Targa Resources sees FY23 adjusted EBITDA $3.5B-$3.7B

FY23 adjusted EBITDA midpoint view represents a 24% increase over FY22 adjusted EBITDA. Targa’s 2023 operational and financial expectations assume Waha natural gas prices average $2.25MMbtu, NGL composite barrel prices average 70c per gallon, and crude oil prices average $75 per barrel. Targa estimates its 2023 average Permian natural gas inlet volumes will increase 10% when compared to its average Permian inlet volumes for the Q4 of 2022, which will drive increasing volumes through its L&T systems. Targa’s estimate for 2023 net growth capital expenditures is $1.8B-$1.9B, based on announced projects and other identified spending. Net maintenance capital expenditures for 2023 are estimated to be approximately $175M. Targa expects to recommend a 43% year-over-year increase to its annualized common stock dividend per share for 2023 to $2.00 per share. The increased dividend will be recommended to Targa’s Board of Directors in April for the Q1, with payment to shareholders in May 2023. Targa also expects to remain in position to continue to execute opportunistically under its existing $500M common share repurchase program and currently plans on recommending that the Board of Directors authorize a new $1B share repurchase program as the Company gets closer to exhausting available capacity under the existing program.