TRGP - Earnings call transcript Q1 2024

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Operator

Thank you for standing by, and welcome to the Targa Resources First Quarter 2021 Earnings Webcast and Presentation. [Operator Instructions].

As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Sanjay Lad, Vice President of Finance and Investor Relations. Please go ahead, sir.

Sanjay Lad

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

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

the website. Statements Targa's statements In an of expectations could XXXX. Section should considered forward-looking our or the of presentation this meaning call XXE been posted has those predictions Exchange addition, during also that within Actual of materially investor differ statements. to projected updated Act made Securities might include be forward-looking in results from

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

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

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

Matt Meloy

and good Thanks, morning. Sanjay,

We million quarter organization are results increase common repurchases. execute share EBITDA, to record a deliver of along export proud the with share $XXX Permian dividend to continue adjusted volumes, our quarter of and XX% across and as of LPG another we common to our volumes per first

harsh For drive with well up helped volume weather. of benefited and which From growth. increased forward. the quarter, volumes the operational from results Permian quarter, associated we there, half the sets January by looking quarter really strong back upsets was throughout record impacted us significantly

recognizing tight. adding gas gas initiating for continued capacity, the markets natural compression that the growth, of is and amount takeaway will year our of substantial a volume Matterhorn incremental expectation remain service prior to adding across are We and Permian rest

major short-term further growth, NGL April, if prices. As we associated we impact aside, create morning this for that with and increasing affect growth are there pipeline resulting forward given capital supply we it volumes are Permian in Waha outlook may volumes projects. gas X that significantly constraints our moving maintenance March and constraints, upsets with saw announced and

Our in next floors second investment prices, of increasing ordering project not fee am which the our received our both we adjusted change will at for XXX,XXX infrastructure Midland G&P despite balancing billion of is year is fractionator supporting EBITDA next forward does lead spending. Despite February reflective in have are current billion, a approximately half organization we through month weakness $X.X which in the full project our in with our projects we and of our within environment. items XX $X.X business, capital change move ability This are price II importance of barrels Pembrook our to our our fees also XXXX XXXX ensuring volumes and customers. We our excellent while also plant, for our Board example with approval to we natural estimates Permian efficient, NGL the to announce Mont infrastructure and between mentioned forward that to an lower support between growth continued the pleased gas long for Train LPG and continue and commodity systems estimates estimate believe XXXX. Belvieu, and of in facility capital Waha growth Park that I support needs spend. increase net and per by no to Galena capacity capital moving to small XXXX that a export our are capital our since

to be organic capital to premier with our able position, ahead, integrated shareholders. system us continue return continue positions NGL Permian return opportunities generate aggregation to Looking our to to supply nicely incremental coupled and our high

be Midland, expected strong operations begin is our activity across track continues construction when the expected it Permian, our quarter remain the on operations Greenwood on in detail. operations and II remains In XXXX. to is to to continues Permian plant year. begin in necessitating discuss Starting comes Greenwood new acreage. highly which in utilized more II now online with our Let's this the quarter fourth moving of forward fourth II, in Pembrook of to which is dedicated

a able There the publicly, you Targa we April safely in injuries, a As by and planned all across fire our Midland move handle gas the Permian the who growth we to provide producer quickly. may while volumes Greenwood customers our seen Permian have flexibility continue and be and the team fire footprint able plant first plants broad we our at responders to on reliable appreciate is XX to and our production existing had X operational to work service plant to around down. Midland, no were extinguish are With to XX. and leveraging were to

Midland footprint of We repairs end second expect significantly our $XX the the expect back before plant about our to volumes activity are incident. In the estimate We second the volumes do million Permian also running to strong. for in the online quarter. impact the quarter plant downtime of across related and not Delaware,

commence Our June II service expected operations begin Roadrunner utilized. highly plant is also to is in and expected to

XXXX. Our next plant, quarter Moose to Bull track online come in on the Delaware remains of second

coming of benefit increasing volumes online. rest continue from plants expect through We new move we compression year and to the the we Permian as as

For are maintenance Basin. additional in Permian negative prices for in tightness quarter, Waha operational have gas and as around $X.XX resulted averaging residue the the downtime gas upsets second pipeline

when our pipeline awaits our we managing much takeaway this and year. Shifting ensure barrels. Construction the We track segment. Daytona fourth outlook Transportation later the our to remain some producers operations of on of of means our year. on have surety to a expansion begin continues continuing growth Logistics NGL handle Daytona in will good NGL The to to expansion, our on be pipeline position needed and the quarter incremental supply flow this from comes done for Permian job Matterhorn relief gas as market

expect highly utilized. fractionator currently Belvieu, X our are starting and to be new We up Train it in Mont

expect capacity utilized highly Coast Gulf XX restart also when joint at the portion continues which also second much start-up. fractionator to Construction quarter, our train be we venture during needed to comes it fractionator, which We on of expected online. is our expect our to be the

provided growth supports Given day NGL XX Train third our of operations moving with production new us officially for fractionator. per Mont with million export XX publicly to XXXX. outlook for Train as expected Train included begin we for Belvieu of and was to quarter Houston expectations loadings the month in Galena the capital LPG Park, XXXX. our at In forward first market quarter per Ship And continue that from barrel business spending vessels. to strong our during were increasing nighttime our associated in XXXX already the larger both benefit XX, for we record a XX.X XXX,XXX the allowance is transits barrels and conditions Channel a

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

business, the employees their Our rise efforts. to appreciative are of to challenges and of our we continue

Jennifer Kneale

EBITDA for increase a Good Matt. quarterly million, the the first X% a quarter. over reported record Targa's fourth Thanks, $XXX morning, adjusted quarter was everyone.

fourth Permian X% a For X.X record were our Permian Large increase per when translated the gas inlet additional volumes higher significantly into downstream. to estimated a stronger the January compared call natural billion than first February volumes day, cubic when quarter. than quarter, we our earnings in averaged hosted volumes feet which the and

volumes transportation pipeline NGL our XXX,XXX quarter, full the per averaged For day. barrels

at maintenance fractionation of Our averaged Mont volumes complex. per day barrels XXX,XXX scheduled our the including Belvieu impacts

export from million opportunities LPG barrels were Our we in and a optimization marketing month, our record business. loadings XX.X per benefited

the through may weaker our rest than business, the QX market, look quarter with EBITDA half mean than segment prices for second fire tight and current Gathering Permian hedges gas increasing impacts residue at our quarter combination of EBITDA The our year. we in that of our largely insulated As guidance and are the given contracts in and be our are the XXXX, plant commodity the our we Greenwood lower the on Processing significantly of fee prices. across back of seasonality fee the and from

expense we estimate adjusted a XXXX less no to we our taxes. morning, and $X.X between XXXX new and forward, of looking of framework online operations, performance expect we XXXX our there for this and with is given exit lot into disclosures. that a $X.X growth $X.X said, that announced our from last new and year. This thought made between continue we sense XXXX growth full it $X.X year interest change return to new is to capital heading the to billion Matt of momentum which EBITDA metric also around disclosures, projects billion comes it estimate adjusted November the morning, our EBITDA this adjusted included and in is include cash As infrastructure metric first started cash billion our This capital and in for Including us discussing billion. spending flow

growth continue cash flow XXXX, also which free We expenditures $X.X net in estimate capital billion of result approximately meaningful to in will made generation.

estimate capital consolidated of of and had At $X.X long-term ratio to within well we liquidity, range ratio Xx quarter Our available allocation. net remains billion to end, current maintenance Xx. Shifting our net our for year leverage capital leverage spending X.Xx was million. target $XXX

and to delivering continue to are an return are in priorities. to the across increasing to of to balance Our integrated maintain priorities those invest capital investment-grade same, our on high-returning we which and projects cycles, remain shareholders strong sheet amount a

cash the Consistent and that dividend XX% model meaningfully declaration thereafter. useful capital common this annual We return XXXX ability to thinking expect per about of XX% to adjusted share for previously to and operations of is from common we are be Board over increase holders to continuing of announced to return dividend equity the Targa's XX% our expectations, able to time. a over a believe annual approved grow to $X proposition time the framework the to flow with

million per shareholders, and $XXX excellent at of EBITDA, potential dividend a share We weighted offer the a and share. We $XXX medium during approximately unique we proposition our of continue count common to common price also share that reducing for per growing growing outlooks. repurchased believe long-term first average value a shares and quarter shareholders short,

for lives on assets Sanjay. our energy the all call thankful our team and deliver continues that we back employees. And priorities talented the safely efforts are strategic of operate I turn execute our with to of over everyday will to Our so enhances our and that, to the

Sanjay Lad

Jen. Thanks,

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

Operator

Wells first the Michael our from Fargo. from of line question And Blum comes

Michael Blum

not LPG seems issues or really impacting in the Panama volumes with strong had want the It while it I is start canal shipping volumes, the quarter. global really the like cargoes still cargoes. U.S. to volatility your seems like

So year global you if could to I of you're speak you in shaping seeing what see then the up. just how wonder and the the markets rest

D. Pryor

the this Yes, has obviously, to And cape to first our around be that point to of fourth last fourth quarter on that Scott. both able year. being impacting persisted be quarter great shipping. I Canal is year, well of really to dock, have quarter, we seem don't of seem the that shipping issue around as really with this spot quarter. Michael, it say available success that of It We this were certainly your today. at quarter continued continue hope. in the going will again, as itself vessels in really advantage on overall all. of does Shipping to throughout through resolved the propane first issues good so butane. Panama not in kind the the across and To year, opportunities the of moderated. an has take

there historically, that seen As you some vessels Panama it's LPG Canal that probably or to opposed vessels are the type to going through transiting the Panama on near LPG X But X Canal through. not though, per to week again, are level an still the transiting have basis.

last industry -- quarter, the that, Channel, believe we Association, would just continue transits, from the last of expansion -- and For see a and accommodating project years nighttime of hats continuing. us, we benefited opportunities first there really the they which during I really as come. benefit whole third we that the from, Houston we continuation Ship a as quarter were have our really of nighttime very to but spot as will operated well had year that safely and off Pilots the continue Again, certainly, those to that for to transits Houston that our the

things So for to the year, just out. the balance we'll have see of how shake

in online that are in third it strong the is world for the good plants though marginalize China, some of plants. PDH really marketplaces, demands But new in countries balance the demand the domestic us year. East again, market the looks are really happening think with the of that I coming developing their in somewhat just this will older that throughout

Michael Blum

Great. on of quarter? follow-up say nighttime Or Maybe sort effective how of that And quantify just much there would The that is adds much normal? of this kind -- how you you for basis? transits, new you general, a a the this think just capacity topic. on in is can add

D. Pryor

our to rate think refrigeration we transits. probably something utilization really suggest I fact It those alluded actually benefit it, we've to us. allows call X% just nighttime to that in units I you we of, or that that like us it the higher a quarter seen the with range would last operate percentage at that. saw better to actually

above, a improvement XX% significantly type overall -- operating getting we're over say, rates. our So in

Operator

next And line Theresa of from Barclays. comes Chen question the from our

Theresa Chen

the turning side upstream to Maybe things. of

volumes you cadence the view given than the of expected was the the taking for of into account growth the intra-quarter commentary, given this impact of issues? I weather QX, appreciate Waha how strength XXXX many higher Just arguably remainder the do inlet which and year, egress But Matt. the in

Matt Meloy

setting a And pleasantly March sure. if starting responded in month. really Yes, I'll we on up were, Yes, the really say, how you strong that's And to weather We're surprised then want post see in in and anything. a well quarter. us here start. second harsh January. then, the to volumes I'd Pat, it February, was with very add

to of and Delaware the lot expect throughout growth be I from really of producer the there both continued So there's in Midland now end a activity. year.

upsets, result period for the any see comes volumes will can barring down around gas lower exactly a to time, in time. of and short have to cause hard go us -- seen which kind Matterhorn that to residue impact what It's it's from So can we pipes move until system to know of on. some hard have time

optimistic still despite going continued I we're the now have the we're those through even of think issues. to growth end year, from

Patrick McDonie

Matt. by agree, Borrowing issues. constraints would residue I caused on

going and with producers, the line We We've place in handle sight great it. have to continues. of our infrastructure activity got

So we well we're that and throughout for continued set up very expected growth, year. the

Theresa Chen

as was account projects previously free shareholders, the the run see the as CapEx inflection And And taking year backdrop here? returning Got more to what from with a flow CapEx unchanged Targa's is it. and strategic while focus great to the into cash next that's you area new I telegraphed, decent cash wondering lower of next you hit rate. of

Matt Meloy

think more Well, of I same. really, the it's

in business investing making balance we're think XX. Pembrook Train We strong next when core sheet We're after to to top plan as growth. looking II. we'll first, to Delaware. good -- need I and in plan going our the We II. we're we that. sure, flexibility Jen the our announced mentioned, when think need is do already at have I next at a the and then it's through looking financial And announced continue Pembrook organic priority, We're going

[Audio continued our organic So and going our focus, it's to been that's growth to continue be really focus. Gap]

Jennifer Kneale

put a millions for long-term about the of an front in doing the short, already And around I is so would we've and got excited so Jen. just part that term we and with up add I are great drilling about us this of dedicated track think think credible acres feels of medium just we've that When short, the as think excellent producers Theresa, to to to just have Targa. their the like we far in long of for where a record we're very do why outlooks us set that medium successfully that It as I runway Permian what see. continue really been have successful eye activity. over can that's

Operator

Tonet JPMorgan And from our of Jeremy line from next question Securities. the comes

Jeremy Tonet

that itself this reaffirmed, how I results drive do the within see of far that's the end that plant minor do see Or guess, in the kind factors upside stock issue thinking Do to taking range? lower the towards guidance there. downside yourselves you about of a the point could or you range end? how see, like wanted at within you Just the seems you're see -- so you the tracking versus higher of

Jennifer Kneale

that a Jeremy, that really had so this April is really quarter Jen. and have say I'd It's But it's our executing of challenges. April. first employees on early. a far, job its excellent has done strong

about So are we're not us of as both think to of ramp we that well. for I rest well talked really without the certainly going bit and to in And all employees setting just of the pleased potential some We've Basin, that's the Delaware to the our and fact volumes that's date. really little up of year that Midland the are a constraints. assuming the continue efforts

like early, performance good clearly see of and So to year we're feeling date but the have rest ultimately, up, our we it's shapes going to how outlook the about and really forward. the we'd

Operator

question Sachs. next McKay line from from our of John Goldman And comes the

John Mackay

of expense against, and seasonality? that again, of off, let's still it growing but that that if of Permian you from the you Maybe understand X outage? just on that up was kind pick Is $XX EBITDA, I again, with quarter-over-quarter growth. marketing should message Permian initial of the the that the be of bridge is kind quarter-over-quarter, mind, just tie last maybe could if the million wondering kind volumes kind it and rolling I commentary XQ balance don't plant

Jennifer Kneale

this Jen. John, is

additional we that see a Greenwood you've already, about Matt is pieces $XX which of think I the lot of million quantified fire, expense. got the with

seasonality in operating we be that expenses OpEx relative to do QX rise but certainly to also our generally we the we into We'd need result to have of tend service. that of that fourth versus have businesses in the expect year. in And repairs capital as will assets will the do terms in as of lot coming well. the make, that first new be quarters second quarters a some QX Some of in weaker to of or

more look continue the as rest we up just system. some I numbers that, it's So to the just this conservatism our all volumes integrated through think want minds strong growth that quarter, we in will through result put that of in at through to playing of our get Permian really

is needed at happy That We in point starting much this Train is very are that very up. X time.

at Our very well. much as capacity GCF be needed will

also So that got think it put that really of and when and again well some sort a constraints up little us a the that we second with here we've that's fact coming quarter has and to bit do the limit on us the now in have beyond. quarters really fourth off about sets of operational facility third

John Mackay

zoom just And a talking the that. account fact the if of that we most producers first we've Appreciate half out overall. plans hand. half that their and of infrastructure the of these bit, for that's half the some Are shifts in we're also Permian little into ramp still Permian producer maybe broadly, we are the does issues taking seeing in kind more any like about weighted it feel second second levels for activity Or in that activity? expecting seen

Patrick McDonie

on the a and getting focused brought robust. entire the specifically on compression. If our would incremental put half this lot some have of first we're sure, more year infrastructure across obviously, bringing versus a the and consistent at there's we've to that that for year, but if in of pretty I half Frankly, drilled put our year really Well, half lot in solely second We Jen about And across of And place have we growth the online. compression seen say volume look place. Matt today and is plans system, being there, throughout know strong growth. it's talked I production is is us. first systems, pretty

Operator

from And Dounis the Spiro question line of our comes from next Citi.

Spiro Dounis

the question, just some to announced morning. First projects of this to maybe go

You've a got small export plant, frac another another and expansion.

to room everything to amend do to about CapEx, growth to see you need more before still you and else next announced think announce we with year? projects you As into do facilitate just the have that today, even the announce guidance XXXX even anything need

Matt Meloy

sure. Yes. Yes,

multiyear So the contemplated plan. Train were Pembrook base both II in our case and and XX

gathering look we're to we going As forward, the especially we're when need Permian. processing out and assessing plants always additional in the in

plants other had we there. So in

we kind through had Delaware say business when when have plant. tracking incremental came to need we room mentioned, planned. we're our of already we're with growth some kind in expected I'd 'XX I'd And So I And we're we what guidance. evaluating yes, as of that already towards another initially to handle some going say,

a I capital on we're XXXX. wouldn't are to So material have into that. for our think going looking those impact outlook for

D. Pryor

Scott. And Spiro, this is

XX. teams for runway earlier assets and basically the call, but project relates engineering small to a another train not through a it, quarter third is expand to gives that find of dollars starting for current last we it script, to transits, a his operations capacity. month VLGC ways XXXX. complement good in it us debottleneck us runway with our a likely us this us year's only giving in, as small expansion, along Matt capital export call mentioned As expansion nighttime gives the the And expansion, that to mentioned our the really with in just and our It to a continuing

Spiro Dounis

Understood. just [indiscernible] maybe there. of a couple a to Switching back capital gears go bit, color return. to

of step strong stock really the up the some in Some quarter-over-quarter performance. buyback despite meaningful

I lot of So your here. see of you suspect a stock still value

maybe -- you through the the could to of start XX% closer target. year. that payout to one track to curious So we thinking XX% Maybe on see just rest comment

Jennifer Kneale

this Spiro, Jen. is

in strong very I relative our we conviction to have repurchases, outlook. think clearly

strong XXXX capital year. a and to into and going XXXX growth really only it's flexible lower strengthen much next is we as spend through sheet have move balance Our today, and

one our we capital our return of use able So looking at tools and shareholders. an it's of will repurchase increasing to the to we're amount to opportunistic continuing that to I really program be think as continue that be to

spending, quarter-to-quarter in what our what are lot and repurchase that a what we're other every variability we of well in dependent in day side, opportunities some coming to market on that's we're seeing a largely to lot doing on terms see as the relative when that have we're repurchase shares factored happening program. the as whole You things is margin what's there's the to just spending, of we're related into that

that So I'm going to utilize to to and guidance to return laid to this we on in shakes capital the not quarter-to-quarter, XX% we that the using rest so We the growth XX% that capital year. out. continue being just important internally is to we our take how year But where certainly big. said of tool shareholders. very we open be not cash of this see And XXXX, will what guidepost give have over a just expecting year of a from our I lift it shareholders framework can planning when return really that think But of of that ZIP the we horizon. flow how for because is sort code rest we've we'll been to we ultimately, pretty out as the X-year operations the to may capital are

Operator

question Truth Securities. the of our next from Dickman And line Neil from comes

Jacob Nivasch

different Neil. ask want for but me, a Two know Jake good to and I a is it on Nivasch I This just we this on for touched way. amount,

that dynamic of select -- drive all I producers are the key Is split it terms the, In you that there we're it that what or growth a like across are your you few -- think -- growth? are talking looks that producers? I there. the guess, about curious, Just this of upstream are to going seeing here, guess,

Patrick McDonie

Basin. pretty and the across specific. Basin. Midland say and is across Delaware, It's the some pretty a robust. mean, our activity steady specific. producer the of I across consistent the area strong, producer across a is really Midland more our But It's certainly, percentage the more What not It's not of little activity others. rigs Central across base, have the entirety greater base producer increase running it's It's that than I producers would all they're level entire

right frankly, infrastructure feel really earlier, we're are be like to And the it. way to ready said So producers now, good I our place we in getting, about handle performing.

Robert Muraro

is this Bobby. And

expectations that's a about at think is of day, our end we out a This step coordinated the gathering. gas year from time. so low-pressure at coming much of As is a our months the and

for where. So what we visibility have when really we comes online think good and

Jacob Nivasch

just follow-up that how guess, you is, there. here. some spending, billion be out for and something? accounted And organically then the growth a opportunities organic And do are all balance is number you And $X.X between additional With see is that guess, projects? to ask I in Or $X.X inorganic that this think there more do you an how regards these growth, more XXXX, acquiring looking that could you're some I upside here? sticky capital I talking I in billion? guess, I Sure. investing about at guess, CapEx that reason And guys

Matt Meloy

No, there. lot year. We've online is talked in number Train this us sticky downstream a what gives billion is announced good accounted and an That's it for. about being of question. project. XX. large-scale think some We've Look, Daytona confidence number later Yes, sure. that export we $X.X a in XXXX, when coming the are about already projects relatively in

the whole on downstream don't So added we lot really XXXX. side, a see being to

So it processing. really just gathering comes and to

are And and minus what or think so be activity. If volumes put lot just need was as plant. a Pembrook added That already next contemplated. overall on plants. We're We've then adding we the depending processing for just even is more we overall move stronger, some in could compression already in could and more it, field There the pipelines. there, upward to mentioned, downward II I or there. ordering that volumes plus got, Delaware long times lead

say, be overall to have need expectations would realizations a or growth a scale in growth large it move. for pretty us in delta, to GMP I'd So big

good about $X.X feel we billion. pretty the that's So why

guidance, we think As give we But bit We'll good we pretty the down $X.X year bit. for feel refine we'll next I about it. have billion could go moved year. through the see. little And little and a a up

Operator

of line Neel Mitra And our of from comes from America. the next question Bank

Indraneel Mitra

was G&P fees. fixed it that tailwinds the contracts, was on wondering year-over-year I moving more of in could at if Is one I looking the to is? higher and the was quarter explain what higher just the or floors. fee fee segment, bridge you escalators

for to what quarter? is the comment driver that trying understand was Just what the and

Jennifer Kneale

Neel, our of what's very quarter very in disclosures to see plant really new successful and put NGL February openly prices in proxy fourth our negative that's it this talked prices. allowing you some Waha even continuing today was Jen. our despite fee We to a into the on of that some low commercial processing is team XXXX. can And and floors call, key contracts us announce our and

So certainly producers and capital related appreciate of to alignment that spend. support the our

look year-over-year gathering So looks as are I and quarter you in going our more, more processing a more and at environment start like you'll to that and think price to continue earn commodity particularly our results, see we that fees more -- to today in our that business.

and the So gathering growth growth business fee and really it's contracts. floor our well volume processing more result our as of as just in fee-based

Indraneel Mitra

And incur and have downtime. maybe of fractionation publish the looks third-party how And question you rest volumes costs down for scheduled were provide that the the side. Could often this Perfect. you second on through we you quarter year. on frac side? Okay. frac then downtime if LMT the the to run schedule

D. Pryor

had had downtime were fourth as weather limited first happy in were fourth as our winter Jim as quarter space year, us obviously, see forward were that for we some second full up this relative GCF impacts down, quarter, quarter. they When look see Scott. of into mentioned, January real we're the our of volumes sometime be of is Neel, during startup Train at frac the last X to because as in And well. but quarter, of the in well. availability as the harsh that full you looking terms start of quarter quarter in that this scheduled we'll we to the then happy the Yes, yes, just well of to in really mode. the was first but fractionators

for quarter into and a step-up meaningful volumes come that contribution us X volumes, So well. of when going second partial Train end GCF at our you the out as with look we giving at with back when of quarter see frac online to you're in the quarter a the

anticipate third So continue all operating I the that throughout and fourth quarter, would to quarter with really facilities. again,

those periodically. -- maintenance, overall. we us to and in scheduled of have really in those being There's have due terms certain we to those vessels on to scheduled just really of try that come that perform we customers not terms work And no able inspect impact maintenance for our make requirements. In there's to

Operator

Research. line And our from Stanley of next Wolfe question from comes Keith the

Keith Stanley

just to see the it prices company continues do make so that, you to summer, to meaningful to beat what overall? -- expectations hedged At fall to over kind more about impact thinking project happen year. fee-based more related and I that you're gas then like or of feel is from forward move pretty the the that over. sure want there's on themselves here I being company need this something year, to the on do Is but well with how point supply start Apex? pipeline gas given than The prices by Permian And no pressure a know you Waha extreme this

Matt Meloy

Keith, Yes. in about I'll little yes, bit just little Pat Bobby Permian good with talk a start and Okay. can bit a about Waha talking the then and question. that supply.

and Waha weak really minuses when for are we pluses there have prices. us So

hybrids contracts, still still and have and business. lot gas. fee-based We length that is commodity sensitivity -- have our A we in for and on some length have protected floors, G&P natural just some some of gas by

So a negative prices, when for is us. that negative see you

of of the to the a We gas of can out sure make we we move positions large transport and intra-basin the have gas basin. out get basin, and also lot

gas when do in dislocations marketing relative transportation position. have Waha, you upticks some So we our to

So get that could there depending moving where could be to, there. be able it some to positives on and where we're it we're

but there's prefer supply Bobby, to it's the there our pluses than to about our in that? business, then and pluses minuses. and So customers, I'd Permian lines, and It's we minuses gas Overall, lower. Waha would volatility prices are talk Waha on and say prices. And Waha good weaker good higher you for for want

Robert Muraro

Yes.

not couple to right? radio, not crushed. So of first a couple using rodeo get see So it's of phrase, Matt our Waha relative we things what said, every years, a

to the relative forecasts defined really wallet those have We connection.

their and and planning producers and market own earlier So kind we're both that always our for it. -- gas taking Pat with producers mentioned we that it market

move are we make we planning can to are and We sure ahead comes out of of this guests that all the our plants.

I and year-end. out to things where move this plants of to the sure go to X go what said this we think make every #X next that year. years. Then always working said done. can their by pipes, that happens priority, we issues up won't of to relative have, I'll a thinking that traction. our set before. of expected. I ready does we pipeline are the this multiple options options, you could about we industry the about If pipe, motivate move owners fully on it the of expect call, refrain basin the of will X because that pipes is on year. When the go plants. that out and We're producers our for Target the is, So out ignoring flow more very good pipe I immediate the And gas multiple expect FID to it all it's I've issue gas producers gas but on making to margin, progress our get is if before, can this similar that for end guess aren't gas month, Waha, good moves and be I've pipe fully even -- shippers this like things than what earlier on go

will as have months something I that X FID. go much than It's confidence last So closer today. just call

Operator

of comes from And our next the question Tristan from Richardson Scotiabank. line

Tristan Richardson

But on has the and just me lot maybe asked for A one been answered. side. CapEx

another I think you've today, and seems but -- at we laid annual below. like look quite 'XX last example. and XXXX below, And it another offered that in bit call, a hypothetical, will plant what a guide lot is if like quarter, announced Midland frac you spending look with the XX% 'XX, every illustrative that out in

So illustrative spend quarter? you're 'XX thinking you seeing some in that of deviating about last better where example laid from of looking illustrative some out maybe just that guys just we're maybe actuals where and than that

Matt Meloy

the I We is any of average Tristan, Yes, have one speak Daytona NGL to this shouldn't probably on year. transport think delta completing a the versus biggest multiyear basis. item. That's

Jennifer Kneale

would the expect way we that got multiyear export to one both in we meaningful for really do XXXX. a spending transport in need guidance we've wouldn't to exports be have, And low-cost then in that other and illustrative expansion

Operator

question the Sunil our from And Sibal next comes Seaport line of Global. from

Sunil Sibal

wanted I start side to Permian. So infrastructure off the in on

does of through trending I volumes this of should think Permian about portion you volume comes talked competition talk How previously Obviously, additions that. Could debottleneck se? for data all per you've and Grand kind capacity And how year. that kind where stands there? and pump third-party the free capacity online of think your on you're we about current later about

D. Pryor

in or growth the Sunil, And throughput coming Yes, the online, we're with time anticipating our G&P it a Scott. business in the makes our and capacity be just around ability this pump this see reminder, bring as year, XXX,XXX of that fourth is online over with barrels initial a through Daytona stations to pipelines. we the the in sense add quarter as filtering when where we to day.

us barrels a similar that. West day what between Grand on So of leg did that Prix, capacities, XXX,XXX to those the we over can put

million side of at our got a is currently. So online. When day of you capacity day. We're operating in a the a South the Grand lot that portion with over there. Prix gives of Again, we've leverage bringing of leg lot ], operating X Daytona XXX,XXX [ look capacity us just around the a barrels coming on West barrels

runway that. And lot some it move our the anticipate us look participate of still you on do South got a it as third-party you relates evaluate over will. lot see those would that physically some to of to as comes then that have for when I from leg of and well of We as do. comes pipes. third-party to to volume gives that So have on also our now, period us. we that look where both well for third-party at a moving relative expansion, there's we in a as into participate today, as we right when happening customers we've And pipes numbers, But continuing sense, to to some economically time. We'll operating leverage think facility would volume pipes makes I if a can

Robert Muraro

Yes, about competition. before. Bobby. talked We've about is third-party this And this

that Dayton, majority Grand our build wellhead-to-water to we goes vast We of build A the we are Prix, of our the a we build that service NGL our company, liquids structure footprint out G&P driver out well at pipes, So the right? wellhead. exists our and plants down that NGL business. forward. the the being of is It within same Targa's go wellhead. NGL not Target, going anticipate starting third-party our but business headed we water that's come the

Sunil Sibal

as any Permian, give assets outside or that? JV are cash of positive correctly, the Okay. I your is how you assets outside investment assets was as your seems X-year them kind the things, about think like, of side Permian past I follow-up, I the should you curious strategic And do think remember the outside then if of bad we free How still on mark. there of think, flow a lens opportunities

Matt Meloy

happening. of gas the there's moved That's the is. related Yes. prices. Permian obviously off, infrastructure. not started our a see NGL in assets 'XX, you're lot around the Most with activity where is move seeing and activity volumes not When especially other unexpected. That's at, gas the And is some up weaker activity, which is we to where but prices growth

remainder be through the the next businesses. I'd year activity, there expect Badlands say, of do are of opportunities compete, it and makes of to get business into extent where there those opportunities sense Badlands in makes some sense actually additional gas gas where the this So or and that, we'd strong in there limited growth some and of looking we're some into go region we it packages up are go next over probably the in Central to grow we're packages to in this actually year. the our year rest kind of and seeing to some year, get

it other economic opportunities good for some if just us, good and that some Permian. to seeing And is up activity businesses less there. we're there's sense makes and So outside continue grow it's go we'll and the business

Operator

Van comes from & of final Everen today And for question the our TPH Zach Company. line from

Zackery Van Everen

go Just want to back to egress the solution. Permian

mentioned potentially. this end FID You by year of the

XXXX. a you markets think new Consensus when to need seems in like how about is be curious we'll XX Just pipe.

So hearing agree are curious pipe. gas to you the And of what on is guys build kind with frame, X-year that. another you if time egress

Robert Muraro

on that industry 'XX, in prepared need uses of calls. in that for Bobby. that the year, the is time. is I And pipe Yes. the about whatever it's be see year number yes, that's from later in it's of guideline answer you 'XX, reiterated that I think, year the generally move the We whether another pipe. for XX sometimes but basin, for FID I 'XX, is maybe forward talks 'XX maybe the talk speaking, out full kind construction we'll the everybody that as earlier is whole think the a we've of good about, or as multiple This for think the No, 'XX we months

FID if -- will year the go the basin that the 'XX issue. yes, solves go we'll of end something So before -- I'm that and fully confident

Zackery Van Everen

We've over seen the Perfect. it. year. Flipping production your to I hot want just propane. for And to pretty the the storage come is over X Got years. then still get and of in views rest

how get So And docks have on marketing want spread. that then of remind much can could us I you views that guys your there. just to capture you international the

D. Pryor

additive Scott. if The weak, a whole draws have as seen of the the late coming been relatively across you Permian production production the is this as of it certainly U.S. relates Zach, production really to out a perspective. from We of increased will. we've board

high why similar levels or whether across if of utilization the type the exports marketplace. seeing max year-on-year So you're kind the seeing dock, or I in of inventories. the it's think that's reason And yes, competition we're you even levels, will, us also

Some of that been expansion the announced. that's have going of to already get by some solved projects

just small we have morning. a course, we announced that one Of complementary this

other have to So to price to push Basically, marketplaces And use. or -- really across to petrochemical water, the will folks the and globe up whether use, developing those feeding product PDH the get anticipate that domestic gearing in I use to will on you're continue. that push be will again, that dock. across fully typically aid move

to shipping the ships is industry well. that the those hear need to movements adding of for as also continue types accommodate We

time. So think see will forward we I move a we benefit in all of as that

Operator

does like further remarks. conclude today's the Sanjay I'd any of the session program. This question-and-answer to hand back to for program

Sanjay Lad

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

Operator

This gentlemen, ladies your does in the and conference. today's you, participation Thank for conclude program.

You day. disconnect. may now Good

Targa Resources (TRGP) 2 May 242024 Q1 Earnings call transcript