Targa Resources (TRGP) 1 Aug 242024 Q2 Earnings call transcript

Good day, and welcome to the Targa Resources Corporation Second Quarter 2024 Earnings Webcast and Presentation. 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] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker, Sanjay Lad, Vice President, Finance and Investor Relations. sir. yours, is floor The

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

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

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

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

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

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

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

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

power of. storm demonstrated without to something dedication service and volumes difficult storm and had when homes. proud and to performed to for hard happening Thanks, things across all impacted the were period get Beryl. good Sanjay, the the first best-in-class work managing across and good like I into all to weathered prepared damage keep before by everyone. flowing, We is many employees be fronts. would employees providing But a multiple to We recognize another at we safely the Targa, also of The during quarter here storm, our our really record had Hurricane their morning

quarter for our we any to extra only you short to was volumes all third impact the to reduced so The So I'd effort. be minimal like there to thank damage no the the as our period, the material a of on for assets. storms expect Targa say team

We'll to midstream Targa lot as this experience, CFO given over of call depth Chief a excited Targa's years also and years. of in our including Officer us on his July joined roles serving I XX, XX add Financial part the Will to morning. welcome of like finance have Will the last Byers, organization, to we're him new team. officially our would to XX-plus

part has the As development, Jen's of continued continue increase Administration transitioned her Finance she role into and of and role now to responsibilities. and President, will

downstream volumes drove our balance for which it another organization, well volumes to now record strong of up year sets second Turning quarter of transportation quarter the and on results, record Permian quarterly performance and they brought NGL both Permian adjusted given across our increasing in us the beyond. Roadrunner on Record fractionation this was II and in budget. online, our our much needed. in very Train our fractionator and Belvieu time, were And plant EBITDA. volumes across We X systems, Mont Delaware

We on which share our common million outlook of for the business also executed a performance repurchases of strong is quarterly and and $XXX forward. our conviction going record reflective

expected be be less interest the provided should Texas. the venture $XXX our investment a pipeline for this pipeline project Blackcomb from Permian Permian XX-inch project, capital and Blackcomb to in Targa's to pipeline meaningful gas a ownership so natural gas pipeline. transporting The the the announced also South financed, is than We will million. be We in commitment just from the joint Basin. XX.X% supporting participation support volume to a a next provides

supporting remains our very good position strong, in more let's talk our the Permian happening continued the Now things a long-term growth there. the of view little Activity from Permian basin. about and

And which million over cubic in is cubic our plant. currently, million million Permian are XXX the feet are per per more day in XXX the quarter, quarter. volumes our increased Our the another quarter compared second feet volumes volumes to up first Permian day. And the second up than Permian day during full XXX a the about per cubic year-over-year, feet

expectations. we growth percentage year well growth sets We expect from our this strong low meaningful now ROIC. we for and rate assets, and our expected into which We NGL higher volume in Permian driving have the core growth higher this This margins but chain, year, the generating double-digit our XXXX is beyond. us additional exceeded has growth growth investment. up growth seen business, integrated our are business EBITDA to and These value incremental capital requiring driving volumes strong across and downstream benefit

announced in Given higher-than-anticipated Basin we Midland the Permian continued Permian, and another plants our and and in volumes an Delaware X our Midland in one Delaware outlook the strong footprint, across next Basin. activity for the

forecast forward updating We growth capital $X.X updated acceleration our strong of Blackcomb. higher similar spending these billion. driven previously but updating Permian bridge our midpoint Permian Some estimate in the February, EBITDA volume stronger estimates Slide $X.X has and so system estimate. our for the than presentation and supplement year in spend Permian, compression gathering accelerated. and the back spending means XXXX range volume X support higher the our estimate outlook residue our we enhancing gas higher our are XXXX cadence profile, plans was growth is to our like integrated or of higher timing downstream capital. the in XXXX, the capital of billion, and included our increase our included of to in going To earnings and provided XXXX performance previously QX and lines in spending volumes we for of provided acceleration XXXX through by a volumes and for for half largely a approximately connections by on spending for acceleration plants infrastructure strength capital timing on The investment capital growth spending for opportunities expect we capital field in other are of and increase updated plant driven from This the and takeaway. Similarly, incremental attributable next growth continued estimated and first field

year adjusted is full EBITDA $XXX $X estimate. from a which or billion, our increase million X% XXXX For our previous is

balance the which get of benefits already Permian as cash similar to from further XXXX estimate outlook free uniquely our we to for Basin term our our capital medium amount in strong meaningful in increasing free are long growth We our entire integrated inflection higher shareholders, investment-grade strengthening our generation an as an and company outlook while to for February, stronger, continues our provided that XXXX when positioned representing -- with We flow now positions important and we expect flow to cash we an volume when believe return outlook our chain. to adjusted to a for short, EBITDA compare producers best-in-class value sheet. us continue

from backdrop. Our us and record financial performance price despite cash behalf stability contract commodity commodity invest price our environments producers flow of on support as weak structures benefiting and are upside a prices rise. lower continuing And delivering to we

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

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

record the volumes natural gas cubic quarter, inlet a the second our averaged Permian in billion X.X feet For day. per

a averaged pipeline XXX,XXX NGL day. barrels record volumes per Our transportation

and LPG per per barrels loadings million XX averaged record Our day our XXX,XXX Belvieu a our at volumes export Mont averaged month. fractionation complex, barrels

Midland, our about system expected quarter. is to fourth compared our talk II is first results Let's more inlet Permian, the utilized detail. the online Greenwood operational plant our XXXX. in be Starting our increased Permian of In quarter it in volumes the near second reported and running highly when capacity, comes to X% quarter in when new

remains track fourth II, to quarter begin Our needed much XXXX. and next Midland of operations the on be plant, Pembrook will in

is Midland As Matt forward Pembrook we third today, operations expected with East the XXXX. latest in our are quarter we to of announced begin moving plant, mentioned, which that

Delaware, activity volumes Permian our also In across strong. footprint are and

Roadrunner in utilized operations startup. fully Our and plant II was late after May commenced

quarter which also next Fulmi [ begin is of Delaware II, of our XXXX. come announced Uli We first of are plant, quarter to we online with the timing moving is Moose first latest forward to the and XXXX Bull which now are Delaware Today, expected in highly expected that online [ accelerating in ]. to our come ], the operations expected we is plant,

pipeline Shifting than bring to been to NGL our well, Daytona we segment. and expansion able Logistics earlier that believe on Construction has our fully and Transportation online estimated. be going may the we pipeline

Permian XX is and they volume continues, May, Train came on Train Our fracs of expect and be outlook fractionator in fractionator and we operations Mont [indiscernible] in expected to quarter our of online, fractionators Train starting the NGL Mont and given of when be fourth Belvieu. in in Train and start-up. highly XX XX this our increasing growth expected third resulting we begin and growth quarter currently are utilized at volume expected XX Coast come are to the late much is needed operations year capacity at operations venture, our to full joint online for begin Belvieu portion our Construction Train to in Mont the to X Belvieu now our XXXX.

at second reduced through a by July. business XX-year Galena half second loading the required June export LPG our capability of our that In impacted in volumes Park, were inspection our late quarter

on be track per a expect permanent from complete to second our and benefit will barrels to our expansion, XXXX. of fully remain month the benefit continue going increase We nighttime in loading to We XXX,XXX incremental transits capacity half which forward. and that

our to low backdrop demonstrates support contracts, investing prices our quarter by fee-based cycles customers. and The performance gas that to continue invest in successfully able of NGL negative across are in floor the fee with and to second infrastructure backed Waha of the opportunities we strength prices needs the of by

outlook, stability. added largely to our risk increase have from removed to recently our exposure given further prices enterprise-wide commodity our cash of flow profile. also the downside We strength And hedges

floor XX% XXXX. exposure, XX% XX% have As is fee-based approximately fee exposed our of or remaining described margin that Of commodities supported contracts. now to by remaining The XX% across volumes prices. hedged of is we of commodity previously, through

we move upside prices fee benefit commodity from our higher, through that floor contracts. As will

to $X.X ratio X well Turning sheet. was target of available range leverage billion within balance of long-term had leverage our end, ratio the our X.Xx, Xx. we quarter and to At consolidated net liquidity,

and loan we longer term outstanding. on the the $XXX balance term repaid second quarter, our no During is loan million the

to allocation. Shifting capital

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

is capacity $XXX.XX. This of price we outlook, capital our business Board common return repurchased we we previously incremental Supported of shareholders shares leading to $X of outperformance the Our billion capital. common to record to average of faster also a creating enhance in through of opportunistic repurchases. be million weighted our strength our second a by forecasted, deleveraging Directors than in the repurchase quarter week, authorization, and to our continue share at new a return a authorized expect to to position $XXX

of over XX% to to from continuing is time are return believe adjusted model return useful We holders capital to thinking cash XX% and Targa's that flow to about a framework the ability equity of for proposition. operations

to on team safely across our to Our our enhances like to our employees. And the energy strategic would of continues execute all operate talented the you Matt, organization thank deliver and everyday echo assets priorities lives. that our I to Targa

call that, with will I Sanjay. over back to turn And the

Jen. Thanks,

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

[Operator with from the come line JPMorgan. Jeremy Tonet Instructions] first question Our will of

other, way guidance just free that the on cash dollars or inflection absolute morning. change what touch you bracket here understand wanted could and Good little the raise little I guess, rate Especially just that better, or any whether a a just of bit. means? wanted flow bit that to is to I

year by but so Yes. just really into the year, this also the back we then Jeremy. the that only far for of for we've and It's not Yes, expectations half our our XXXX. strength volume and year. raised guidance leading this seen underpinned the

producers levels Producers to kind system. of really across activity our across our revisions of have we just the high numerous our I short, to and received from medium-term continue think, system, outlook

and well So that year. us activity good us the this strong into about positioned feel XXXX. really in XXXX EBITDA And going let

back we EBITDA that So overall amount the from when in we really coupled when $X.X outlook our dollar growth with billion, billion look the you moving year. similar flow we of -- CapEx this of at free $X.X to a cash expect, what similar gave we of original February to kind see saw

then the XQ. processing nicely And in up helpful. That's looking across, stepped GPM across it. it Got implied the seems quite like fleet

is tied quarter? tracking to that guess, uplift particularly, how How better, much the Just extraction in with understand economics trying in I volume of it wondering downstream? that sustainable better ethane to seems? Just was Daytona well, the

think the first second from quarter. Yes. anything the GPM. really higher side. quarter drove in higher fundamentally don't production recoveries seen to We I we've what the Is different had the relative recovery

Pat, I think any? the underlying are volumes similar.

are. mean of ethane the some That, rejection recovery I some in been first we've and the with No, they full periods at we coupled weather had during issues times, in second quarter. quarter.

market Permian quarter. second the in the Very in tight gas

that's saw our another reason so And recoveries you that improve.

with tracking the part guess? that's Daytona, if any Got just it. And I last there, early, impact

But and construction size us, construction of at you might of And relative this get phase to actually Daytona distance, the improvements. is comes or Targa in general delays we've long-haul weather Scott. quarter very The in would you team have once year. if sometime not enter of anticipate that in that the The quarter quarter, you surprised this would I quarter installing just on this be online construction excellent this pipeline When has gone this delays. for Yes, a job pipe. third out, during into well. done and Jeremy, construction it you an seen has

pleased very time So the line. with

helpful. Got very it. leave there. That's I'll it

question. the Citi. Spiro One come moment of for line And with will next our that Dounis from

Thanks, operator.

First volume part a just on X-part is question growth.

accelerated maybe that to sort back it start but that of of sort for seems mode of we headed as basin broadly, at you're reflect you was growth think the an kind the all Targa pace. you're year, messaging I or more like into in growing

as average? next around cadence touch maybe Maybe accelerated one, keeps last? expansion the up. that can What's on think growth dynamics even pipeline that does And there? How thinking the on base beyond between versus in and on long that's this term, the just the we then going system maybe driving in you near Europe, your just frac

you Yes, the sure. have hop I'll last outperformed then years, I several basin. can Pat, mean, and start, in. the over we've really

success the Our a commercial servicing but also really existing having team good really at customers, and the our done has Midland. across job Delaware

We assets, our also wide we that kind area -- have of wide a well, a have cover. we

the and spots best of spots Delaware most the in we're as We the Midland, are and the best in active spots in well.

benefit we So I think from that.

we've come this they've of continued we also seen us. in more we've activity other this XXXX. strong expecting volumes our that say years. producers seen year, our the and year producers, revisions seen but revisions We've of have from from positive to system for given forecast across than XXXX level And the I'd they're

goes just we've strong just Maybe from positioning So to Targa's benefited activity. user more overall and that.

to add to anything have You that?

with and outlook. Matt, that on producers underpinned the are think side said. I Permian dedication there, components production fungible key exactly system of the footprint, to growing that's of Basin Delaware acres basin, the you Midland committed and millions both what Large of the by are

the the I had core It in the long their covering group and the We've that we core, multimillion Midland great that right? the for by with same again, allowed get Lucid that a And committed to producers, of in rock, now, are a the that core again, of look acre Basin, are producers, basin. developing we best where the ago production Permian. system. Delaware best the time. dedications core, system, the it's a in pretty years in underpinned type position to growing with us of at of We've So rock been of easy, then on is when the there couple acquisition did the

period the that in think a all commercial one of already Basin to out is for the place continue Midland I lot we that additive good Delaware success. We've thing we Basin had left that that recently a have in in early in of to time. success And the is we've had and footprint of commercial

too? you as seem think of next enough pipeline that is expansion, frac that out? And kind that's cadence that the Or accelerating it. for Got like still does about far

pipeline as I'll lines. this of those the online, coming first Scott from this Certainly, Daytona the X quarter, start during on a again. of us operational of it relates to Permian Spiro, things. coming that is likely leverage volumes out the with gives the lot west along side

the line got Mont into that Prix we've some we've we've a our got into original Grand So line, trunk West well. where the line, Belvieu, Then lot leverage got with of ties and operational Daytona leverage as that. operational feeds that with

So good are where really we feel we positioned there. about

as successful we and third-party announcements with team that actually say overcapacity, plants the the of growth a little you've contracts reasonable been done term at the that. we that out given position I coming growth a his the with of there to and volume seen at that and Permian, cadence Y-grade though We've in the a we we number executing Pat on the pipeline out have that on feel prices of on of there's volume bit contract have. look do will see some to at we're

our likelihood as again, next reasonable, we there, out it additional additional allow Again, capacity prices pipeline that defer is, long some to capital that's push we the out. expansion can might contracts to look us with The will have out system are that for the do. as and have we'll on further

us puts a in that good position. So

online, we at fractionation had of of footprint. ran when our with Train month quarter we the in volumes into quarter X. impact we'll look very some full GCF because coming second of had We online. coming out across But Train As saw first second the year quarter, third We in look well. scheduled. the bit have we day side, during this then came the X we from the frac X quarter benefited basically that May. certainly, little online And a of strong some maintenance

full. from equity in-service moved come see but Train us we later to expect and nice is part to that XX line at of that have online. we'll will give share latter date the this it And year, come Not be this see likely this Our online that that and of then of benefit of the point time from year XXXX benefit. quarter we XX, Train will first the much

previously A announcement the very catch footprint, for you well. When from about the plants in fits frame ones time XXXX as mid our the morning. as timing Train had XX the to this think of as all we that well G&P order well made those us volumes

So on overcapacity, midstream side, as perspective great leveraging if you position as front. both transportation the well how we current well a will, the as our fractionation on from set capacity as

That's follow-up on color. just Great. quick One helpful Blackcomb.

portfolio. So capital you've I kind really to core the out But looked the gas never gate. investment pretty past, pipeline know your in residue as of small at of

some at monetization this a become for or curious, too point, So candidate now? early

this announced we Yes. We -- just morning. it

think I interest for whether we're partner with needed holding for basin. industry, always the much will really the the much white say it's look needed in to what's minority it. the So on we or a excited other partners shareholders, It's I'd just best But to interest monetizing do of this. water and the

FID get there excited going and commitment And on to put so we on were and this this. push a past

Theresa Thank line Barclays. moment come Chen question. from our with you. for of that next the One will And

you system, of on producer Matt, customers? us net quantitatively to And that some low about in are some XXXX more view XXXX. on underlie your and across double-digit with takes your just in growth On growth comment puts based color what your the Can view that discussions the give your led? for your underlying volume

about say low I'd we growth. for double-digit strong feel XXXX, talked Yes. we

number We haven't XXXX. see we an exact given where

forecast. updated had get producer success recently as to well. here commercial continue some We We've

go together we like XXXX. fall, So look what that the we'll as and put into that say all does for

higher. think you're I hearing is trending from what us it's today

we would stronger our what have expectations earlier year. been think I this about our it being feel -- than better XXXX

provide XXXX. feel outlook that growth that think we'll I for in sometime that to likely we have exactly What to so and continue we'll like we're February. And you good in going looks strong develop

there anything higher was in that drove lower quarter-over-quarter on OpEx particular despite And in unit basis Understood. L&T? volumes a

In our Prix. we of a what increase L&T, volume think and I was Grand frac lot through saw through you saw

we So come for X were to eagerly on. waiting Train

day. We're And period so barrels is saw a a comparative diverse increase. over kind you large up really of XXX,XXX a

volume significantly, saw we So number increase yes. the

Theresa.

of So online. ahead assets generally we hire coming also

prior would seen you increase have an ready we Train OpEx to online as in X got essentially So coming it. for

get we improved quarter. that the When the margins the of in asset the does volume one second So being then reasons with it unit associated the that may online, come full. be when essentially

would during very I behind second the Theresa, also well. some of And the Those are the say, we quarter Matt's had second runoff day now. point, over to quarter. ran I issues Again, incremental we quarter. maintenance a barrels to that that alluded had XXX,XXX frac first very, And fact us the during

our moment from with One for will Fargo. next the come question. Wells Blum And Michael of line that

might any with to there some if are return Wondering there the would project? like? look percent you on like for level project financing profile be expect provide the details you Blackcomb could And contracted

is Michael, Bobby. this

done, it the I last this and FID to and night -- the takeaway when basin, the get in think of night get for and the bring gas for to disclosed the across XXXX it Targa's then done we're press takeaway we got volumes out and go we're line supply of this think release launched. out table, in disclose to morning. Permian But excited last obviously, earnings going to getting about our we in what

a be we'll on I it. think partners deal over defer to up, and the are white think Targa returns how But FID time. to at think all in and returns investing it's the they I great that for it water going much fills I share

spending beyond. beyond to Okay. about really it, XXXX XXXX, ask call wanted and Understood. so And then capital I

here a at You that prior shows at $X.X typical have in billion. growth that presentations run rate slide CapEx CapEx year

right the in still the So way CapEx? here cadence at the I'm look for acceleration long-term seen just you've to Is given growth that volumes. wondering,

out single-digit is, The earlier scenario. $X.X that it multiyear this believe outlook put we growth billion predicated really on high We is Permian year a Michael.

acceleration said we we extent growth that of as in that could beyond, that growth that an volume beyond So this profile. see XXXX morning, and the to change

pointed generally discrete element we And lumpier slide on other spending gathering our is we we've that processing that capital that or than since side then in need to to change extent projects it much is largely our the out the given that add of particular, that can and individual dependent put to fractionation for out on think downstream complexion outlook very transportation, the for plays But what growth that I year. again, assumption a how the horizon, volumes. is over a underlying still the multiyear Permian holds

come moment our will question. Mackay John Sachs. with from line that One next of the Goldman for And

Congrats be Is are you us all helpful. in would hey, there to of can be year? I expected? asked it, to I'd a to piece of up. about finer Permian Jen point continue move back growth here, we've and on this but out side? could are little something productivity just half maybe customers and the that. couple Will. rigs than higher just go Anything more back of we've expectations the Is guess, out Is to about crews When GOR I a for more if curious a actually gains a expecting bring to we're hey, lot times wanted seeing these actually, you in break it. it kind of it

And no, companies position. some efficiencies. efficient What I combinations rigs. greater of is with is seen use more in say Yes. we're an seeing increase we're combined of expecting What the you've not that acreage of would recent

equivalent count. as was continue is the in big but of what big seen X So higher the they wells things, not but are lower is say, lower it's scheme able X of a we've than a continuing drill it rig certainly a factor, with are getting to past, increase They GOR over productivity. lot and the number an years. factor. a it increase Obviously, to increase, to

on to their Permian, goes achieved to achieved success, our activity the commitment group already they're is it the really again, acreage, drilling we the it's to that the commercial Targa efficiencies. producer have. in of And frankly, footprint adding So back and they're

of buyback to really number I'd thoughts guess I That's just curious the recent that. latest versus the in the be guys' shifting Maybe clear. buyback just capital, run the to return your stock? I dividend, was given on appreciate great.

capital doing year as really allocation, there's everything we're year, that's sheet no John. lot is that Foundational stronger that how balance we a into about we've and a for say of And through morning, the see strong this getting to to creating this change our of next articulated thinking sheet. and I'd balance are end us. we flexibility

very second were We active the in quarter.

We have share an opportunistic repurchase program.

the of a is and per You'll conviction of continued through continue continue short, we annual is outlook shareholders today really share strengthening long to But part our that is the variability is where return in headed. meaningful both create capital we company likely have how opportunistic, believe only repurchases. some as premise increases us as of combination And to dividend is quarter-to-quarter. in to company share over will opportunistic where be well a which we our see lot will the underlying that the and medium And term.

And come One with of Gupta line UBS. moment next will Manav question. for that our the from

A quick question.

'XX I indicated coming delivering few over in? as about projects think changed $XXX a of 'XX? back, or some EBITDA of you are projects And so. deliver that quarters guidance should EBITDA growth of growth had think you have we that incremental could the of has How these some and how the new million incremental projects

has our kind you've a record Sure, investing and EBITDA then years. gathering little investing same seen we Yes, last X.Xx, to track expanding have indicated us over our call Xx forward the in NGL even over in multiple our delivered our projects And the multiple and returns yes. several for I those about We're business years. investment strong that. infrastructure going of think return It's of processing -- it, downstream EBITDA. been stronger kind several that than the accommodate perhaps last X bit to volumes.

to So our we're really core sticking business.

good. That really what very X.X we is we will We do. if can return be be I we think of would good profile beat can case, a returns indicated But to good what a be we expect the it base hope X.X, we do us. that. pretty for kind

Thank you. over. I'll turn it

of for the Stanley moment Wolfe next question. that come And One Research. from with our line Keith will

spend start to are baking a visibility I pipeline you you you third-party comfortable in wanted just invest pipeline or giving more to need enough year? on with there any that in Are contracts you're don't follow-up CapEx. XXXX next First, NGL capacity in yet

correct, are Yes, Keith, yes. you

back sufficient coming half transportation that on Daytona coupled working the with beyond transport and more. For executed, Daytona third-party through have we with we've already of this 'XX period we're should XXXX, and on, some year,

So NGF may need number. meaningful another have and But any we're that our when capital. for and expectation do don't we talking how in 'XX, we 'XX is it about 'XX, [indiscernible] impacts really 'XX, transportation to if capital

Great.

think we you're volumes assets and tailwinds financial this volumes with XXXX And offloading year? a question, we that than to it your just onto back you're coming system offloading then in normal? new lot 'XX bringing coming online, into expect additional expected, a some think than higher year to growth maybe should Second about from in fair parties is this more lot third

question. good Yes. No,

We'll to answer around who's looking going this.

your hand. raising Everyone's

we are actually offload, And the it exceeded where of mostly as with with plants, times side. offload volumes I'll side. processing, ourselves, amongst our gathering think third transportation, there handle frac. expectations, on do But we on piece I'd Is G&P the we say parties have really handle dependent our of about that when and we'll on flexibility So the G&P from the offloads some start. our and is periods we have then really it the business.

downstream, the the other pipe NGL Permian Belvieu. volumes connectivity transportation we of to in our through have and every have grown basically look significantly, you the to going As frac

have we connections our So legacy from plants. from acquired existing those from plants, plants,

So we a have to move of volume. lot flexibility

to the cheapest look So while that we're transport optimize what's for Daytona. bringing cost

of to as some we'll comes able X on moving are that kind other up. pipes there volumes that as go we're that be on So day soon Daytona

all we coming Train X, year. GC this fractionation and then same App the side, Train on And online have [ ] XX,

our at of third-party other back not there the managing look If because volumes, well. fractionation grown as our and volumes, much has that's you frac kind as we're as of some

So big on in coming more some X and third of that our bringing up system. of those volumes back that I'd you kind fourth with happen to the is quarter. of this expect quarter quarter saw onto step the a Train

question. One the come moment from And our for next of with Sunil that Global. Sibal will Seaport line

And congratulations all, of to Will first everybody. for their roles. morning, Jen and new Good

on to wanted wanted so CapEx off I your to start start I So off program. --

and current up? filling us you a could the plant best So on what's building it XXX new remind estimate

on for say, $XXX would our side the a of G&P average, are things around on new I million plants plan. XXX

or kind been bells inlet have bit whistles and other plants a little Some it's you're a compression the more the doing some been have what announced. little XXX on of sweet for but some depending sour, we bit cheaper, in, of have around

amount it of to in et gathering up then similar terms And fill systems, cetera?

pipeline pressure, much to Is more from year high also need? How capital? where one it Well, much year, it how low going field pressure. compression to is it more you're varies that's

can you on more variability So that. see

compression. trying because next there inventory ordering some growth build more year. the we're So also to in We're we see times are strong

So other we Pat a color don't any that bit, add I quite know. want has around give? to moved

capital I kind It connecting, finite ton on gets times a things, a and producers many With Where it's described a There's new comfortable. batteries. of of that how of existing drill, be together all we're they there's sours. and it. on kind mean real -- lot I'd plants, get number I you're not just lead there's that you right. No, it, and of variability low-pressure compression mothball sweet think behind those if depends batteries high-pressure there. drill

haven't I'd really from say, within change. year that out. band And but year, to in, a material seen, year getting a haven't a operating varies expensive we It seen It's expensive. of or we've seen less year we trend been more

of you're that? you carbon indicating when returns Understood. the is spent capture Could clarification we kind for expect also see And capital provided what on category. the carbon on indicate on other program. so far just CapEx to the put I the Seems can like bridge thanks that other in had on category. you capture you one and

credits to XXQ we to Sunil. we be out is potentially What later that We're not said separately, have benefit year. expect position it from going a to in break this

much what Permian number We and have core in Basin do very we a commercializing of at. to we that's projects we're what are that the good

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Richardson and with question, come will line of Tristan next our from that Scotiabank. for the moment One

Blackcomb. quick general, thinking the you then equity in a maybe And about XXXX? 'XX just the your portfolio wrong looking one it have just and the some with stake correlation exiting capacity you're capacity to seeing expect growth into Is pipe? if has Maybe on with in

transport, of And build is time lot to gas the it in look we to we Bobby. of the portfolio moves ton across sure market our Basin. portfolio gas the takeaway, our as plants. talked a producers obviously markets, out for tight spend of about our at This a of that all we've before as we Permian Yes, we make

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manage together. we that So all

there on more we is making out have And that the this material when that has. things egress basin than built, That's from Blackcomb issues about such on think doesn't pipes. make as timely already enough to basin step sure then gets pipe deal we it sure a like the

across Blackcomb, is we what when very small a we of So gas about pipe the it think basin. put amount a on I subset market like of the

our how it X to out sure out the X and through gas can part relative gas science through out thinking the moves going the to mover market needle thinking amount years year plant years, thinking go their we make produce X year, but all a and we're we out of so oil. not is get it's every our of producers NGLs So that the

gas Jen, quarter. we a when Helpful, sits where I see to or curious of said very Bobby. tight able fourth XQ versus where was market. very in XQ obviously, the XQ relief up by another strong way, Targa irrespective then hopefully, mean, horizon, you a on even said And B today factor put floors basis a

the quarter you you -- of in with When X fares to capital the fee second our that fee with floors in very call again substantial the been yes, us. why amount prices the the the support NGL are well. really us as right a looking floors negative in assume forward quarter, is important cycle low were us the what to have to can through producers low prices, backdrop Waha And quarter. And important additional allowing over allowed that months now we supports years the to second and continue really much play forward what's a spent In price invest to of what is is number moving gas now think us it, last, so about X.X processing of for the plants or that to commodity invest so. and

closing I Thank back remarks. to to the would Sanjay you. Mr. turn any over call now for Lad like

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

participating. for today's program. concludes Thank This you

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