Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

69ebda047f601de0f2f4dae706492bdba6f1103927841ad58199d4043f9d62cd

3c154909f6ea5f27f60e4782645d71974df83b646734307a45091a1f7da6b22e

Targa Resources Corp. (NYSE: TRGP) is a leading provider of midstream services and one of the largest independent midstream infrastructure companies in North America. The company is primarily engaged in gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling natural gas liquids (NGLs) and NGL products, including services to LPG exporters; and gathering, storing, terminaling, and purchasing and selling crude oil **[0001193125-24-073912_d794370ddef14a.htm:5]** **[0000950170-24-015841_trgp-20231231.htm:6]** **[0000950170-24-051853_trgp-20240331.htm:31]** **[0000950170-24-051550_trgp-ex99_1.htm:7]**. Targa operates in two primary segments: Gathering and Processing, and Logistics and Transportation (also referred to as the Downstream Business) **[0001193125-24-073912_d794370ddef14a.htm:5]** **[0000950170-24-015841_trgp-20231231.htm:6]** **[0000950170-24-051853_trgp-20240331.htm:31]**.

1. **Natural Gas Liquids (NGLs)** - Involves transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including providing services to LPG exporters.
2. **Natural Gas** - Engages in gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas.
3. **Crude Oil** - Focuses on gathering, storing, terminaling, and purchasing and selling crude oil.
4. **Midstream Services** - Offers gathering and processing, NGL transportation, fractionation and services, storage, terminaling, and export services.

8f968ce651e66361bb8c11c5e7a846df7436867909e31c2cf2183050d9b4d885

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Gathering and Processing | N/A | **1,955.8**  **[0000950170-23-017657_trgp-20230331.htm:28]**  | **1,566.2**  **[0000950170-23-037748_trgp-20230630.htm:32]**  | **1,868.1**  **[0000950170-23-058137_trgp-20230930.htm:35]**  | N/A | **1,814.8**  **[0000950170-24-051853_trgp-20240331.htm:28]**  | **1,518.4**  **[0000950170-24-089135_trgp-20240630.htm:32]**  | **1,566.7**  **[0000950170-24-121370_trgp-20240930.htm:34]**  |
| Logistics and Transportation | N/A | **3,825.4**  **[0000950170-23-017657_trgp-20230331.htm:28]**  | **2,756.1**  **[0000950170-23-037748_trgp-20230630.htm:32]**  | **3,421.9**  **[0000950170-23-058137_trgp-20230930.htm:35]**  | N/A | **3,952.3**  **[0000950170-24-051853_trgp-20240331.htm:28]**  | **2,995.9**  **[0000950170-24-089135_trgp-20240630.htm:32]**  | **3,224.4**  **[0000950170-24-121370_trgp-20240930.htm:34]**  |
| Other | N/A | N/A | **151.9**  **[0000950170-23-037748_trgp-20230630.htm:32]**  | **(33.5)**  **[0000950170-23-058137_trgp-20230930.htm:35]**  | N/A | N/A | **(46.6)**  **[0000950170-24-089135_trgp-20240630.htm:32]**  | **(17.7)**  **[0000950170-24-121370_trgp-20240930.htm:34]**  |
| Corporate and Eliminations | N/A | N/A | **(1,070.5)**  **[0000950170-23-037748_trgp-20230630.htm:32]**  | **(1,359.9)**  **[0000950170-23-058137_trgp-20230930.htm:35]**  | N/A | N/A | **(905.7)**  **[0000950170-24-089135_trgp-20240630.htm:32]**  | **(921.6)**  **[0000950170-24-121370_trgp-20240930.htm:34]**  |
| Total Revenue | N/A | **4,520.5**  **[0000950170-23-017657_trgp-20230331.htm:28]**  | **3,403.7**  **[0000950170-23-037748_trgp-20230630.htm:32]**  | **3,896.6**  **[0000950170-23-058137_trgp-20230930.htm:35]**  | N/A | **4,562.4**  **[0000950170-24-051853_trgp-20240331.htm:28]**  | **3,562.0**  **[0000950170-24-089135_trgp-20240630.htm:32]**  | **3,851.8**  **[0000950170-24-121370_trgp-20240930.htm:34]**  |

564bc0c00805704f17b006c597d67159c400497c9523e6c3c80e270e678b7752

4c513221bc007f8b5b9170bf30cad7d8db1e2fbef4ddcc6f3b026ad5ae46e866

| Metric (Unit)                                   | Q4 2022       | Q1 2023       | Q2 2023       | Q3 2023       | Q4 2023       | Q1 2024       | Q2 2024       | Q3 2024       |
|-------------------------------------------------|---------------|---------------|---------------|---------------|---------------|---------------|---------------|---------------|
| Plant Natural Gas Inlet (MMcf/d)                | 6,465.9  **[0000950170-23-003561_trgp-ex99_1.htm:8]**  | 6,624.1  **[0000950170-23-017657_trgp-20230331.htm:41]**  | 6,931.1  **[0000950170-23-037748_trgp-20230630.htm:48]**  | 6,923.4  **[0000950170-23-058137_trgp-20230930.htm:52]**  | 7,108.2  **[0000950170-24-015593_trgp-ex99_1.htm:8]**  | 7,103.5  **[0000950170-24-051853_trgp-20240331.htm:40]**  | 7,390.2  **[0000950170-24-089135_trgp-20240630.htm:47]**  | 7,607.8  **[0000950170-24-121370_trgp-20240930.htm:50]**  |
| NGL Production (MBbl/d)                         | 778.7  **[0000950170-23-003561_trgp-ex99_1.htm:8]**   | 842.6  **[0000950170-23-017657_trgp-20230331.htm:41]**   | 913.6  **[0000950170-23-037748_trgp-20230630.htm:48]**   | 876.9  **[0000950170-23-058137_trgp-20230930.htm:52]**   | 838.5  **[0000950170-24-015593_trgp-ex99_1.htm:8]**   | 844.1  **[0000950170-24-051853_trgp-20240331.htm:40]**   | 965.7  **[0000950170-24-089135_trgp-20240630.htm:47]**    | 978.2  **[0000950170-24-121370_trgp-20240930.htm:50]**    |
| Crude Oil, Badlands (MBbl/d)                    | 113.7  **[0000950170-23-003561_trgp-ex99_1.htm:8]**   | 110.6  **[0000950170-23-017657_trgp-20230331.htm:41]**   | 104.7  **[0000950170-23-037533_trgp-ex99_1.htm:6]**   | 101.6  **[0000950170-23-058137_trgp-20230930.htm:52]**   | 105.2  **[0000950170-24-015593_trgp-ex99_1.htm:8]**   | 94.4  **[0000950170-24-051853_trgp-20240331.htm:40]**    | 99.1  **[0000950170-24-089135_trgp-20240630.htm:47]**    | 122.4  **[0000950170-24-121056_trgp-ex99_1.htm:6]**   |
| Crude Oil, Permian (MBbl/d)                     | 28.4  **[0000950170-23-003561_trgp-ex99_1.htm:8]**    | 25.5  **[0000950170-23-017657_trgp-20230331.htm:41]**    | 29.4  **[0000950170-23-037748_trgp-20230630.htm:48]**    | 27.2  **[0000950170-23-058137_trgp-20230930.htm:52]**    | 27.4  **[0000950170-24-015593_trgp-ex99_1.htm:8]**    | 27.6  **[0000950170-24-051853_trgp-20240331.htm:40]**    | 27.9  **[0000950170-24-089135_trgp-20240630.htm:47]**    | 26.7  **[0000950170-24-121370_trgp-20240930.htm:50]**    |
| Natural Gas Sales (BBtu/d)                      | 2,416.3  **[0000950170-23-003561_trgp-ex99_1.htm:8]** | 2,572.5  **[0000950170-23-017657_trgp-20230331.htm:41]** | 2,672.6  **[0000950170-23-037748_trgp-20230630.htm:48]** | 2,758.2  **[0000950170-23-058137_trgp-20230930.htm:52]** | 2,737.3  **[0000950170-24-015593_trgp-ex99_1.htm:8]** | 2,650.5  **[0000950170-24-051853_trgp-20240331.htm:40]** | 2,876.8  **[0000950170-24-089135_trgp-20240630.htm:47]** | 2,842.9  **[0000950170-24-121370_trgp-20240930.htm:50]** |
| NGL Sales (MBbl/d)                              | 453.3  **[0000950170-23-003561_trgp-ex99_1.htm:8]**   | 459.1  **[0000950170-23-017422_trgp-ex99_1.htm:5]**   | 493.8  **[0000950170-23-037748_trgp-20230630.htm:48]**   | 508.8  **[0000950170-23-058137_trgp-20230930.htm:52]**   | 520.6  **[0000950170-24-015593_trgp-ex99_1.htm:8]**   | 498.8  **[0000950170-24-051550_trgp-ex99_1.htm:4]**   | 569.7  **[0000950170-24-088922_trgp-ex99_1.htm:6]**   | 581.5  **[0000950170-24-121370_trgp-20240930.htm:50]**   |
| Condensate Sales (MBbl/d)                       | 16.3  **[0000950170-23-003561_trgp-ex99_1.htm:8]**    | 19.8  **[0000950170-23-017422_trgp-ex99_1.htm:5]**    | 24.0  **[0000950170-23-037748_trgp-20230630.htm:48]**    | 17.0  **[0000950170-23-058137_trgp-20230930.htm:52]**    | 17.8  **[0000950170-24-015593_trgp-ex99_1.htm:8]**    | 19.1  **[0000950170-24-051853_trgp-20240331.htm:40]**    | 21.2  **[0000950170-24-089135_trgp-20240630.htm:47]**    | 17.3  **[0000950170-24-121370_trgp-20240930.htm:50]**    |
| NGL Pipeline Transportation Volumes (MBbl/d)    | 502.3  **[0000950170-23-003561_trgp-ex99_1.htm:11]**   | 536.8  **[0000950170-23-017422_trgp-ex99_1.htm:7]**   | 620.7  **[0000950170-23-037533_trgp-ex99_1.htm:10]**   | 660.2  **[0000950170-23-058137_trgp-20230930.htm:56]**   | 722.0  **[0000950170-24-015593_trgp-ex99_1.htm:11]**   | 717.8  **[0000950170-24-051550_trgp-ex99_1.htm:6]**   | 783.5  **[0000950170-24-089135_trgp-20240630.htm:50]**   | 829.2  **[0000950170-24-121370_trgp-20240930.htm:54]**   |
| Fractionation Volumes (MBbl/d)                  | 744.4  **[0000950170-23-003561_trgp-ex99_1.htm:11]**   | 758.8  **[0000950170-23-017422_trgp-ex99_1.htm:7]**  | 794.4  **[0000950170-23-037533_trgp-ex99_1.htm:10]**   | 793.4  **[0000950170-23-057723_trgp-ex99_1.htm:11]**   | 844.8  **[0000950170-24-015593_trgp-ex99_1.htm:11]**   | 797.2  **[0000950170-24-051550_trgp-ex99_1.htm:6]**   | 902.2  **[0000950170-24-089135_trgp-20240630.htm:50]**   | 953.8  **[0000950170-24-121370_trgp-20240930.htm:54]**   |
| Export Volumes (MBbl/d)                         | 299.4  **[0000950170-23-003561_trgp-ex99_1.htm:11]**   | 373.4  **[0000950170-23-017657_trgp-20230331.htm:43]**   | 303.2  **[0000950170-23-037533_trgp-ex99_1.htm:10]**   | 349.3  **[0000950170-23-058137_trgp-20230930.htm:56]**   | 434.5  **[0000950170-24-015593_trgp-ex99_1.htm:11]**   | 439.0  **[0000950170-24-051550_trgp-ex99_1.htm:6]**   | 394.1  **[0000950170-24-089135_trgp-20240630.htm:50]**   | 403.9  **[0000950170-24-121370_trgp-20240930.htm:54]**   |
| Natural Gas Volume Settled (BBtu)               | 20.2  **[0000950170-23-003561_trgp-ex99_1.htm:9]**    | 19.7  **[0000950170-23-017422_trgp-ex99_1.htm:6]**    | 15.3  **[0000950170-23-037533_trgp-ex99_1.htm:8]**    | 15.0  **[0000950170-23-057723_trgp-ex99_1.htm:9]**    | 13.2  **[0000950170-24-015593_trgp-ex99_1.htm:9]**    | 14.4  **[0000950170-24-051853_trgp-20240331.htm:41]**    | 10.5  **[0000950170-24-088922_trgp-ex99_1.htm:8]**    | 9.4  **[0000950170-24-121056_trgp-ex99_1.htm:8]**     |
| NGL Volume Settled (MMgal)                      | 187.9  **[0000950170-23-003561_trgp-ex99_1.htm:9]**   | 184.1  **[0000950170-23-017422_trgp-ex99_1.htm:6]**   | 349.0  **[0000950170-23-037748_trgp-20230630.htm:49]**   | 166.0  **[0000950170-23-057723_trgp-ex99_1.htm:9]**   | 165.3  **[0000950170-24-015593_trgp-ex99_1.htm:9]**   | 134.1  **[0000950170-24-051550_trgp-ex99_1.htm:5]**   | 112.0  **[0000950170-24-088922_trgp-ex99_1.htm:8]**   | 102.8  **[0000950170-24-121370_trgp-20240930.htm:52]**   |
| Crude Oil Volume Settled (MBbl)                 | 0.6  **[0000950170-23-003561_trgp-ex99_1.htm:9]**    | 0.6  **[0000950170-23-017422_trgp-ex99_1.htm:6]**    | 0.6  **[0000950170-23-037533_trgp-ex99_1.htm:8]**    | 0.6  **[0000950170-23-057723_trgp-ex99_1.htm:9]**    | 0.6  **[0000950170-24-015593_trgp-ex99_1.htm:9]**     | 0.4  **[0000950170-24-051853_trgp-20240331.htm:41]**     | 0.4  **[0000950170-24-088922_trgp-ex99_1.htm:8]**     | 0.6  **[0000950170-24-121056_trgp-ex99_1.htm:8]**     |

91e424f3a6d6effaf43d7a10c2504be389782c2d357c0bde5bea710a431ff557

1. Given your expectation to become a full cash taxpayer by 2027 despite accruing 45Q tax credits starting in the fourth quarter, could you elaborate on why these credits are not meaningfully changing your cash tax outlook, and what steps you are taking to mitigate upcoming cash tax liabilities?

2. With the acceleration of plant timing and additional investments in Permian infrastructure leading to higher anticipated capital expenditures in 2025, how are you balancing this increased spending with your capital allocation priorities, particularly regarding shareholder returns and maintaining a strong investment-grade balance sheet?

3. Considering the current weak ethane prices and potential ethane rejection in outlying areas, how is Targa managing ethane recovery across its systems, and what impact do you expect this to have on your NGL transportation, fractionation volumes, and margins moving forward?

4. As new pipelines like Matterhorn come online and the basin experiences maintenance and disruptions affecting Waha prices, how is Targa positioned to navigate these market dynamics, and what strategies are you employing to ensure that your customers' production growth translates into increased volumes for Targa?

5. Given the increasing gas production and the potential need for additional gas pipeline capacity out of the Permian Basin, can you discuss Targa's plans or willingness to participate in future gas egress projects beyond your partnership with Blackcomb, and how delays or constraints in gas takeaway could impact your growth projections?

946b39486ea92d2f14756c9ffceac8e7893342fc514c92709a96664970403bac

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Major interstate and intrastate pipeline companies  **[0000950170-24-015841_trgp-20231231.htm:25]** 
- Master limited partnerships  **[0000950170-24-015841_trgp-20231231.htm:25]** 
- Oil and gas producers  **[0000950170-24-015841_trgp-20231231.htm:25]** 
- Midstream providers with NGL transportation capabilities  **[0000950170-24-015841_trgp-20231231.htm:25]** 
- Fractionators in the Mont Belvieu region  **[0000950170-24-015841_trgp-20231231.htm:25]** 
- Fractionators in Conway, Kansas  **[0000950170-24-015841_trgp-20231231.htm:25]** 
- Decentralized, smaller fractionation facilities in Texas, Louisiana, and New Mexico  **[0000950170-24-015841_trgp-20231231.htm:25]** 
- NGL marketing companies  **[0000950170-24-015841_trgp-20231231.htm:25]** 
- Trading organizations  **[0000950170-24-015841_trgp-20231231.htm:25]** 
- Petrochemical operators  **[0000950170-24-015841_trgp-20231231.htm:25]** 
- Large crude oil, natural gas, and NGL companies with greater financial resources  **[0000950170-24-015841_trgp-20231231.htm:47]** 

3f33b7d8151f4530e3f0779e1f20767129a64e58d16deccb1af439ca70138e9c

Plant Natural Gas Inlet (MMcf/d)

NGL Production (MBbl/d)

Crude Oil, Badlands (MBbl/d)

Crude Oil, Permian (MBbl/d)

Natural Gas Sales (BBtu/d)

NGL Sales (MBbl/d)

Condensate Sales (MBbl/d)

NGL Pipeline Transportation Volumes (MBbl/d)

Fractionation Volumes (MBbl/d)

Export Volumes (MBbl/d)

Natural Gas Volume Settled (BBtu)

NGL Volume Settled (MMgal)

Crude Oil Volume Settled (MBbl)

90a60fbc2f96e04b12ee63e8d31df4744c0826a3202c5d78ba19539bbc78f87c

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EBITDA**: Expected to be above the top end of the range **$3.95 billion to $4.05 billion**  **[TRGP_3405764_3]** .
  2. **Net Maintenance Capital Spending**: Estimated at **$225 million**  **[TRGP_3405764_3]** .
  3. **Net Growth Capital Spending**: Expected to modestly exceed **$2.7 billion**  **[TRGP_3405764_3]** .
  4. **Free Cash Flow Generation**: Anticipated meaningful inflection in 2025 relative to 2024  **[TRGP_3405764_3]** .
  5. **Dividend**: Expected recommendation for 2025 annual common dividend to **$4 per share**  **[TRGP_3405764_2]** .
  6. **Capital Allocation**: Plan to return 40% to 50% of adjusted cash flow from operations to shareholders in 2024  **[TRGP_3405764_1]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  1. **Adjusted EBITDA for 2024**: Midpoint estimate of **$4 billion**  **[TRGP_3395700_3]** .
  2. **Growth Capital Spending for 2024**: Approximately **$2.7 billion**  **[TRGP_3395700_2]** .
  3. **Capital Spending for 2025**: Estimated at **$1.7 billion**  **[TRGP_3395700_3]** .
  4. **Free Cash Flow**: Similar estimate for 2025 as in February 2024  **[TRGP_3395700_3]** .
  5. **Return of Capital**: Plan to return 40% to 50% of adjusted cash flow from operations to equity holders  **[TRGP_3395700_6]** .
  6. **Volume Growth**: Low double-digit percentage growth in the Permian for 2024  **[TRGP_3395700_1]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EBITDA**: Estimated between **$3.7 billion and $3.9 billion**  **[TRGP_3382116_1]** **[TRGP_3382116_3]** .
  2. **Growth Capital Spending**: Estimated between **$2.3 billion and $2.5 billion** for 2024; approximately **$1.4 billion** for 2025  **[TRGP_3382116_3]** .
  3. **Net Maintenance Capital Spending**: Estimated at **$225 million**  **[TRGP_3382116_3]** .
  4. **Dividend**: 50% increase to **$3 per share** for 2024  **[TRGP_3382116_3]** .
  5. **LPG Export Capacity**: Increase by approximately **650,000 barrels per month** by the second half of 2025  **[TRGP_3382116_1]** .
  6. **Liquidity and Leverage**: Available liquidity of **$2.6 billion**; net leverage ratio of **3.6x**  **[TRGP_3382116_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EBITDA for 2024**: Estimated between **$3.7 billion and $3.9 billion**  **[TRGP_3373534_4]** .
  2. **Growth Capital Spending for 2024**: Estimated between **$2.3 billion and $2.5 billion**  **[TRGP_3373534_4]** .
  3. **Net Maintenance Capital Spending for 2024**: Estimated at **$225 million**  **[TRGP_3373534_4]** .
  4. **Leverage Ratio**: Expected within the range of **3 to 4x**  **[TRGP_3373534_4]** .
  5. **Dividend Increase**: 50% increase to the annualized 2024 dividend  **[TRGP_3373534_1]** .
  6. **Permian Gathering and Processing Volumes**: Expected growth of about **9%**  **[TRGP_3373534_1]** .
  7. **Hedging and Commodity Price Sensitivity**: Impact of commodity price changes on EBITDA  **[TRGP_3373534_4]** .
  8. **Free Cash Flow in 2025**: Expected significant generation  **[TRGP_3373534_1]** .
  9. **2025 Growth Capital Spending**: Estimated at about **$1.4 billion**  **[TRGP_3373534_1]** .
  10. **Return of Capital**: Plan to return 40% to 50% of cash flow from operations to equity holders  **[TRGP_3373534_6]** .

04100e3af8f8f9401d0fe78c8372f474f7bf6b47b9d6cc30fe6853f8c14a2486

| Name                  | Position                                           | Start Date        | Short Bio                                                                                                                                                                                                 |
|-----------------------|----------------------------------------------------|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Matthew J. Meloy      | Chief Executive Officer and Director               | March 1, 2020     | Matthew J. Meloy has served as the CEO and a director since March 1, 2020. He was previously President from March 2018 to March 2020 and CFO from May 2015 to February 2018  **[0000950170-24-015841_trgp-20231231.htm:128]** **[0001193125-24-073912_d794370ddef14a.htm:11]** **[0001193125-23-085626_d433659ddef14a.htm:11]** .                                                          |
| Patrick J. McDonie    | President – Gathering and Processing               | March 2018        | Patrick J. McDonie has served as President – Gathering and Processing since March 2018. He was previously EVP – Southern Field Gathering and Processing from November 2015 to February 2018  **[0001193125-24-073912_d794370ddef14a.htm:11]** **[0000950170-24-015841_trgp-20231231.htm:128]** .                                            |
| D. Scott Pryor        | President – Logistics and Transportation           | March 2018        | D. Scott Pryor has served as President – Logistics and Transportation since March 2018. He was previously EVP – Logistics and Marketing from November 2015 to February 2018  **[0001193125-24-073912_d794370ddef14a.htm:11]** **[0000950170-24-015841_trgp-20231231.htm:128]** **[0001193125-23-085626_d433659ddef14a.htm:11]** .                                                          |
| Robert M. Muraro      | Chief Commercial Officer                           | March 2018        | Robert M. Muraro has served as Chief Commercial Officer since March 2018. He was previously EVP – Commercial from February 2017 to February 2018  **[0001193125-24-073912_d794370ddef14a.htm:12]** **[0001193125-23-085626_d433659ddef14a.htm:12]** **[0000950170-24-015841_trgp-20231231.htm:128]** .                                                                                    |
| Jennifer R. Kneale    | Chief Financial Officer                            | March 2018        | Jennifer R. Kneale has served as CFO since March 2018. She was previously Vice President – Finance from December 2015 to February 2018  **[0000950170-24-015841_trgp-20231231.htm:129]** **[0001193125-24-073912_d794370ddef14a.htm:12]** **[0001193125-23-085626_d433659ddef14a.htm:12]** .                                                                                               |
| Gerald R. Shrader     | Executive Vice President, General Counsel, Secretary| December 2023     | Gerald R. Shrader has served as EVP, General Counsel, and Secretary since December 2023. He held various positions within the company's subsidiaries starting in March 2015  **[0001193125-24-073912_d794370ddef14a.htm:12]** **[0000950170-24-015841_trgp-20231231.htm:129]** .                                                            |
| G. Clark White        | Executive Vice President - Operations              | September 2020    | G. Clark White has served as EVP - Operations since September 2020. He was previously EVP - Engineering and Operations from November 2015 to September 2020  **[0000950170-24-015841_trgp-20231231.htm:129]** **[0001193125-23-085626_d433659ddef14a.htm:12]** .                                                                             |
| Julie H. Boushka      | Senior Vice President and Chief Accounting Officer | March 2019        | Julie H. Boushka has served as SVP and Chief Accounting Officer since March 2019. She was previously Vice President – Controller from February 2017 to February 2019  **[0001193125-24-073912_d794370ddef14a.htm:12]** **[0000950170-24-015841_trgp-20231231.htm:129]** **[0001193125-23-085626_d433659ddef14a.htm:13]** .                                                                 |
| William A. Byers      | Chief Financial Officer                            | July 22, 2024     | William A. Byers serves as CFO, having joined the company in this role on July 22, 2024  **[0000950170-24-086188_xslF345X02/ownership.xml:0]** **[TRGP_3395700_1]** .                                                                                                          |
| J. Christopher Eklof  | Senior Vice President and Chief Accounting Officer | March 1, 2025     | The documents do not provide any information about J. Christopher Eklof or his role as Senior Vice President and Chief Accounting Officer at Targa Resources Corp. (TRGP) [N/A].                                                                |

aec3385d26adc4e13d4b2cdf0788dd17dee5c29645d47722ee1c13723b753a52

| Program Details          | Program 1 | Program 2 |
|--------------------------|-----------|-----------|
| Approval Date            | May 2023  **[0000950170-24-121370_trgp-20240930.htm:20]** **[0000950170-24-121370_trgp-20240930.htm:40]**  | July 2024  **[0000950170-24-121370_trgp-20240930.htm:20]** **[0000950170-24-121370_trgp-20240930.htm:40]**  |
| End Date/Duration        | Ongoing  **[0000950170-24-121370_trgp-20240930.htm:20]** **[0000950170-24-121370_trgp-20240930.htm:40]**  | Ongoing  **[0000950170-24-121370_trgp-20240930.htm:20]** **[0000950170-24-121370_trgp-20240930.htm:40]**  |
| Total Additional Amount  | $1.0 billion  **[0000950170-24-121370_trgp-20240930.htm:20]** **[0000950170-24-121370_trgp-20240930.htm:40]**  | $1.0 billion  **[0000950170-24-121370_trgp-20240930.htm:20]** **[0000950170-24-121370_trgp-20240930.htm:40]**  |
| Remaining Authorization Amount | $0.1 billion  **[0000950170-24-121370_trgp-20240930.htm:20]** **[0000950170-24-121370_trgp-20240930.htm:40]**  | $1.0 billion  **[0000950170-24-121370_trgp-20240930.htm:20]** **[0000950170-24-121370_trgp-20240930.htm:40]**  |
| Details                  | Part of strategy to return capital to shareholders  **[0000950170-24-121370_trgp-20240930.htm:20]** **[0000950170-24-089135_trgp-20240630.htm:19]** **[0000950170-24-089135_trgp-20240630.htm:38]**  | Part of strategy to return capital to shareholders  **[0000950170-24-121370_trgp-20240930.htm:20]** **[0000950170-24-089135_trgp-20240630.htm:19]** **[0000950170-24-089135_trgp-20240630.htm:38]**  |

99cc8492170c1fa6b3db354ef655f320980adb0957fc497cce2645eed763b183

75b58a9684aaa0ba182d4b490524b61e2e0774bdf44463842fe657847d7165a0

**Annual guidance for FY 2024:**
- **Adjusted EBITDA**: Expected above the top end of $3.95B–$4.05B  **[TRGP_3405764_3]**  (raised from midpoint of $4B  **[TRGP_3395700_3]** )  
- **Net Maintenance Capital Spending**: $225M  **[TRGP_3405764_3]**  (no prior guidance)  
- **Net Growth Capital Spending**: Modestly above $2.7B  **[TRGP_3405764_3]**  (raised from $2.7B  **[TRGP_3395700_2]** )  
- **Return of Capital**: Plan to return 40–50% of adjusted cash flow from operations  **[TRGP_3405764_1]**  (no change from prior guidance  **[TRGP_3395700_6]** )

**Annual guidance for FY 2025:**
- **Free Cash Flow**: Anticipated meaningful inflection in 2025 relative to 2024  **[TRGP_3405764_3]**  (no direct numeric comparison from prior guidance  **[TRGP_3395700_3]** )  
- **Dividend**: $4 per share  **[TRGP_3405764_2]**  (no prior guidance)  

8c47ab7e9aed319e68ac456902edf165fd97a89ed3fd1fa8233ae1a6dceccd34

| Name                        | Start Date | End Date | Reason for Change |
|-----------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP  | 2005  **[0000950170-24-015841_trgp-20231231.htm:152]**  | Present  | Current auditor   |

c3c8244d38b0424d024d04fc881f60588440456e1c176e38a899752bb7f04a09

- Gathering & Processing: $1,566.7 million (−16% YoY)  **[0000950170-23-058137_trgp-20230930.htm:35]** **[0000950170-24-121370_trgp-20240930.htm:34]** **[0000950170-24-121370_trgp-20240930.htm:36]** **[0000950170-24-121370_trgp-20240930.htm:7]**   
- Logistics & Transportation: $3,224.4 million (−6% YoY)  **[0000950170-23-058137_trgp-20230930.htm:35]** **[0000950170-24-121370_trgp-20240930.htm:34]** **[0000950170-24-121370_trgp-20240930.htm:36]** **[0000950170-24-121370_trgp-20240930.htm:7]**   
- Natural Gas Sales: $168.4 million (**−72% YoY**)  **[0000950170-23-058137_trgp-20230930.htm:37]** **[0000950170-24-121370_trgp-20240930.htm:34]** **[0000950170-24-121370_trgp-20240930.htm:36]** **[0000950170-24-121370_trgp-20240930.htm:7]**   
- NGL Sales: $2,959.5 million (+12% YoY)  **[0000950170-23-058137_trgp-20230930.htm:37]** **[0000950170-24-121370_trgp-20240930.htm:34]** **[0000950170-24-121370_trgp-20240930.htm:36]** **[0000950170-24-121370_trgp-20240930.htm:7]**   
- Midstream Services Fees: $634.8 million (+21% YoY)  **[0000950170-23-058137_trgp-20230930.htm:37]** **[0000950170-24-121370_trgp-20240930.htm:34]** **[0000950170-24-121370_trgp-20240930.htm:36]** **[0000950170-24-121370_trgp-20240930.htm:7]**   
- Operating Income (EBIT): $728.2 million (up from −$308.4 million YoY)  **[0000950170-23-058137_trgp-20230930.htm:7]** **[0000950170-24-121370_trgp-20240930.htm:7]** **[0000950170-24-121370_trgp-20240930.htm:13]**   
- Net Income: $447.9 million (**+133% YoY**)  **[0000950170-23-058137_trgp-20230930.htm:7]** **[0000950170-24-121370_trgp-20240930.htm:7]** **[0000950170-24-121370_trgp-20240930.htm:13]**   
- EPS (Diluted): $1.75 (+70% YoY)  **[0000950170-23-058137_trgp-20230930.htm:7]** **[0000950170-24-121370_trgp-20240930.htm:7]** **[0000950170-24-121370_trgp-20240930.htm:13]**   

6bfd45a1345c709e1f8e37c8eb422d1d5a50cb1f7fee7b493b586a8ff1a3c52a

9eae16cbbdc90ca9c35fef756b9fb12618886e5123ab14aca3a5b03a88bbe1c3

1. **Capital Allocation in 2025**  
   **Q:** How will you allocate capital with lower 2025 CapEx?  
   **A:** With a **$1 billion** reduction in CapEx in 2025, we're excited about significantly increasing free cash flow to meaningfully boost common dividends and continue opportunistic share repurchases. We plan to return **40% to 50%** of cash flow from operations to shareholders, providing substantial incremental capital to them.

2. **Permian Production Growth Outlook**  
   **Q:** What's your expectation for Permian production growth?  
   **A:** We're seeing robust growth in our Permian assets, outperforming initial expectations by year-end 2023 despite a slower start. Even with recent winter weather impacts, we expect high single-digit to potentially **9%** growth, setting us up well for 2024 and 2025.

3. **EBITDA Growth and Investment Multiples**  
   **Q:** Can you elaborate on EBITDA growth and investment multiples?  
   **A:** We're anticipating significant EBITDA growth in 2025 and beyond, with CapEx of **$2.3 to $2.5 billion** this year. Historically, we've achieved investment multiples closer to **4x**, outperforming our 5–6x target. There's potential upside if commodity prices provide tailwinds.

4. **M&A Impact on Growth Expectations**  
   **Q:** How do recent M&A activities affect your growth outlook?  
   **A:** We don't see material differences with new M&A announcements. We have meaningful positions and long-term contracts with all parties involved, and we expect consistent growth across combined companies. In some cases, there may even be incremental growth on our Midland assets.

5. **Fee-Based Contracts and Fee Floors**  
   **Q:** How are you increasing fee-based revenue and fee floors?  
   **A:** We've increased our fee-based contracts through acquisitions and restructuring existing agreements to include fee floors. This provides us with greater downside protection and incentivizes continued capital investment, with **90%** of our business now fee-based.

6. **Operational Challenges and Gas Quality**  
   **Q:** How are you managing operational hiccups and gas quality issues?  
   **A:** We're investing in additional treating facilities to handle CO₂ and H₂S, positioning us to manage sour gas effectively and grow at a higher clip than the basin. Our operations teams have swiftly responded to extreme weather, and volumes are returning to prior levels.

7. **Compression Lead Times and Impact**  
   **Q:** Are compression equipment lead times affecting operations?  
   **A:** Yes, lead times remain long, but we've gotten ahead by ordering equipment well in advance. We approved a **$400 million** compression order to ensure we're prepared for future growth, minimizing operational constraints.

8. **LPG Export Capacity Increase**  
   **Q:** What's the impact of lifting daylight restrictions on LPG exports?  
   **A:** The lifting of daylight hour restrictions has provided a **5% to 10%** increase in export capacity. With over **13 million barrels per month** exported in Q4, we view this change as long-term and expect continued optimization around nighttime transits.

9. **Potential Export Expansions at Galena Park**  
   **Q:** Are there plans to expand export capacity at Galena Park?  
   **A:** We have opportunities to expand Galena Park, including adding refrigeration, pipelines, and potential docks. While we have runway with existing assets, we're evaluating the timing for future expansions to accommodate growth from our gathering and processing business.

b2e04def830e1fe2daed9856bfaab21afea9ab96e8a1cbe953308c0720d32269

4c4348b26bea27cf76d26e206f196c2b76be80576dfdf4365f831e0c4172ce90

c147e593efdaf7a0b1708e2f0a96af0d0896dce97a235c2595e4ee08aca15d28

| Year | Amount Due (in millions) | Debt Type | Interest Rate | % of Total Debt |
|------|--------------------------|-----------|---------------|-----------------|
| 2025 | $600.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | Partnership accounts receivable securitization facility | 6.2% (weighted average) **[0000950170-24-121370_trgp-20240930.htm:18]** | 4.2% = (600 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2025 | $951.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | TRGP senior revolving credit facility | N/A | 6.7% = (951 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2027 | $750.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | Senior Unsecured Notes | 5.200% **[0000950170-24-121370_trgp-20240930.htm:18]** | 5.3% = (750 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2027 | $705.2 **[0000950170-24-121370_trgp-20240930.htm:18]** | Partnership Senior Unsecured Notes | 6.500% **[0000950170-24-121370_trgp-20240930.htm:18]** | 4.9% = (705.2 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2028 | $700.3 **[0000950170-24-121370_trgp-20240930.htm:18]** | Partnership Senior Unsecured Notes | 5.000% **[0000950170-24-121370_trgp-20240930.htm:18]** | 4.9% = (700.3 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2029 | $1,000.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | Senior Unsecured Notes | 6.150% **[0000950170-24-121370_trgp-20240930.htm:18]** | 7.0% = (1,000 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2029 | $679.3 **[0000950170-24-121370_trgp-20240930.htm:18]** | Partnership Senior Unsecured Notes | 6.875% **[0000950170-24-121370_trgp-20240930.htm:18]** | 4.8% = (679.3 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2030 | $949.6 **[0000950170-24-121370_trgp-20240930.htm:18]** | Partnership Senior Unsecured Notes | 5.500% **[0000950170-24-121370_trgp-20240930.htm:18]** | 6.7% = (949.6 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2031 | $1,000.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | Partnership Senior Unsecured Notes | 4.875% **[0000950170-24-121370_trgp-20240930.htm:18]** | 7.0% = (1,000 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2032 | $1,000.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | Partnership Senior Unsecured Notes | 4.000% **[0000950170-24-121370_trgp-20240930.htm:18]** | 7.0% = (1,000 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2033 | $750.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | Senior Unsecured Notes | 4.200% **[0000950170-24-121370_trgp-20240930.htm:18]** | 5.3% = (750 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2033 | $900.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | Senior Unsecured Notes | 6.125% **[0000950170-24-121370_trgp-20240930.htm:18]** | 6.3% = (900 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2034 | $1,000.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | Senior Unsecured Notes | 6.500% **[0000950170-24-121370_trgp-20240930.htm:18]** | 7.0% = (1,000 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2035 | $1,000.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | Senior Unsecured Notes | 5.500% **[0000950170-24-121370_trgp-20240930.htm:18]** | 7.0% = (1,000 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2052 | $750.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | Senior Unsecured Notes | 4.950% **[0000950170-24-121370_trgp-20240930.htm:18]** | 5.3% = (750 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2052 | $500.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | Senior Unsecured Notes | 6.250% **[0000950170-24-121370_trgp-20240930.htm:18]** | 3.5% = (500 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |
| 2053 | $850.0 **[0000950170-24-121370_trgp-20240930.htm:18]** | Senior Unsecured Notes | 6.500% **[0000950170-24-121370_trgp-20240930.htm:18]** | 6.0% = (850 / 14,254.7) * 100 **[0000950170-24-121370_trgp-20240930.htm:18]** **[0000950170-24-121370_trgp-20240930.htm:18]** |

d58590d516ab4a36a14b0ccb65e81303de454fdcfee4cdd3e626dc1af28c1b9e

- **Operational constraints**, including the **fire at the Greenwood plant**, and **tight Permian residue gas market**, may lead to **weaker Q2 EBITDA** and limit volume growth.  **[TRGP_3382116_10]**
- **Rising operating expenses** and **seasonality** are expected to result in **weaker second quarter** performance, potentially impacting profitability.  **[TRGP_3382116_10]**
- **Non-Permian assets** are underperforming due to **weaker gas prices**, leading to **lower volumes** and limited growth opportunities outside the Permian.  **[TRGP_3382116_21]**

9ab3a69713e041132b08939e5a3b9d0bfc2b33b19d3870185dfd8850e272c546

- **Strong and consistent growth in the Permian Basin**: Targa Resources is experiencing robust producer activity across all its areas, including the Delaware, Central, and Midland Basins. The company expects continued volume growth throughout 2024, supported by infrastructure investments and strong relationships with producers.  **[TRGP_3382116_7]** **[TRGP_3382116_11]** **[TRGP_3382116_14]**
- **Strategic investments in organic growth projects**: Targa is focused on investing in high-return organic projects such as the Pembrook II processing plant and Train 11 fractionator. These projects, along with increased compression facilities, position the company for continued success in the short, medium, and long term.  **[TRGP_3382116_8]** **[TRGP_3382116_11]** **[TRGP_3382116_10]**
- **Shift towards fee-based contracts and shareholder returns**: The company has successfully implemented more fee floors and fee-based volume growth in its gathering and processing business, providing stability in a low commodity price environment. Additionally, Targa is committed to returning capital to shareholders through increased dividends and opportunistic share repurchases, demonstrating strong conviction in their outlook and financial strength.  **[TRGP_3382116_13]** **[TRGP_3382116_16]**

837ad973616aeda30f5bdc79755e677d566d2b0abb534e82e934ece5719b8e49

1. **Guidance Raise and Free Cash Flow**  
   **Q:** Is the guidance raise about absolute dollars or rate change?  
   **A:** We raised our guidance due to strong volumes and positive expectations for the rest of the year and into 2025. Producers are highly active, and we've received numerous revisions to their short and medium-term outlooks.  **[TRGP_3395700_7]**  Even with CapEx increasing from **$1.4 billion to $1.7 billion**, we expect a similar free cash flow amount as our original outlook from February.  **[TRGP_3395700_7]** 

2. **Accelerated Volume Growth**  
   **Q:** What's driving your accelerated growth vs. the basin?  
   **A:** We've outperformed the basin by being in the best parts of the Midland and Delaware and benefiting from strong producer activity.  **[TRGP_3395700_9]**  Our large footprint and millions of acres of dedication enable us to grow faster than the average.  **[TRGP_3395700_9]**  Producers have revised their forecasts upward for 2024 and 2025, and we've had commercial success adding to our footprint.  **[TRGP_3395700_9]** 

3. **2025 Volume Growth Outlook**  
   **Q:** Can you provide quantitative color on 2025 growth?  
   **A:** While we're strong on low double-digit growth in 2024, our expectations for 2025 are trending higher than earlier this year.  **[TRGP_3395700_12]**  We're receiving updated producer forecasts and have had commercial success, so we feel good about strong growth in 2025 and will provide more details in February.  **[TRGP_3395700_12]** 

4. **CapEx Beyond 2025**  
   **Q:** Is $1.7B growth CapEx still right for beyond 2025?  
   **A:** We believe **$1.7 billion** is still appropriate for a typical year based on high single-digit Permian growth.  **[TRGP_3395700_14]**  However, downstream capital spending can be lumpier, and accelerated volume growth beyond expectations could change that outlook.  **[TRGP_3395700_14]** 

5. **Return of Capital Strategy**  
   **Q:** Thoughts on buyback versus dividend given stock run?  
   **A:** Our capital allocation remains unchanged, focusing on a strong balance sheet.  **[TRGP_3395700_16]**  We'll continue opportunistic share repurchases and meaningful increases in our annual dividend per share, reflecting our conviction in the company's strong outlook.  **[TRGP_3395700_16]** 

6. **Blackcomb Pipeline Details**  
   **Q:** Any details on Blackcomb like contracts or returns?  
   **A:** We've disclosed what we can in our press release.  **[TRGP_3395700_13]**  We're excited to get gas takeaway out of the basin, and bringing Targa's volumes helped get the project to FID.  **[TRGP_3395700_13]**  We expect it to be a great deal for Targa and our partners as it fills up.  **[TRGP_3395700_13]** 

7. **Ethane Recovery and Daytona Pipeline**  
   **Q:** How did ethane extraction affect volumes? Impact of Daytona?  
   **A:** Higher recoveries in Q2 drove higher GPM, partly due to being in full recovery after ethane rejection and weather issues in Q1.  **[TRGP_3395700_8]**  The tight gas market in the Permian also improved recoveries.  **[TRGP_3395700_8]**  Construction on the Daytona pipeline has gone very well, and it may come online in Q3, earlier than expected.  **[TRGP_3395700_8]** 

8. **Lower OpEx Despite Higher Volumes**  
   **Q:** What drove lower unit OpEx despite higher L&T volumes?  
   **A:** The significant volume increase, over **110,000 barrels per day** of incremental frac runoff in Q2, improved unit margins.  **[TRGP_3395700_12]**  We generally hire ahead of assets coming online, so OpEx increases before volumes arrive.  **[TRGP_3395700_12]**  Maintenance issues in Q1 were resolved, contributing to better performance in Q2.  **[TRGP_3395700_12]** 

5c10ecc3735969ea8587cee88549dc9a3e0d1ad5dbc57a16bb7e8f0e310b1c5f

- **Potential Overcapacity in Midstream Infrastructure May Lead to Pricing Pressure:** Management acknowledged that there is **"overcapacity"** in Y-grade pipelines coming out of the Permian Basin, which could impact pricing and margins in their midstream operations. ( **[TRGP_3395700_8]** )
- **Increased Capital Expenditures Could Strain Financials:** Targa is significantly increasing its growth capital spending estimate for **2024 to approximately $2.7 billion**, up from previous forecasts, due to accelerated timing of projects and additional investments. This higher capital spending could affect the company's free cash flow and leverage ratios. ( **[TRGP_3395700_2]** ,  **[TRGP_3395700_3]** )
- **Reliance on Fee Floors Amid Low Commodity Prices Indicates Underlying Weakness:** The company emphasized that **"fee floors were very much important to us in the second quarter"** due to **negative Waha prices and low NGL prices**, which suggests that low commodity prices are negatively impacting their operations and profitability without such financial protections. ( **[TRGP_3395700_23]** ,  **[TRGP_3395700_10]** )

282257c65dbf387e1b817bb5e20d2f62320be71e43b04b1db998bbfba1e9159c

1. **Guidance Outlook**  
   **Q:** Are you tracking towards higher or lower end of guidance?  
   **A:** It's early in the year, but performance has been strong, and volumes are expected to ramp up in both the Delaware and Midland Basins, though potential constraints exist. We feel good about our outlook going forward.  **[TRGP_3382116_9]** 

2. **2025 CapEx Confidence**  
   **Q:** How firm is the $1.4 billion CapEx for 2025?  
   **A:** We're confident the **$1.4 billion** figure is relatively sticky. Major downstream projects like Daytona, Train 11, and an export project are already accounted for. Any changes would depend on field activity levels, but overall, we feel good about this number for next year.  **[TRGP_3382116_15]** 

3. **Permian Gas Pipeline Need**  
   **Q:** When is a new Permian gas pipeline needed?  
   **A:** We agree that **2026** is when another full pipeline out of the basin is needed. Generally, it takes **24 months** from FID to completion. We're confident a pipeline will reach FID before the end of this year to address the 2026 needs.  **[TRGP_3382116_22]** 

4. **Upstream Growth Drivers**  
   **Q:** Is upstream growth from all producers or select few?  
   **A:** Growth is consistent across all our producers, with robust activity across the Delaware, Central, and Midland Basins. It's strong, steady activity not specific to any area or producer.  **[TRGP_3382116_14]** 

5. **Capital Return Targets**  
   **Q:** Will you reach the 40–50% payout target this year?  
   **A:** Repurchases are opportunistic, and we aim to return increasing capital to shareholders. However, in **2024** we may not reach the **40–50%** target due to high growth capital spending this year, but we'll see how the rest of the year shapes up.  **[TRGP_3382116_13]** 

6. **Impact of Low Waha Prices**  
   **Q:** Is there a meaningful impact from low Waha prices?  
   **A:** Weak Waha prices have pluses and minuses for us. There's some negative impact due to commodity sensitivity, but also positives from gas marketing opportunities. Overall, we'd prefer higher Waha prices but are planning for these fluctuations.  **[TRGP_3382116_18]** 

7. **Fee Growth in G&P Segment**  
   **Q:** What drove higher fees in the G&P segment?  
   **A:** Higher fees resulted from more fee-based volume growth and fee floor growth in our gathering and processing business. Our commercial team successfully added fee floors into key contracts in **Q4 2023**, allowing us to announce new processing plants despite low commodity prices.  **[TRGP_3382116_16]** 

8. **Permian Volume Outlook**  
   **Q:** Is second-half growth in Permian still on track?  
   **A:** We're seeing consistent, strong growth throughout the entire year across our systems. Producers are performing well, and we're putting infrastructure in place to handle continued growth.  **[TRGP_3382116_11]** 

9. **Nighttime Transits Benefit**  
   **Q:** How much do nighttime transits add to capacity?  
   **A:** Nighttime transits have improved our operating rates by significantly above **10%**, allowing higher utilization of our refrigeration units. This is likely the new normal.  **[TRGP_3382116_6]** 

10. **Propane Market Views**  
    **Q:** What are your views on propane given high production and storage?  
    **A:** We've seen increased production and similar inventories year-over-year, leading to high utilization levels of exports. Expansion projects, including a small one we announced, will help meet global demand, and we anticipate continued high exports.  **[TRGP_3382116_23]** 

b329a480dc9b423807b3234e6e6c5ea3240f257cd9956a0e7cc80d8c50597371

- **Targa Resources is experiencing robust growth in the Permian Basin, outperforming expectations**, with December 2023 being the highest month, setting up for strong year-over-year growth in 2024 and beyond. They have a **strong outlook for continued growth** in both the Midland and Delaware Basins.  **[TRGP_3373534_8]** **[TRGP_3373534_11]** **[TRGP_3373534_17]**
- **Targa expects significant EBITDA growth in 2025 and beyond**, with capital expenditures decreasing significantly, creating flexibility for **meaningful increases in shareholder returns**, aiming to return **40–50% of cash flow from operations to shareholders** through increased dividends and share buybacks.  **[TRGP_3373534_6]** **[TRGP_3373534_9]**
- **Targa has a history of achieving higher returns than projected**, with build multiples closer to **4x** over the past five years, lower than the targeted **5–7x**, due to strong volume growth and quicker asset utilization. Current projections may be conservative, indicating potential upside in future **EBITDA growth**.  **[TRGP_3373534_10]** **[TRGP_3373534_9]**

425f7714ab7ca920a30e781c538aa2053bac4d57dcc0ded22623d23b094fa95b

- **Supply chain issues are causing delays and uncertainties in project timelines**, particularly for Frac 11 and compression equipment, which could impact Targa's ability to meet growth targets.  **[TRGP_3373534_23]** ,  **[TRGP_3373534_21]** ,  **[TRGP_3373534_22]**
- **Extreme winter weather impacted Q1 results**, and 2023 volumes came in lower than initial guidance for the full-year average, indicating potential vulnerability to weather disruptions and possible underperformance.  **[TRGP_3373534_8]**
- **The company anticipates higher cash taxes starting in 2026-2027**, moving to a full statutory tax rate, which could reduce free cash flow available to shareholders.  **[TRGP_3373534_19]**

556d0ae6eae3807ff5935de9b19f88449b625118a2163d53321daf7bb7a67f15

- **Targa Resources is experiencing stronger than expected growth in natural gas volumes**, with **Permian volumes up 18% year-over-year in Q3**  **[TRGP_3405764_9]** , leading to **record volumes** and the acceleration of infrastructure investments.  **[TRGP_3405764_17]** **[TRGP_3405764_9]** **[TRGP_3405764_4]**
- The company's expertise and significant investments in handling **sour gas** in the Delaware Basin provide a competitive advantage and position Targa well for continued growth, as handling sour gas is more complex and others are less equipped to manage it.  **[TRGP_3405764_15]** **[TRGP_3405764_6]**
- Targa is accelerating the addition of new processing plants, such as **Falcon 2 and East Driver**, due to higher anticipated growth, with attractive economics of around **5.5x build multiple**, demonstrating strong demand and confidence in future returns.  **[TRGP_3405764_17]** **[TRGP_3405764_4]**

f39918b62fdf26271fcaed46ed1a6225240c158168c9d4361312d61d51d870f7

- **Strong Volume Growth and Raised Guidance:** Targa Resources has seen **record volumes exceeding expectations**, leading to a **raised adjusted EBITDA guidance for 2024 to $4 billion**, a $200 million increase from previous estimates.  **[TRGP_3395700_7]**  This growth is driven by **high levels of producer activity** and **positive revisions to producer forecasts**, positioning the company well for continued growth into 2025.  **[TRGP_3395700_9]**
- **Strategic Capital Investments and High Returns:** Targa is investing in **core business projects** with an **investment multiple of about 5.5x EBITDA**, expecting **very good returns**.  **[TRGP_3395700_17]**  These investments include additional gas processing plants, expansion of downstream NGL infrastructure, and participation in the **Blackcomb pipeline**, which is expected to be **a great deal for Targa and partners**.  **[TRGP_3395700_13]**
- **Strong Financial Position and Shareholder Returns:** The company maintains a **strong balance sheet**, with net leverage within the target range, and is **increasing capital returns to shareholders** through **opportunistic share repurchases** and plans for **meaningful increases in annual dividend per share**.  **[TRGP_3395700_16]**  In the second quarter, Targa repurchased a **record $355 million of common shares** at a weighted average price of $118.91.  **[TRGP_3395700_5]**

52f9e5cd1604680bd80e942c8a6e8d3cedf4f459a60440e31c677a3f4592d192

- **Higher Capital Expenditures May Pressure Free Cash Flow**: Targa Resources is seeing its growth capital expenditures move higher than previously anticipated due to increased infrastructure spending to handle higher-than-expected growth ( **[TRGP_3405764_16]** ). This elevated CapEx could potentially pressure free cash flow and affect shareholder returns.
- **Operational and Execution Risks in Sour Gas Expansion**: The company is investing heavily in sour gas infrastructure in the Delaware Basin, including an 800 million cubic feet per day treater and additional wells ( **[TRGP_3405764_15]** ). Handling sour gas is complex, and this expansion poses operational and execution risks that could impact performance.
- **Weak Ethane Prices Could Affect Margins**: Ethane prices have been weak lately, around $0.18, leading to potential rejection economics in certain areas ( **[TRGP_3405764_21]** ). While Targa remains in recovery mode to feed its system, continued low ethane prices could negatively impact margins in their NGL segment.

4ed1082645495e118d258ea8c84fdbcd5ea7e73c032cca85590196597368ee3b

1. **2025 CapEx Outlook**  
   **Q:** How long will accelerated growth endure and how high could 2025 CapEx go?  
   **A:** Management highlighted that the accelerated growth is expected to continue into 2025, with higher capital expenditures due to increased activity in gathering and processing, additional pipelines, compression, and acceleration of plant timing, including the Falcon 2 and East Driver plants.  **[TRGP_3405764_4]**  Although they did not provide specific CapEx numbers, they plan to give more details in February.  **[TRGP_3405764_4]** 

2. **Volume Growth Expectations**  
   **Q:** What's the outlook for volume growth, especially with producers in the basin?  
   **A:** Targa is seeing significant growth on the gas side, surpassing expectations due to more productive wells and higher volumes.  **[TRGP_3405764_6]**  The company remains bullish on natural gas growth across its footprint, particularly benefiting from the integration of Lucid assets in New Mexico, positioning them well to capture strong activity.  **[TRGP_3405764_6]** 

3. **Permian Basin Activity**  
   **Q:** What is the Permian Basin activity outlook and assumptions behind associated gas forecast?  
   **A:** One out of every three rigs in the Permian is running on Targa acreage, indicating robust activity on their footprint.  **[TRGP_3405764_18]**  They are seeing increased activity from various producers and new formations, some very gassy, leading to significant gas growth across both Midland and Delaware sides of the basin over the next 24 to 36 months.  **[TRGP_3405764_18]** 

4. **NGL Pipeline Expansion Plans**  
   **Q:** Will NGL pipeline spending be accelerated into 2025?  
   **A:** While volumes have increased, Targa is utilizing operating leverage and third-party agreements to defer major NGL pipeline capital expenditures, such as looping the 30-inch line.  **[TRGP_3405764_11]**  They will continue to evaluate the timing as they move into 2025 but believe they have the benefit of time due to current agreements and capacity.  **[TRGP_3405764_11]** 

5. **Future Capital Spend and M&A Impact**  
   **Q:** Could potential acquisitions delay the 2025 free cash flow inflection?  
   **A:** Management expects significant free cash flow in 2025, despite not providing firm capital numbers yet.  **[TRGP_3405764_19]**  They continually evaluate bolt-on acquisitions but set a high bar for these opportunities, prioritizing organic growth and execution on existing projects.  **[TRGP_3405764_19]** 

6. **Share Buyback Approach**  
   **Q:** Is the share buyback approach ratable or still opportunistic?  
   **A:** Targa continues to be opportunistic with share repurchases, considering various factors in their activity.  **[TRGP_3405764_10]**  They emphasize their unchanged capital allocation priorities and see repurchases as an important tool to return capital to shareholders, but expect variability moving forward.  **[TRGP_3405764_10]** 

7. **LPG Export Expansion Plans**  
   **Q:** Will you consider third-party LPG capacity to defer spend, or is own export capacity preferred?  
   **A:** Targa prefers to handle its own exports and is evaluating the timing and size of the next LPG export expansion, likely including pipeline and additional refrigeration totaling around **$350 million**.  **[TRGP_3405764_14]**  They are planning for future expansions to accommodate their volume growth rather than relying on third-party capacity.  **[TRGP_3405764_14]** 

8. **Sour Gas Business Growth**  
   **Q:** How much can the sour gas business grow and what CapEx is associated?  
   **A:** Targa has decades of experience handling sour gas and is ramping up spending to manage increasing sour volumes in the Delaware Basin.  **[TRGP_3405764_15]**  An **800 million cubic feet per day** treater is coming online at their Bull Moose complex, with additional wells being drilled, giving them an advantage for long-term growth.  **[TRGP_3405764_15]** 

9. **Impact of 45Q Credits on Cash Taxes**  
   **Q:** Will 45Q credits significantly offset future cash taxes?  
   **A:** While 45Q credits are a nice complement to their business, they are on the margin and do not meaningfully change Targa's outlook for cash taxes.  **[TRGP_3405764_16]**  They still expect to be subject to the AMT in **2026** and become a full cash taxpayer in **2027** after utilizing existing NOLs.  **[TRGP_3405764_16]** 

10. **Marketing Performance**  
    **Q:** Was strong Q3 marketing performance due to LPG exports or Permian gas optimization?  
    **A:** Targa had a strong marketing year across NGL, natural gas, and exports, contributing to outperformance, driven by the vastness of their footprint and high volumes moving across their systems.  **[TRGP_3405764_12]**  They expect to continue identifying marketing opportunities as they move forward.  **[TRGP_3405764_12]** 

11. **Downstream Throughput Outlook**  
    **Q:** What's the forward outlook for downstream throughput trends?  
    **A:** After rebounding from Q2 disruptions due to vessel inspections, Targa expects Q4 volumes to meet or exceed Q3, benefiting from demand in propane and butane markets.  **[TRGP_3405764_5]**  Moving into 2025, they anticipate similar trends with continued vessel additions and low freight rates facilitating global supply.  **[TRGP_3405764_5]** 

12. **Impact of Matterhorn Pipeline**  
    **Q:** Has the Matterhorn pipeline increased production or are flows just moving around?  
    **A:** For Targa's customers, production was already flowing with sufficient takeaway capacity.  **[TRGP_3405764_20]**  Matterhorn has provided more capacity basin-wide, but Targa did not expect an outsized quarter-over-quarter volume increase solely due to its startup.  **[TRGP_3405764_20]** 

13. **Ethane Recovery and Daytona Volumes**  
    **Q:** What are the ethane recovery trends and how will Daytona volumes evolve?  
    **A:** Despite weak ethane prices, Targa remains in full ethane recovery mode to feed their integrated system, particularly in the Permian where gas prices support recovery.  **[TRGP_3405764_21]**  The Daytona system provides operational efficiency and leverage, enhancing capacity into their 30-inch pipe.  **[TRGP_3405764_21]** 

14. **Falcon 2 and East Driver Plants**  
    **Q:** Why proceed with Falcon 2 and East Driver plants, and what are the economics?  
    **A:** The acceleration is due to increased volumes across the Delaware and Midland basins, leading Targa to announce these plants sooner than expected.  **[TRGP_3405764_17]**  The economics remain consistent with previous projects, with an organic build multiple of around **5.5x**.  **[TRGP_3405764_17]** 

15. **In-basin Demand Impact**  
    **Q:** Could in-basin industrial demand growth impact the gas egress picture?  
    **A:** While there is significant interest and discussions around in-basin consumption growth, the actual impact depends on what projects get built and permitted, which remains uncertain.  **[TRGP_3405764_8]** 

16. **Future Gas Egress Needs**  
    **Q:** What's Targa's view on future gas egress needs and involvement?  
    **A:** Targa is excited about their partnership with Blackcomb on a pipeline project and supports additional egress out of the basin.  **[TRGP_3405764_7]**  With increasing gas production, they anticipate a faster need for more gas pipelines and welcome other projects to alleviate capacity constraints.  **[TRGP_3405764_7]** 

17. **Badlands Crude Volume Uptick**  
    **Q:** Is the crude volume uptick in the Badlands system sustainable?  
    **A:** The uptick resulted from increased activity due to permits being granted and producers resuming drilling after inactivity.  **[TRGP_3405764_22]**  Targa expects continued good activity levels but doesn't anticipate sustained robust growth at the same rate.  **[TRGP_3405764_22]** 

2242d8d95109468685ec4c1291a57a781f3d70406a1a40be7dc326f928e8b3b7

Targa Resources Corp (TRGP)

Financials