Targa Resources (TRGP) investor relations material

Strategic positioning and growth

• Holds the largest natural gas gathering and processing footprint in the Permian Basin, with a rapidly expanding NGL presence in Mont Belvieu.

• Integrated wellhead-to-water infrastructure connects supply to domestic and global markets, supporting long-term growth.

• Multi-year agreements with ExxonMobil and new processing plants strengthen growth trajectory and secure long-term volume commitments.

• Outperformed basin-wide associated gas and crude growth, with a 21% Permian volume CAGR and 25% adjusted EBITDA CAGR over five years.

• Positioned for deeper zone development, expanding supply potential and long-term growth rate.

Financial performance and capital returns

• Adjusted EBITDA projected at $5.7–$5.9 billion for 2026, with net growth capital around $5 billion and maintenance capital at $250 million.

• Post-Speedway, expects significant free cash flow generation, with adjusted free cash flow reaching ~$5 billion in 2026.

• Returned $4.7 billion to shareholders since 2020 through dividends and share repurchases, with a 52% CAGR in annual capital returns.

• Plans to return 40–50% of adjusted CFFO to shareholders over a multi-year horizon, with 25% dividend growth in 2026 and leverage at 3.4x.

• Reduced share count by 11% since 2020, with annual dividends per share growing 25% year-over-year.

Operational excellence and infrastructure expansion

• Operates 53 gas processing plants with over 11 Bcf/d capacity and 9 gas treating wells, integrated with pipelines, storage, fractionation, and export facilities.

• Expanding NGL transportation with the Speedway pipeline, increasing capacity to 1,000 MBbl/d by 2027.

• Enhancing residue gas connectivity with new pipelines and system expansions, supporting over 6 Bcf/d across 32 plants.

• Investing in multiple new processing plants and fractionators, with several projects in service or underway through 2028.

• LPG export capacity set to reach 19 MMBbl/month, supporting resilient exports amid global demand growth.