Targa Resources (TRGP) 5 Nov 242024 Q3 Earnings call transcript

Company Profile

Participants

Matt Meloy	executive
Jennifer Kneale	executive
William Byers	executive
Theresa Chen	analyst
D. Pryor	executive
Jeremy Tonet	analyst
Patrick McDonie	executive
Robert Muraro	executive
Michael Blum	analyst
Keith Stanley	analyst
John Mackay	analyst
Manav Gupta	analyst
Neal Dingmann	analyst
Andrew John O'Donnell	analyst
Sunil Sibal	analyst

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Targa Resources Corp.

Third Quarter 2024 Earnings Webcast and Presentation. [Operator Instructions] Please be advised that today's conference is being recorded. I would like now to turn the conference over to [ Tristan Richardson ], Vice President, Investor Relations and Fundamentals. sir. ahead, go Please

Unknown Executive

Good Call welcome for Michelle. Quarter the XXXX Earnings Targa morning, you, to and Third Thank Resources Corp.

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

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

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

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

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

Matt Meloy

and Tristan, good everyone. morning Thanks, to

years. research Sanjay, Targa. to the started, our position support previously get to and Tristan investors working team. Richardson analysts functions our potential will energy continue and be to with we best-in-class leading in are sell-side welcome in we I Investor XX after and want last Relations Before With to Tristan Tristan Fundamentals for excellent our investors,

momentum volumes, turn record of sets a and XXXX. The third as of EBITDA us record balance for quarter was a adjusted well to and this the fronts, very strong execution we provides of footprint, up across on lot continued year our which number

the beat expect than more previously of EBITDA our which by guidance provided high of exceeding months Given midpoint more of our X end of the our outperformance provided the the XXXX range million initially growth, $XXX means for year, than range, year-over-year adjusted million. we $XXX through to first

markets, volatile to taken past across position from those steps. benefiting Over successfully have Targa and we several we deliberately years, steps are the

now have supported We fee prices, contracts. commodity margin floor fee-based or to of our exposure removed by largely downside with XX%

We attractive our on us deals capital and system. have all way through with with continued allow to invest to best-in-class in move a the customers integrated growth volumes focus that opportunities

have strengthened strong a balance investment-grade are We across and X sheet, agencies. our significantly now all credit

have price steps financial capital We enhance amount We returned increasing of our our generate to for cycles. while an to attractive abilities these that across shareholders returns commodity important our shareholders maintaining believe flexibility.

on Our position, good long-term medium- of our Targa's excitement a with begins lot things and there. outlook going short-, around there are Permian and

to Our that and the we producers. progress growth online, new have same, keep and do forward moving X plants in we full anticipated response with pace with Permian new we our to next plants continued higher are in come that seeing to essentially given our announced expectation ensure today, we are will our plans our

to with AGI continuing our are Delaware position in gas sour infrastructure. treating the enhance treating and additional We investments front-end in Basin

complex, new feet cubic well over Delaware. early per which, at our per day acid gas to along X.X treater will comes injection ] XXX cubic our day gas in Moose million our online treating capacity sour active in injection Bull and Our the billion X XXXX with increase current feet wells, [

this credits we'll time. over quarter and COX utilizing and enhancing Additionally, some of Permian, we accruing the fourth to year be in are existing increasing the and sequester and tax infrastructure in capture XXQ

be since has highly been assets. Our online. full utilized. Train through Permian and growth it it downstream our And much drives was much increasing Train XX X needed GCF online. came when needed and volumes are came Daytona will

to to NGL nicely continue returns on our and strong aggregation capital with time. our capital our shareholders position, to system, continue over coupled able integrated increasing invested supply generate positions Our to be us premier to return Permian

to Before over safety team our to The extend coordination experiencing more detail, lot thank Jen I operations I we are our to capital for you in discuss across we to their to allocation a would and like turn our Targa organization, the customers. focus the on call to and while best-in-class requires employees. a and reliability growth proud service continuing execution and are of continued of provide

Jennifer Kneale

morning, Thanks, Good Matt. everyone.

compared in during quarter, last our a than transportation volumes. our feet the Permian driving X% Let's talk day in record strength a feet when volumes averaged more gas cubic X second over about NGL day X Permian, the volumes Starting billion million of inlet or full up to plants, fractionation the increase results year, Versus operational third per more XXX natural record our the cubic were detail. per quarter. XX%, and

growth G&P processing volume to an our led that today. of acceleration timing has the including two we Our plants, of announced

October, In early in new Permian Midland, X our full. commenced Greenwood essentially operations plant

begin and expected Our XXXX of The next East the will on of XXXX. we operations operations begin Midland morning, to plant, much quarter to Pembrook East X second plant remain the fourth needed track and of be is new Driver, quarter XXXX. Midland in in and this that Pembrook, announced quarter third

we continuing volumes. benefit to Delaware, from are increasing Permian In

XXXX quarter Our of first next to Bonus and [ of Delaware will the plant, operations be XXXX. much quarter track and [ the begin first needed Bonus remain and ], X ] on in

expected is of the new quarter X, operations second Falcon next XXXX. Delaware to in plant, begin Our

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

G&P from NGL Our and increased as increased systems. we our fractionation X% sequentially Permian transportation volumes supply from benefited

in Given robust, our from are to growth is downstream our the very much needed our growth systems. growth handle and supply additions, NGL system Permian outlook plant for expansions corresponding our and G&P business anticipated

of on for next Train in Our quarter Belvieu, Mont XXXX. fractionator XX, remains the third track

reduced remain through XX-year LPG loading at loadings per third a our that our volumes million export from by the Park, second for we our during complete inspection half next In demand and our mid-June the barrels quarter strength loading XX.X which business to impacted our of in month see month barrels XXXX. averaged Galena capacity capability despite being XXX,XXX in on required increase late incremental We July. expansion, an per will track our continued U.S.-sourced LPGs, global

Turning to capital allocation.

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

of increase a $XXX for We over have at share price year average third common to in a during quarters, meaningful are opportunistically shares repurchased investors. million full our the year-over-year of increases million returning quarter. of shares repurchases Through $XXX repurchased million weighted we X We $XXX common nearly substantial XXXX. of $XXX.XX, capital

from repurchase operations our activity year-to-date This a XX% shareholders Our of to outlook. business cash acceleration return of in position means an is the we versus adjusted year. outperformance expectations, and this our to previous driven strengthening to the are XX% by flow

to a common pleased a our an the morning dividend expect announce continuing per while increase XX% XXXX are to our our to to $X We this increase dividend to board the XXXX share, with flexibility. meaningful recommend maintain shareholders level. we provides that year-over-year over annual increase to This

our a value offer common growing excellent share expect our share, common we long-term we compelling per to meaningful increases continue We a that dividend and dividend reducing short-, in share. proposition provide Growing to XXXX, outlooks. and for count shareholders to medium- Beyond to a position annual and EBITDA, believe potential be per shareholders.

We recently Sustainability also XXXX published Report. our

We that Our forward Will of to continued report now natural call to work being critical and seriously of hard third operator Will? the and over look take discuss reflects the we employees. our NGL financial responsibilities an of feedback. our infrastructure will your our quarter I results. to gas celebrates turn

William Byers

$X.XX gas increase natural second quarter. business attributable Thanks, over EBITDA across integrated to our by The [ Jen. Targa's the opportunities Gathering marketing of as result which Permian volumes volume business. of in adjusted third billion, X% a sequential in higher supported $XXX for The increase the the for operating reported strength ] and and million floor set to continued growth our quarterly was a our margin NGL higher our a and fee volumes, fee adjusted system and segment optimization record contracts. resulted of quarter record another Processing was NGL

adjusted segment fractionation backed throughput. by another and NGL with Transportation of and transportation margin $XXX also record set million, Logistics quarterly record Our operating

adjusted billion additions our and to $X.XX we As full be to a continued estimate We XXXX $X.XX of support fractionation G&P disclosed NGL recently mentioned, Matt capacity transportation XXXX above and as strong year EBITDA billion anticipate volume expansions to the now and Permian across previously range. top our growth. end finish completed

approximately the maintenance net third capital $XX million. quarter, For spending our was

Our net current year estimate million. spending capital remains $XXX maintenance for

$XXX capital net for million approximately spending growth the Our quarter. was

other billion. ability spending on factors, currently to contribute of Our XXXX infrastructure volume capital $X.X acceleration will we expected modestly growth is spending adjusted net to time for in growth plants lead additional handle are service depend XXXX the growth long announced Among net increase for in incremental when spending items spending certain exceed and expect to before EBITDA XXXX. order on year-end. our capital today to higher our we The to

expect inflection extended planning completed process. facility August growth we'll cash $XXX million notes prior $XXX due once our free successfully notes And unsecured to on the a incurred receivable meaningful $X in remaining we our our XXXX. continue generation paper XXXX. note maturity enhance May capital flow we of under to program, position our $X.X we fully to term a February We facility note billion billion which of senior XXXX accounts through In spending and are details additional to XXXX provide loan relative of offering commercial terminated in a the The XXXX, to August, reducing in securitization liquidity our X.X% coupon us by which was borrowings was under outstanding offering repay million allowed portion XXXX.

of Xx third end And to X.Xx, future. have leverage outlook consolidated approximately approximately we the of range the upgraded of Moody's Xx. and was in for billion target within reflective October, $X.X our BaaX long-term quarter, ratio target our well the to date made the ratio leverage liquidity. available to had progress early of we net At our

and BBB strong Maintaining sheet agencies mid at from a a We have in now outlook upgrades and each at rating priority have of Targa. ratings a all agencies. remains the achieved stable balance X X XXXX investment-grade

Targa. little the turn grateful will I opportunity now, to And at humbled months of call of X the with and over a I'm team. ethic for Tristan. Targa back the this work exceptional dedication tremendous of day employees the that, for been a to by be over am part Having I every

Unknown Executive

Thank you, Will.

Q&A. For that queue you the we yourself reenter open Michelle, and if X and you limit the Q&A line for session, have question X please the ask follow-up questions. additional to

Operator

our question Thank first Barclays. you. with Theresa will Chen [Operator And Instructions] come from

Theresa Chen

general and and go fundamental term. the allocation on you pace to to how CapEx high of long color over accelerated And growth plans, XXXX? was look can on curious, to you the more endure? near we I CapEx growth in accelerated could how expect growth capital provide Congratulations as do XXXX B, the this

Matt Meloy

excited the into really the We growth, XXXX. EBITDA we're we've seen results footprint overall think higher translating just Yes. us sets today. downstream. across G&P No, year about higher about up excited We're in and volumes really it's our well the as performance so look into far this that just we

estimate terms capital likely pipelines, this In be we field moved in a has it's on and compression, for seen months, going significantly in our to Earlier acceleration of resulted XX, year, for next as volumes timing. it's things. acceleration also next XX level spending, year, XX, Processing certainly look but we an additional capital plants of and when the to continue Gathering year, our It's higher. on additional XXXX, as resulted side accelerated into this had in that the and of just putting to of have we've plant we're more

of million of not versus year. expecting quarter but growth were up Third quarter level $XXX this a growth. last was We year, third day that

we think as in puts a just really good us we that position forward. go So

plan on, any G&P is, downstream business. that's NGLs, additional give our generate number to for Falcon to So give plants to you our going and Downstream more and what our side, Driver plant you We're XXXX. cadence process. We planning going we're of in more what that a of East And mean come accelerating on through means that's ultimately details timing yet. have our February. to plants what when drive in plant, going X We spending the still plant going don't more capital those

plan we in So going on that's more we're to the February. and of kind you color now, planning through give that

Theresa Chen

molecules just quarter provide clearly third looks Got it. robust. be you How uptick relentless extremely a doc think through it's [ at how to supply the fourth expect looking across downstream point seasonal just your Can trend? a And the at you throughput you value your [ partial it seeing do ], push going to of and NGL an on quarter downtime integrated this much versus of chain? ] the forward following in this outlook docs across

D. Pryor

Theresa, Scott. is this

third First off, year. what in from quarter during yes, quarter quarter. nice of nice we It the rebound was the had a second this we a had

was So into had that the the we quarter second July. impacted, a that though vessel the lot. impacted inspection lingered Even it month by and of was

all So when increase half refrigeration fourth move continuing our the would of we've back look of see quarter we capacity. of over got we now And the that certainly that we as significant the quarter, at months. into third complement we had full the

saw would third volumes I we complementary, would during in the exceed be if very the So anticipate not quarter what quarter. that the fourth

variety We well our closer the demand, as LGCs moving from we're docs continue say, a than, sources East. some propane not And it both using to are side benefit butane as we're on but utilizing that of only Far complement and of the MGCs VLGC of the docs, of smaller markets that to our really side. on

lot the across as third quarter the into fourth then of looked we that quarter. So a benefited

of and as think MGC I more on online, very Moving as benefited now the well as VLGC a an into continue side to We'll the with delivered much XXXX, same vessels in the We both to marketplace see number vessels it's going the side. 'XX industry both in come have to 'XX. that be story.

So I the across where in world. into low, position the just is and U.S. think it right freight relatively puts to fund it's where a itself setting to from up now, the markets us it's to easy supply

Operator

our And comes from next Tonet question Jeremy JPMorgan. with

Jeremy Tonet

the think, we've think messages in integrated think independents activity, versus of out I the heard the with producers So with I share bit producer particularly some position, versus smaller. on regards more producer how in just mixed the basin, differentiates the conversations large your from a I basin? wondering Mexico your and you to, And if here New could guess, you I others customers

Matt Meloy

not with But The want gas is on then if -- we're have portfolio this to Matt. Pat, their a the of mid, side and start, I'll large having producers, The generally is add cap, and discussions mix. we all is Jeremy, we on. are to Yes. that's small, the it same. expectations. what relative you growth a it's customers, seeing more

higher So the seeing And seen just we but haven't more activity, lower necessarily have that's more increasing we whether seen productive. just we're GORs, wells be volumes. declines, IPs, more

footprint. across where we to I gas working for exactly now, going think continue surprised that's for significant we're mean Kind our But of we We be of And gas is We that forecast our out, natural the look on right out growth. growth think be there's on sorting to as this through 'XX volumes. to upside what to outlook falls the right remain kind now. 'XX, what producer we're growth. bullish through going year

Mexico, to would XXXX, we time. in say assets we've footprint us, for some footprint. best look Delaware they in when But had a really the New I you had the to good the acquired As Delaware Lucid

of just And have a complement across we're so you And We at I into to that system our nicely is, the look a think the systems we kind fit integrate Delaware where when activity rigs, that Lucid. systems. those the with best-in-class were had. of able

strong New a in think area. I Mexico in position the So capture to we're good the activity

Patrick McDonie

right. I'd only add No, I is, going to was thing Matt's say, the

integrate sour a the infrastructure gas growing taken of we've definitely systems of And steps us the of that have to other very step-up a led acquisition, into advantage the commercial it a There's well Delaware that system Delaware. Basin With positioned to and our we've for Lucid lot over the we're success. The was is Delaware built rapidly. and out that. lot gas there, take to in

Jeremy Tonet

to here from it gas the basin. it. as Got of continuing kind helpful. That's And relates picture and gas then the very egress

a needs future this for them. And picture think motion involvement We materialize next? couple in of basin, How could about, that do guess, egress you're you projects Targa's the you gas part think you when what I at of X be think do the in could point, here? do of have

Robert Muraro

is This Bobby.

announced it's partnership bit about we little think and a we're moving going that well. Blackcomb with our excited I forward ago, project

I a with pipe when other pipes think lot as we works in say, were said there about the know we see the are before egress are and working that much continue as out we'll to We were on of want happen the thinking to 'XX 'XX Blackcomb. right we possible. now. We of basin

to forward. work continue going needed what we on So is

With coming need faster cadence be gas the wells, the of on we out the gas what production expect to we're there seeing in pipe. for margin on

think to if would another great we "today," basin, we else see and for the happen. done pipe gas So gets someone excited that's be it

Jeremy Tonet

I little even I And if road, that there? down that, the out it. growth, or do maybe Got centers growth guess, bit basin you In picture data demand just consumption industrial more. could the a round impacting see

Robert Muraro

This is Bobby again.

know people it a think talking about now. lot are we of there I right

We of customers are in all conversations those are points. conversations with with in that consumption

of and to action But built, built, be it a gets there I lot right gets around is what now those across it's topics. yet construction, basin seen. what So actually conversation permitted put gets the think going and under a when on lot of

Operator

Blum And our Fargo. comes Michael from with Wells next question

Michael Blum

a billion. here the Obviously, sort good higher noticed year typical the I to Wanted the I have you $X.X in of long-term trending morning. to ask wanted like slide, still here add that -- trend term. CapEx. in which more near you're about the about growth shows at same growth

is your numbers of as expectations? normalized normal kind number that So producers, still sort moving is run exceed year higher that rate? Or of these

Jennifer Kneale

is Jen. Michael, this

out we that illustrative framework, billion. we we we that a see more that much then Permian capital in requiring All And like a very major expect infrastructure. even growth single-digit would move put about environment core be CapEx when substantially said capital slide the potentially multiyear well. that plants growth to average from good going we high $X.X higher the lines, growth for were acceleration growth downstream of the compression, capital to would for I if on higher think spending gathering Basin more as and there, projects spending, growth caveated need

holds framework single-digit for So still seeing the environment high you're growth. an where

As growth year. quarter experienced of to relative quarter said, XX% Permian the so we've Matt third this far, last

For to year, relative up last the X months this XX% of of we're year. X the months

So are a to core more additional infrastructure, clearly, increasing position environment, accelerate some we in that we're robust a make gathering compression, plant our that's in us that the handle spending in line and growth for producers. sure to for to capital resulting needing

Pat needing on think year, that I of we success for and mentioned that accelerate enjoyed provided G&P when us that's when we XXXX, continue infrastructure to resulting we've also to expectations in side previous lot versus a growth expect increase in this February. commercial spend the to

still of case we is we seeing what depends consistently absolutely, Permian more growth. are that others. that just have out than on very your think view put I Targa's particular, So in February. we holds ultimately growth And framework said where together. It the it And, since that's Permian systems, growth in

Michael Blum

opportunistic ratable about approach? buybacks buyback sense. you're still it's do continues pace price is now about Makes very of buybacks. the I if to latter, the then almost just just higher? you price-sensitive? and move And an that type wanted think Would of Or as Okay. more of stock say much the you how to ask it

Jennifer Kneale

very repurchases. to that continue we share about we around how it much opportunistic forward. to And I that's going to think would continuing say are expect be

capital unchanged. priorities allocation around Our are

we've 'XX, year about very XXXX more I think what when is 'XX, and beyond we momentum strong 'XX, this resulting is 'XX lot that seen in a a that. think

and based on for in We seeing term. going is short, on repurchases And you're have what here what at of conviction have execute long medium a lot we that the us around opportunistically conviction. Targa

continue different And to but to our daily factors forward, activity you consider in they terms will a like. think what be should repurchases opportunistic. We quarterly number of and of so continue looks I expect going

to very you to continued move some So tool do certainly for we more be to expect forward through believe moving it's should variability time. but capital return able we our shareholders use us to important as a forward,

Operator

from Stanley Keith Wolfe And the with next question Research. comes

Keith Stanley

in mean, X even It versus volume I XXXX you just 'XX updated like meaningful change your months and pretty and EBITDA seems a the outlook, ago. CapEx.

I point? plans mind, this in wanted envision check So XXXX pipeline you accelerated that NGL now with for that Do potentially into back spending. being at just in to on

D. Pryor

oh, sorry. -- Keith

Unknown Executive

sorry, I'll ahead. go say No, Scott, just --

D. Pryor

Okay. Keith, is this Scott.

Oklahoma. partial we quarter. So transportation in of a and transportation. the our into certainly, when as full the and -- benefit our we'll the as day Texas XX-inch the excuse XXX,XXX our we We of XXX,XXX have then me, Daytona, to Daytona that at then looked contributions fourth area look third quarter, the averaged in that third Belvieu got leg we that North at Obviously, of West legs, barrels quarter, pipe coming of gets complement well online a with Prix up Grand moves marries from

some leverage So X some today, those the we've pipe. leg got XX-inch XX-inch on when operating the then think on got about we've and you operating West pipes, leverage certainly

in the to what going the timing some growing side need capital to some order our capacities on that of basically opportunity The we've benefit other entered is done of loop line. into our from us the what's allows agreements push really would that care take relative we've out third-party when thing upstream to we to XX-inch are really

those the to time. operating really agreements, like of benefit gives the with leverage have evaluate rents along we time volume over us So what look the today,

in loop They as side, capacities XX-inch add we ramp with to we'll of on very match our near-term up that well in kind cadence. continue that growth. obviously, have be plant we've upstream to the are we'll Those up really agreements that done pipe. in eventually, plants volume position a But where

process, we and our looking CapEx. budget will we're move continue evaluate to as at into 'XX with that We

leverage of we've now current we side right and I on the time our agreements with those have. the benefit got So that think

Keith Stanley

Okay.

you more able you to but second LPG again? it any can sense the was strong to optimization it weak The in that be around like Would Permian ARPS take spot advantage strong of constructive you're of question, QX. seems the ]? is [ Or marketing And really share pricing, attribute that on on exports? exports, gas volumes might

Jennifer Kneale

Keith, don't of this into I'd our I'll been is across export of Jen. us factor start. NGL, generally it's strong a gas say marketing that for marketing. year that We natural all and guidance.

So when you think year, about some has of to the factors a outperformance variables. marketing year our strong that X having those have been this of contributed certainly

that as -- identify given to I look to expect we be think we think we as footprint, we of able opportunities. continue strong vastness would our forward, the marketing that

ultimately, through by that moving across driven forward gas really unique of as we move it's marketing systems. fact it's a some our the lot much volume and a But factors. time. opportunities of really are NGL both we affording combination And so us That's

D. Pryor

is this Scott. Keith, And

the fourth size bit to that were vessel with a with had that The on a said inspection. what bit cargoes again, as earlier. benefited of in, the we But move little our vessels due downtime type Just able quarter vessel the quarter. the by other squeeze playing third were inspection we in side because we would the to the being follow-up export into a smaller catch-up little in the as impacted improve. Again, third expect we to quarter, volumes we we to

around be system. optimize we'll see and to the the opportunities ] continue strong, look for [ we'll if So arbs to

Operator

our with next from And Bank Jean ] of America. comes question [ Salisbury

Unknown Analyst

ramps Does that your egress believe think I said of Matterhorn expect X and backed the as the gas quarters, next end which in most outsized you've today. from or your [ gets the showed that I quarter unlocked volumes volume really X an has kind quarter-on-quarter has producer year, up as hasn't really basin? gas through base before mean the in ] the been results that over of wouldn't of you last that step-up

Matt Meloy

start. I'll Yes,

really that any having make We volume work and Targa's across Midland negative producers, of takeaway. We to I have customers Delaware, producers. impact behalf volumes say, those would not handling our with not our from and our try on moving seen, sure gas and

We positions basin system and of own be our producers the able to get move their typically kind out. to have have those volumes. that And intra those have out on firm enough enough then transport taking transport, to

to so make them And we those work sure can move we with volumes.

will a be factor growth. say wouldn't I of in quarter-to-quarter kind that So

look last But for just X at or we've across growth take, plug that the higher been than growth second this third That's our plug in about day, a I'd I in of normal. volume the as for you and that volume year, know don't quarters, quarter. million QX. give XXX XXX in -- in another

you going I have going to a in move growth, not some of but we're think as it's be line likely straight kind to forward.

in the bit see muted strength but saw third quarter. we second think I a compared be and to the strong growth going we forward, QX is to likely

Jennifer Kneale

quarter, little a bit over contract margin also on provide more rolling lower the the have we in to G&P side. Just a visibility fourth do that's

So quarter-over-quarter. volumes that reduce also will

sustain well of lot to couple are that quarter. of volumes a the us a think So still although again, are to speaks to us. will in That I last that we contractor performing seeing and exceptionally day growth of the able fourth not the seen XXX all million we've quarters, come still impact over being

Unknown Analyst

coming your time. it the there's fill after at Very a That the lot sense. same expansion volume LPG obviously export clear. online like seems comes capacity But year. to online basically have makes it next like you of should LPG And immediately then

to see strategy for your of you have Or do pipelines your you deploying expansion, for defer own own Beyond third-party of you've as more the would to what signing spend that you discussed existing capacity? up value and consider do that strategic LPG from export here? like capacity kind it

Matt Meloy

Yes.

some do kind I easy see one we handle which we're the are volume on now our on this up a as economic well. as are trying mid of step just think and we so what for exports are the us others. seeing But NGL bringing a adding LPG larger looking next footprint. our growth at across capacity. debottlenecks, and growth volume to coming are kind year, to of incremental in really have next we lot just of right We're Others

think So to needed. be going all it's I

currently additional together timing pipeline pieces. the likely so include or evaluating and going million of right X LPG for So those we're expansion. export of is probably around refrigeration. both now, $XXX those It's our the and size to Yes, next

of capital And of so us our what a that, term end 'XX I some we're now. of 'XX, Or going us. That's 'XX, right others capital about real 'XX? to need 'XX, that in any in we're that's needed. 'XX we I sorting for And process. or with think spending? planning contracting of it's that meaningful when back do is and as think kind see half part to don't way the for bridge through up But

dock. I handle our own think our export we'll across

Our own volumes.

D. Pryor

that just pipeline ], Jean side the as Yes. And Scott. on side, I improved even the Belvieu. facility. We're Belvieu to our for that that, Park this and range. of facility about -- refrigeration piping, you bit, that. [ complement would the ways in before well then of the and a we'll on our debottleneck We by million in talked at said, pieces as Matt of $XXX And to Galena is aggregator system at say kind primary little that after just as around that excuse an look kind on even me, that -- supply an both

up start the prioritize we puts in ramping to that could position opposed to volume Belvieu a volumes of that that coming our So at as and as around aggregate in off us marketplace. volumes is our system,

might where volumes, to put in capacity position look optimize have we future we as a we some our also that So to well. would that take around expansions, of would could we but ourselves care

Operator

next Sachs. our Goldman question comes Mackay with John And from

John Mackay

gas You now, guys have a while had it a time this spend sour talking but for footprint you more this call. about on little

a grow of look So to build-out. could typical of CapEx business with that hear G&P different I'd a could associated And than What how kind kind just curious just here? much watch it's of be like? milestones next from of to that there? maybe little the pocket Because

Matt Meloy

sure. Yes,

even and of infrastructure Dynegy going the back sour ] days. to kind operating been history have We Targa's gas [ through

So more side experience there. sour. we Delaware to out seen We've of gas handling sour continue have more of the and get decades

ramped be out handle And that's able COX. HXS years really volumes sour to spending really we ago, and to So up there. our more both

a today, an coming the at So Bull complex. day online XXX we call Moose we million have mentioned our treater in

in We to more to wells continue Delaware gets volumes time. the the and more have being sour over additional and more drilled permitting more as phase hand

tricky to for really the we as short, a volumes. term. just does an little having over and handling that It's sour than growth little we longer medium bit give more difficult look So handle volumes. advantage a It's think more out the us sweet

to And those so it's just when harder, volumes. better work us opportunity producers gives with handle our to it

trend our out our of we see to that think optimism in leads So longer-term continuing. Delaware. some about I growth And rate that the

Robert Muraro

And this is Bobby.

are plants about years all it, we If the of you the the side about several all though talk think we've last Delaware plants those plans. don't even announced eastern sour over on the Basin,

obviously We way haven't just of we that industry. we talking if of those label has the if think So because we think or X those Wildcat [ center any and you about think front in about But all don't that that. as are just Bolus Midway or don't talk as plants. points ] or or about plants, sour if of do now brightly the in you become about you historically

John Mackay

Maybe I appreciate a quick that's just then. follow-up to that clear. actually

kind tax meaningful a broader to years. about this margin little You talked more a to about in grand of on are payment you the next nice Or is but real getting guys a where getting kind -- cash couple XXQ over some quarter. in there? get close closer we're to Could the of We're getting requirement offsets scheme? XXQs of size the some this have, talking the credits

Robert Muraro

is Bobby. This

So when talk grand on I think the to scheme, it have. but I also nice a you it's think is about margin,

we think get of injects those little able of HXS are eastern about just that and Basin that then where COX are our in of gas, So side when and to modified all about -- infrastructure We that we talked XXQ. assets all gathers I putting bit sour and it. you the out the strips on those systems Delaware the a

spend capital order complement that a very in So very that efficient nice and to XXQ. get business it to is to

have more we to lot don't it able the something into capture do that XXQ. whole So to turns a be and

that's of But we where relative the end it's else develop everything We day, time. huge CCUS not of to our when on. continue not required and the over business scheme grand the forecast to in inject have about to at you it talk going Targa, is

Jennifer Kneale

doesn't out, for our meaningfully taxes. that means that our cash perspective, it finish to that John, outlook change just from so And

taxpayer to it's but that's full the our be around XXXX And of set full then NOL. and ATM inclusive have, CCUS. to there's including the nice through we've worked all expectation no our As business really XXXX Bobby cash that said, a opportunity in change subject operations, current a our way when our will to in

Operator

And Manav our question Gupta from next comes with UBS.

Manav Gupta

us. to hope analyst a for feels sell-side jailbreak, all, able Tristan. of Every rest do big time it for nice is First There congratulations is very of a to the us.

Unknown Executive

Well, that. thank for you

Manav Gupta

them, just My with around East of more on provide Falcon Anything multiple? can or ahead us us X move details quick you you build decision why the plants, the economics them? can question, give to X Driver is or

Matt Meloy

kind say these articulated that. economics the I previously. being really of is I'd multiple materially the from we've don't multiple. that build same pointed Sure. see our as around build different We've X.Xx to organic and

our through core position So NGLs on gathering I business, producers moving our think and invest the it processing, either us just to downstream our then execute to puts and and continue for infrastructure. in

as Midland Permian. side those, mentioned we're and the of Delaware timing earlier, the seeing the of more the across I And just volumes both

those led than were so expecting. sooner kind us we announce to And of that's

anticipating were If the evaluate And the right of then we timing as you to volume starting go next kind not to of of we year, us allowed the now beginning But accelerate plants. announcing the soon are. the this and plants plants. these we as work these has back upside

Robert Muraro

is Bobby. this And

highly get to keep to able we in be of trying end As the coming day, space the overhauls to earlier keep At trying things up, Jen this within producers the is at and utilized. call, Greenwood X do create mentioned a plant to everything We maintenance to else. we our same to and time. need all so we service the continued the to a try our effort do can ahead system get and ahead. And

Operator

comes Neal question from Truist. with And Dingmann our next

Neal Dingmann

first question Tristan. is just outlook. Permian on Another activity Welcome, nice quarter. your Basin My

on around Specifically, to the price X, and I rig I'm associated favorable. you're wondering, oil activity looks forecast maybe love of type just do very see not forecast? are hear Slide you gas sort mentioned gas your that assuming associated of you what I'd that

Patrick McDonie

Yes. look Permian is every of is When Pat. right you acreage. This X Targa rigs across the running out on now, X

tie sized those different that growth and the on some leads alluded a new obviously, robust. Delaware So of is producers new plays. We across activity acreage level of earlier and success, producer-specific, had from formations to significant. to up tied to gas of commercial that right? we've on activity our position questions up it's lot Unfortunately, explored developed, which we Midland Matt additional is commercial and those very the -- of is success pretty And X acreage are have footprint gassy, very other seeing both being sides it basin.

stuff and then high-grade the of seen in. dedications we've the So it's activity been producers. acreage very that's we've developed successful large the and getting And new with commitment always some the historical stuff that

we lot and of we on activity especially gas systems growth X next across the when in XX on to a next our systems. a look So years, of the see lot XX months, our

Neal Dingmann

a that sense. And question, Yes, future second your on capital my spend. just makes then little

would Specifically, be XXXX Or or there any certain? novel upside or potential delay your there's just you incredible assets that suggest upcoming does meaningful appear inflection that possible all inflection? wondering, could free cash out relatively to

Matt Meloy

exactly have we're 'XX amount -- kind saying implying at 'XX, in for capital have that, a a number firm just cash process, when of we're with to Where in out significant kind of yet to talked is you or you're about. Delaying for what just going I our we're flow look in and I given XXXX. going M&A. we've through planning growth guess as think haven't think I of deferring our free but we're comfortable overall that shakes working EBITDA

continued We've our since We bar assets. around think really for loose continue and to But high I at in systems. the look bolt-ons very just for acquisition us. look to to be of assets, the continues us, at

high. good at to can it's to and something So is looks If just there's for has shareholders, we'll it. continue look value in tuck Targa evaluate. pretty really the nice that we we'll bar going be

and G&P growth our lot a have downstream of on We footprint our footprint.

continue we execute just in our to sure of what we us. Our front priority. first make to to have going is on be priority organically That's

Neal Dingmann

Yes. The growth is notable.

Operator

from O'Donnell A.J. question TPH. our next comes And with

Andrew John O'Donnell

question for brought kind clarifying [ Jean and go to I ] on wanted a that X to up. me, Just of something just

Looking gas seen if is or for your at new I'm if now Matterhorn moving QX volumes curious Or flows right the online? line. of volume potential and production pipe now that is growth seeing have our ] some and from we're in [ around the just you in with basin? a that jump pipe with that online being guys customers the

Matt Meloy

producing I or they either Yes, were they heard like customers our and flowing have the have system, -- were on -- that not didn't our But have say didn't of customers customers, some would takeaway. sure. I price they we because No, from didn't Waha producing.

some producing that. I perhaps for were they So part, for and I takeaway. is the basin-wide, But had there customers, our of think -- think most

Unknown Executive

Yes. Absolutely.

Matt Meloy

So pipes, those on and just some off, disruptions should Waha [ and least handle been at you're on of Matterhorn of seeing what's flat here some volumes. ] to is which a other moving our What some other kind I happening find on basin. now kind think of coming to is pipes But Matterhorn capacity existing is now has while recently. there why for sufficient maintenance negative be the out volumes it's ] its with to way up and online, trying [ pipelines others

Andrew John O'Donnell

Thank you very much. Great.

Operator

next question Sibal Sunil comes our And from Global. with Seaport

Sunil Sibal

have pipeline on I like wanted ethane off the segment. prices start lately. NGL to been So weak Seems

third-party think are So processing from system, Daytona ethane curious your should the the especially recovery of kind for also? contributing volumes Daytona And quarter, switchovers of you plants any I seeing was the then what how on we partly kind about on trends systems? third

D. Pryor

This is Scott.

gives Daytona. the flow Prix obviously to as as Daytona our both coming ability us system First West off, online on Grand well

gives leverage, Waha time operating to full volumes where all think lot ethane, I gives prices gas and $X.XX. the to some moving efficiency able XX-inch stay So ethane as There in being our comes that area our Basin. in split our certainly, X are, And we of is earlier, just feed we pipes of outlying for system integrated be those much may type be can rejection recovery would us at looking economics. wherever it But when said recovery around in of some look around operating just I it industry sitting most on that they so us the pipe. When a mode you between into Permian much prices us, the all predominantly at pretty pretty can, the platform. areas

full are. But So again, for mode us. of tilt the of just think upon outlying outside areas in us, I pretty rejection the be prices where much some for will Permian probably based it's

Sunil Sibal

continue system, or seems is items we on expect can any something the curious, there? in it then I that the was pretty And you onetime like Okay. Badlands a uptick sizable volumes. crude had to

Patrick McDonie

Pat. and is let's This our level. X permits And permits that say, been activity We level secondly, drilled. the an producer that, from years were and X real over on frankly, producer, past had one, uptick been had that granted were the some the activity another upticked. the waiting have or producers We that in Yes. hasn't active wells

uptick So crude we volumes. nice got our in a oil really

our And continues. base level

expect activity. good forward growth, continued activity on we say system. good but So I robust the level going wouldn't

Operator

for further back remarks. call no the Tristan turn now [ Richardson ] this would to closing time. show I like to at I over questions

Unknown Executive

Targa Michelle. in morning, everyone we for to you Resources. and joining this call your interest Great. the appreciate Thank Thanks,

Operator

for This does call. you participating. conference conclude today's Thank

disconnect. You may now

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