Targa Resources, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to Targa Resources Corp. Third Quarter 2024 Earnings Webcast and Presentation. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you would need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. And to withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Tristan Richardson, Vice President, Investor Relations and Fundamentals. Please go ahead, sir.

Thank you, Michelle. Good morning and welcome to the third quarter 2024 earnings call for Targa Resources Corp. The third quarter earnings release along with the third 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. Statements made during this call that might include TARGA's 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, Jen Neal, President, Finance and Administration, and Will Byers, 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 Mararro. Chief Commercial Officer. I'll now turn the call over to Matt.

Thanks, Tristan, and good morning to everyone. Before we get started, I want to welcome Tristan Richardson to TARGA. Tristan will be leading our investor relations and fundamentals functions after previously working in energy sell-side research for the last 13 years. With Tristan and Sanjay, we are in excellent position to continue to support our investors, analysts, and potential investors with our best-in-class team. The third quarter was very strong on a number of fronts. record volumes, record adjusted EBITDA, and continued execution across our footprint, which sets us up well for the balance of this year and provides a lot of momentum as we turn to 2025. Given our outperformance through the first nine months of the year, we expect to beat the high end of our previously provided adjusted EBITDA range, which means more than $500 million of year-over-year growth, exceeding the midpoint of our initially provided guidance range for 2024 by more than $250 million. Over the past several years, we have deliberately taken steps to successfully position TARGA across volatile markets, and we are benefiting from those steps. We have largely removed exposure to downside commodity prices with 90% of our margin now fee-based or supported by fee floor contracts. We have continued to invest in growth capital and attractive opportunities with best-in-class customers with a focus on deals that allow us to move volumes all the way through our integrated system. We have significantly strengthened our balance sheet and are now a strong investment-grade credit across all three agencies. We have returned an increasing amount of capital to our shareholders while maintaining financial flexibility. We believe that these important steps enhance our abilities to generate attractive returns for our shareholders across commodity price cycles. Our excitement around TARGET's short, medium, and long-term outlook begins with our Permian position, and there are a lot of good things going on there. Our new plants have continued to come online, essentially full, and given our expectation that our plants in progress will do the same, today we announce that we are moving forward with our next two new Permian plants in response to higher anticipated growth we are seeing and to ensure we keep pace with our producers. We are continuing to enhance our sour gas treating position in the Delaware Basin with additional investments in front-end treating and AGI infrastructure. Our new 800 million cubic feet per day sour gas treater and injection well comes online in early 2025 at our Bull Mood Complex, which along with our current six active acid gas injection wells will increase our treating capacity to over 2.3 billion cubic feet per day in the Delaware. Additionally, we are utilizing and enhancing existing infrastructure to capture and sequester CO2 in the Permian, and we'll be accruing some 45Q tax credits in the fourth quarter of this year and increasing over time. Our Permian growth drives increasing volumes through our downstream assets. Daytona was much needed when it came online. Train 9 has been full since it came online, and Train 10 and GCF are much needed and will be highly utilized. Our premier Permian supply aggregation position coupled with our integrated NGL system positions us nicely to continue to generate strong returns on our invested capital and be able to continue to return increasing capital to our shareholders over time. Before I turn the call over to Jen to discuss operations and capital allocation in more detail, I would like to extend a thank you to the TARGET team for their continued focus on safety and execution while continuing to provide best-in-class service and reliability to our customers. The growth we're experiencing requires a lot of coordination across our organization, and we are proud of our employees.