Targa Resources Corp. (NYSE:TRGP) Q4 2024 Earnings Conference Call February 20, 2025 11:00 AM ET Company Participants Tristan Richardson - Vice President, Investor Relations & Fundamentals Matt Meloy - Chief Executive Officer & Director Jen Kneale - President of Finance & Administration Will Byers - Executive Vice President & Chief Financial Officer Scott Pryor - President of Logistics & Transportation Pat McDonie - President of Gathering & Processing Bobby Muraro - Chief Commercial Officer Conference Call ...

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 ...

Core Viewpoint - Targa Resources Corp. has declared a quarterly cash dividend of $0.75 per common share for the fourth quarter of 2024, with plans to recommend an increase to $1.00 per share for the first quarter of 2025 [2][3]. Dividend Announcement - The quarterly cash dividend of $0.75 per common share translates to an annualized dividend of $3.00 per share, payable on February 14, 2025, to shareholders of record as of January 31, 2025 [2]. - The company intends to recommend an increase in the common dividend to $1.00 per share, or $4.00 annualized, effective for the first quarter of 2025, pending board approval [3]. Financial Reporting - Targa Resources Corp. will report its fourth quarter 2024 financial results before the market opens on February 20, 2025, and will host a live webcast at 11:00 a.m. Eastern Time to discuss these results [4][5]. Company Overview - Targa Resources Corp. is a leading provider of midstream services and one of the largest independent midstream infrastructure companies in North America, focusing on the efficient delivery of energy [6]. - The company operates a diversified portfolio of midstream infrastructure assets, connecting natural gas and NGLs to domestic and international markets [6]. - Targa's operations include gathering, compressing, treating, processing, transporting, and selling natural gas, as well as handling NGLs and crude oil [6].