Targa Resources Corp. (TRGP) Q2 2023 Earnings Call Transcript

Targa Resources Corp. (NYSE:TRGP) Q2 2023 Results Conference Call August 3, 2023 11:00 AM ET

Company Participants

Sanjay Lad - Vice President of Finance and Investor Relations

Matt Meloy - Chief Executive Officer

Jen Kneale - Chief Financial Officer

Pat McDonie - President, Gathering and Processing

Scott Pryor - President, Logistics and Transportation

Bobby Muraro - Chief Commercial Officer

Conference Call Participants

Theresa Chen - Barclays

Jeremy Tonet - JPMorgan Securities

Michael Blum - Wells Fargo

Neel Mitra - Bank of America

Colton Bean - TPH & Company

Keith Stanley - Wolfe Research

Brian Reynolds - UBS

Tristan Richardson - Scotiabank

Jake Nivasch - Truist Securities

Sunil Sibal - Seaport Global

Operator

Good day, and thank you for standing by. Welcome to the Targa Resources Corporation Second Quarter 2023 Earnings Webcast Presentation [Operator Instructions]. Please be advised that today's conference is being recorded.

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

Sanjay Lad

Thanks, Tes. Good morning, and welcome to the Second Quarter 2023 Earnings Call for Targa Resources Corp. The second quarter earnings release, along with the second quarter earnings supplement presentation for Targa Resources that accompany our call are available on our Web site at targaresources.com in the Investors section. In addition, an updated investor presentation has also been posted to our Web site. Statements made during this call that might include Targa Resources' expectations or predictions should be considered forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in forward-looking statements. For a discussion of factors that could cause actual results to differ, please refer to our latest SEC filings. Our speakers for the call today will be Matt Meloy, Chief Executive Officer; and Jen Kneale, Chief Financial Officer. Additionally, the following senior management team members will also be available for Q&A: Pat McDonie, President, Gathering and Processing; Scott Pryor, President, Logistics and Transportation; and Bobby Muraro, Chief Commercial Officer.

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

Matt Meloy

Thanks, Sanjay, and good morning. The second quarter results were consistent with our expectations as the strength of our business drove record volumes for the quarter, which really set us up well for a strong year. Adjusted EBITDA was lower sequentially given our significant marketing gains in the first quarter but consistent with previous disclosures, we expect EBITDA to ramp over the balance of the year and we remain confident in our full year 2023 adjusted EBITDA estimate of $3.5 billion to $3.7 billion. During the second quarter, we had record volumes in the Permian, driving record NGL transportation and fractionation volumes downstream. We fully brought online our Legacy II Plant in Permian Midland and commenced operations on our Midway plant in Permian Delaware, and we executed on a quarterly record $149 million of common share repurchases, which is reflective of our strong conviction in the outlook for our business going forward. Natural gas volumes across our Permian systems continue to grow and the recent completion of our Legacy II and Midway Plants provide us with incremental Midland and Delaware processing capacity to handle a continued ramp in inlet volumes driving incremental volumes through our integrated NGL downstream assets. Given our increasing Permian volumes and consistent with our previous messaging that we are already ordering long lead items, today, we officially announced our next plant in the Permian Midland and our next plant in the Permian Delaware to support the infrastructure needs of our producer customers.