Targa Resources (TRGP) Investor presentation summary

Strategic asset footprint and growth profile

• Operates the largest natural gas processing system in the Permian Basin, with over 80% of inlet volumes sourced from this region and a fully integrated NGL infrastructure spanning wellhead to water.

• Maintains a differentiated, fee-based business model with 90%+ of revenues from fee-based contracts, supporting stable cash flows.

• Demonstrates industry-leading adjusted EBITDA growth, meaningful dividend increases, and a consistent reduction in shares outstanding.

• Integrated assets support long-term success, including significant investments in high-return projects and one of the largest Gulf Coast LPG export facilities.

• System is positioned to benefit from growing Permian production and increasing U.S. exports of natural gas and LPG.

Financial performance and capital allocation

• Achieved a 24% adjusted EBITDA CAGR and 21% return on invested capital over the past five years, with $3.1B returned to shareholders and a $53B enterprise value as of July 2025.

• FY25 adjusted EBITDA is projected at $4.65–$4.85B, with ~$3B in growth capex and ~$250M in maintenance capex.

• Maintains strong investment grade credit ratings (BBB/Baa2/BBB) and a leverage ratio of 3.6x, within the long-term target range.

• Plans to return 40–50% of adjusted cash flow from operations to shareholders over a multi-year horizon, with a 33% dividend increase and $450M in share repurchases YTD 2025.

• Reduced outstanding shares by 10% since 2020, enhancing per-share returns.

Operational excellence and project pipeline

• Added 1.7 Bcf/d of gas processing capacity in the Permian, with multiple new plants and pipeline expansions underway to meet rising demand.

• Completed significant downstream expansions, including fractionators and LPG export debottlenecking, supporting continued volume and EBITDA growth.

• Outpaced basin-wide associated gas and crude growth by 4% and 9% respectively over the last five years.

• Delaware Basin gas treating capacity grew 3.5x since 2021, supporting sour gas management and CCUS opportunities.

• Bull Run Extension and other pipeline projects enhance connectivity and reliability for Permian producers.