Targa Resources (TRGP) 23 Feb 212020 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Targa Resources Corp. Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Sanjay Lad, Vice President of Finance and Investor Relations. you. Thank ahead. go Please

presentation morning, targaresources.com for to fourth Targa with on earnings release, Good our that XXXX are the call, quarter Fourth Investors Earnings along available supplement quarter fourth Call Resources website the Targa and Cherry. Resources the accompany at welcome our Quarter earnings for in Thanks, Corp. The section.

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

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

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

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

responded for most Thanks, Record but Sanjay XXXX had year own it ended record its its EBITDA, that morning. proud I'm up of Texas being with and and is affected throughout team the the states, really with good and thing weather downs, cold volumes, a ups good has year, to arrived challenges but Targa Targa. the numerous how now, many our recent including COVID-XX. the And challenges. XXXX other

heat home. power, working have difficult done many very and without in employees tremendous water job, their in Our a conditions,

all dedication. I'd to for their work hard and Targa So, like thank employees

and gathering these operate Targa manage processing through continue facilities our and The both operations. winter storm proud team, of safely. and our extreme We recent are most to downstream exceptionally impacted, our who conditions,

have since on ramp comfortable Over year in relatively volumes. returned levels. short-term system overall we weather still across rates XX% of XXXX nature, XX% continuing and Volumes G&P to are with the around published that last we XX reduction and a pre-severe days, full guidance and current trailing we This average, is the experienced our downstream event to week. are

business long-term strong. be continues Our to outlook

turn to XXXX highlights. Let's now

plants performed efforts our in Mont benefit very Permian of Oklahoma. forward. opportunities and our phased within of add initial and of Grand position processing our NGL completed year, integrated we position XXXX and platform. Our our end dividend strategic processing, in early two EBITDA range opportunities, LPG several in We billion, and top overall the beyond. led G&A Basin to Prix increasing well, our moving XXXX operating our on the Permian, exceeded by Targa was in and Central integrated time and fees our extension fractionation business gathering two adjusted XXXX. us budget, into the expansions Belvieu, of focusing reducing presented $X.XX to and our reducing position expansion the the guidance around reduce trains believe, including expenses, In to major leverage identifying spending, a These successful on on range, capital projects that in export XXXX, pipeline operating and recontracting from key capabilities Full for growth

efficient. which of range, In engineers growth huge leverage our by a at be high increasing resulted capital the below, net X.X shares Our and TRC a attractive $XXX end improving lower capital grading was meaningful EBITDA piece of growth reduced times also all to growth and additional leverage from was us bottom equity total end the the reduction million, reported operators in back throughout growth to with to million and provided small driven in spending XXXX preferred about be a the and CapEx buying capital of by XXXX, opportunities EBITDA XXXX. flexibility very XXXX exited we publicly-traded about leverage notes, our times, spending $XXX for and metrics creative which and of resulted prices. year, common the and X.X Higher opportunistic effort

full dividend adjusted growth -- to and between reduce spending $XXX us estimate lower, to we which free leverage. EBITDA will flow we ahead, year estimate be XXXX increasing to in million Looking be $X.XXX and generate positioning million, XXXX $XXX to billion. billion continue to significantly cash $X.XXX after Net between X.XX capital be

the exposure We leverage with X% expect affected X.XX volumes on government reported times. guidance Targa's areas. of some lands of actions end of recent around of around activity than Permian to currently from limited XXXX This federal inclusive our from with is less

over operational and to benefit during from Midland expect XXXX shut-ins, as performance resiliency the the increased which this outlook. XXXX. the systems our Basins now turn volumes move XX% demonstrated activity XXXX Delaware to business Permian, we XXXX Permian significant reduced we and in through Starting inlet Targa's our and positive impacted Let's levels temporary momentum despite and industry. across

the improved During maintenance our Midland number recoveries our and fourth NGL for the plants Permian in across this system. a we quarter, has of down took allowed for

increasing We are footprints. both Delaware levels activity our seeing and across Midland

in volumes Delaware and running complex XXXX. and quarter and adequate much system in our processing Permian For Permian drive feet will day continue currently XXX new total fractionation the G&P supply during to in growth systems our to XXXX, our anticipated to The XX% growth XXXX Permian increasing plant expect pipeline Mont-Bellevue. Midland of per operations from through Prix our Permian accommodate begin have our we Grand our over track to needed to be we will inlet our increase average fourth remains XXXX. capacity close X% Heim cubic capacity volumes million and between With on

across LPG supply In addition incremental to available to move export facility. our

Badlands, the the our on sequentially flat third volumes quarter our and the gas Moving were increased relative X% volumes during fourth crude to to quarter.

is a sign. positive system, We our which are activity and levels across completions seeing increase

in declined X% largely quarter Turning decline inlet region, over to our continues volumes quarter. third fourth the which to Central gas the be in

We XXXX. systems volumes of Overall, the continue shut-in back which to some our expect XXXX be South central to to Oak, online come relative in lower first we we volumes half in have expect XXXX. to in across

estimate For XXXX, flat our estimate central regions region G&P we total have by G&P exposure The to durability to adding anticipated our volume our fees year-over-year. XXXX our growth contracts. and across and strengthened floors the inlet offset our in reduced fee be has field commodity Permian and our declines Gathering margin we in to as of Processing segment volumes

The evidenced our now G&P Targa we fee-based. fees prices, Our opposed as by more results. Permian volume is segment performance overall, And estimate throughput XXXX across to for fee-based XX% financial driven our G&P of is which XXXX. now in XX% margin approximately about commodity all was business and direct of

With have Prix we pipeline segment, our perform Grand well. sequentially plant. floor we and our Shifting increasing the Transportation very Logistics driven in to place, rise. by quarter will Prix Targa's continues fee on NGL from production benefit prices gateway continue our new increased arrangements to XX% Fourth as to Grand including Permian volumes throughput plants

Grand the the Oklahoma operations at extension quarter. began Our in Central fourth end of Prix the

XX% as volumes performed on performance or estimate facilities. fractionation quarter maintenance Mont and of during to Grand Belvieu, strong increase into and fourth also expect remained XXXX to a complex our our our result Mont-Bellevue deliveries We and at At average continue in upgrades working throughput. we benefited more quarter throughout over fractionation third XXXX the built strong scheduled inventory from down Prix

some talked phase fourth our during for Our Galena million volumes the about facility XXXX in record expansion Targa LPG per about barrels driven export capacity past, at at by of capturing we export fourth month to completed XX.X well, business services as to the remains and be have per a to during full quarter In from million fundamentals, perform quarter, continued Park strong. short-term full we the moved quarter XX recently the addition the barrels our strong month. outlook benefiting

Now is a working month for we potential think that gone XX.X expansion a overall barrels exceed manage our working is think we've per at to load our month appropriately if up that better million of There effective more given XX.X Park that we is our million a capacity following barrels but butanes, full month. to Galena we capacity. and that representation quarter of operations going through per expectations forward, about to

Jen. As position Targa returns expect look a having we Permian the incremental from spend to opportunities forward, Targa position after growth the LPG forward generate I capture we puts CapEx strong or our where to With position. integrated further over are without Prix much in talented and longer-term. facilities. to flow fractionation turn have reduce we in a asset This and our will positioned Grand the strengthen to to that, ability our on increasing export is and now position debt free call the well dividends available cash going financial premier for With employees to

million, X% over for quarter. Thanks Matt. adjusted quarterly the increasing reported $XXX the third Targa's quarter EBITDA fourth was

During Higher the attributable certain $XXX generated expenses the expenses and quarter, and fourth fourth Higher attributable free hurricane Targa cash flow assets spending G&A to legal additional fully quarter, sequential one-time integrity million. to costs. during primarily were operating and repairs being of online. higher were compensation

particularly of $X.XX our was flow high we in free the year extensive range of generated adjusted end $XXX the million reported full XXXX financial exceeding year. of to billion, guidance Through and Our we EBITDA cash and in carry into our we savings efforts, XXXX and plan beyond significant forward expense related to labor. achieved reduction aggregate XXXX cost savings many versus expect these

remain to last higher prices and higher and significantly be in ad incremental across drive across XXXX, we beyond. commodities, as XXXX hedges than largely XXXX costs. our programmatic to and levels also in to Looking particularly from continue the OpEx Relative result for prompt that insurance both we will G&A when and November, Greater higher benefited in from beyond add modestly also year. We will additional additional costs. operating costs we expenses volume system and higher and throughput XXXX, for most do added hedges to our reported valorem we service expect hedged assets

earnings disclosures You can supplement usual our hedge presentation. our find in

one fourth start capital savings. quarter cost the X% units and In the structure on year, of preferred CRP fourth we've this administrative continued simplification. During our quarter million priorities; from redeemed through interest the of progress our we and will make to $XXX benefit another and of at

in liquidity our currently available to have liquidity new and us $X about providing generate and senior manage allows billion This savings We we interest from to stack quarter we position. which purchased XXXX XXX% March far par savings. interest par at $XX We thus and million In our in TRC, at fourth price of also so XXXX, preferred both X.X% the of coupon. a XXXX, in significant maturity of forward. approximately are X% of flexibility continuing billion push benefited due callable our an attractive at shares and $X.X discounted at become issued of notes looking

approximately Our consolidated was reported debt-to-EBITDA ratio times. X.X

As around XXXX the X.X of an our Matt of mentioned, well improving times ratio progress improving end leverage is XXXX on X.XX to the expectation to of of end underway our at at from at XXXX. times the end times X.X

common at of We of then. changes million a towards additional no call that disclosure, As times. common long-term of our our DevCo three program. to November, we $XX.XX from average have move under presented $XX shares, shares we received approximately approximately repurchased feedback assumptions leverage Since earnings share the per we underlying In stock positive XXX,XXX total, ratio share. of four disclosures November repurchase $XXX to lot price additional in our consolidated have an our million and target of an we repurchased

full would performance a estimate create on for leverage-neutral Our performance XXXX, strong an growth operating our joint of Building of be in base midpoint expectations adjusted to and detail XXXX, XXXX case in in continues XXXX X% Matt's ventures we EBITDA full range. our over XXXX EBITDA XXXX approximately based transaction. of quarter the increase XXXX, be on to off attractive over which year of the our first repurchase the and DevCo

of $XXX Our for growth remaining be of be will and growth as estimate $XXX all $XXX net capital approximately completed CapEx meaningfully we between net and million maintenance major XXXX We spending our for million. to XXXX XXXX CapEx million, projects substantially lower, XXXX. in

we mentioned, around and reported based times, X.XX on of to As midpoint XXXX leverage our XXXX estimates. the expect CapEx of end EBITDA with

no plus EBITDA available Our ratio do we expect repayment. to higher debt, to cash expect consolidated changes on prioritize from significant our for growth not spending. will for approach based XXXX, expectations XXXX. of to earnings as We debt be cash current at through leverage improve capital rules a are both expectation our least in an allocation and and free flow There lower taxpayer to capital

and to corporate presented our repurchasing continue plus preferred two, to provide were to looking Our to leverage debt, TRP opportunistic priorities allocate forward, that with XXXX, common our as us continue will our were able one, preferred of shares, be redeeming strong will expectation we simplifying capital we to be: TRC flexibility. structure. ratios; performance opportunities the and us, improving In and different shares

related to outlook, this webcast please our also our website. details of accompany additional Investor's which our For XXXX are that review posted to earnings the estimated morning, slides supplement page and our

comments Finally, every my periods, well call back Targa with the and I business Sanjay. we performance to that would you that, our across And team. continued turn like entire echo to difficult Targa will to exceptional Matt's performing proud employee are so the extremely I of very thank of our as is

lines questions. additional the one Q&A? would Jen. and that Thanks if We for ask question re-enter please and kindly you follow-up Q&A limit up, open line have to the you Cherry, one you

line Instructions] [Operator JPMorgan. from Jeremy comes of the first Tonet from Your question

now line open. Your is

Hi. is Good morning. Hope well. everyone

Jeremy. morning, good Hey,

Thanks.

up price base was for the Just end guidance it touch for than it kind year, the shape commodity like I looks you it I prices. with the half year. get guidance if that laid to period? current guess, over time producers last to second so just the kind here. it provided year as of just can the have about sensitivity, at was the walk we want on want the to of at guidance half bridge been prices think have a guidance if activity you of for trying the over the see And that formed can and over if, commodity then of first just might changed conversations commodity the out strip to feel set we potential I Do more the you up that you steps formulated have when But curious, was moved point? and the maybe the up back

the online Jeremy. XX% Yeah. Yeah. growth to is that. getting also growth together the projects credit year the pulled largely Hey, we When coming what's X% XXXX for guidance we're then, full driving in And throughout Permian. anticipating

As gathering driving processing, volumes Grand fee of for down those grow exports. frac but the to then also able we'll majority then Permian, be and a capturing the liquids more in capture Prix and

the I volumes So think move generally across year. going growth as the direction Permian to higher that's trend that throughout in

into propane which some we're to others, in from the relative our QX trajectory we generally QX. seasonal add growth and for past, had in margin seen You've QX and QX, impacts and going a have But Targa. wholesale business do come speaking, to see

to as being jump exiting Great. and times, you're if Thanks. want as presumably. year leverage comments And on X.XX to long-term four far this to just the three

point the point? range forward I to And of, that was three potentially once pressing about to reaching you at You, lower? wondering, four an increasing to how investment-grade just into company that at that some range, or kind you think see to that rating, at moving get next Just wanted dividend, you year. about or down leverage get think how with point regards

this is Jen. Good morning, Jeremy,

transparent occur our very from is that of also we've grade of think perspective just projection given becoming we on I naturally priority business. the think our investment one ours a will been

think XXXX. I like that that good we'll that XXXX into in you're exactly right. we feel when should shape. target So We move get long-range leverage And into exit very means

and lived all staying through But over be uncertainty for year see dependent lower? all opportunities of markets, will four on to we've we're four also ultimately think capital we have plus sort to and around that cetera. we'll leverage preference continue move we're to to in the lower I leverage to to engage times I given does times. growth And than repurchases would getting last times, in commodity of Matt invest a to be mean that X.X share between four partially seeing to like that have comfortable or et the

look long-term. well-positioned will at we'll this move as think we that evaluate mean for time. and we're where that exceptionally exit forward translate we what feel and into we for But to year the So as what going continue it through guidance like I the will we

you. helpful. That’s Thank very

of comes next the Tristan Securities. Truist from Your from question Richardson line

Your line now open. is

Hey good morning guys.

question. follow-up the maybe previous to Just on

today just for you're think we're, upside and of, throughout assumptions that the commodity today, assumption may improved the high or activity end really players producer of hearing encourage from of current kind outlook the prepared today, been guide the seeing end sort on from activity what seeing seeing we're budgets just midstream the on will is consistently beyond high today? behavior the you're price customer kind suggests of year of I that previously. that the have guide that incorporate Does

would Yeah. environment together I it Hey, a in put say it. Yeah, had good this $XX oil morning crude when we Tristan.

I expectations, are around increasing customers drilling especially said the even producer of up. at in for think producer we move the plans hearing plans maintaining as face from we seen prices. discipline rig larger commodity we look more count have our and their That -- year the

have frac We steadily. increase crew’s seen

meaningfully hold So year. be above this the prices the and extent throughout that there upside like could we're if to some stay here

Badlands, at as I could -- the add from likely rig or price-sensitive on who more their generate system producers up volumes increase Bakken up that a up it area. least they think some prices then also more additional the our is would small decide there. And incremental upside we flow. in see cash come mid-cap activity more the in to the If

our if well planning could of potential we So in assumption. are upside prices see some excess more

that or guidance? the the there's how magnitude be, guess of it we've to really generally or magnitude to of past just helpful over occurred what may framework to weeks, disruption and translate a the too And of general then I think the just briefly quantify about seen early the way That's Matt. the is couple follow-up would the

are still assess we continuing say, I'd that. to ramping Sure. We're up.

said I've the about script levels. in XX% at pre-storm As we're of

that to of of of which not were comfortable when our we're through last really kind annual is But XX businesses, rates our that a guidance we winter businesses, short-term we're significant where we're as of most our So XX% average we've the an to that and across was storms look we our back yet. days part assets across at still past. across were And over comfortable our we systems look about compared of the we with before in quantification event experienced provided. we -- that

Thank much. sense. you very Make guys

Thank Okay. you.

comes the of from Gershuni question next Shneur line from Your UBS.

line open. now is Your

Hi. Good morning, guys.

to Before just something upside I want confirm you the was Tristan's about? Did upside outcomes say you get my questions there question. within for the to two first said range to talked the that you range to or

Hey, as extended crude Shneur. I To did $X.XX above time a, Good morning. year it think, we extent that world meaningful -- about of, period kind we're Yes, late talked in that for there it's $XX NGL of last be I the year prepare could still with things to freeze we some what than and we this here negatives we've is that the more right early that gave. this -- in volumes that range year. It's so and experienced world. offs saw our far we're February

we're still in we Permian, I the gave but still XX% early it's So year. the to think range X% the with comfortable in

that. Okay. I appreciate

that to recent $X beginning was upside February. to focus wanted Originally did Just raise $XXX at came market billion. million on debt then for it of and the to you the you

this that on in it as to this which when Targa I attractive. not about cash added around next wondering the give easily is the to to when fungible. and point what if X% allow want you year? year or more we're early financial got cross I careful very of ultimately thinking But IRR the us the Just in thoughts think some use at does year? can some terms you upcoming prefunding rates flexibility that? create Does seemed you MOIC have you late it finance be DevCo

I morning, provides us is mean, with additional Good Jen. it Shneur. This absolutely flexibility.

billion that as do something debt, in the out up of clean We've notes up were DevCos available have. as that in got term of we market. XXXX, liquidity. just able advance well being very callable our is revolvers being free additional the high-yield some series have this it's robust taking wouldn't $X.X by say And so And flexibility a from increases other to of I we opportunistic. of trying benefited that us us to QX out thankfully

able utilize was do. our So view be the wanted something issue at to to that in opportunity to billion we $X and X%

access assumptions So have been our prior year. debt we the in the that markets may later

very attractive we Now scenarios. do we've than that may rate prior been have a been to able at earlier under assuming again

should official in impact? the this for you drivers Yes. that. about thinking be sort it question you the is on What terms when, Is my end? upper Is Thank moving within order end? we in just you G&P? downstream? to for the impact year drive would for follow-up of give Which And the through Prix, volumes biggest to specifically one terms it of volumes towards would your thinking possible of, rank it Grand guidance or upper

Shneur. Yes,

out variability really capture As G&P think about volume. for we to starts because translate the in Grand Prix the ultimately and I our us into export that and fee then fractionation volumes a going for volumes does within volumes we're range think, Permian impact

of for up what than actually margin the seen for expectations little our there's there producers things in they've would additional EBITDA a additional So us back we come be and stronger maybe have Badlands. or if in strong if on -- higher us. that we're us told the also variability or say initial out that side even ramp have I'd

So upside activity that to could well. some up more as extent the be us there's there for

price prices or then continue that these at to And the certainly Shneur higher extent on levels benefit. see to we would we

our of contracts. scripted As floors a said Matt have his do we in fee G&P number in comments,

recent was higher in beyond scenarios what assumed uplift margin create may guidance range. the various that then some our So are prices underpinning

please that. much very and Perfect. Thank warm. safe stay Appreciate for stay And it. you

Thank you.

you. Thank Okay.

of Your Ujjwal question line from the comes Bank from next Pradhan of America.

line open. is now Your

well range to Other maybe $XXX speak there of XXXX and $XXX the is you CapEx spending, components the taking I the as for to touch Thanks of well? question. Good budget? into connect million plant million to than if anything invest on baked that. afternoon, budget your that else And my Heim everyone. and wanted can

the rest major volumes million additional $XX in would to Heim million. which fields bringing that's is there of relate compression is is pipelines to processing Yes XXXX. our $XX in that Sure. Most plant facilities. project the about The growth

so, I'd growth there come correlate range would our out out And a we at more the and expected say it's If in little the well. the level to also range we're high there the CapEx side, Permian. out of with bit growth more as field get to likely going additional

gave So why we that's a range.

additional additional for volumes. some around we're have connectivity We as spending growth Belvieu growing

we We as amount aggregate usually there a well. some have well. capital in as out for some downstream but additional items It's of those -- capital that not there's those that aren't there – smaller call in the don't

So and activity volumes capital spending have could you if there's more the more side. G&P also more on connections downstream more

recently a And get of I assets? your And Certainly thoughts a on likely is in Matt. how the divesting potentially have seen activity including thoughts follow-up M&A. midstream of based assets? a materialize wanted we to latest G&P on you seller think about Targa's What latest transaction as being or potentially more some buyer a declining Thanks some Mid-Con. the

our view hasn't on changed. say I'd Yes. really that

from We have some activity others. seen

able Permian being to really a good stand-alone position footprint. organically in our We invest have

us provide acres to us really We have dedicated come. millions to with customers for good years going growth to that's and of producer relationship

we a out a So something. hole need fill to we we and like or or go feel have don't have acquire

on the of We our side the really have position a and NPL good business. G&P side

look want So and and that opportunities to we generate if cash targets like. we'll the overall line there's some earlier. deleverage flow We'd be to talked metrics continue free up about opportunistic. to with We that the continue

So hard and at if our for that to take that pretty organic we I But continue it's acquisitions to growth fit think a those. into look we'd that high hurdle occur. can find a spending some actually compete with

it's So be the of focused on term us at see growth. what going in short you're I medium think organic here to least to going most

your Appreciate comments. Matt. Thanks

Thank you.

question line Christine next Cho from from comes Your the Barclays. of

is line open. Your now

morning. Good Thank you.

range, to question with So if impact actually maybe how want guidance you're understand I the work. could just about comfortable still operations Tristan's follow-up that in weather recognizing to I and the but things

think this offline, scenario you So with deliver you're the and highly And have for in actually last short you have plants which weather we still is actually natural events you're hedged gas gas about buy do and think to it year. the you week, there gas upside have your for as that a or or that? to storage online that? coming would market, price of open in how I in were Like more was the gas plants scenario still that should the out offsetting than make that unlikely, the volumes about

Yes. Sure.

to to hedges, it weather impact cushion As the two that relates one, have things; our corporate the we we volumes on so hedge.

So it'd when we hedge amount. it's an -- be a volume monthly

cushion that down have. down would into that we it were -- eat were as as we we So

XX% So of XXXX. hedging volumes about talked our for we

cushion Also first we we're these. a So month. instances hedge when for like versus we some have hedging

those against a against hedges market the huge the were or market. prices. cash our was or price So spot They're and relatively hedged month normal that are spot settled saw spike first you not cash

big plus hedging don't or to relative minus a program, So our see we there.

some how spillover on there's some impact Okay. Helpful. believe is in or fourth we be that I about should of XQ? from there to onto you still next quantify years, just expect able years. how some future more think frame or will volumes that color it? to over much a your that, the third-party Did then full would get into the And And should think I NGLs were that you quarter, pipes. pipes any us we then on several other in system your moving moved But migrate help quarter would

Yeah.

that happen, And has of we're roll when years we've next to giving or been just last those operation, or kind the move in as in not kind we've on So over going of some some year. ours. several did we're amount half other clarity of specific have talk We but So the size Grand to have volumes generally. of continued from here -- back pipelines on the Prix since contracts more, right?

back that we so have in of some XXXX. And half the did of

forward I term terms where growth going we and think and we third-party we dedications. commitments across footprint acreage go medium Grand have of in as Prix from of here the is our most short for what customers have from be organic growth to

when And rapidly, not asset guidance it part important practice rapid It's you we for service. one have Prix we Grand ramp it's just coming late really because our moved we of service through give why was a just Christine thought because it is at generally to so the as this looked to did in into XXXX. But on ramped single XXXX guidance. came pipe we XXXX gave in relative since

number of we just sounds expect Permian whatever we from like it good Is guys? quarter is point starting layer for So the you growth accurate? on kind the that fourth a and

I'd transportation But say that's amount some always of come a term. reasonable and that have those volumes assumption. We're on shorter we that there's are -- go.

minuses think we volume have expectation. and on or a some more. so And shorter-term reasonable could growth building pluses and starting from is with some QX We then

Got it. Thank you.

Thank Okay. you.

the from line Spiro comes from question Dounis of next Your Credit Suisse.

open. now is line Your

Jen. hey, Matt,

were fully in the in how what in thinking recovering you year of into of how be you're sense on that it XXXX. about much ethane wanted get much the of just a that that's basins. Permian, I could how other the last XXXX, recovery think for sure potential guidance? tailwind a good was not a curious, just incorporated know case portion I follow-up But Just tailwind to to

Sure. Yeah.

ethane. processing recovery, be a we out lot of In able on our have in terms of to done West recover plants Texas to more ethane basically work

do getting frac. as increase to wrapping and done Grand that some and of that G&P volumes kind we could still incremental year, on have down So our Prix recoveries bring and more system last work up was

there's upside, say I'd So for we've for processing most. in most some part been of the of potential it, but most on GMP, not our within all within but recovery

upside plants. So from work there our will mechanical better processing on maintenance recoveries us doing just be some from

Jen one And helpful. second That's Understood. Okay. for you. is

five and at I DevCo think your improved of six to considerably you're then quarter's the the any going It to changing seem respect points you to with provided time Just the then. since be in well. But case base an of assumptions. has last seems know since interest. was market data I range. call not one acquisition like implied Things has multiple tightened

closer hairs to little at splitting that is just X multiple as curious trending the to bit, Xtimes So opposed a point? times just if this but in the curious

think has you assets you've DevCos when think since residue it pipeline, well the is that had came essentially take-or-pay GCX three service. about utilized been in train running frac in the got which I that our essentially are you've

versus that pointing we when our So in to you're I potentially is it's quarter performing it at put Prix material not Grand November. expectations I'd this better mean, say change. out say that really a

there a Spiro. We a for have and change material there's Grand had very case should assumptions company. our robust that But continuing Prix it's as expectations altering thinking to game-changer such it's you wouldn't deliver that absolutely that for I our say be base

Understood. Thanks well. everybody. Helpful Be color.

Hey you. thank

you. Thank

Wolfe Our next question Stanley comes through line Keith the of Research. from

open. line is Your now

thanks. Hi

LPG saw in QX have for exports. to do with the markets outlook contracts could you level of we be the really half especially a year that year you with strong? the curious I the globally new the of -- expect favorable volumes versus much sustained expansion. how second winter exports winter of much just through kind and that see staying We in guys favorable growth really guess good with Curious season question the of saw the First how

Yes sure.

export we On side, the export did have market really QX. in favorable a

results barrels. have us You of saw kind record XX million over

set fundamentals the of in first some some lot first over the strong headwinds availability, a quarter. here to have seen term. QX had here term in a issues But you you've weather ship longer longer the to related there be going quarter impacts think propane up are the I that

out those think more themselves time to to going are kind side Y-grade NGL the of hit the it's I making back have to work and over clear. going we're as water propane supply on as comes

first forward, quarter. be going very think some expectations in I are for weakness So, longer the good term or There exports. will softness

just in a follow-up second And happened on question on what last Texas. week Great.

your sort then being First have rate do the prices, period or of last assets just at. what the this so week needs? your all or on Is for call it most on you primarily mainly comments it's like impacts sounds down do through It volume really just the you And we're far. in events just looking primarily of buy clarifying of that's how impacts short-term electricity for the Texas? fixed hedges market contracts and

downstream to mean G&P. different Yes. it's relates different assets. it it as -- Sure. I I specifics don't want for on is I to Different how the weather than really impacts, in get on mean into

arrangements But footprint of We total comfortable moved with how range. buy electricity. all of our electricity on across volumes we at have have look when we're how number a guidance we the our

of think I that's So, stand the the on we kind impacts weather. aggregate on where in

Thanks.

you. Thank

Hammond Your of next the Simmons question Pearce Energy. comes line from from

is now open. line Your

morning. Good

see Targa's just Just you to have to whether any transition? one Targa be in for transition business curious on do related capture the core hydrogen opportunities energy new energy to the Thank carbon whatever that question you. storage related from I'm capitalize me. competencies

Yes. Absolutely. Sure.

right of look business -- that opportunities reiterate to LPGs I wind to see NGLs, time a it those to to natural at to other We for time we solar. evaluate for going think continuing But with want make renewable projects long decades around we is for just if look think come. want relates we said participate new gas, whether I As to opportunities. be at to that those first actively Targa. this we'd But to business have any we are sense and we now looking think are in

large we to from purchaser we're can those. capital position. a participate those So, necessarily as are off-take a be an They of electricity. don't evaluating in because have We

support So, into putting projects those projects. capital necessarily those without we can

of that we be for And core So, laying there that capture opportunities to would how are relates we're kind our looking see as part renewable and I'd a pipeline COX. it competences to gathering there. area that some solution of aggregating say carbon can in fit us

to that. But There's earn spend that about there well. return is evaluate to of come those to be capital, to need participate going more come that. other in have to there. ways So, position. doesn't we is to There of projects to those what from on on some looking to are time stay capital be we role as we're more are a some necessarily It tuned. I'd going say kind at and our we continue have do good If in well. projects a as to

Okay. Thank you for answer. very helpful Matt the much

you. Thank Sure.

question of Blum Fargo. comes Our Wells from from next line the Michael

line now Your open. is

Thanks. Good morning, everybody.

real-time to better export with just for to the weeks Just -- is impact question. on how just of freezing LPG short-term really are the last guess, a really is things for I this more I week. particular, and back looking -- to couple I'm weather, understand guess understand wanted the that And better In I business into want this a follow-up the the very a up, is recovering the is now -- operational or look wanted impacts? it that like

Hey, Michael, this is Scott.

was Let especially it just, able quarter. third of certainly our globe, some instance, Far Galena things was during of in in that saying of from that number the East. we inclusive from million that XX.X the squeeze the I fourth a phased-in which fourth had dock quarter, me When look of course, were at cargoes our quarter, barrels expansion, we then you refrigeration weather spot cold that also really Park. Matt across the the guess to earlier. And benefited But unit across complement benefited for the at during

of our delays quarter, at we've half progress put had had FOB made during lot this the last putting But over the quarter. barrels. million in that When Matt aggregate, the in quarter first online. of event week some great Certainly weather first back an in impact to operations. the facility we've a So alluded look to, as benefit XX us we that had we the

at though term lifters. schedule to our event up tightens for point. the This cargoes So -- this our we back loading are obviously

So the quarter positively beyond, fundamental tougher. of But for up at saw term the cargoes fourth stack look we and -- favor. similar long in opportunity we for XXXX when both view our we still is that spot in the the very the facility,

to just then, And one Great. that. follow-up

going you for longer-term LPG maybe that's think you that terms routes in the, short-term issue what's just the as of In a the do see congestion gets of issue cargoes? Canal, Panama some at do and that or on resolved, changes a permanently the

larger well the and difficulties We've as The second delays delays had that as had seen that at a a been started transit years that some the up the of has to put expansion now half throughout of LPG has transiting during but years of times, as canal. few a the of cargoes Panama certainly took number place helped for in last both LPGs number half number With a tightening place, year. things of obviously year Canal. for said, second in has

half the We seen during quarter. improvement the have back of fourth

the charter rates last course have You've significantly that come seen weeks. the four down over of

what Hope? are and look to delays be the the things what they move owners. of the upon to they I ahead that for those the they're markets can through Cape around improving. decisions But, like to. do Do or and take So So going vessel like, there's decision are go transit always the think Good the Panama made a Canal, transit relative depends times always make look the

periodically decisions months. are throughout those that So, various made are quarters and

very you thank much. Great,

Michael. you, Thank

Okay. you, Michael. Thank

the U.S. James Your from of Capital next Carreker question comes from Advisors. line

open. is line now Your

questions. for Thanks Hi, the guys.

Just wondering potential new there. outlook if the you the just and about guys might Permian plants talk for

year. much to You've is potentially time on of Delaware the side? in obviously the be kind the can Heim next the this got compare out the coming plant there? line to What that line what for capacity And would And could in something time Delaware? later the be plant needing remaining you how

question, for Yes. Sure. James. Thanks the

quickly. it's we Permian, a utilized We same through plant have the fully to on, look occur Heim when been out later the the at this would every time we we relatively year. expect As brought plant

like more weather So first is in these but only this have another also of decision think of for Heim the part year, plant. get going for it's plant? you I whether well, not putting respond, Targa. export, full, out what we economics likely another processing evaluating think G&P a environment the to another of in back we'll fee have, slips Kind be do look This good coming been as we're another Maybe we've our this best price need additional but in be volumes us. moving transport we Midland relative and the we adding then to to really commodity events, from We're of new frac that this say, recent add a another when option and of add us, some or is making the one, see see how we they the think And Permian to be good at for the we'll options But to think would a year. need add really I the year enough volumes one back from in. for what already to there, visibility we plant. half that point a another I plant to in volumes, evaluating area plants

capital place the the got of in we've that side things. Now downstream on

it Peregrine, side, have good in bringing really runway a the So volumes to we grow for Delaware there. more out with And return like on us, as time on the Falcon more continue Midland. out and feels

we're from continue capacity there So processors There's evaluate to as going some those other excess also well. out volumes. to just

even needed and as loads, we gap at we it bridge needed capacity, we're potential off a could ramp for if to building there look volumes if us more new a even So plant.

side, Midland more the just tighter. around on So we flexibility capacity out have there. The is all

emissions near topics Got appreciate of committing are putting ESG. And about in a reductions you emissions GHG to bit, guys now reducing some producers that just any this year the then, thoughts I lot I switching A on there sometime guess, out and color. or you. just future? for targets intensity,

a and that's taking goals we a want mean midstreamers if out and any I'd that we Board quite and something the other something about internally A look about at talked management what our been I have amongst say, targets Yes. targets of are we and team number internally, there. that put producers hard with it's know is externally. bit.

So evaluation that how of, and emissions I'd kind be are the emissions reduce our we we're would while what metrics on those, but evaluating in improve be. goals to goals flaring we'd to would and continuing process of we're articulate kind of say, the of, the across what best board, working overall our and the

Thanks.

you. Thank Yes.

line the Gershuni UBS. from comes of Shneur question last from Our

Your is open. line now

guys. Hi,

the earlier question follow-up the like back Badlands thoughts for here. Permian just response the asset about up sales like, the starting the system maybe on market and Louisiana to get forth. so sort seems to GCF the you're of a around frac, that just heat sell described on wanted go -- the just is and divestments it? for specific PE asset to to of Sorry again. the sort it Any you I balance it focused of integrated where or completely benefits point of It

Jen. is this Shneur,

the we been they've I when think that we're GSO very did XX% pleased in Badlands partner and a sold ours. interest that, to the we great of

what point when And next like beginning prices look So do think we currently at are than years, you we for the you like several the upside this Bakken have forecasting. particularly to we're time. at there in look even more hopefully exposure that there's crude

interest make Gulf active open don't Express, in we we upon would underway the for not may sales. that very asset the to not Coast assets majority like any operator the owner. the us our have DevCos acquiring be to related something we We've where consider selling processes one So sense been and are of are

to is opportunities how So part we've look is with publicly again, liquidate now. more don't potential processes talked I any we underway of think active clearly, that have like any job But about consistent right something divestitures. any But, assets. to our at

All much. Thank Appreciate you a great Perfect. and have day. the right. very clarification

Thanks, Shneur.

too. You

at questions to back like would to no now Lad. Sanjay conference showing turn the I this am further time. I

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

concludes participation this today's for day. conference gentlemen, all Ladies and your you a and have Thank wonderful call.

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