Targa Resources : Investor Presentation (250228 TRGP March 2025 Investor Presentation vF)

Published: 2025-03-04 06:43:10 ET TRGP

Investor Presentation

March 2025 | TARGA RESOURCES CORP.

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 Adjusted

capital

in the growing Permian Basin

EBITDA growth

Millions of dedicated acres

Meaningful dividend growth

90%+ fee-based

Fastest growing Gulf Coast

Reducing shares outstanding

Fully integrated energy

infrastructure footprint

natural gas liquids system

Investment grade balance

sheet

Note: Adjusted EBITDA and adjusted cash flow from operations are non-GAAP measures. Please see the section of this presentation entitled "Non-GAAP Financial Measures" for a discussion of adjusted

I N V E S T O R P R E S E N T A T I O N

EBITDA and adjusted cash flow from operations and a reconciliation of such measures to their most directly comparable GAAP financial measure.

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

Invested Capital(1)

$3.1B

$60B

Capital Returned to

Enterprise Value(3)

Credit Ratings

Shareholders(2)

BBB/Baa2/BBB

Note: Adjusted EBITDA and adjusted cash flow from operations are non-GAAP measures. Please see the section of this presentation entitled "Non-GAAP Financial Measures" for a

I N V E S T O R P R E S E N T A T I O N

discussion of adjusted EBITDA and adjusted cash flow from operations and a reconciliation of such measures to their most directly comparable GAAP financial measure.

(1)

Total net investments for 2020 through 2024 (Cumulative Capex + Acquisitions - Divestitures). 2024 growth capital expenditures include significant spending on large downstream

projects including Targa's Daytona NGL Pipeline and Trains 9 and 10 which will provide full year EBITDA contributions in 2025 and beyond.

(2)

Cumulative common cash dividends paid and common shares repurchased from 2020 through 2024.

(3) As of February 13, 2025 market close.

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 Capital(1)

Return

300%

200%

100%

157% AMUS

143% S&P 500

-100%

Feb-19

Jul-19

Dec-19

May-20

Oct-20

Mar-21

Aug-21

Jan-22

Jun-22

Nov-22

Apr-23

Sep-23

Feb-24

Jul-24

Dec-24

TRGP

SPX

AMUS

Note: Share and Index performance from February 19, 2019 through February 13, 2025 market close.

Note: Adjusted EBITDA and adjusted cash flow from operations are non-GAAP measures. Please see the section of this presentation entitled "Non-GAAP Financial Measures" for a discussion of adjusted EBITDA and adjusted cash flow from operations and a reconciliation of such measures to their most directly comparable GAAP financial measure.

AMUS: Alerian US Midstream Energy Index.

I N V E S T O R P R E S E N T A T I O N

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

260

✓ Best in-class Permian G&P assets ✓ Millions of dedicated acres

✓ High-quality IG producers

+186%

~60%

of Lower 48 US shale

rigs are in the

▪ Targa is continuing to expand its

Growth Indexed

240

220

200

180

160

140

120

100

✓ Exceptional operational performance

+110%

Permian gas-to-oil ratio up ~25% over this period

Permian Basin(2)

Permian G&P footprint in

response to anticipated volume

growth, driving increasing

volumes through its integrated

>80%

system

of Targa's field natural gas

inlet volumes sourced

from the Permian

Targa Permian Inlet Volume

Permian Associated Gas Production(1)

I N V E S T O R P R E S E N T A T I O N

Differentiated Footprint Driving Continued Commercial Success

Three large deals in the Delaware illustrate Targa's overall strong customer value proposition

New Integrated

~100,000 Newly

Multi-year

Ramp over

All Fee-Based

Deals

Dedicated Acres

300 MMcf/d

Targa's Permian Delaware Footprint

(20 plants, 4.1 Bcf/d)(1)

Legend

Processing Plant

Processing Plant In Progress

Existing Gathering Pipeline

NGL Pipelines

I N V E S T O R P R E S E N T A T I O N

Best-in-Class Gas Treating System in the Delaware Basin

Differentiated system in the Delaware accommodating growing producer volumes that require treating

Treating Capabilities in Delaware Basin

2,500

2,000

1,500

MMcf/d

1,000

500

2021

2022

2023

2024

current

I N V E S T O R P R E S E N T A T I O N

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

Largest Permian

NGL Pipeline Transportation

Premier NGL Fractionation

Connected to Domestic

Connects Key Supply to NGL

Natural Gas Processor

Footprint in Mont Belvieu

Petchem Market

Market Hub in Mont Belvieu

Large Natural Gas Processing

Significant Shipper of

Operate One of the Largest

Presence in Other Key Basins

Natural Gas to Key End Markets

Gulf Coast LPG Export Facilities

Targa's System is Integrated Across the Value Chain

Targa's Assets are

Positioned for

Long-Term Success

Growing Permian Basin Production

Increasing U.S. Exports of Natural Gas and LPG

Investing in High-Return Projects Across Integrated System

I N V E S T O R P R E S E N T A T I O N

G&P Volume Growth Driving Significant Volumes Downstream

Expanding in-basin NGL transportation capabilities within the Delaware

Delaware Express

Delaware Express and Future Optionality

Delaware Express

Future Optionality

I N V E S T O R P R E S E N T A T I O N

Leading EBITDA Growth Versus Peers

Premier Permian footprint, integrated wellhead-to-water system and 90%+ fee-based formula position Targa for success

30%

25%

20%

15%

10%

Trailing 5-Year Adjusted EBITDA CAGR

Best-in-class customers and growing Permian Basin footprint driving continued differentiated growth in 2025 and beyond

24%

CAGR

Peer Median: 7%

TRGP

Peer A

Peer B

Peer C

Peer D

Peer E

Peer F

Peer G

Peer H

Peer I

(5%)

Data per FactSet.

I N V E S T O R P R E S E N T A T I O N

Disclaimer

Targa Resources Corp. published this content on March 04, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 04, 2025 at 11:42:09.790.