Targa Resources, Inc.

Good day and welcome to the TARGO Resources second quarter 2022 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one. Please note that this event is being recorded. I would now like to turn the conference over to Sanjay Ladd, Vice President, Finance and Investor Relations. Please go ahead, sir.

Thanks, Cole. Good morning and welcome to the second quarter 2022 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 website at targaresources.com in the investor section. In addition, an updated investor presentation has also been posted to our website. Statement made. During this call, that might include target 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 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 Malloy, Chief Executive Officer, and Jen Neal, Chief Financial Officer. Additionally, the following senior management team members will be available for Q&A. Pat McDonough, President, Gathering and Processing, Scott Pryor, President, Logistics and Transportation, and Bobby Mararo, Chief Commercial Officer. I will now turn the call over to Matt.

Thanks, Anjan. Good morning. This is an exciting time for our company, and given the recent close of our Delaware Basin acquisition, I want to take this opportunity to publicly welcome our new colleagues to the target team. I would also like to thank all of our employees for their collective efforts, as it has been a very busy first seven months of 2022, and the team has already accomplished a lot. And our strong execution continued across the second quarter, including record high quarterly EBITDA, record volumes in the Permian, record NGL transportation and fractionation volumes, redemption of Series A preferred stock, completing the successful sale of our interest in Gulf Coast Express Pipeline, integration of our acquired South Texas assets, successful negotiation of our Delaware Basin acquisition and subsequent financing, and $74 million of common share repurchases. Looking ahead, continuing to execute on our strategic priorities will drive increasing EBITDA, reduced common share count, a higher common dividend, while maintaining leverage within our target range. Our performance this year has been strong, and we expect that to continue. We are updating our financial guidance for the year to account for the completion of the Delaware Basin acquisition effective August 1st. We now estimate full year 2022 adjusted EBITDA to be between $2.85 and $2.95 billion. We continue to expect volumes to grow across both our Permian Midland and Delaware positions for the remainder of the year and well beyond. We have several gas plants under construction, Legacy 1 and Legacy 2 in the Permian Midland and Midway and Red Hill 6 in the Permian Delaware.