Targa Resources (TRGP) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

February 22, 2023 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by. And welcome to the Targa Resources Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Also be advised that today's conference is being recorded. I would now like to hand the conference over to the Vice President of Finance and Investor Relations, Sanjay Lad. Please go ahead.

Sanjay Lad

Thanks, Carmen. Good morning, and welcome to the fourth quarter 2022 earnings call for Targa Resources Corp. The fourth quarter earnings release, along with the fourth quarter earnings supplement presentation for Targa 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 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.

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

Matt Meloy

Thanks, Sanjay. And good morning to everyone. 2022 was an excellent year for Targa, and I would like to recognize and thank our employees for their focus, dedication and execution.

Some of our highlights from 2022 include record safety performance based on multiyear low total reportable incident rate, record gathering and processing volumes in the Permian, record volumes across our logistics and transportation assets, record adjusted EBITDA of $2.9 billion, a 41% increase over 2021 while also reducing our share count. Major projects came online on time, on budget and have been highly utilized since start-up.

Execution and successful integration of our Delaware Basin acquisition and our South Texas acquisition, execution of our corporate simplification with our DevCo repurchase and preferred share redemption, successful sale of our 25% equity interest in Gulf Coast Express Pipeline for approximately 11 times EBITDA, upgrades to investment grade by all of the rating agencies and completion of two successful investment-grade offerings and higher year-over-year return of capital to our shareholders through both an increased common dividend and continued common share repurchases.