Targa Resources Corp. Strategic Permian Basin Acquisition of Lucid Energy June 16, 2022 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 wi ...

Targa Resources Corp. Citi's Global Energy, Utilities and Climate Technology Conference Investor Presentation May 10-11, 2022 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 dev ...

Targa Resources Corp. First Quarter 2022 Earnings Supplement May 5, 2022 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 ...

Financial Data and Key Metrics Changes - Targa Resources reported record high quarterly EBITDA of $626 million, an increase of 10% sequentially, driven by higher volumes across most assets despite lower marketing margins [20][10] - Adjusted free cash flow for the first quarter was $373 million, with a consolidated leverage ratio of 3.4x, indicating a strong financial position [21][22] - The company completed the redemption of all outstanding Series A preferred stock for approximately $973 million, simplifying its capital structure [23] Business Line Data and Key Metrics Changes - In the Permian region, inlet volumes averaged over 3 billion cubic feet per day, with expectations for a 12% to 15% increase in average volumes for 2022 compared to 2021 [11][13] - NGL transportation volumes reached a record 460,000 barrels per day, with fractionation volumes rebounding to 703,000 barrels per day following a previous outage [16] - The acquisition of assets in South Texas is expected to be immediately accretive, enhancing the company's gathering and processing operations [15] Market Data and Key Metrics Changes - The company experienced strong activity levels across its Midland and Delaware systems, with volumes rebounding nicely in March and April after winter weather impacts [11][12] - The LPG export business at Galena Park loaded an average of 10.2 million barrels per month, with a strong outlook supported by a low-cost expansion project [17] Company Strategy and Development Direction - Targa Resources continues to invest in its businesses, with ongoing construction of new plants in the Permian and the acquisition of bolt-on assets [8][24] - The company aims to return increasing capital to shareholders through dividends and opportunistic share repurchases, with a $1.40 annualized dividend per common share for 2022 [25][29] - The long-term outlook remains strong, supported by a premier integrated Permian NGL business and a focus on safety and operational performance [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to withstand risks related to commodity prices and volumes, citing improvements in the balance sheet and hedging strategies [31][33] - The company anticipates that if commodity prices average around current levels for 2022, it would exceed the top end of its previously disclosed full-year financial guidance range [10][36] - Management noted that while weather impacts affected operations in the Badlands, they expect to recover and see positive activity levels across various regions [52][101] Other Important Information - Targa Resources has significantly hedged its positions for 2022 and continues to add hedges for 2023 and beyond, reducing exposure to commodity price fluctuations [21][68] - The company is evaluating opportunities in renewable energy and carbon capture, indicating a commitment to sustainability [76] Q&A Session Summary Question: Capital allocation priorities moving forward - Management plans to increase the common share dividend for 2022 and continue investing in the business while executing opportunistic share repurchases [29] Question: Key risks moving forward - Management identified commodity prices and volumes as key risks but noted improvements in balance sheet strength and hedging strategies to mitigate these risks [31][32] Question: Guidance reconciliation - Management acknowledged that current spot prices and the Southcross acquisition could lead to EBITDA exceeding guidance, but noted that the sale of GCX was included in the guidance [36][37] Question: Update on M&A considerations - Management remains selective regarding M&A opportunities, having recently completed the Southcross acquisition, and sees more assets available in the market [54][56] Question: Future growth projects and capacity - Management indicated that the fractionation market is tightening, and they are evaluating the need for additional capacity while monitoring producer activity [59][60] Question: Update on ethane recovery and Grand Prix - Management expects most plants to be in ethane recovery, but does not anticipate significant volume changes from this recovery [104][105] Question: Planning for gas egress issues - Management emphasized the importance of planning for gas takeaway capacity and collaborating with partners to ensure transport out of the basin [108][109]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 811 Louisiana St, Suite 2100, Houston, Texas 77002 (Address of principal executive offices) (Zip Code) FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) ...

Financial Data and Key Metrics Changes - Targa Resources reported record adjusted EBITDA of $2.05 billion for 2021, a 25% increase over 2020, with Q4 adjusted EBITDA at $571 million, up 13% sequentially [9][26] - The company achieved approximately $1.13 billion in adjusted free cash flow, leading to a year-end leverage ratio of 3.2 times [27][28] - Targa reduced debt by about $1.2 billion year-over-year [9] Business Line Data and Key Metrics Changes - Gathering and Processing volumes in the Permian reached record levels, with average inlet volumes increasing 12% over 2020 [13] - Logistics and Transportation segment saw NGL transportation volumes increase to a record 433,000 barrels per day in Q4 [19] - Fractionation volumes at Mont Belvieu averaged 612,000 barrels per day, impacted by an unplanned outage [20] Market Data and Key Metrics Changes - The company expects full-year 2022 adjusted EBITDA to be between $2.3 billion and $2.5 billion, reflecting a significant increase over 2021 [11][31] - The outlook for LPG export business remains robust, with a 19% sequential increase in volumes loaded during Q4 [22] Company Strategy and Development Direction - Targa is focused on simplifying its capital structure and enhancing shareholder returns through increased dividends and share repurchases [12][30] - The company plans to invest in organic growth opportunities, including new processing plants in the Permian [32] - Targa aims to maintain a strong balance sheet while exploring bolt-on acquisitions to enhance its footprint [75][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational and financial execution, highlighting strong activity levels in the Permian and expectations for continued volume growth [7][24] - The company anticipates higher commodity prices and continued growth across operations as key drivers for EBITDA growth in 2022 [31] Other Important Information - Targa repurchased approximately $40 million of common shares in Q4 and has $369 million remaining under its share repurchase program [29] - The company has a strong liquidity position with over $3.2 billion available at year-end [29] Q&A Session Summary Question: Capital allocation and preferred shares repurchase - Management indicated that proceeds from the GCX sale would likely be used to accelerate the repurchase of preferred shares in Q2, while maintaining flexibility for common share repurchases [38] Question: Growth CapEx allocation - Approximately $150 million of capital is allocated for the Midway plant, with significant spending on Legacy I and II plants as well [40] Question: Grand Prix utilization and expansion - Management noted strong operating leverage and plans to add pumps to the Grand Prix pipeline as production grows [44] Question: LPG export expansion rationale - The expansion project is low-cost and aims to meet growing international demand for cleaner feedstocks [46] Question: Natural gas egress from the Permian - Management acknowledged the need for additional infrastructure and expressed interest in participating in future pipeline projects [54] Question: 2022 EBITDA guidance drivers - Key drivers include commodity prices, Permian volumes, and strong export markets, with potential upside from managing costs effectively [58] Question: Contracting environment and customer preferences - Management noted that most growth is under long-term contracts, with a mix of fee-based and POP contracts in the Permian [66] Question: Hedging strategy and position - Targa is well-hedged, with over 75% of its volumes hedged for 2022, and plans to maintain similar hedging strategies for future years [68] Question: M&A opportunities and valuation trends - Management remains open to bolt-on acquisitions but maintains a high hurdle for any potential deals [88]

Targa Resources Corp. Fourth Quarter 2021 Earnings and 2022 Guidance Supplement February 24, 2022 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 anti ...

Part I [Business](index=5&type=section&id=Item%201.%20Business.) Targa Resources operates as a major midstream company through its Gathering & Processing and Logistics & Transportation segments - Targa operates through two primary segments: (i) **Gathering and Processing**, which handles raw natural gas and crude oil from wellheads, and (ii) **Logistics and Transportation**, which converts mixed NGLs into marketable products and manages their transport, storage, and export[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - The company is actively expanding its natural gas processing capacity in the Permian Basin with several new plants scheduled to come online between 2021 and 2023 to meet growing producer demand[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - Recent strategic capital allocation includes increasing the common stock dividend, repurchasing interests in development company joint ventures (DevCo JVs) for approximately **$925 million**, and agreeing to sell its 25% equity interest in the Gulf Coast Express Pipeline (GCX) for approximately **$857 million**[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) Gathering and Processing Segment Key Statistics (2021) | Metric | Value | | :--- | :--- | | Natural Gas Pipelines | ~28,400 miles | | Owned/Operated Processing Plants | 42 | | Average Natural Gas Processed | 4,470.3 MMcf/d | | Average NGLs Produced | 550.4 MBbl/d | | Average Crude Oil Purchased/Gathered | 175.9 MBbl/d | [Business Operations and Segments](index=10&type=section&id=Our%20Business%20Operations) The company's operations are divided into two main segments with assets strategically located in major US production basins - The Gathering and Processing segment's assets are strategically located in key production basins such as the **Permian (Midland and Delaware)**, Eagle Ford (SouthTX), Barnett Shale (North Texas), Anadarko Basins (Central Oklahoma), and Williston Basin (Badlands)[55](index=55&type=chunk) - The Logistics and Transportation (Downstream) segment's key assets include the **Grand Prix NGL pipeline**, eight fractionation trains at Mont Belvieu with a total capacity of **843.0 MBbl/d**, and the Galena Park Marine Terminal with an effective export capacity of approximately **12.5 MMBbl per month**[77](index=77&type=chunk)[84](index=84&type=chunk)[92](index=92&type=chunk) Gathering & Processing Segment - 2021 Throughput & Production | Region | Natural Gas Inlet (MMcf/d) | NGL Production (MBbl/d) | | :--- | :--- | :--- | | Permian Midland | 1,928.4 | 277.9 | | Permian Delaware | 839.8 | 114.1 | | SouthTX | 177.7 | 22.2 | | North Texas | 178.9 | 20.1 | | SouthOK | 405.9 | 49.5 | | WestOK | 212.6 | 16.5 | | Coastal | 587.2 | 33.9 | | Badlands | 139.8 | 16.2 | | **Total** | **4,470.3** | **550.4** | [Regulation and Environmental Matters](index=21&type=section&id=Regulation%20and%20Environmental%20Matters) Operations are subject to extensive federal, state, and local regulations, including environmental, health, and safety laws - Natural gas gathering operations are generally exempt from FERC jurisdiction but are subject to state-level statutes, while interstate NGL pipelines like Grand Prix are regulated by **FERC as common carriers**[124](index=124&type=chunk)[125](index=125&type=chunk)[128](index=128&type=chunk) - Operations are subject to stringent environmental laws (e.g., Clean Air Act, Clean Water Act) and occupational health and safety regulations (e.g., OSHA), which can result in **significant compliance costs** and penalties[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - Pipelines are regulated by the Pipeline and Hazardous Materials Safety Administration (PHMSA), which mandates integrity management programs with an estimated average annual cost of **$5.8 million** from 2022-2024[154](index=154&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors.) The company faces significant risks from commodity price volatility, operational hazards, competition, and regulatory changes - The company's cash flow is **highly sensitive to volatile commodity prices** (natural gas, NGLs, crude oil), which are influenced by supply/demand, economic conditions, and geopolitical factors beyond its control[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk) - A reduction in demand for NGL products from petrochemical, refinery, or export markets, or a significant oversupply, could **adversely affect the volumes** Targa handles and the fees it charges[172](index=172&type=chunk)[173](index=173&type=chunk) - The company faces substantial financial risk due to its **significant level of indebtedness**, which could impair its ability to obtain additional financing and limit operational flexibility[254](index=254&type=chunk)[256](index=256&type=chunk) - Regulatory risks are significant, including potential legislation related to **climate change and GHG emissions**, which could increase operating costs and reduce demand for fossil fuels[264](index=264&type=chunk)[265](index=265&type=chunk)[288](index=288&type=chunk) [Unresolved Staff Comments](index=52&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments.) The company reports no unresolved staff comments from the SEC - There are **no unresolved staff comments**[293](index=293&type=chunk) [Properties](index=52&type=section&id=Item%202.%20Properties.) The company's principal executive offices are located in Houston, Texas - The company's principal executive offices are located at **811 Louisiana Street, Suite 2100, Houston, Texas 77002**[294](index=294&type=chunk) [Legal Proceedings](index=52&type=section&id=Item%203.%20Legal%20Proceedings.) The company is appealing a court decision that awarded Vitol Americas Corp damages related to a terminated agreement - Vitol Americas Corp filed a lawsuit against a Targa subsidiary seeking recovery of **$129.0 million** in payments and other damages related to a terminated splitter agreement[295](index=295&type=chunk) - In October 2020, a district court awarded Vitol **$129.0 million plus interest and an additional $10.5 million** in damages; Targa has filed an appeal, which is currently pending[296](index=296&type=chunk) [Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - **Not applicable**[298](index=298&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=53&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities.) Targa's common stock trades on the NYSE, and the company executed share repurchases in Q4 2021 under an existing program - The company's common stock is listed on the New York Stock Exchange (NYSE) under the trading symbol **"TRGP"**[301](index=301&type=chunk) - As of December 31, 2021, approximately **$369 million remained available** under the company's $500 million common share repurchase program[33](index=33&type=chunk)[307](index=307&type=chunk) Q4 2021 Share Repurchases | Period | Shares Purchased | Average Price per Share | Total Cost (approx.) | | :--- | :--- | :--- | :--- | | Oct 2021 | 1,706 | $51.46 | $87,800 | | Nov 2021 | 353,224 | $54.24 | $19.2 Million | | Dec 2021 | 405,250 | $51.58 | $20.9 Million | | **Total Q4 2021** | **760,180** | **-** | **~$40.2 Million** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Financial performance improved significantly in 2021 due to higher commodity prices and increased volumes in the Permian Basin - The increase in 2021 revenue was primarily driven by higher NGL, natural gas, and condensate prices, which contributed **$8.45 billion** to the increase in commodity sales[345](index=345&type=chunk) - In 2021, the company recognized a non-cash pre-tax impairment loss of **$452.3 million** on assets in the South Texas region, compared to a **$2.44 billion** impairment in 2020[349](index=349&type=chunk) - Net cash from operating activities increased by **$558.4 million to $2.3 billion** in 2021, primarily due to higher commodity prices and collections from customers[391](index=391&type=chunk)[393](index=393&type=chunk) Consolidated Financial Performance (2021 vs. 2020) | Metric (in millions) | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $16,949.8 | $8,260.3 | 105% | | Income (loss) from operations | $864.8 | $(1,303.7) | 166% | | Net income (loss) attributable to TRC | $71.2 | $(1,553.9) | 105% | | Adjusted EBITDA | $2,052.0 | $1,636.6 | 25% | | Distributable Cash Flow | $1,541.4 | $1,172.8 | 31% | [Segment Results](index=62&type=section&id=Results%20of%20Operations%E2%80%94By%20Reportable%20Segment) Both segments saw increased adjusted operating margins in 2021, driven by higher commodity prices and increased throughput volumes - The Gathering and Processing segment's performance was boosted by higher realized commodity prices and increased natural gas inlet volumes in the Permian region, which **grew by 12% year-over-year**[362](index=362&type=chunk) - The Logistics and Transportation segment's growth was primarily due to **higher pipeline transportation and fractionation volumes**, reflecting increased supply from the Permian basin[367](index=367&type=chunk) Adjusted Operating Margin by Segment (2021 vs. 2020) | Segment (in millions) | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Gathering and Processing | $1,801.5 | $1,447.6 | 24% | | Logistics and Transportation | $1,537.3 | $1,402.0 | 10% | [Liquidity and Capital Resources](index=65&type=section&id=Our%20Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through a new credit facility and manages capital expenditures while servicing its debt obligations - In February 2022, the company entered into a new **$2.75 billion revolving credit facility** (New TRC Revolver) maturing in 2027, enhancing its financial flexibility[385](index=385&type=chunk) - The company projects net growth capital expenditures for 2022 to be between **$700 million and $800 million**, with maintenance capital expenditures estimated at approximately **$150 million**[402](index=402&type=chunk) Capital Expenditures (2021 vs. 2020) | Type (in millions) | 2021 | 2020 | | :--- | :--- | :--- | | Growth | $421.9 | $617.3 | | Maintenance | $138.6 | $109.5 | | **Gross Capital Expenditures** | **$560.5** | **$726.8** | Contractual Obligations Summary (as of Dec 31, 2021) | Obligation Type (in millions) | Total | Within 12 Months | | :--- | :--- | :--- | | Long-term debt obligations | $6,465.7 | $0.0 | | Interest on debt obligations | $2,457.4 | $359.3 | | Purchase obligations | $1,477.0 | $645.0 | | **Total** | **$10,829.1** | **$1,047.0** | [Quantitative and Qualitative Disclosures About Market Risk](index=71&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company manages commodity price, interest rate, and counterparty risks, primarily through derivative hedging instruments - The company uses derivative instruments, including swaps and futures, to **hedge a portion of its commodity price risk** for natural gas, NGLs, and condensate equity volumes through 2025[419](index=419&type=chunk)[421](index=421&type=chunk) - The company is exposed to interest rate risk from variable rate borrowings; a hypothetical **100 basis point change** in interest rates would impact annual interest expense by **$1.5 million**[430](index=430&type=chunk) Fair Value of Derivative Instruments (as of Dec 31, 2021) | Commodity | Fair Value (in millions) | | :--- | :--- | | Natural gas | $(82.5) | | NGLs | $(187.4) | | Crude oil | $(46.8) | | **Total** | **$(316.7)** | [Financial Statements and Supplementary Data](index=73&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data.) This section contains the company's consolidated financial statements and the independent auditor's report - The company's Consolidated Financial Statements and the report of the independent registered public accounting firm **begin on page F-1**[435](index=435&type=chunk) [Controls and Procedures](index=73&type=section&id=Item%209A.%20Controls%20and%20Procedures.) Management concluded that the company's disclosure controls and internal control over financial reporting were effective - Management concluded that as of December 31, 2021, the company's **disclosure controls and procedures were effective**[437](index=437&type=chunk) - Management's report concluded that **internal control over financial reporting was effective** as of December 31, 2021, and there were no material changes in the fourth quarter[438](index=438&type=chunk)[439](index=439&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=74&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance.) Information regarding directors, officers, and governance is incorporated by reference from the 2022 proxy statement - Information for this item is **incorporated by reference** from the registrant's definitive proxy statement for the 2022 Annual Meeting of Stockholders[443](index=443&type=chunk) [Executive Compensation](index=74&type=section&id=Item%2011.%20Executive%20Compensation.) Information regarding executive compensation is incorporated by reference from the 2022 proxy statement - Information for this item is **incorporated by reference** from the registrant's definitive proxy statement for the 2022 Annual Meeting of Stockholders[444](index=444&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=74&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters.) Information regarding security ownership is incorporated by reference from the 2022 proxy statement - Information for this item is **incorporated by reference** from the registrant's definitive proxy statement for the 2022 Annual Meeting of Stockholders[445](index=445&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=74&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence.) Information regarding related transactions and director independence is incorporated by reference from the 2022 proxy statement - Information for this item is **incorporated by reference** from the registrant's definitive proxy statement for the 2022 Annual Meeting of Stockholders[446](index=446&type=chunk) [Principal Accounting Fees and Services](index=74&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services.) Information regarding accounting fees and services is incorporated by reference from the 2022 proxy statement - Information for this item is **incorporated by reference** from the registrant's definitive proxy statement for the 2022 Annual Meeting of Stockholders[447](index=447&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=75&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules.) This section lists the financial statements and exhibits filed with the report, with schedules omitted as inapplicable - The company's **Consolidated Financial Statements** are included under Part II, Item 8 of the Annual Report[450](index=450&type=chunk) - All financial statement schedules have been **omitted** because they are not applicable, not required, or the information is included elsewhere in the financial statements or notes[451](index=451&type=chunk) [Form 10-K Summary](index=83&type=section&id=Item%2016.%20Form%2010-K%20Summary.) No Form 10-K summary is provided - **None**[460](index=460&type=chunk) Financial Statements [Consolidated Financial Statements](index=89&type=section&id=Consolidated%20Financial%20Statements) The company reported a significant turnaround to a net income of $71.2 million in 2021 from a net loss in 2020 Consolidated Balance Sheet Highlights (as of Dec 31) | Account (in millions) | 2021 | 2020 | | :--- | :--- | :--- | | Total Current Assets | $1,769.8 | $1,460.3 | | Property, Plant and Equipment, net | $11,667.7 | $12,173.6 | | **Total Assets** | **$15,208.2** | **$15,875.7** | | Total Current Liabilities | $2,298.5 | $1,779.4 | | Long-term Debt | $6,434.4 | $7,387.1 | | **Total Liabilities** | **$9,179.8** | **$9,671.1** | | **Total Owners' Equity** | **$5,178.7** | **$5,903.2** | Consolidated Statement of Operations Highlights (Year Ended Dec 31) | Account (in millions) | 2021 | 2020 | | :--- | :--- | :--- | | Total Revenues | $16,949.8 | $8,260.3 | | Income (loss) from operations | $864.8 | $(1,303.7) | | Net income (loss) attributable to TRC | $71.2 | $(1,553.9) | | Net income (loss) per common share - diluted | $(0.07) | $(7.26) | Consolidated Cash Flow Highlights (Year Ended Dec 31) | Account (in millions) | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,302.9 | $1,744.5 | | Net cash used in investing activities | $(473.2) | $(738.1) | | Net cash used in financing activities | $(1,914.0) | $(1,094.7) | [Notes to Consolidated Financial Statements](index=95&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail key accounting policies, a $452.3 million impairment charge, and significant transactions and financing activities - In Q4 2021, the company recorded a non-cash pre-tax impairment charge of **$452.3 million** for certain gas processing facilities and gathering systems in its Central operations[574](index=574&type=chunk) - In January 2022, Targa repurchased its interests in the DevCo JVs for **~$925 million** and subsequently agreed to sell its 25% equity interest in GCX for **~$857 million**[559](index=559&type=chunk)[560](index=560&type=chunk) - As of December 31, 2021, total debt obligations were **$6.6 billion**; in February 2022, the company replaced its existing credit facilities with a new **$2.75 billion revolving credit facility**[598](index=598&type=chunk)[603](index=603&type=chunk) - The company's derivative contracts for commodity hedging had a total net liability fair value of **$316.7 million** as of December 31, 2021, compared to a net liability of **$51.2 million** at the end of 2020[429](index=429&type=chunk)[680](index=680&type=chunk)

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]