Financial Data and Key Metrics Changes - The company reported adjusted EBITDA for Q2 2025 of $1,163 million, an 18% increase year-over-year, primarily driven by higher Permian volumes and margin improvements across segments [19][20] - Full-year 2025 adjusted EBITDA is estimated to be in the range of $4,650 million to $4,850 million [20] - The company had $3,500 million of available liquidity at the end of Q2 2025, with a pro forma consolidated leverage ratio of 3.6 times, within the long-term target range of three to four times [20][21] Business Line Data and Key Metrics Changes - Natural gas inlet volumes in the Permian averaged a record 6,300 million cubic feet per day in Q2 2025, an 11% increase year-over-year [12] - NGL pipeline transportation volumes averaged a record 961,000 barrels per day, while fractionation volumes averaged 969,000 barrels per day during the same period [15] - The company experienced a planned turnaround at its fractionation complex, which reduced capacity for two-thirds of Q2, but volumes have since increased to over 1,000,000 barrels per day post-turnaround [15][16] Market Data and Key Metrics Changes - The Permian gas production growth has outpaced crude production, with associated gas growth averaging 13% per year over the past five years, while crude production has averaged 8% [8][9] - The company’s year-over-year volume growth averaged 17%, outperforming both associated gas and crude production [9] - The company is well-positioned for growth due to its footprint across high-quality rock in the Permian Basin and strong relationships with world-class producers [9][10] Company Strategy and Development Direction - The company aims to increase adjusted EBITDA and return capital to shareholders through share repurchases and dividends, while maintaining a strong investment-grade balance sheet [10][22] - The company is focused on integrated growth opportunities, with a capital spending plan of approximately $3,000 million for 2025 [21] - The company is preparing for future growth by ordering long lead items for additional Permian plants and enhancing connectivity through pipeline extensions [14][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong growth in volumes for the remainder of 2025 and into 2026, despite some macroeconomic volatility [6][10] - The company noted that ongoing discussions with producers indicate robust growth potential, supported by a strong demand for natural gas and NGLs [10][9] - Management highlighted the resilience of the business model amid commodity price volatility and global trade concerns [18] Other Important Information - The company announced a retirement of a key executive, Scott Pryor, effective March 1, 2026, with Ben Branstetter set to succeed him [4][5] - The company repurchased $324 million in common shares during Q2 2025, continuing its strategy of opportunistic share repurchases [20][22] - A new $1,000 million common share repurchase program was authorized, bringing total available repurchase capacity to approximately $1,600 million [22] Q&A Session Summary Question: Ability to outperform peers in the basin - Management highlighted the largest footprint and strong relationships with active producers as key factors for continued outperformance [26][27] Question: Outlook for NGL margins - Management noted growing supply and long-term contracts as supportive of margins, despite concerns about overbuilding [29][30] Question: Competition in the Northern Delaware - Management acknowledged increased competition but emphasized Targa's established capabilities and strategic positioning in sour gas treatment [38][39] Question: Capital expenditures for future projects - Management indicated that capital expenditures would be informed by producer budgeting cycles and ongoing project efficiencies [47][48] Question: Performance of Badlands assets post-acquisition - Management confirmed that the Badlands assets are performing as expected, with potential for increased production in the future [71][72] Question: LPG export docks performance - Management clarified that while dock loadings were strong, sequential volume fluctuations were due to market dynamics and contract structures [80][84] Question: Impact of new pipeline capacity on pricing - Management expressed optimism about new egress pipelines unlocking the basin and potentially improving pricing dynamics [90][92] Question: Use of third-party NGL transport - Management indicated that utilizing third-party transport allows for capital efficiency and diversification of transport options [93][94] Question: Capital costs for processing plants - Management acknowledged rising costs but emphasized effective cost management strategies to maintain competitive returns [100]

Second Quarter 2025 Earnings Supplement August 7, 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 payment of future dividends. expec ...

Exhibit 99.1 811 Louisiana, Suite 2100 Houston, TX 77002 713.584.1000 Targa Resources Corp. Reports Second Quarter 2025 Financial Results HOUSTON – August 7, 2025 - Targa Resources Corp. (NYSE: TRGP) ("TRGP," the "Company" or "Targa") today reported second quarter 2025 results. Second quarter 2025 net income attributable to Targa Resources Corp. was $629.1 million compared to $298.5 million for the second quarter of 2024. The Company reported adjusted earnings before interest, income taxes, depreciation and ...

Core Viewpoint - Targa Resources Corp. reported strong financial results for the second quarter of 2025, with significant increases in net income and adjusted EBITDA compared to the same period in 2024, driven by record transportation volumes and strategic share repurchase programs [2][10][17]. Financial Performance - Net income attributable to Targa Resources Corp. for Q2 2025 was $629.1 million, a 111% increase from $298.5 million in Q2 2024 [2][23]. - Adjusted EBITDA for Q2 2025 was $1,163.0 million, representing an 18% increase year-over-year from $984.3 million in Q2 2024 [2][10]. - Total revenues for Q2 2025 reached $4,260.1 million, a 20% increase from $3,562.0 million in Q2 2024 [21]. Dividend and Share Repurchase - The company declared a quarterly cash dividend of $1.00 per common share for Q2 2025, totaling approximately $215 million to be paid on August 15, 2025 [4]. - Targa repurchased 1.96 million shares at a total cost of $324.3 million during Q2 2025, with $566.2 million remaining under the existing share repurchase program [5][10]. Segment Performance - In the Gathering and Processing segment, adjusted operating margin was approximately flat, driven by strong growth in Permian natural gas inlet volumes, despite lower commodity prices [7][43]. - The Logistics and Transportation segment saw a sequentially flat adjusted operating margin, with record NGL pipeline transportation volumes offset by lower marketing margins [8][50]. Capitalization and Liquidity - Total consolidated debt as of June 30, 2025, was $16,850.5 million, with total consolidated liquidity of approximately $3.5 billion [11][13]. - The company completed a public offering resulting in net proceeds of approximately $1.5 billion, which were used to redeem existing notes and for general corporate purposes [12]. Growth Projects - Targa expects early completion of several projects, including the Pembrook II plant and the Bull Moose II plant, which are anticipated to enhance operational capacity [10][14]. - A 43-mile extension of the Bull Run natural gas pipeline was announced to improve connectivity from Targa's Permian Delaware system to WAHA, expected to begin operations in Q1 2027 [16]. 2025 Outlook - The company estimates full-year 2025 adjusted EBITDA to be between $4.65 billion and $4.85 billion, supported by growth across its Permian G&P footprint [17][18]. - Net growth capital expenditures for 2025 are estimated at approximately $3.0 billion, reflecting the acceleration of several projects [18].

Core Viewpoint - Analysts expect Targa Resources, Inc. (TRGP) to report quarterly earnings of $1.91 per share, reflecting a year-over-year increase of 43.6%, with revenues projected at $4.85 billion, up 36.2% from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 2% higher over the last 30 days, indicating a collective reevaluation by analysts [1][2]. Key Metrics Forecast - Analysts predict 'Gathering and Processing - NGL sales per day' to reach 591.25 thousand barrels, an increase from 569.70 thousand barrels year-over-year [4]. - 'Gathering and Processing - Gross NGL production - Coastal' is expected to be 32.03 thousand barrels per day, down from 34.40 thousand barrels [4]. - 'Gathering and Processing - Condensate sales per day' is estimated at 19.31 thousand barrels, a decrease from 21.20 thousand barrels [5]. - 'Logistics and Marketing - NGL sales' are projected to be 1,093.79 thousand barrels per day, up from 1,018.40 thousand barrels in the same quarter last year [6]. - 'Logistics and Marketing - Export volumes' are expected to reach 443.45 thousand barrels per day, compared to 394.10 thousand barrels year-over-year [6]. - 'Logistics and Marketing - Fractionation volumes' are forecasted at 1,106.38 thousand barrels per day, up from 902.20 thousand barrels [7]. - 'Gathering and Processing - Total Gross NGL production' is estimated at 990.94 thousand barrels per day, compared to 965.70 thousand barrels in the same quarter last year [8]. - The average realized price for 'Gathering and Processing - Average realized prices - Condensate' is projected at $62.47, down from $72.83 year-over-year [8]. Stock Performance - Targa Resources shares have shown a return of -6.1% over the past month, contrasting with the Zacks S&P 500 composite's +0.6% change [10].

Group 1 - Natural gas producers and transportation stocks have significantly declined, following a drop in U.S. natural gas futures, erasing most of last week's gains due to cooler weather forecasts and high production levels near 107 billion cubic feet [1] - The number of natural gas drilling rigs in the U.S. increased by 9 to a total of 117, indicating plans for increased production, which may provide short-selling opportunities in the natural gas market [1] - The NYMEX August natural gas futures price fell sharply by 6.7% to $3.325 per million British thermal units, marking the lowest settlement price since July 11 [1] Group 2 - The four biggest decliners in the S&P 500 index were all from the natural gas energy sector, with EQT Energy down 9.5%, Expand Energy down 8.5%, Coterra Energy down 5.3%, and Targa Resources down 4.5% [2] - The significant drop in natural gas futures and related stocks is rare this year, especially following favorable policies for the oil and gas industry and the ongoing high temperatures driving demand [2] - Major tech companies like Google, Microsoft, and Amazon AWS are significantly increasing their demand for natural gas due to the construction of large data centers, which aligns with the global trend towards cleaner energy sources [2] Group 3 - The importance of natural gas resources, particularly liquefied natural gas (LNG), is increasing as countries seek cleaner energy alternatives to oil and coal, making it a core energy source for large AI data centers in the coming years [3]

Core Points - Targa Resources Corp. declared a quarterly cash dividend of $1.00 per common share for Q2 2025, equating to an annualized rate of $4.00 per share, payable on August 15, 2025, to shareholders of record as of July 31, 2025 [1] - The company will report its Q2 2025 financial results before market opens on August 7, 2025, followed by a live webcast at 11:00 a.m. Eastern Time to discuss these results [2][3] Company Overview - Targa Resources Corp. is a leading provider of midstream services and one of the largest independent infrastructure companies in North America, focusing on the efficient delivery of energy across the U.S. and globally [4] - The company operates a diversified portfolio of assets that connect natural gas and NGLs to domestic and international markets, catering to the growing demand for cleaner fuels [4] - Targa is engaged in various activities including gathering, compressing, treating, processing, transporting, and selling natural gas, as well as handling NGLs and crude oil [4]

Targa's Value Proposition and Growth - Targa is the largest gatherer and processor in the Permian Basin, driving integrated returns through NGL pipeline transportation, fractionation, and LPG exports[9] - The company has experienced significant volume growth, with a +24% CAGR in fractionation volumes and +12% CAGR in LPG export volumes from FY 2019 to YTD 3Q24[12] - Permian natural gas inlet volumes have grown at a +25% CAGR from Q4 2019 to YTD 3Q24[16] - Targa's adjusted EBITDA has grown by +182% since 2019, driven by its integrated NGL business and strong business fundamentals[19] Financial Performance and Shareholder Returns - Management expects to recommend to Targa's Board of Directors an increase to the 2025 quarterly cash common dividend to $4.00 per share annualized for the first quarter of 2025, representing a +33% YoY increase[9, 10] - Targa has repurchased over 202 million shares since October 2020 at a weighted average price of ~$7069[19] - The company's 2024E fee-based volumes in G&P are approximately ~90%[9, 66] - Targa expects to return 40-50% of adjusted cash flow from operations across a multi-year horizon[75] Permian Basin and Infrastructure - Targa has a premier Permian asset footprint with ~88 Bcf/d gross processing capacity across 43 plants[26, 27, 80] - The company is expanding its Permian G&P footprint, with several new plants scheduled to come online between 1Q25 and 3Q26[32, 94] - Targa's Daytona NGL Pipeline has a capacity of 400 MBbl/d and was expected to be in service in 3Q24[95]

Core Insights - Targa Resources Corp. (TRGP) has experienced a significant share price increase of 43.9% over the past year, outperforming the broader Oils-Energy sector's 7.2% rise and the Oil Refining & Marketing sub-industry's 28% growth [1][8] - The company is strategically positioned in the energy infrastructure sector, focusing on natural gas operations, including gathering, processing, and transportation [3][4] Financial Performance - TRGP reported a record adjusted EBITDA of $1.18 billion in Q1 2025, reflecting a 22% year-over-year increase, driven by higher volumes from the Permian Basin and improved marketing margins [5][8] - The company has reaffirmed its full-year 2025 adjusted EBITDA guidance of $4.65-$4.85 billion, indicating confidence in sustained growth [5] Strategic Advantages - Targa's operations are supported by fee-based contracts, providing stability in volatile commodity price environments, with a competitive edge due to its scale [6] - The company has a dominant presence in the Permian Basin, with natural gas inlet volumes increasing by 11% year over year, and is expanding its infrastructure to enhance capacity [9][10] Growth Initiatives - Targa's LPG export volumes averaged 13.4 million barrels per month in Q1 2025, with plans to expand capacity at the Galena Park terminal to 19 million barrels per month by Q3 2027 [11] - The company is executing $2.6-$2.8 billion in growth capital expenditures for 2025, focusing on high-return projects to support volume growth and system integration [15] Shareholder Returns - Targa has repurchased $214 million in shares through April 2025 and increased its quarterly dividend by 33% to $1 per share, reflecting a commitment to rewarding shareholders [13] Risk Mitigation - The company has hedged over 90% of its exposed volumes through 2026, reducing earnings volatility from fluctuating natural gas and NGL prices, ensuring stable cash flows [14]

Company Overview - Targa Resources is a midstream energy company focused on gathering, processing, transporting, and marketing natural gas and natural gas liquids [1] - The company is primarily based in the Permian basin and other shale plays in the USA [1] Investment Focus - The company targets long-term and medium-term value investments [1] - It emphasizes investing in companies with strong fundamentals and maintains a sector-agnostic approach [1]