Targa Resources (TRGP) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

May 5, 2022 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by, and welcome to Targa Resources Corp. First Quarter 2022 Earnings Webcast and Presentation. [Operator Instructions].

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

Sanjay Lad

Thanks, RJ. Good morning, and welcome to the first quarter 2022 earnings call for Targa Resources Corp. The first quarter earnings release, along with the first quarter earnings supplement presentation for Targa Resources that accompany our call, are available on our website at targaresources.com in the Investors Section. In addition, an updated investor presentation has also been posted to our website.

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 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.

Matthew Meloy

Thanks, Sanjay, and good morning. We are continuing to perform well and are off to a good start to the year on a number of fronts. Record high quarterly EBITDA of $626 million, record volumes in the Permian and record NGL transportation and fractionation volumes.

We also achieved investment-grade ratings from all 3 agencies during the quarter. We completed our corporate simplification, with the DevCo repurchase in January and with the redemption of our preferred stock earlier this week.

We continue to invest across our businesses with ongoing construction of the Legacy I, Legacy II and Midway plants in the Permian, plus the acquisition of bolt-on assets in South Texas.

We repurchased additional common shares as part of our increasing return of capital to investors. And our reported leverage ratio at 3.4x is in the bottom half of our long-term target range of 3x to 4x.