attributable to Targa Resources Corp. $ 1,312.0 $ 1,345.9 $ 1,195.5 $ 71.2 $ (1,553.9) $
Slide 30: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Full Year 2025E (in millions) Reconciliation of Estimated Net Income attributable to Targa Resources Corp. to Estimated Adjusted EBITDA Net income attributable to Targa Resources Corp. $ 1,765.0 Interest expense, net 875.0 Income tax expense 510.0 Depreciation and am
Slide 31: General Inquiries / Corporate Headquarters
GENERAL INQUIRIES/CORPORATE HEADQUARTERS 811 LOUISIANA STREET, SUITE 2100 HOUSTON, TX 77002 Targa is a leading provider of midstream services and is one of the largest independent infrastructure PHONE: 713.584.1133 companies in North America. Our operations are critical to the efficient, safe, and r