Targa Resources, Inc.

To ask a question during the session, you will need to press Star 1-1 on your telephone. To remove yourself from the queue, you may press Star 1-1 again. I would now like to hand the call over to Tristan Richardson, Vice President, Investor Relations and Fundamentals. Please go ahead.

Thanks, Lateef. Good morning and welcome to the fourth quarter of 2024 earnings call for Targo Resources Corp. The fourth quarter earnings release, along with a fourth 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 Molloy, Chief Executive Officer, Jen Neal, President, 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 Marrero, Chief Commercial Officer. I'll now turn the call over to Matt.

Thanks, Tristan, and good morning, everyone. 2024 was a great year, and we are continuing to build on our momentum. Our 2024 results demonstrate our differentiated positioning with record volumes from the Permian significantly outperforming initial expectations, driving record NGL transportation fractionation and export volumes that also exceeded expectations. As we look forward to 2025 and beyond, We believe that we are uniquely positioned to continue to deliver significant growth for our shareholders. We have a demonstrated track record of adding infrastructure that is highly utilized, and 2024 was no different. With our additional two Permian processing plants, two additional NGL fractionators, and our Daytona NGL pipeline, all much needed at startup. And we announced three new projects this morning. Our Delaware Express project, 100-mile, 30-inch diameter intra-Delaware Basin pipeline expansion of Grand Prix that will provide us with additional NGL capacity in the Delaware. Train 12, our next 150,000 barrels per day NGL fractionator in Montbellevue. And our new LPG export expansion at Galena Park, which will increase our effective export capacity to 19 million barrels per month. Our newly announced projects are needed to accommodate incremental NGL volumes from our five Permian processing plants currently under construction. These critical projects are core to Target's strengths, positioning us to continue to demonstrate attractive returns on invested capital. We have recently accelerated projects and growth spending relative to our thoughts on when we would need additional downstream infrastructure at this time last year. This was driven by more organic growth than previously estimated, plus the execution of multiple new commercial deals. In 2024, our Permian GMP volumes grew by 14% year over year, with an incremental 709 million cubic feet per day moving through our system. We expected meaningful volume increases, but we were surprised to the upside as our growth far exceeded the high single-digit growth we were talking about last February. Our volume outperformance was really driven by a combination of the advantages of our Permian systems and dedicated acreage being on the best rock in the Midland and Delaware basins, lower declines on existing volumes, increased producer activity and performance in certain areas relative to initial expectations, higher gas to oil ratios, and commercial success bringing new volumes onto our systems. While we expect to continue to benefit from similar trends in 2025, we currently estimate that our Permian GMP volume growth will be more second-half weighted. This growth, along with several large commercial wins that began adding volumes late in 2025 and into 2026, positions us to drive even stronger volume growth in 2026. These trends in the volume growth we expect to see on our system will drive further increases in year-over-year adjusted EBITDA and a generation of meaningful adjusted free cash flow. In 2024, our record adjusted EBITDA of 4.1 billion was 17% higher than 2023. We estimate another year of record financial and operational results in 2025 with over 600 million in EBITDA growth expected this year. We are also in position to deliver significant growth in 2026 and beyond with four new Permian GMP plants coming online in 2026, driving significant NGL volume growth through our downstream assets. The strength of our results positions us to continue to return an increasing amount of capital to our shareholders over time, with a 50% increase to our common dividend for 2024 versus 2023 and a record $755 million of common share repurchases during the year. Looking forward We announced in November we expect to recommend a 33% year-over-year increase to our annualized 2025 common dividend per share. Our focus isn't changing. Our balance sheet is strong, providing us with flexibility to continue to invest in attractive organic growth and to continue to return capital to our shareholders, including opportunistic common share repurchases. Before I turn the call over to Jen, I would like to recognize and thank our employees for their continued focus on safety and execution, while providing best-in-class service and reliability to our customers. Every group within Targa played a huge role in our execution across the year, and we are proud of their efforts. We provided our shareholders with the ninth-highest total return in the S&P 500, which is a tremendous accomplishment that we want to build on. Lastly, I am pleased to announce that Jen Neal is moving into the president role effective March 1, 2025, after leading our finance and administrative functions for the last seven years and as part of Jen's continuing development, she is going to shift her focus to now lead our commercial engineering and operations functions across Target. Over to you, Jen.