Targa Resources, Inc. · NYSE:TRGP
Targa Resources — Investor Presentation (August 2025)
26 slides from Targa Resources's investor presentation, Aug 5, 2025
Slide 1: Investor Presentation
Investor Presentation August 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 $53B IG Capital Returned to Enterprise Value(3) Credit Ratings S
Slide 5: 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 6: Premier Permian Asset Footprint
Premier Permian Asset Footprint Largest multi-plant, multi-system G&P footprint, integrated with Targa’s NGL business Legend ~60% >80% Processing Plant Processing Plant In Progress Crude Terminal of Lower 48 US shale of Targa’s inlet Existing Gathering Pipeline NGL Pipelines rigs are in the volumes
Slide 7: 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 Treating Capabilities in Delaware Basin continues to drive incremental comme
Slide 8: Targa Volume Growth Outpacing the Permian Basin
Targa Volume Growth Outpacing the Permian Basin Permian Basin growth continues to drive increasing demand for Targa’s midstream services Targa Outperforming Permian Basin Production(1)(2) 320 300 280 Best in-class Permian G&P assets Multi-plant interconnected system +199% ~30% Exceptional oper
Slide 9: Permian Basin Growth Points to Strong Outlook for Targa
Permian Basin Growth Points to Strong Outlook for Targa Associated gas has outperformed crude, Targa has outperformed associated gas 260 Actual(1)(2) Forecast(3) 240 220 Targa Permian Growth 17% 200 Growth Indexed 180 Permian Gas Growth 13% Gas Growth Forecast: 7% annually 160 Permian Crude Growth 8
Slide 10: Targa Permian Delaware Natural Gas Pipeline Expansion
Targa Permian Delaware Natural Gas Pipeline Expansion Enhancing Targa natural gas connectivity in the Delaware Bull Run Natural Gas Pipeline As the largest gas processor in the Permian, Targa continues to move a growing supply of natural gas within the Midland and Delaware basins Extending Targa
Slide 11: 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 12: 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 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% 6,400 800 +14% 5,600 700 Inlet Volumes (MMcf/d) 4,800 600 4,000 500 MBbl/
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 $5.0 Annual Common Dividend/Share +17% $4.00 $4.0 Adj
Slide 15: 2025 Financial Outlook
2025 Financial Outlook FY25 Adjusted EBITDA estimated to be in a range of $4.65 to $4.85B 2025 Estimates Adjusted EBITDA $4,650 - $4,850 million Net Growth Capex ~$3,000 million Net Maintenance Capex ~$250 million Continued growth in Adjusted EBITDA driven by: 2025 Growth Capital Spending: Record
Slide 16: Leading Return of Capital Outlook
Leading Return of Capital Outlook Differentiated growth position drives increasing return of capital 40-50% 33% $450MM 3.6x Adjusted CFFO Dividend growth Share repurchases Leverage(3) comfortably within expected to be returned across in 2025(1) YTD 2025(2) 3.0-4.0x multi-year horizon long-term targe
Slide 17: Fundamental Outlook
Fundamental Outlook INVESTOR PRESENTATION
Slide 18: 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 Projected Lower 48 Natural Gas Demand Growth (Bcf/d) Demand forecasted to increase by 23 – 29 Bcf/d through
Slide 19: 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 Targa exported ~424 MBbl/d of LPG in 2024, or ~9% of 2,000 total global exports and ~1/
Slide 20: 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 US Gulf Coast LPG Exports Global LPG Demand 14.0 12.0 9% 11% LatAm & Carribean +4% 11% 10.0 Europe Growth 8% Africa
Slide 21: 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 1.5 MMBbl/d Fractionation Capacity(2) 19 MMBbl/mo LPG Export Capacity(3) (1) Gross processing capacity; includes plants under construction. INVESTOR
Slide 22: Appendix and Reconciliations
Appendix and Reconciliations INVESTOR PRESENTATION
Slide 23: 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 24: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation (1) Includes the change in estimated redemption value of the mandatorily redeemable preferred interests. Effective September 2022, we redeemed our joint venture partner's mandatorily redeemable preferred interests in the two joint ventures that, separately, owned a 1
Slide 25: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation INVESTOR PRESENTATION (1) Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants 25 within Targa’s WestTX joint venture not subject to noncontr
Slide 26: Investor Relations Contact
[email protected] WWW.TARGARESOURCES.COM Targa is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. Our operations are critical to the efficient, safe, and reliable delivery of energy across the United States
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