The following is a summary of the Targa Resources Corp. (TRGP) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Targa reported a record quarterly adjusted EBITDA of $966 million in Q1, which is a 1% increase from the previous quarter.

• Despite current commodity price challenges, they maintain full-year 2024 EBITDA estimates between $3.7 and $3.9 billion.

• Capital spending is projected at $2.3 to $2.5 billion for 2024, and $1.4 billion for 2025.

• Targa repurchased $124 million of common shares during Q1 at about $104 per share.

• The company saw volume growth throughout the quarter, enhancing the results and facilitating a positive outlook.

• Shared revenue has shown consistent growth across all their infrastructural and production activities.

• They reported a strong balance sheet which is expected to improve as 2024 progresses and into 2025 with reduced growth capital spend next year.

• There was notable quarter-over-quarter increase in share buybacks, reflecting the company's confidence in their current status.

Business Progress:

• Targa experienced significant volume growth throughout Q1.

• To cater to the increasing volumes, Targa plans to add significant compression throughout the year, promoting continued Permian volume growth.

• They have two major growth projects in the pipeline: Pembrook II and Train 11, with no alterations to the net growth capital spend estimates for 2024 and 2025.

• A small capital project is planned at their Galena Park facility to enhance LPG export capacity by about 650,000 barrels per month in the second half of 2025.

• No operational updates were given, but they did continue to focus on managing fee-based volume growth and fee floor growth in its Gathering & Processing business.

• Targa expects an increase in the need for infrastructure from the Permian business because of stronger gas prices, despite the decreased volumes from other areas due to weaker gas prices.

• Increased activity is anticipated in the Badlands business later this year and next year.

• They are preparing for the construction of another full pipe projected to be needed out of the basin by 2026.

• With the commissioning of expansion projects, they will support exporting products, creating mutual benefits for involved parties.

More details: Targa Resources IR

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