Financial Data and Key Metrics Changes - Targa Resources reported a record adjusted EBITDA of $4.1 billion for 2024, a 17% increase compared to 2023, driven by strong operational metrics despite weak natural gas and NGL prices [13][37] - The fourth quarter adjusted EBITDA was $1.122 billion, reflecting a 5% increase from the third quarter, attributed to higher Permian volumes [36][37] - The company expects 2025 adjusted EBITDA to be between $4.65 billion and $4.85 billion, representing a 15% increase over 2024 [39] Business Line Data and Key Metrics Changes - Permian GMP volumes grew by 14% year-over-year in 2024, with an incremental 709 million cubic feet per day moving through the system [11] - NGL pipeline transportation volumes averaged a record during the fourth quarter, with fractionation volumes also reaching a record of 1.1 million barrels per day [21] - The logistics and transportation segment is expected to benefit from full-year contributions of the Daytona NGL pipeline and trains nine and ten [40] Market Data and Key Metrics Changes - The company anticipates continued volume growth in the Permian Basin, which will drive operating margins across its businesses [40] - The outlook for NGL supply growth remains robust, supported by downstream system expansions to handle growth from the Permian systems [22] Company Strategy and Development Direction - Targa Resources announced three new projects aimed at expanding NGL capacity, including the Delaware Express pipeline and new fractionators [9][10] - The company is focused on maintaining a strong balance sheet while investing in organic growth opportunities and returning capital to shareholders [34][15] - Targa's strategy includes opportunistic share repurchases and significant dividend increases, with a 33% increase in the annualized 2025 common dividend per share expected [14][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting strong commercial success and increased infrastructure investments [7][12] - The company expects to see significant volume growth in 2026, driven by the addition of four new Permian plants [12][14] - Management acknowledged weather-related challenges in Q1 but remains optimistic about the overall growth outlook for 2025 and beyond [52] Other Important Information - Targa completed the purchase of BP's 12% interest in Cedar Bayou Fractionators for approximately $111 million, now owning 100% of the asset [25] - The company also announced a definitive agreement to repurchase all outstanding preferred equity in Targa Badlands LLC for approximately $1.8 billion, enhancing its financial flexibility [26][27] Q&A Session Summary Question: Forward outlook and EBITDA trajectory - Management indicated a strong growth outlook for 2025, with expectations for more back-half growth and significant contributions from commercial deals [50][52] Question: Badlands buy-in clarification - Management confirmed the decision was opportunistic, driven by a strong balance sheet and the potential for $80 million in annual cash savings [62] Question: Capital allocation priorities - Management emphasized an all-of-the-above approach, balancing organic growth investments with opportunistic share repurchases and dividend increases [66][70] Question: Commercial success across footprint - Management noted good commercial success in both the Midland and Delaware basins, with significant activity and acreage positions available [76][78] Question: Expected returns on new projects - Management affirmed that the previously guided five and a half times build multiple remains a reasonable starting point for modeling [104] Question: North Texas Mountain Valley NGL pipeline timing - Management discussed the need for new capital and the ongoing evaluation of additional long-haul pipe projects to support growth [128][131]

Financial Data and Key Metrics Changes - Targa Resources reported a record adjusted EBITDA of $4.1 billion for 2024, a 17% increase compared to 2023, despite weak natural gas and NGL prices [13][37] - The fourth quarter adjusted EBITDA was $1.122 billion, reflecting a 5% increase over the third quarter, driven by higher Permian volumes [36][37] - The company expects full-year 2025 adjusted EBITDA to be between $4.65 billion and $4.85 billion, representing a 15% increase over 2024 [39] Business Line Data and Key Metrics Changes - Permian GMP volumes grew by 14% year-over-year, with an incremental 709 million cubic feet per day moving through the system [11] - NGL pipeline transportation volumes averaged a record during the fourth quarter, with fractionation volumes also reaching a record of 1.1 million barrels per day [21] - The logistics and transportation segment is expected to benefit from full-year contributions of the Daytona NGL pipeline and trains nine and ten [40] Market Data and Key Metrics Changes - The company anticipates continued volume growth in the Permian Basin, which will drive operating margins across its businesses [39] - The outlook for NGL supply growth remains robust, supported by downstream system expansions to handle growth from the Permian systems [22] Company Strategy and Development Direction - Targa Resources announced three new projects aimed at increasing NGL capacity, including the Delaware Express pipeline expansion and new fractionators [9][10] - The company is focused on organic growth opportunities while maintaining a strong balance sheet to support capital returns to shareholders [34][66] - The strategy includes opportunistic share repurchases and significant dividend increases, with a 33% increase in the common dividend per share expected for 2025 [14][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting strong commercial success and increased infrastructure investments [7][10] - The company expects a back-half weighted growth in 2025, with significant contributions from new commercial agreements [51][52] - Management noted that 2026 is projected to be even stronger than 2025, driven by the addition of four new plants [53][118] Other Important Information - Targa Resources repurchased $755 million of common shares in 2024, a substantial increase from $347 million in 2023 [33] - The company closed a new five-year $3.5 billion revolving credit facility, enhancing its liquidity position [43][44] - Targa purchased BP's 12% interest in Cedar Bayou Fractionators for approximately $111 million, now owning 100% of the asset [25] Q&A Session Summary Question: Forward outlook and EBITDA trajectory - Management indicated a strong growth outlook for 2025, with expectations for more back-half growth and significant contributions from commercial deals [50][52] Question: Badlands buy-in clarification - Management stated the decision was opportunistic, driven by a strong balance sheet and the potential for $80 million in annual cash savings [62][63] Question: Capital allocation priorities - The company maintains an all-of-the-above approach, focusing on organic growth while also executing opportunistic share repurchases [66][68] Question: Commercial success across footprint - Management highlighted good commercial success in both the Midland and Delaware basins, with significant acreage positions available for growth [76][78] Question: Expected returns on new projects - Management confirmed that the previously provided framework holds, with expectations to exceed the five and a half times build multiple [104] Question: North Texas Mountain Valley NGL pipeline timing - Management discussed the need for new capital and the flexibility provided by third-party offload deals to manage growth [127][131]

Fourth Quarter and Full Year 2024 Earnings Supplement February 20, 2025 | TARGA RESOURCES CORP. Forward Looking Statements Certain statements in this presentation are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes ...

Financial Performance - Fourth quarter 2024 net income attributable to Targa Resources Corp. was $351.0 million, up from $299.6 million in Q4 2023, while full year 2024 net income was $1,312.0 million, down from $1,345.9 million in 2023[2]. - Full year 2024 adjusted EBITDA reached a record $4.1 billion, a 17% increase compared to 2023, with fourth quarter adjusted EBITDA of $1.1 billion[6]. - Revenues for Q4 2024 were $4,405.2 million, a 4% increase from $4,239.5 million in Q4 2023, driven by higher commodity sales and midstream service fees[21]. - Adjusted EBITDA for Q4 2024 was $1,122.2 million, a 17% increase from $959.9 million in Q4 2023[21]. - Net income attributable to common shareholders for Q4 2024 was $318.1 million, a 14% increase from $280.2 million in Q4 2023[21]. - For the year ended December 31, 2024, commodity sales were relatively flat, reflecting lower natural gas and condensate prices of $1,242.8 million and unfavorable hedging impacts of $686.5 million[27]. - The total operating margin for the year ended December 31, 2024, was $2,312.4 million, an increase of 11% from $2,082.2 million in 2023[35]. - Operating margin for the year ended December 31, 2024, reached $2,355.1 million, reflecting a 21% increase from $1,948.7 million in 2023[44]. - Adjusted Cash Flow from Operations for the year ended December 31, 2024, was $3,372.4 million, compared to $2,840.6 million in 2023, reflecting an 18.7% increase[62]. Dividends and Share Repurchases - Targa declared a quarterly cash dividend of $0.75 per common share for Q4 2024, totaling approximately $164 million, and intends to recommend an annual dividend of $4.00 per share for 2025[4]. - The company repurchased 610,683 shares in Q4 2024 at a total cost of $108.0 million, and 5,933,050 shares for $754.7 million throughout 2024[5]. - Targa expects to increase its quarterly common dividend to $1.00 per share in Q1 2025, a 33% increase if approved[18]. Capital Expenditures and Growth Plans - The company plans net growth capital expenditures of $2.6 billion to $2.8 billion for 2025, including expansions in the Delaware Basin and Mont Belvieu[17]. - New projects include the Delaware Express pipeline expansion and a new 150 MBbl/d fractionator (Train 12) in Mont Belvieu, expected to commence operations in 2026 and 2027 respectively[13][14]. - Estimated net income for 2025 is projected at $1,765.0 million, with estimated Adjusted EBITDA expected to be $4,750.0 million[64]. - Growth capital expenditures for the year ended December 31, 2024, totaled $3,000.4 million, compared to $2,224.5 million in 2023, marking a 34.9% increase[62]. Debt and Liquidity - Targa's total consolidated debt as of December 31, 2024, was $14.2 billion, with total consolidated liquidity of approximately $2.0 billion[8][9]. - Targa announced a refinancing of preferred equity in Targa Badlands LLC for $1.8 billion, expected to close in Q1 2025, resulting in cash savings[11]. - Interest expense for the year ended December 31, 2024, was $752.4 million, up from $675.8 million in 2023, which is an increase of 11.3%[62]. Operational Highlights - The Gathering and Processing segment includes assets located in key regions such as the Permian Basin, Eagle Ford Shale, and Williston Basin, focusing on natural gas and crude oil operations[34]. - Natural gas inlet volumes in the Permian increased by 15% to 6,065.2 MMcf/d in Q4 2024 from 5,280.8 MMcf/d in Q4 2023, driven by new plant additions[35]. - The total NGL production increased by 14% to 959.8 MBbl/d in Q4 2024 compared to 838.5 MBbl/d in Q4 2023[35]. - NGL pipeline transportation volumes increased by 21% to 871.5 MBbl/d in Q4 2024, compared to 722.0 MBbl/d in Q4 2023[44]. - Fractionation volumes rose by 29% to 1,089.5 MBbl/d in Q4 2024, up from 844.8 MBbl/d in Q4 2023[44]. - Export volumes for Q4 2024 were 457.1 MBbl/d, a 5% increase from 434.5 MBbl/d in Q4 2023[44]. Market Conditions and Future Outlook - The company anticipates continued growth in volumes on its systems, influenced by market conditions and capital project completions[67]. - Targa Resources emphasizes the importance of monitoring market conditions and uncertainties that could impact future performance, including commodity price volatility and economic factors[67].

Core Viewpoint - Targa Resources Corp. reported strong financial results for the fourth quarter and full year of 2024, with record adjusted EBITDA and significant growth in volumes across its Gathering and Processing and Logistics and Transportation segments, despite a slight decline in annual net income compared to 2023 [2][7][14]. Financial Performance - Fourth quarter 2024 net income attributable to Targa was $351.0 million, a 17% increase from $299.6 million in Q4 2023 [2][22]. - Full year 2024 net income was $1,312.0 million, down from $1,345.9 million in 2023 [2][22]. - Adjusted EBITDA for Q4 2024 was $1,122.2 million, a 17% increase from $959.9 million in Q4 2023 [2][22]. - Full year adjusted EBITDA reached $4,142.3 million, a 17% increase from $3,530.0 million in 2023 [2][22]. Dividend and Share Repurchase - The company declared a quarterly cash dividend of $0.75 per common share for Q4 2024, totaling approximately $164 million paid on February 14, 2025 [4]. - Targa repurchased 610,683 shares in Q4 2024 at an average price of $176.86, totaling $108.0 million, and repurchased 5,933,050 shares for the full year at an average price of $127.20, totaling $754.7 million [5]. Operational Highlights - The company achieved record volumes in its Gathering and Processing and Logistics and Transportation segments, driven by increased natural gas inlet volumes and higher fees [6][7]. - The completion of new facilities, including the Greenwood II plant and Train 10 fractionator, supported higher transportation and fractionation volumes [7][12]. Capital Expenditures and Growth Projects - Targa estimates 2025 net growth capital expenditures between $2.6 billion and $2.8 billion, including spending for new projects like the Delaware Express and Train 12 [17][14]. - The company announced a new intra-Delaware Basin expansion of its Grand Prix NGL Pipeline and an expansion of LPG export capabilities at its Galena Park Marine Terminal [7][16]. Capitalization and Liquidity - As of December 31, 2024, Targa's total consolidated debt was $14,174.6 million, with total liquidity of approximately $2.0 billion [8][9]. - In February 2025, Targa entered a new five-year revolving facility with a capacity of $3.5 billion, enhancing its liquidity position [10]. 2025 Outlook - Targa expects full year 2025 adjusted EBITDA to be between $4.65 billion and $4.85 billion, representing a 15% increase over 2024 [14][15]. - The company anticipates continued growth in its Permian G&P footprint, driving record volumes in 2025 [14].

The upcoming report from Targa Resources, Inc. (TRGP) is expected to reveal quarterly earnings of $1.88 per share, indicating an increase of 52.9% compared to the year-ago period. Analysts forecast revenues of $4.08 billion, representing a decrease of 3.8% year over year.The consensus EPS estimate for the quarter has undergone a downward revision of 0.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates durin ...

Targa Resources Corp. (TRGP) is set to report fourth-quarter earnings on Feb. 20. The Zacks Consensus Estimate for earnings is pegged at $1.88 per share and the same for revenues is pinned at $4.08 billion.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Let us delve into the factors that might have influenced TRGP’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter. Highlights of TRGP’s Q3 Earn ...

Analysts on Wall Street project that Targa Resources, Inc. (TRGP) will announce quarterly earnings of $1.88 per share in its forthcoming report, representing an increase of 52.9% year over year. Revenues are projected to reach $4.08 billion, declining 3.8% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during ...

Wall Street analysts forecast that Targa Resources, Inc. (TRGP) will report quarterly earnings of $1.88 per share in its upcoming release, pointing to a year-over-year increase of 52.9%. It is anticipated that revenues will amount to $4.08 billion, exhibiting a decline of 3.8% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.7% to its current level. This demonstrates the covering analysts' collective reassessment of their init ...

HOUSTON, Jan. 16, 2025 (GLOBE NEWSWIRE) -- Targa Resources Corp. (NYSE:TRGP) ("Targa" or the "Company") announced its quarterly dividend on common shares with respect to the fourth quarter of 2024. Targa announced today that its board of directors has declared a quarterly cash dividend of $0.75 per common share, or $3.00 per common share on an annualized basis, for the fourth quarter of 2024. This cash dividend will be paid February 14, 2025, on all outstanding common shares to holders of record as of the c ...