Targa Resources (TRGP) BofA Securities Global Energy Conference presentation summary

Strategic positioning and growth

• Holds a premier integrated position from wellhead to water, with the largest gathering and processing footprint in the Permian Basin and a leading NGL pipeline, fractionation, and export business.

• Achieved industry-leading EBITDA growth, with a 24% CAGR in Permian natural gas inlet volumes and 25% CAGR in NGL pipeline transportation since 2019.

• Investments of $13.7B from 2019-2024E have driven $2.8B EBITDA growth, significantly outperforming peers and the S&P 500.

• System is highly fee-based (90%+), limiting direct commodity price exposure and providing earnings stability.

• Integrated assets connect supply to key markets, supporting long-term success and global energy needs.

Financial performance and capital allocation

• Adjusted EBITDA expected above the $3.95B–$4.05B range for 2024, with 182% growth since 2019.

• Announced a 33% YoY increase in the 2025 common dividend, targeting $4.00 per share annualized.

• Over 20.2 million shares repurchased since October 2020, reducing share count and enhancing shareholder value.

• Leverage ratio comfortably within the 3.0–4.0x target range, with recent upgrades to investment grade by S&P, Fitch, and Moody’s.

• 40–50% of adjusted cash flow from operations expected to be returned to shareholders over a multi-year horizon.

Asset base and expansion projects

• Operates 43 Permian gas processing plants with 8.8 Bcf/d capacity, plus significant assets in the Bakken, Central, and Coastal regions.

• Multiple new Permian G&P plants and fractionators coming online through 2026, including Daytona NGL Pipeline and Blackcomb Pipeline (2.5 Bcf/d capacity, in-service 2H26).

• Mont Belvieu fractionation complex has 11 trains and 1.3 MMBbl/d capacity, supporting large-scale LPG exports.

• Average annual capital spending of $1.7B at ~5.5x multiple expected to drive $300MM+ YoY EBITDA growth.

• Wellhead-to-water NGL strategy enables significant export volumes, with 5.6 billion gallons of LPG exported globally in 2023.