UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K | TARGA RESOURCES | CORP. | | --- | --- | | (Exact name of registrant as specified in its charter) | | | Delaware | 20-3701075 | | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | | 811 Louisiana Street, Suite 2100, Houston, Texas | 77002 | | (Address of principal executive offices) | (Zip Code) | | (713) 584-1000 | | | (Registrant's telephone number, including area code) ...

Targa Resources Corp. Wells Fargo Midstream Utility & Renewables Symposium December 8, 2021 Forward Looking Statements and Corporate Structure Certain statements in this release 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 release that address activities, events or developments that the Company expects ...

Financial Data and Key Metrics Changes - Targa Resources reported a quarterly adjusted EBITDA of $506 million, representing a 10% sequential increase due to higher commodity prices and increased volumes across its integrated systems [20] - Year-to-date 2021, Targa generated adjusted free cash flow of $893 million, significantly reducing leverage throughout the year [21] - The company expects to end 2021 with a consolidated leverage ratio around 3.25 times, down from 3.5 times previously [23] Business Line Data and Key Metrics Changes - In the Permian region, third quarter system inlet volumes increased by 7% sequentially, with expectations to exceed the previously disclosed growth range of 5% to 10% for 2021 [14] - The Logistics and Transportation segment saw Grand Prix volumes increase to a record 417,000 barrels per day, with a 6% sequential increase in throughput volumes [16] - LPG Export Services averaged 9 million barrels per month in the third quarter, with lower sequential volumes attributed to maintenance at the Galena Park export facility [17] Market Data and Key Metrics Changes - The company noted a stronger outlook across its Permian Basin footprint, driving incremental volumes through its NGL downstream business [15] - The overall global LPG market was weaker, impacting export volumes, but Targa expects improved performance in the fourth quarter due to stabilized prices [18][80] Company Strategy and Development Direction - Targa is focused on fully integrating its NGL business and moving to a G&P contract structure that protects downside while allowing participation in strong commodity prices [8] - The company plans to recommend a $1.40 per common share annual dividend, equating to approximately 30% of its 2021 free cash flow, with expectations for modest annual increases going forward [11][25] - Targa aims to simplify its capital structure and return more capital to shareholders in 2022, while continuing to invest in high-return growth opportunities [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the top end of the adjusted EBITDA guidance for 2021, driven by attractive organic growth opportunities [10] - The company is optimistic about continued growth in the Permian region, with robust activity levels expected to persist into the next year [14] - Management acknowledged the challenges posed by inflation but indicated that contracts include escalators to benefit from inflationary pressures [52] Other Important Information - Targa has been proactive in sustainability efforts, recently entering agreements to source renewable electricity for its G&P infrastructure [28] - The company is in discussions with rating agencies to achieve an investment-grade rating, with Moody's recently upgrading Targa to Ba1 [26] Q&A Session Summary Question: Outlook for producer activity in 2022 - Management noted that larger E&Ps are sticking to their plans, while smaller and private producers are showing increased activity [37] Question: Capital allocation priorities - The focus has shifted from debt repayment to returning capital to shareholders, with the dividend increase being the first step [41] Question: Activity levels in the Delaware Basin - Management indicated steady growth from both large public and smaller private producers in both the Midland and Delaware sides of the basin [50] Question: Inflation impact on contracts - Targa has escalators in its contracts, which should benefit the company in an inflationary environment [52] Question: Discussions with rating agencies - Management is optimistic about achieving investment-grade status and is in good dialogue with the agencies [61] Question: Future CapEx and inflation considerations - The increase in 2022 CapEx is primarily due to increased activity rather than inflation, although some cost pressures are expected [77] Question: Dividend increase metrics - The dividend set at $1.40 represents about 30% of 2021 free cash flow, but future increases will depend on performance and outlook [86] Question: M&A strategy in midstream - Targa will continue to evaluate M&A opportunities but maintains a high hurdle for acquisitions, focusing on organic growth [116] Question: ESG initiatives and renewable energy - Targa is exploring additional renewable energy projects and carbon capture opportunities as part of its ESG strategy [118]

Targa Resources Corp. Third Quarter 2021 Earnings Supplement November 4, 2021 Forward Looking Statements Certain statements in this release 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 release that address activities, events or developments that the Company expects, believes or anticipates will or may ...

[PART I—FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents Targa Resources Corp.'s unaudited consolidated financial statements for Q3 and nine months ended September 30, 2021, reflecting increased revenues and profitability [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Details the company's financial position as of September 30, 2021, showing total assets of **$15.97 billion** and total liabilities of **$9.82 billion** Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $1,993.3 | $1,460.3 | | **Total Assets** | **$15,972.7** | **$15,875.7** | | **Total Current Liabilities** | $2,868.3 | $1,779.4 | | **Total Liabilities** | $9,823.1 | $9,671.1 | | **Total Owners' Equity** | $5,399.9 | $5,903.2 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Reports Q3 2021 total revenues of **$4.46 billion** and net income of **$160.4 million**, significantly improving from a prior-year loss Key Operational Results (in millions, except per share data) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $4,459.7 | $2,115.1 | $11,508.2 | $5,687.5 | | **Income from Operations** | $366.5 | $295.5 | $956.4 | $(1,568.9) | | **Net Income (Loss) Attributable to Common Shareholders** | $160.4 | $36.9 | $319.3 | $(1,684.0) | | **Net Income (Loss) per Common Share - Diluted** | $0.66 | $0.16 | $1.38 | $(7.22) | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Shows net cash from operations at **$1.80 billion** for the nine months ended September 30, 2021, an increase from **$1.10 billion** in 2020 Consolidated Cash Flow Summary (Nine Months Ended Sep 30, in millions) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $1,798.8 | $1,095.7 | | **Net Cash Used in Investing Activities** | $(299.6) | $(654.0) | | **Net Cash Provided by (Used in) Financing Activities** | $(1,513.4) | $(497.8) | | **Net Change in Cash and Cash Equivalents** | $(14.2) | $(56.1) | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations for financial statements, covering accounting policies, debt, derivatives, segment information, and legal contingencies - As of September 30, 2021, total debt obligations stood at **$6.79 billion**, a decrease from **$7.76 billion** at year-end 2020. The company actively managed its debt profile, issuing **$1.0 billion** in new notes and redeeming several series of existing notes during 2021[55](index=55&type=chunk)[60](index=60&type=chunk)[62](index=62&type=chunk) - The company operates in two primary segments: Gathering and Processing, and Logistics and Transportation. For the nine months ended September 30, 2021, the Gathering and Processing segment generated an operating margin of **$938.2 million**, while the Logistics and Transportation segment generated **$920.5 million**[112](index=112&type=chunk)[121](index=121&type=chunk) - The company has estimated minimum revenue of **$3.19 billion** related to unsatisfied performance obligations from long-term contracts with remaining terms of 1 to 18 years[104](index=104&type=chunk)[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operational results, highlighting strong performance from higher commodity prices and volumes, capital allocation, and liquidity [Recent Developments and Outlook](index=29&type=section&id=Recent%20Developments%20and%20Outlook) Details Targa's Permian Midland processing capacity expansion, updated capital allocation strategy, and debt management activities - The Heim Plant (**200 MMcf/d**) began operations in Q3 2021, and construction of the new Legacy Plant (**250 MMcf/d**) in the Midland Basin is underway, with operations expected in Q4 2022[134](index=134&type=chunk)[135](index=135&type=chunk) - The company announced a new capital allocation strategy, intending to recommend a dividend increase to **$0.35 per common share** for Q4 2021, repurchase JV interests for **~$925 million**, and potentially redeem Series A Preferred Stock[137](index=137&type=chunk) - In 2021, the company actively managed its debt by issuing **$1.0 billion** of 4% Senior Notes due 2032 and redeeming several other series of notes, including the 5⅛% Notes due 2025 and 4¼% Notes due 2023[138](index=138&type=chunk)[140](index=140&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) Consolidated results show significant year-over-year improvement, with Q3 2021 net income up **163%** and Adjusted EBITDA increasing **21%** Consolidated Financial Highlights (in millions) | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $4,459.7 | $2,115.1 | 111% | | **Net Income Attributable to TRC** | $182.2 | $69.3 | 163% | | **Adjusted EBITDA** | $505.9 | $419.1 | 21% | Segment Operating Margin (in millions) | Segment | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | **Gathering and Processing** | $361.4 | $261.0 | 38% | | **Logistics and Transportation** | $280.7 | $280.4 | 0% | - The Gathering and Processing segment's performance was driven by higher realized commodity prices and a **15% increase** in Total Permian natural gas inlet volumes year-over-year[190](index=190&type=chunk)[196](index=196&type=chunk) - The Logistics and Transportation segment saw a **38% increase** in pipeline throughput and a **12% increase** in fractionation volumes, driven by higher supply from the Permian[200](index=200&type=chunk)[202](index=202&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Reviews Targa's liquidity of **$3.13 billion** as of October 29, 2021, and outlines capital expenditure estimates for 2021 Consolidated Liquidity as of October 29, 2021 (in millions) | Source | Amount | | :--- | :--- | | Cash on hand | $307.1 | | Availability under Revolvers | $2,870.0 | | **Total Liquidity** | **$3,128.3** | - Net cash from operating activities increased by **$703.1 million** to **$1.8 billion** for the first nine months of 2021 compared to the same period in 2020, primarily due to higher collections from customers[227](index=227&type=chunk)[229](index=229&type=chunk) - The company estimates 2021 net growth capital expenditures of **$350 million to $450 million** and net maintenance capital expenditures of approximately **$120 million**[239](index=239&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Details the company's exposure to market risks, including commodity prices, interest rates, and counterparty credit, and its hedging strategies - The company hedges a portion of its expected natural gas, NGL, and condensate equity volumes through 2025 to reduce cash flow variability[244](index=244&type=chunk)[246](index=246&type=chunk) Sensitivity of Derivative Fair Value to 10% Price Change (as of Sep 30, 2021, in millions) | Commodity | Fair Value | Result of 10% Price Decrease | Result of 10% Price Increase | | :--- | :--- | :--- | :--- | | **Total** | **$(527.4)** | **$(378.3)** | **$(676.5)** | - A hypothetical **100 basis point** change in interest rates would impact annual interest expense by **$3.4 million** based on September 30, 2021 variable-rate debt balances[254](index=254&type=chunk) [Controls and Procedures](index=48&type=section&id=Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2021, with no material changes in internal control - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2021[259](index=259&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[260](index=260&type=chunk) [PART II—OTHER INFORMATION](index=49&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=49&type=section&id=Legal%20Proceedings) Details a significant legal proceeding with Vitol Americas Corp., where a court awarded Vitol **$129.0 million** plus interest and **$10.5 million** in damages, which Targa has appealed - Vitol Americas Corp. filed a lawsuit against a former Targa subsidiary, Targa Channelview LLC, seeking recovery of **$129.0 million** in payments related to a terminated Splitter Agreement[263](index=263&type=chunk) - On October 15, 2020, a district court awarded Vitol **$129.0 million** (plus interest) and an additional **$10.5 million** in damages. The company has filed an appeal, which is currently pending[264](index=264&type=chunk) [Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) Supplements annual risk factors by highlighting the adverse impact of severe weather events and potential climate changes on operations and financial results - The company's operations are subject to disruption from severe weather, such as the February 2021 winter storms, which can adversely affect operations and the financial condition of counterparties[267](index=267&type=chunk) - Potential climate changes may increase the frequency and severity of storms, floods, and other climatic events, which could have a material adverse effect on the company's business[267](index=267&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no unregistered equity sales and details share repurchases, with **$408.5 million** remaining under the **$500 million** repurchase program as of September 30, 2021 - There were no unregistered sales of equity securities during the period[269](index=269&type=chunk) - As of September 30, 2021, approximately **$408.5 million** remained available for repurchase under the company's **$500 million** authorized share repurchase program[270](index=270&type=chunk)[271](index=271&type=chunk) [Other Items (Items 3, 4, 5, 6)](index=50&type=section&id=Other%20Items%20(Items%203,%204,%205,%206)) Covers items with no substantive disclosures, including defaults, mine safety, and other information, and lists exhibits filed with the quarterly report - There were no defaults upon senior securities during the period[272](index=272&type=chunk) - Item 6 lists the exhibits filed with the Form 10-Q, including certifications and supplemental indentures[275](index=275&type=chunk)[277](index=277&type=chunk)

Targa Resources Corp. Second Quarter 2021 Earnings Supplement August 5, 2021 Forward Looking Statements Certain statements in this release 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 release that address activities, events or developments that the Company expects, believes or anticipates will or may o ...

Targa Resources Corp. (NYSE:TRGP) Q2 2021 Earnings Conference Call August 5, 2021 11:00 AM ET Company Participants Sanjay Lad - Vice President of Finance & Investor Relations Matt Meloy - Chief Executive Officer Jen Kneale - Chief Financial Officer Pat McDonie - President, Gathering & Processing Scott Pryor - President Logistics & Transportation Conference Call Participants Shneur Gershuni - UBS John Mackay - Goldman Sachs Michael Blum - Wells Fargo Jeremy Tonet - JPMorgan Tristan Richardson - Truist Securi ...

Washington, D.C. 20549 UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-34991 TARGA RESOURCES CORP. (Exact name of registrant as specified in its charter) Delaware 20-3701075 (State or other jurisdic ...

Targa Resources Corp. 2021 Credit Suisse Global Energy Conference June 9, 2021 Forward Looking Statements and Corporate Structure Certain statements in this release 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 release that address activities, events or developments that the Company expects, believes or ...

Targa Resources Corp. First Quarter 2021 Earnings Supplement May 6, 2021 Forward Looking Statements Certain statements in this release 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 release that address activities, events or developments that the Company expects, believes or anticipates will or may occur ...