Earnings call transcript Q1 2023

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Operator

Good day, and thank you for standing by. Welcome to the Targa Resources Corp.

First Quarter 2023 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Sanjay Lad, Vice President of Finance and Investor Relations. ahead. go Please

Sanjay Lad

morning, Earnings Good to First the Thanks, for and Targa XXXX Call Resources Quarter Bella. welcome Corp.

call Resources The first earnings accompany website Targa quarter in the the with on Investors our at that section. targaresources.com quarter earnings supplement release, presentation along are our available first for

to In addition, posted an has presentation website. updated been also our

of Act made this call the expectations XXXX. be should predictions statements could during from that within Resources' differ Exchange Statements those forward-looking considered of meaning the Actual results XXE projected Section or of statements. might include Securities forward-looking materially Targa in

For a latest to SEC that cause our differ actual discussion results of factors filings. to please refer could

will speakers Chief Matt Meloy, and Financial Our today Executive Officer. the for be Jen call Officer; Kneale, Chief

senior for and Transportation; management be and will Gathering President, following Officer. Q&A. McDonie, Muraro, Scott members Pryor, Logistics available Processing; Chief Commercial team the President, Pat Bobby and Additionally,

the to I'll that, over Matt. call with now And turn

Matt Meloy

off to our Thanks, strong with execution Sanjay, of quarterly year first morning company Targa, good across proud common up start lower quarter. count. and year share the everyone. was we over in XX% to we very EBITDA had QX, at a prior the a and are In is that This

transportation Record volumes. and volumes and record in the strong Permian, NGL volumes fractionation LPG export

the finished returning shareholders. an also are of also of and are bringing to online. in our construction we And plant process increasing We and our fully Legacy II capital amount

of XX% dividend gas despite being XX% underpinning about NGL fundamentals by XXXX complete we XXXX price a repurchases range. remain quarter assets, cash comfortable the and our strong the than quarterly share prices year With strength our during guidance million full EBITDA underpinning given our and lower our increased quarter. assumptions common adjusted estimate EBITDA natural with the business and and on first We XX% executed $XX the of first

our across are growing. Permian volumes gas Natural systems

ramp expected inlet through as volumes of our Our assets. cubic billion feet day driving per incremental are current aggregate and the volumes year, are to reported through we downstream over five integrated move

the lead under are plants an four long and Permian additional construction ordering have for We in two plants. times

supply new Train Given volumes that a XXXX. Belvieu per our increasing we day XXX,XXX with we first resulting expected announced and morning the barrel moving complex, of are growth, at our forward quarter to fractionator and online this is XX which be Mont in Permian NGL

puts With additional and now the spending to we long and Train our billion addition integrated XX shareholders. XXXX attractive CapEx items be year our next Permian full lead in provides growth Investing footprint on strong incremental $X return for with billion. growth projects spending returns plants, of estimate between organic continue Targa a our position to across $X.X capital and us to to in

our Let's levels high across now discuss operations more Permian, continue the acreage. detail. activity in our Starting in dedicated

Basins and Our volumes systems inlet record a reported averaged of feet X.X Delaware Midland during quarter. across billion day cubic the per the

average the up system Midland, Permian inlet. In million currently cubic QX day per over essentially absent weather our feet winter XXX is running and above of capacity, impact first nameplate operating versus been quarter has

on online and capacity Legacy this later came fully site And partially schedule by limited new plant is to Our quarter. and the in of II kudos to ahead be available able budget. electricity safely to plant our March, to late team be online expected engineering for bringing and the operations

the Delaware connectivity to across sequentially. have assets our across volumes Activity volumes Delaware, quarter in to is handle late online. near-term remains operations begin we XXXX system X% next it our utilized highly fourth across of Permian strong, to expected inlet Delaware in plant Midland our In when Northern on track footprint running and increased growth. Our Greenwood are our comes bolstered and be

in the later completion to close Our is Midway plan second begin is quarter. operations and to expected

and X quarters II of to plants Roadrunner respectively. XXXX, and first in on second remain Wildcat operations Our begin the track

Midland for our to both growth and Delaware across beyond. positions We the volume year remainder expect continue Permian and of well the

those additional Permian, are and when we have our gas gas that in we Apex. evaluating Commission in we Beyond you ordering the items will of the next filing with need and pipeline capacity already Delaware progress, processing we lead proposed a some Railroad and long Texas Midland end, seen plant. projects around To announced for are may call the

be to routes. filing for completed on preliminary allows This survey work proposed

we with construction, to basin. from under residue take-away over growing work gas we of ensure the rapid incremental X to sufficient are billion residue cubic continue we the how have from Given just currently feet plants

we As Coast to participating we and position is next or residue Permian as to needed to have in said are in with whether gas leading Gulf are both market, The efforts parties. pipe producers previously, support the third need. markets we those that aware needed pipes our of on get remain keenly

redundancy Badlands gas enhance steady Delaware both residue currently region Midland from in not any move continuing volumes and to material seeing volumes the we flat quarter. Targa assets assurance change in as market. during commodity are were get add and connectivity plants Overall despite from are and the sequentially We our the to to prices. activity In Central to lower volumes remained Targa also to flow intra-basin

day transportation barrels XXX,XXX record quarter. barrels first our per a were to and Transportation volumes during segment, a and were NGL Targa's day volumes record fractionation per Logistics the XXX,XXX Shifting

of systems day. With averaging deliveries currently our third barrels into our currently the Belvieu per Permian volumes Mont in from XXX,XXX Grand day ramp are near with parties, fractionation XXX,XXX Prix barrels around per volumes and supply capacity around running

GCF in of when and second is fractionator up open XXXX our expect restarted to the help we will it fully highly it Train of much quarter during operations utilized X XXXX. when the provide first commences needed some quarter

in-service be growth XXXX Our of the to needed business. newly announced expected XX G&P date of in given first expected an the with is Train much quarter continued our

facilities, first as during benefited we loaded Park our demand business increased global to from an conditions. market Galena average from barrels month million at XX.X we Turning quarter our the stronger of export per LPG

per one project of track low-cost expansion capacity month propane remains mid-XXXX. to barrels an loading capabilities Our increase on with our million for incremental

contracted We our continue LPG for facility export volumes. year expect be will are export record a and XXXX across to that well

We at remain about Targa. outlook excited the long-term

billion to will range. repurchases. opportunistic Board flexibility continue program, share we on strategic EBITDA, dividend maintaining ahead, share our execute which a this leverage common announced on drive a has while provides to new Looking reduced target us count increasing priorities be that going continue to repurchase higher morning within common our and forward approved with $X common our We

to results discuss like to on would Targa the a detail, quarter their best-in-class to our I execution I while focus customers. continued call thank Before in turn more Jen over and to our to services extend the you to for provide continuing safety first team

Jennifer Kneale

optimization Good we Matt. everyone. XX% increased benefited in reported remaining from NGL recent $XXX lower marketing despite increasing export of Thanks, Prix in our quarterly overall system commodity million, year our and volumes quarter higher was sequentially this Grand pipeline acquisition Targa's adjusted from interest LPG prices. businesses, as XX% morning, our for EBITDA the opportunities the and first contribution earlier

currently ramping second and there from of continue the system benefits seasonality quarterly we about our we given expect the adjusted adjusted QX lowest as volumes optimization quarter our to XXXX, across businesses, of EBITDA in to opportunities in As the the some year, grow. be of EBITDA think shape of

expect first representing the cash year. we of declared share quarter, with of $X messaging, of on for basis, Consistent previous the an the quarterly mentioned, for we Matt As a remainder quarter $X.XX the XX% increase dividend per same or XXXX. to dividend over common the share per annualized a first maintain

We also million of common repurchased a quarter $XX.XX. price shares in at average the of weighted $XX first

program also $XXX a repurchase have quarter of program under billion we and place. new now end, million $X remaining and As approximately $XX authorized in had our million share

and the of first Our was $X.X we $X.X adjusted At continues estimate year-end around of the full forma the ratio to to leverage year our pro our XXXX range leverage to of billion X.Xx. be quarter, between expect target approximately Xx. midpoint long-term leverage end three EBITDA ratio billion,

add XXXX for and for and well continue balance to hedged We commodities across are XXXX all of hedges the beyond.

acquiring $X outlook billion next between plans capital items forward increase. Permian estimate Coupled commodity $X.X in XX our and fee for for our spending significantly XXXX and estimate long gas There de-risked no spending cash lead contracts, move floor of growth Belvieu, plant, when change have capital with net is preserving of the Train construction we our upside prices Mont our flow while and current billion. frac with now year With $XXX to earnings we million. maintenance our the to

an to our had to balance sheet strong us across We priority capital strong in we of end, $X.X amount us increasing that projects flexibility be investment-grade to looking about provides a of continue of sheet continued at quarter which a with available return continues liquidity, cycles positions cycles. billion forward. a across Maintaining to a high-return lot balance Targa. believe and investment prudently shareholders At

Lastly, like to to executing over the safety turn our on strategic thank that, continued extend for I employees our And Matt call a priorities. while echo I'd to will you and focus on their back Sanjay. with

Sanjay Lad

Thanks, Jen.

follow-up For the the you Q&A session, the you for please lineup limit and to have Q&A? questions. that if question and additional open reenter one would you line Bella, we one finally ask

Operator

Our of comes Fargo. Michael first line Instructions] question with Wells the Blum from [Operator

Michael Blum

of process to through there. Maybe being capacity starting like pressure It I added as frac the right frac Train rates. a just the about wanted seems market XX. to now. talk there's are ask people lot some about And on us thought to walk

is be contracted XX much how need of you X So contracted be Train Train forward? of contracting would to or how to much move and would

Scott Pryor

Michael, this is Scott.

Train we our in facility. have is X cost as XXXX. to stated second to similar of quarter Our online expected XX X come Train remarks, frac in will the Train our a And

of capacity in plants and for ordering around items we have with expected production the the lead own stemming the plants, our current will our to need additional for number long obviously Permian that under from plants. fractionation construction comments Given we

to influx volumes have fractionation. inventories, of that volumes both we that There of course times in There as our well on transportation manage as coming last the over been that quarters been the our to are system. order few on offloading have are times the

cadence that the is, strong frac Train comes industry. our the that XX frac trying plants again, stay with the we we're the the X it online. of along ahead number that building is a of belief So upstream And growth we seeing as need overall on Train are side, have to of from is for

Matt Meloy

see just X, G&P And Matt this GCF. that, the pointing we're is Train add We in our and of frac to XX Michael, growth restart the that underlying to and here. to business,

so business on, We fractionation contracts. need customers their can So that an to they see service for our bringing I sure our customers. underlying and capacity others they G&P have to their have G&P volumes fractionation they're make we as sufficient suspect additional would we provide NGL integrated from

Michael Blum

Got just you're And if it. fair forward? plus seems year, the I about think increase kind CapEx. rate way billion shake that $X moving then where you ask And run that about does of like kind in a wanted a that out? the think minus towards do of Is level. going not, to or It growth to long-term

Matt Meloy

does bit Yes. a certain little to run you it NGL you give during get lumpy when Michael, and be years more is do in example, runway. that tough large long-haul pipes, for can it rate have as

made the capacity. last was assets the Delaware in there we the acquisition when say processing also year, North of sufficient of not summer I'd

and being heavy, a kind were a multiyear bit here five two, if plants long do we lead a you ordering do have time little likely So online bit of little of for to brought catch-up that's model. with

we're That add to said, to I We're to G&P going growth. continue strong going be continue to to plants. needing have think

as growing, could fractionation invest some there strong we see we down be continue they comes our to to expanding long timing transportation, But a projects year-to-year. the position really lumpiness have we're as and the for and in some plants, the from acreage of little our plants. contracts to of underlying But Permian in lumpiness it come, keep export. to So NGL and which of gathering going processing bit the years larger processing with and producer

Operator

the question Brian UBS. comes of from line with your next And Reynolds

Brian Reynolds

Maybe We years. next just with just outlook on touch lumpiness return increases the some few in given quarter years. for the buyback some CapEx the in dividend over next likely two capital saw the of the

Targa's years flow So you few rising EBITDA growth was capacity pretty for discuss moves CapEx of few these given from how cash is just next flattish the curious projects, the kind years next given after and 'XX. if dividends the sheet until outlook that could balance free over

Jennifer Kneale

This is Jen, Brian.

the of the balance sheet a think the around our quarter long-term range at I in despite sitting a ratio very billion right making acquisition strong first quarter. have now $X leverage the we end of midpoint target

create shareholder an of spending value our to helps And us our and significant to we think position increasing return able really capital to amount that shareholders. to be long-term capital

As projects like cash Michael, have some some is to than described that answer with large we Daytona around that free are his flow lumpiness our periods Matt means periods. where our capital less there spending, growth there other in associated may particularly and

increasing scenarios repurchases. and a increasing really growth believe as to really to where amounts under EBITDA really and to that us shareholders capital continue a dividend is map also our up says significantly got see on sheet. return balance variety of this sets we are, a can opportunistic We've year-over-year strong to of to also then But able we share we continue already are we road far as execute through maintain a which that increasing will

map that's map that's forward. think will to couple and the continue I over going road road that follow we've the of last shown the years, I that think

Brian Reynolds

historically, Great. just its much follow-up, or Appreciate third-party that. bit seems Targa a equity going volumes contracts very seems more G&P it the on little was L&T for -- using like internal like and focused And after side. as Targa is historically both it just a

you business? industry you're on some win business opportunities just maximize seeing? well. third-party more there on G&P a cooperation opine perhaps of side is shift new further to Curious if these Is that this asset specifically whether strategy is or and the it new utilization. could to Or as long-haul just

Matt Meloy

exactly it not the of but referring let answer on me piece you're just to, I'm sure party which kind third generally.

Here underlying business continue our that our business, NGLs to those we business move downstream. years and and really and existing grow our in but have processing been more at volumes get positions, try Targa, service customers for and more we to gathering to G&P then acreage

with G&P active say those new is for export customers, I'd trend areas So volumes our from in and we've been business. very of versus are been our a in existing GMP lot based towards of third been have on that contracts GMP goes continuing. moving unaffiliated the have same those after G&P. fractionation parties just into our managing our more system. new That's downstream and a going And Most that's we volumes side moving been transportation,

to customers is business, downstream that Prix been that new Grand focused changing. whether whether to our still said, it's customers, don't just they're that know really downstream I that's or But for for our level for commercial fractionators customers. our team trying on or get G&P provide of service

don't So for we're effort. continuing changed that us. really I think that's

Operator

comes Your next Tonet the of line from JPMorgan. Jeremy question with

Jeremy Tonet

just on I accretion. guys come And Clearly, about to with you this CapEx wanted in all CapEx. how back there's and think and Just to, hurdle greater scrutiny rates wondering, market, be of even could That the would helpful. very lower operation guess, what now? hurdle type give rates for commodity and prices, you you I a if here us where your see right feeling guess,

Jennifer Kneale

partially we and And projects that spending we've well, our invest Jen. also is to highlight an several XX last the Permian in been plant in just additional ROIC we've we over morning explicitly is core. put that spending Train materials, particularly announced very around core. this our February able slide this how with the just gas another opportunities to and We believe Jeremy, frac years, consider

additional and for transportation gas doing core already NGL to us. is we're that spending the like Just plants, fractionation

that to wouldn't it, to shifted. really say I So our rate Xx. has call Xx be, Continues hurdle

are when because have our so that come able they well think to partially than I been better that, utilized execute we assets online.

online. almost asset we're every new comes like time feels It behind a

us loaded our than into returns bit when little more before that grew more quickly a creates maybe incremental quickly, base we more incremental it's maybe which So to slowly. capacity, accrue very

and our say and partially, are I'd So right where our opportunity continue the But incremental and more now lumpiness of every a it's chain, spend our each bit cycle that we really and across we spending a bigger believe to we scrub some going try is our at for look it's really shareholders. significant of in and plan to Targa little value that to a for result returns core capital are of generate ultimately, projects.

that think previously, activities extent we've a lower, producer before. a we our record where activity where we million. XXXX we XXXX spending over see spending track rationalize think the spend. slow To When environment about we've down, $XXX our just levels million, an clearly executed demonstrated where get are rationalized of have I if into you little bit We of spending $XXX

strength our for going a both Currently, and growth. digital underlying expectations G&P footprints. that's and across volume to incremental logistics we producers transportation just systems our lot the have And volumes of G&P the given significant a necessitate of

Jeremy Tonet

Got a even with the it. the to wanted just That's little guidance move in in bit very big helpful commodity there. dive reaffirming And prices. on here more then

little the of if Just bit wondering you could a some provide on offset more there. color

versus XX% trends just you that? robust Just how are wondering then is pretty tracking Permian And outlined export there than seem better you're LPG also as well. growth the

you wondering of some could us think if So those through just tailwinds. help

Jennifer Kneale

have quarter so under it's I already QX was now accounted really our to quarter it a think is easier belt, part affirm always guidance for. X of We strong when And generating for in areas, of additional optimizing from across and did the number footprint. employees excellent opportunities our board. also an us our our a job different volumes of assets Record and

year, at our really excellent out and look prices. rest I our prices of our lower underpinning lower, despite of we all of volume reaffirmation are see guidance that's across we is to growth, think as expect really what again, the And but the So continue assets.

Operator

Richardson of comes next question Scotiabank. Your from line the Tristan with

Tristan Richardson

side. residue the on question a just Maybe Matt. it, Appreciate

maybe very here residue of just look could need market like a little emphasize longer-term for at but this destinations. this about terms a of days curious potential end in early and is really high Apex. what level, the kind bit talked You Obviously,

Maybe cetera? about timing, exploring options? just just guys plans potential this bit et the thinking on this just ahead are maybe a little And on what that really for is project or like, more preliminary you detail capital, full look speed a

Matt Meloy

underlies this Yes. whether underlines or or want takeaway. Thanks, so overall to pipeline Tristan. that question. to really for sure takeaway we is and to others, make there's our What we it's Good sure support there's want -- strategy make that Apex residue

of a volumes lot plants coming have lot the We a Permian, of in online.

the charge we're and those sure make to there's takeaway. us to We liquids sure frac, Grand our need that processing fee processing residue need So Prix into able to to we be for a and volumes. down make

So we preliminary are going on also that project we're to more We're a talking there. to Bobby customers. bit But working -- what work some over doing turn we're I'm it talk to and just to Apex. thinking about little other

Robert Muraro

Yes.

Bobby. Basin. this day, is want move to we residue the is what the end Permian So of At of see to out we the all see want

So to as go like of. have on a us part that about it's a just did between no shortage customers. we be put a X pipe to or ultimately whether if pipeline what see look pipeline we think Apex we're go. a Apex pipelines like And our it then We'll could residue third-party supply or excited and to of

of LNG on other general there on. everybody market And what's and in the with knows I vicinity think down coming with going demand the state that

doing goes down with it happens So project we Apex the up and things pipes in point we end to how and the versus about is Taking then process. of think all together fairly other some a on pipes complicated kind to for that, does future, other come develops. as the what these at up there market what potential that what

make or will those to just out strong we facilities gas. for can in pipe that on demand very to make needed there and as the in pipe the 'XX have a the And come corridor we residue it's are options needed in there whether be that's that a sure want online River that flows, Sabine there 'XX down sure execute all

Tristan Richardson

then Appreciate follow-up. a just maybe it, And Bobby.

in both any all plans on extent just or to we your the the tail very customers, even customers, development Midland maybe market, in small maybe the think at the change quality and in seeing there. margin discussion signals if I Delaware. But and it's of to the responding price you're the know the of and comments the on scale curious any but long

Patrick McDonie

had high. system. remain all any This Pat. Really, system, activity. our haven't change Yes. acreage is running levels rigs our in around Activity on we are on

the disciplined. what -- obviously guys are tell they haven't guys They We plans. do, they're and you execute to going continue their big to on

are haven't and be in and getting activity we seen running them back-loaded a the They any on bringing guys, of there years. very The are a this previous in smaller year for drilled. Some But little change incremental the are we're rigs to of frankly, active, guys. more wells little yet either. the continue volumes median than lot

So a to are levels date, in we seen high. change activity have not

Operator

Your next of comes Theresa line with from the Chen Barclays. question

Theresa Chen

own line, coming to of On be plants legacy over volumes with match loss your the Y-grade frac time able to move in onto may seems XX, terms of that the off some with when you system. processing the

Now time, your these us you cadence? for when you to higher that of assets the you've a in do some belt that up give expect had ramp sense can under

Matt Meloy

Matt. Yes. it's Sure. Theresa,

just and Those and T&F customers. time that frac fractionation. execution train, are GCF, are see We roll X, volume producer of it'd off where really those transportation be -- do and time. have from G&P that business whether underlying For growth most our XX to we continued some our contracts more or from it's

do from the Train those. we G&P of XX of our underlying business. have for some frac from So XXXX, continued activity in between now the share our and just lion's need producers But is

Theresa Chen

approach quarter, during was this want in to programmatic more? specifically, this But basis. kit the tool in more then this, saw of dislocation in given that there opportunistic it. why the allocation understand the on don't volatility you reason a toolkit in the on Got the utilize an we have just And tool didn't market your first you and it's to and terms capital buybacks a I

Jennifer Kneale

Jen. Theresa, is this

bit million the tool little by first than $XX utilize the buying quarter. partially in us a more saw You

in Prix also acquisition of interest our a quarter. $X made We the remaining billion during Grand

balance every quarter see then in whether with we're that part we just acquisition the So to the like case market. of of and be result spending capital QX and Grand of our opportunities acquisition other a Prix that in with activity, or spending what trying requirements, is just each the the annually

were able in, we to are And a in step the when believe, we we opportunity comfortable very that manner with. in given QX

Operator

next Your question of Research. from with line the Stanley Keith comes Wolfe

Keith Stanley

I gas on wanted marketing the for quarter. quarter percentage to the the NGL on mean I for the and start of company. it a looks based record just like margin

in we kind back marketing? should you then for of year, see you just to you So of of are can assume rest I as of you anticipate the more strength normal call? did on more this the continuing guess talk March? did overall expectations quarter saw a last the types to little go fully to Or activities? opportunities do you see And the the Or you to better? opportunities

Matt Meloy

the factored really The when we say, already guidance. export the Yes. exports, say Sure. that some which we across in. NGL marketing, was We I'd when part our LPG we marketing good known market. I'd was and kind LPG already gave traditional saw part performance of and of gas strong given guidance, those had seasonal gave opportunities, of had February, guidance Keith, of was in

So extent. that in some to . was factored

throughout go forward, Jen As pointed a a weaker do we kind QX. kind see we the say That's we why as year. I'd to level more of go of normalized

of little weaker. but be as see saw going think outsized We throughout bit more we the move a in I QX is that kind we year. of normalized those So opportunities to don't kind

Keith Stanley

capacity. I the frac guess Great. on just And then

recently, were So at remarks, think your year. I prepared early GCF then already and I in think next a capacity day your said reactivate is you you XXX,XXX you which

little So balance at second a can you you over within the year? of to frac are the point you a Or already more of need half still the volumes start year? where into the grow system your offloading

Matt Meloy

grow have Yes. We to ability do more. the

We Y-grade XXXs around of said can we're at low XXX. do we Bellevue. So

We we're do Lake to which also to And reasons. our and ability offloading given volumes and some other in we we over back between And can month, Bellevue have there. for Charles forth volumes more any fracs. push frac, have different in push different players unloading

between when that good we on and Train then our that relief handle going to next So X volumes it us all comes gives get comfort part first about of to we're even feel startup But on. GCF and volumes the now we'll GCF able of comes for and on. when being comes have when more year, our

Operator

Your Colton the next question comes line of Co. Bean with & TPH from

Colton Bean

I you additional two items on thought heard lead reference securing long Matt, I plants.

to across Midland So versus potential comments verify see first, plural horizon you I And wanted the there. how footprint? singular and constraints and up the then planning any on Delaware shaping your

Matt Meloy

did correctly. you hear Sure. Yes, talked call, items Last that we about long lead for one plant.

two for we're plants. long items lead securing Now

relatively plants be So X shortly. both or those I'd expect greenlighting us of to

of we're that. signaling So kind

have of had We are currently updates gave we kind we those here strong of constraints, terms where really performance. In running.

this half back as of for have of through along is capacity we're up have frac, from but kind the it think whole year, growth really our value handle sets XXXX. capacity adding as the capacity more see through the to a We processing volumes volumes why and our we ramp rest and strong that chain XXXX enough continued coming and transport that us of we we'll on more year, in really

teams just it's For we on designed good and engineering plants gathering stretched our about way in these The processing, both processing thing the the side above I'd getting and nameplate. is have say our Midland. the and Delaware have the tight pretty

in putting we're XXX So million a day plants.

plants. on go to, plants these call So most of it, these can stretch even and we're so when we XXX on capacity, up at or

got Bcf a that So day flexibility gives of capacity us good X there. we've gross almost out and

Grand piece side, So that's room, that I'd that frac NGL on giving Daytona the we've on pumps then of about when XX% good side. we're running and been adding if on that Prix. to you pretty why you at. looking line That's pretty we're flex a good some can on, needing processing we've as expansions. other say the gives it talked Then comes we the sight us the move that adding see but

the We propane loading. next expansion in on have an is month summer, barrels one coming our That this million one. export a business of

a hard determine project taking us. the We're look is trying at for next and what for to right us

of working So need just volumes and that we're with overall still of when may our export expansion. engineering timing further operations we kind through

Colton Bean

planning of kind Great. think II mid-'XX. got right And just in is terms Roadrunner plant dated I and the latest we've now horizon, of

back these about as think we should the being half 'XX? biased 'XX, early to So of maybe

Matt Meloy

Yes. reasonable. Yes, that's probably

Colton Bean

power on Great. supply you plants? see interconnects you back ERCOT I guess, the that? on as completion And timing at do issues Legacy And move two, on other any additional you your just II. then to can you expand risk then one, saw toward

Matt Meloy

Yes.

have So already. there I Legacy we

So is existing we're had running which has -- the why be Legacy about capacity, infrastructure. a to I ability the extra it is to we're in kind We able some using day. XXX million of that

One, this -- all the legacy can or infrastructure a up the Legacy quarter. load work have done, that we load electricity about should day. you to done be so should If later II we $XXX million

infrastructure. a These very just as situated time the longer to we're I XX all X plants get in have million. electric. So been access to be in to of that we full we'll all so That put items as X we're electric have plants. the or mean constraints lead large is the takes $XXX in to in And future our it's of get That place load. it putting last tends is putting put that timing full the plants

Operator

comes question Sibal next the of Global. from Your Seaport with line Sunil

Sunil Sibal

curious I away Bcf I you're like residue going visibility how through look gas if per that, day at in as know you was X.X have Permian, one you end a ballpark of processing on out processing seems So when the page? it ads total of to much adds just take

Matt Meloy

Yes.

the Waha So for plants we get then are to intra-basin sure putting that from connecting we make there. residue to market transport have outlets that to can we're we various in, to

like? then of really out the Permian for connectivity Basin to their basin broader that is So look just takeaway basin within we'll the have the what and And plants. those it does goes

on. expansions some coming have We compression

next which mid some year, should on a relief. have provide We pipes long-haul coming

why, have So year, discussions comes when it pipeline work on on feels what we've like talked is beginning after we're this next about, begun runway. Apex Matterhorn. -- some that's and Bobby we'll and long-haul the as next But pipe

Sunil Sibal

more medium see question bit term. terms balance you of credit Got Where the do my in ratings over second term. the a it. And sheet was long longer to

some mid-BBB. Is think to that also. competitors of I of ratings your process looked the your shoring team at with thought up kind

Jennifer Kneale

Jen. this Sunil, is

mid-BBB I notch to sitting lower think at least company. that now, be And we'd a one like that. than ideally we're right

balance sheet think have a I now. strong that right very we

leverage really where So ratio and the is leverage with trajectory we're of ratio. today that comfortable our

as be the this expect continue next manage year would inquire about we'll improve, to potential leverage we I through our to to agencies. and business ratings believe and ultimately, execute So we that that execute we'll then plan our of dimensions to we be which of result with and is looking the ratio historically, execution. But as upgrade all continue across have a will year into a continues

Operator

And your with Dingmann last of the Neal comes Cap question line securities. from

Neal Dingmann

Neal. times, to go just marketing back Jamison is I the this of know but touched questions you for I for on you for This end I want to specifically. the know the a guide EBITDA here. we've couple Thank year.

marketing going to you stronger be I know So some of said expected guys I for rest extent the little and bit that than year. the guess, to a was, is normalized

that as the And the remainder also growth that fact for well. volume said you looking the of strong so is year given

see the think don't is cite because prior. to slide I does EBITDA the maintained said was -- marketing? to figure there guide, and optimization, higher marketing that this trying upside XQ And deck Just out, in given I I a in that which there that bullet there's mean strength

sense trying a implications to what get guess, of, I are there? So just

Jennifer Kneale

our about forecast balance I prices, we've commercial already think upside this think into optimization as the additional that we If and commodity always higher if got the what of we expectation. in of opportunities success materializes or terms see if more exceed year, there's our volumes for got potential baked we've year. beyond

than So expect. hopefully QX is the slowly that expect excitement, plays when and a materialize. we ramp we bit a only that our certainly, have but of see our hearing volumes also is. see we with than volumes strong But not rest more we prices have we'll you're to our we'll as happens to see more the But have if what really as And out. it volumes belt, how under our year ultimately outlook little strong

Operator

this no And at questions further I see now Sanjay the call back time. I turn will over Lad. to

Sanjay Lad

on questions team day. and may for be we Thanks, appreciate will IR Thanks, any have. your was call follow-up and the have available The morning, you Targa a great that interest this everyone Resources. in

Operator

for conference call. This participation. your concludes today's you Thank

You disconnect. Have a may now day. good

Targa Resources (TRGP) 4 May 232023 Q1 Earnings call transcript