Investor Presentaiton
Targa Full Year 2023 Financial and Operational Estimates
+24% year-over-year increase in estimated adjusted EBITDA is backed by volume-driven Permian growth (1)(2)
FINANCIAL METRICS
Adjusted EBITDA(1)(2)
Net Growth Capex(3)
Net Maintenance Capex
Segment Operating Margin Mix (G&P/L&T)
OPERATIONAL
Permian G&P Inlet Volume Growth (1)(4)
2023 ESTIMATES
$3,500 $3,700 million
$2,000 $2,200 million
$175 million
-55%-45%
2023 ESTIMATES
+10% increase
YoY increase in 2023 adjusted
EBITDA estimate driven by:
✓
✓ Higher G&P and L&T system volumes
Contributions from new organic growth
projects
✓
Full year contributions from Delaware
Basin and SouthTX acquisitions
Contribution from Grand Prix acquisition
✓
✓
Higher marketing and optimization
✓
Higher fees from inflation escalators
FY23 COMMODITY PRICE ASSUMPTIONS(1)
Waha Natural Gas ($/MMBtu)
Wtd Avg NGL ($/Gal)(5)
WTI Crude Oil ($/Bbl)
$2.25
$0.70
$75.00
FY23 COMMODITY PRICE SENSITIVITY(1)(6)
-30% Change in Prices +30%
--$60MM
+~$100MM
2023e Adj. EBITDA Impact
Higher hedge prices
Lower commodity prices
Higher opex and G&A expenses
attributable to recent acquisitions, system
expansions, insurance costs, and inflation
impacts
(1)
As presented in February 2023.
(2)
Adjusted EBITDA is a non-GAAP measure. Please see the section of this presentation entitled "Non-GAAP Financial Measures" for a discussion of adjusted EBITDA and a reconciliation of such measure to its most directly comparable GAAP financial measure. Year over year
increase based on the midpoint of estimated 2023 adjusted EBITDA range.
(3)
As presented in May 2023.
(4)
Permian volume growth based on projected average full year 2023 Permian inlet volumes versus average 4Q22 volumes.
(5)
(6)
Targa's composite NGL barrel comprises 43% ethane, 32% propane, 12% normal butane, 4% isobutane and 9% natural gasoline.
Commodity price sensitivity for 2023 inclusive of a number of factors, including unhedged exposure, fee floor arrangements and any associated fee floor hedges, NGL barrel composition and recovery economics. Price sensitivity only; assumes no volume or other operational
changes.
TR TARGA INVESTOR PRESENTATION
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