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Investor Presentation February 2026 | TARGA RESOURCES CORP.
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Forward Looking Statements 2INVESTOR PRESENTATION Certain statements in this presentation are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding the Company’s projected financial performance, capital spending, payment of future dividends and stock repurchase activity. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, actions taken by other countries with significant hydrocarbon production, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of the Company’s completion of capital projects and business development efforts, the expected growth of volumes on the Company’s systems, the impact of significant public health crises, commodity price volatility due to ongoing or new global conflicts, changes in laws and regulations, particularly with regard to taxes, tariffs and international trade, and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. We use any of the following to comply with our disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. We routinely post important information on our website at www.targaresources.com, including information that may be deemed to be material. We encourage investors and others interested in the company to monitor these distribution channels for material disclosures.
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✓ Largest natural gas gatherer and processor in the Permian Basin ✓ Fastest growing natural gas liquids footprint in Mont Belvieu ✓ Fully integrated wellhead to water infrastructure company ✓ Industry leading Adjusted EBITDA growth ✓ Growing, durable Adjusted Free Cash Flow outlook ✓ Returning increasing capital to shareholders and reducing share count Why Targa? A Compelling Value Proposition 3 Best-in-class assets, excellent long-term growth profile, and demonstrated track record of creating shareholder value Note: This slide contains non-GAAP measures. A reconciliation of all non-GAAP financial measures used in this presentation to th eir nearest comparable GAAP financial measure is included at the end of this presentation. INVESTOR PRESENTATION
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A Compelling Growth Profile Over the Last 5 Years Targa’s performance and growth outlook provides strong momentum in 2026 and beyond 21% Permian Volume Growth CAGR $4.5B Capital Returned to Shareholders(2) $65B Enterprise Value(3) 25% Adjusted EBITDA Growth CAGR ~5.5x EBITDA Multiple on Invested Capital(1) IG Credit Ratings BBB/Baa2/BBB 4INVESTOR PRESENTATION Note: This slide contains non-GAAP measures. A reconciliation of all non-GAAP financial measures used in this presentation to th eir nearest comparable GAAP financial measure is included at the end of this presentation. (1) Total net investments for 2021 through 2025 (Cumulative Capex + Acquisitions – Divestitures). 2025 growth capital expenditures include significant spending on multiple large downstream projects which will provide EBITDA contributions in 2026 and beyond. (2) Cumulative common cash dividends paid and common shares repurchased from 2021 through 2025. (3) As of February 17, 2026 market close.
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Fully Integrated Wellhead to Water NGL Solution 5INVESTOR PRESENTATION Largest Permian Natural Gas Processor NGL Pipeline Transportation Connects Key Supply to NGL Market Hub in Mont Belvieu Significant Shipper of Natural Gas to Key End Markets Large Natural Gas Processing Presence in Other Key Basins Premier NGL Fractionation Footprint in Mont Belvieu Connected to Domestic Petchem Market Operate One of the Largest Gulf Coast LPG Export Facilities Targa’s System is Integrated Across the Value Chain Targa’s Assets are Positioned for Long-Term Success Growing Permian Basin Production Increasing U.S. Exports of Natural Gas and LPG Investing in High-Return Projects Across Integrated System Our assets and operations connect natural gas and NGLs to markets with growing demand for cleaner fuels and feedstocks
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TRGP Peer A Peer B Peer C Peer D Peer E Peer F Peer G Peer H Peer I Leading ROIC Versus Peers 6 Peer Average INVESTOR PRESENTATION Trailing 5-Year ROIC Targa’s track record of industry leading returns provides a strong foundation for continued outperformance Deploying capital into high-return core projects across our integrated footprint to enhance long-term shareholder value Sourced: Wells Fargo 11/24/2025.
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$5.56 $7.32 $10.59 $12.57 $15.24 $18.94 2020 2021 2022 2023 2024 2025 Adjusted CFFO Per Share Growth Increasing Cash Flow, Reducing Share Count 7INVESTOR PRESENTATION Differentiated cash flow growth and track record of opportunistic common share repurchases Note: This slide contains non-GAAP measures. A reconciliation of all non-GAAP financial measures used in this presentation to th eir nearest comparable GAAP financial measure is included at the end of this presentation. 28% CAGR
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$184 $189 $543 $822 $1,412 $1,504 2020 2021 2022 2023 2024 2025 Annual Return of Capital Dividends Repurchases Returned $4.7 Billion to Shareholders Since 2020 8INVESTOR PRESENTATION Returning significant cash to shareholders with meaningful dividend increases and opportunistic share repurchases ($ in Millions) 52% CAGR
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Integration G&P footprint integrated with residue gas pipelines, NGL transportation, storage, fractionation, export 9(1) Gross processing capacity; includes plants under construction and Stakeholder Midstream acquisition completed in January 2026 .INVESTOR PRESENTATION Premier Permian Asset Footprint Scale 9.8 Bcf/d gas processing 48 plants(1) 2.8 Bcf/d gas treating 9 injection wells Largest multi-plant, multi-system G&P footprint, integrated with Targa’s NGL business Operational Interconnected plant systems High reliability and redundancy Strong operating run-times Supply Millions of dedicated acres Thousands of receipt points Best in class customers
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0 100 200 300 400 500 600 700 800 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Permian Rig Count (1) Targa Permian Inlet Volumes (MMcf/d) Permian Rig Count Targa Permian Inlet Volumes Lucid Acquisition Atlas Acquisition Outrigger Acquisition Differentiated Permian Position 10INVESTOR PRESENTATION 0.4 Bcf/d 6.7 Bcf/d (1) Source: Baker Hughes, as of February 6, 2026. Remarkable volume growth across a backdrop of much fewer active rigs in the basin
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80 100 120 140 160 180 200 220 240 260 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Growth Indexed Actual(1) Forecast(2) Permian Gas Growth 12% Permian Crude Growth 7% Targa Permian Growth 16% Crude Growth Forecast: 3% annually Gas Growth Forecast: 7% annually Permian Basin Growth Points to Strong Outlook for Targa 11 Associated gas has outperformed crude and Targa has outperformed associated gas Targa Permian Growth has outpaced growth in basin-wide associated gas by +4% and crude by +9% on average over the last 6 years (1) Permian production growth per Enverus; Targa's reported Permian inlet volume growth adjusted for the 2022 Delaware Basin acqu isition. (2) Source: Enverus – January 2026. +4% Outperformance INVESTOR PRESENTATION
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NGL Transportation Expansion ― Permian to Mont Belvieu 12 Targa NGL Pipeline Transportation System New NGL pipeline expansion transporting Targa’s growing Permian NGL volumes to Mont Belvieu INVESTOR PRESENTATION Meaningful baseload volumes + Continued Permian growth + Commercial success + Increasing volumes on Targa’s integrated NGL system +320 MBbl/d NGL production(1) 2 recently completed Permian plants and 6 plants currently underway Medium-term 3rd party arrangements de-risk Speedway Speedway Initial capacity ~500 MBbl/d Expandable to ~1,000 MBbl/d ~500 miles, 30-inch pipe ISD Q3 2027 (1) Assumes approximately 40 MBbls/d of NGL production per gas plant available for NGL transportation.
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Targa’s Permian Intra-Basin Residue System Enhancing Targa’s natural gas connectivity across the Permian Delaware and Permian Midland 13INVESTOR PRESENTATION Over 5.5 Bcf/d connected through 29 Targa plants ✓ Reliability and redundancy for customers ✓ Bolsters market access to current and future Permian egress outlets as well as in-basin demand ✓ Attractive offering to producer customers ✓ Complementary to Targa’s G&P system, further enabling future volume growth Targa Residue Pipeline System(1) Best in class residue supply connectivity in the Permian (1) The Bull Run Extension is projected to be complete by 1Q27, Buffalo Run is expected to be completed in stages and fully compl ete in early 2028, and the Forza pipeline is expected to begin operations in mid-2028, pending receipt of necessary regulatory approvals. Over 5.5 Bcf/d connected through 29 Targa plants when residue projects completed.
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Acquisition of Stakeholder Midstream Bolt-on opportunity is a complement to Targa’s existing Permian footprint 14INVESTOR PRESENTATION Attractive valuation ~6x asset-level unlevered FCF Stable long-term volume profile Minimal growth capital Extends competitive reach ~170,000 dedicated acres Further enhances sour gas treating and CCUS footprint Fee-based Targa + Stakeholder Midstream
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Targa’s Continued Commercial Success Two recent bolt-on transactions and continued commercial activity extend Targa’s competitive reach with attractive returns 15INVESTOR PRESENTATION Bolt-ons add 2MM acres in AMI ~300K dedicated acres Recent commercial success has also added ~350K dedicated acres Significant volume potential Adding to Targa’s long-term growth rate Targa Recent Commercial Success
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Targa Positioned for Deeper Zone Development Adds incremental growth to Targa’s already strong growth outlook 16INVESTOR PRESENTATION Materially expands Targa supply potential Adds to Targa’s long-term growth rate ~200 wells drilled in 2025 across Woodford-Barnett compared with less than 10 in 2020 >50% higher GORs vs. primary Permian development targets Broader Permian Woodford-Barnett Formation
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2026 Outlook Increasing system volumes drive strong projected growth in Adjusted EBITDA of 11% YoY 17 Commodity Price Sensitivity(2) Change in Prices INVESTOR PRESENTATION Adjusted EBITDA Net Growth Capital 2026 Outlook Net Maintenance Capital $250MM $5,400 - $5,600MM ~$4,500MM +~$135MM-~$100MM2026E Adjusted EBITDA Impact Fee-based(1) -30% +30% Fee-Based Commodity Sensitivity (Hedged) Commodity Sensitivity (Unhedged) 90%+ Fee-based business, minimal commodity exposure, well-hedged Less than 2% impact from 30% change in prices Note: This slide contains non-GAAP measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measure is included at the end of this presentation. YoY expected growth in Adjusted EBITDA based on the midpoint of $5.4 billion to $5.6 billion range. (1) Based on 2026E adjusted operating margin. (2) Assumes 2026E commodity prices average Waha natural gas $1.00/Mmbtu, NGLs $0.60/gallon, and WTI crude oil $63.00/barrel. Commodity price sensitivity for 2026E inclusive of a number of factors, including unhedged exposure, fee floor arrangements and any associated fee floor hedges, NGL barrel composition and recovery economics. Price sensitivity only; assumes no volume or other operational changes.
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Net Growth Capital ~$2.5B Maint. Capital Interest & Other(1) Adjusted Free Cash Flow Illustrative Post Speedway & LPG Export Expansion 2020 2021 2022 2023 2024 2025 2026E Adjusted EBITDA Net Growth Capital Post Speedway, Targa Estimates Billions in Cash Flow Generation 18 Combination of Adjusted EBITDA growth and lower downstream capital results in meaningful annual free cash flow Note: This slide contains non-GAAP measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measure is included at the end of this presentation. 2026 EBITDA estimate represents the midpoint of $5.4 – $5.6B range and approximately $4.5B of net growth capital. (1) Illustrative interest expense and other of ~$1.15B includes interest costs and minimal cash taxes. (2) Proportional downstream capital includes fracs, pumps and residue spending. FY26E ~$4.5B FY26E $5.5B Significantly Higher Adjusted EBITDA INVESTOR PRESENTATION FY20 $1.6B Capital to support ~3 plants per year of Targa Permian volume growth and proportional downstream capital(2) Minimal spend on NGL transport and LPG export for years
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Differentiated growth position drives increasing return of capital Note: This slide contains non-GAAP measures. A reconciliation of all non-GAAP financial measures used in this presentation to th eir nearest comparable GAAP financial measure is included at the end of this presentation. (1) Management intends to recommend to Targa’s Board of Directors an increase to the 2026 quarterly cash common dividend to $5.00 per share annualized for the first quarter of 2026. INVESTOR PRESENTATION 40-50% Adjusted CFFO expected to be returned across multi-year horizon 25% Dividend growth in 2026(1) Share repurchases in 2025 Leading Return of Capital Outlook 19 $642MM 3.5x Leverage comfortably within 3.0-4.0x long-term target range
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INVESTOR PRESENTATION (1) Buffalo Run is expected to be completed in stages and fully complete in early 2028. Gathering & Processing Investing in Attractive Projects Driven by Permian Volume Growth Organic investments across Targa’s integrated NGL business expected to drive strong return on invested capital Logistics & Transportation Integrated projects support continued growth outlook 20 Processing Plants Details Forecasted In-Service Permian Midland East Pembrook 275 MMcf/d 2Q26 East Driver 275 MMcf/d 3Q26 Permian Delaware Falcon II 275 MMcf/d 1Q26 Copperhead 275 MMcf/d 1Q27 Yeti 275 MMcf/d 3Q27 Yeti II 275 MMcf/d 4Q27 L&T Segment Details Forecasted In-Service NGL Projects Train 11 Fractionator 150 MBbl/d 2Q26 Delaware Express ~100 miles 2Q26 Train 12 Fractionator 150 MBbl/d 1Q27 GPMT LPG Export Expansion 4 MMBbl/month 3Q27 Speedway NGL Pipeline 500 MBbl/d 3Q27 Train 13 Fractionator 150 MBbl/d 1Q28 Natural Gas Pipelines Bull Run Extension ~43 miles 1Q27 Buffalo Run ~90 miles By early 2028(1) Forza Pipeline ~36 miles Mid-2028
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0 5 10 15 2020 2021 2022 2023 2024 2025 MMBbl/Month LPG Export Volumes(1) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2020 2021 2022 2023 2024 2025 MMcf/d 0 200 400 600 800 1,000 1,200 2020 2021 2022 2023 2024 2025 MBbl/d 0 200 400 600 800 1,000 1,200 2020 2021 2022 2023 2024 2025 MBbl/d 21(1) Operational metrics represent average annual volumes.INVESTOR PRESENTATION Proven Record of Growth Increasing volume trajectory through Targa’s fee-based integrated NGL infrastructure footprint fuels growth in 2026 and beyond Permian Natural Gas Inlet Volumes(1) NGL Pipeline Transportation(1) Fractionation Volumes(1) 21% CAGR 27% CAGR 12% CAGR 7% CAGR +11% +13% +21% +1%
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Ba2/ BB Ba2/ BB Ba1/ BB+ BBB-/ Baa3/ BBB- BBB- /Baa3 /BBB- BBB/ Baa2/ BBB BBB/ Baa2/ BBB 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 2019 2020 2021 2022 2023 2024 2025 Consolidated Leverage $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2021 2022 2023 2024 2025 2026E Adjusted EBITDA ($ in Billions) $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 2021 2022 2023 2024 2025 2026E Annual Common Dividend per Share 200 205 210 215 220 225 230 2021 2022 2023 2024 December 31, 2025 Common Shares Outstanding (in millions) Track Record of Strong Financial Performance Integrated NGL business and supportive business fundamentals drive increasing cash flow outlook and return of capital 22 Industry Leading Adjusted EBITDA Growth(1) Strong Investment Grade Balance Sheet Significant Financial Flexibility Since 2020, Targa has repurchased ~10% of outstanding shares Reducing Share Count(3) Growing Annual Dividends per Share Long-Term Target +25% YoY INVESTOR PRESENTATION Note: This slide contains non-GAAP measures. A reconciliation of all non-GAAP financial measures used in this presentation to their nearest comparable GAAP financial measure is included at the end of this presentation. (1) Adjusted EBITDA growth based on midpoint of projected 2026E adjusted EBITDA range compared to 2021 adjusted EBITDA. (2) Management intends to recommend to Targa’s Board of Directors an increase to the 2026 quarterly cash common dividend to $5.00 per share annualized for the first quarter of 2026. (3) Since inception of Share Repurchase Program adopted in October 2020 through December 31, 2025. 25% CAGR BBB/ Baa2/ BBB +11% ~24mm in Buybacks(3) (2)
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Natural Gas Demand Growth Requires Continued Investment in Infrastructure Source: Wood Mackenzie Long-Term Outlook (November 2025) and Targa Fundamentals. Note: LNG feed gas includes an assumed 9% increase to account for LNG plant fuel which would otherwise be included in Industr ial. Incremental production from the Permian and other shale basins will be needed to support increasing natural gas demand INVESTOR PRESENTATION 23 Key drivers for increased natural gas demand ▪ Population and economic growth ▪ Coal plant retirements / gas conversions ▪ Re-shoring of industry and manufacturing ▪ Large load demand (AI / data centers, crypto mining) ▪ Backstop intermittent renewables ▪ Substantial LNG export capacity expansions Demand forecasted to increase by ~20% through 2030 Projected Lower 48 Natural Gas Demand Growth (Bcf/d) 115 4 14 6 139 Total L48 (2025) Res/Comm/Industrial Exports Power Total L48 (2030E)
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0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 MMBbls/d Netherlands Indonesia Mexico South Korea Japan China ROW 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2015 2024 2040E MMBbl/d Asia Ex-Asia Source: Kpler and S&P Global (Global Fundamentals Annual Strategic Update – 2025 September).INVESTOR PRESENTATION Targa’s wellhead to water NGL strategy adds significant barrels into its system that are available for export LPG Exports Show Resilience Amid Periods of Geopolitical Tension Global LPG Demand +59% Growth +5% Growth +23% Growth +11% Growth 24 Growing and Diverse Demand for US Gulf Coast LPG Exports U.S. LPG exports continue to rise fueled by robust and expanding demand across a diversified international customer base 10 Year CAGR: 13%
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25 (1) Gross processing capacity; includes plants under construction. (2) Includes Speedway NGL Pipeline project in progress. (3) Includes 40 MBbl/d of back-end capacity, Targa’s proportionate equity interest in GCF, and trains under construction. (4) Includes LPG export expansion projects under construction. This capability is dependent on the mix of propane and butane dema nd, vessel size and availability of supply, among other factors. INVESTOR PRESENTATION ~35,200 Miles Natural Gas, Crude, and NGL Pipelines 13.0 Bcf/d 1.5 MMBbl/d Gas Processing Capacity(1) NGL Transport Capacity(2) 1.6 MMBbl/d Fractionation Capacity(3) 19 MMBbl/mo LPG Export Capacity(4) A Leading Infrastructure Company
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INVESTOR PRESENTATION Appendix and Reconciliations
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Non-GAAP Financial Measures This presentation includes the Company’s non-GAAP financial measures: adjusted EBITDA and adjusted cash flow from operations. The following tables provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. The Company utilizes non-GAAP measures to analyze the Company’s performance. Adjusted EBITDA and adjusted cash flow from operations are non-GAAP measures. The GAAP measures most directly comparable to these non-GAAP measures are income (loss) from operations, Net income (loss) attributable to Targa Resources Corp. and segment operating margin. These non-GAAP measures should not be considered as an alternative to GAAP measures and have important limitations as analytical tools. Investors should not consider these measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Additionally, because the Company’s non-GAAP measures exclude some, but not all, items that affect income and segment operating margin, and are defined differently by different companies within the Company’s industry, the Company’s definitions may not be comparable with similarly titled measures of other companies, thereby diminishing their utility. Management compensates for the limitations of the Company’s non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating these insights into the Company’s decision-making processes. Adjusted EBITDA The Company defines adjusted EBITDA as Net income (loss) attributable to Targa Resources Corp. before interest, income taxes, depreciation and amortization, and other items that the Company believes should be adjusted consistent with the Company’s core operating performance. The adjusting items are detailed in the adjusted EBITDA reconciliation table and its footnotes. Adjusted EBITDA is used as a supplemental financial measure by the Company and by external users of the Company’s financial statements such as investors, commercial banks and others to measure the ability of the Company’s assets to generate cash sufficient to pay interest costs, support the Company’s indebtedness and pay dividends to the Company’s investors. Adjusted Cash Flow from Operations (Adjusted CFFO) The Company defines adjusted cash flow from operations as adjusted EBITDA less cash interest expense on debt obligations and cash tax (expense) benefit. Adjusted cash flow from operations is a performance measure used by the Company and by external users of the Company’s financial statements, such as investors, commercial banks and research analysts, to assess the Company’s ability to generate cash earnings (after servicing the Company’s debt and funding capital expenditures) to be used for corporate purposes, such as payment of dividends, retirement of debt or redemption of other financing arrangements. INVESTOR PRESENTATION 27
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Non-GAAP Measures Reconciliation INVESTOR PRESENTATION (1) Includes the change in estimated redemption value of the mandatorily redeemable preferred interests. Effective September 2022 , we redeemed the Company’s joint venture partner's mandatorily redeemable preferred interests in the two joint ventures that, s eparately, owned a 100% interest in the WestOK natural gas gathering and processing system and a 72.8% undivided interest in the WestTX natural gas gathering and processing system. (2) Gains or losses on debt repurchases or early debt extinguishments. (3) Includes financial advisory, legal and other professional fees, and other one -time transaction costs. (4) Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amorti zation expense as well as earnings for certain plants within the Company's WestTX joint venture not subject to noncontrolling in terest accounting. (5) Litigation and environmental reserves includes charges related to specific litigation and environmental compliance matters th at are nonrecurring in nature and outside the ordinary course of our business and/or not reflective of our ongoing core operatio ns. We may incur such charges from time to time, and we believe it is useful to exclude these charges as we do not consider them reflective of our ongoing core operations. (6) Excludes amortization recognized in interest expense. The year ended December 31, 2024 includes $55.8 million of interest expense on a 2024 legal ruling. 28 Year Ended December 31, 2025 2024 2023 2022 2021 2020 (In millions, except per share amounts) Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA Net income (loss) attributable to Targa Resources Corp. 1,923.0$ 1,312.0$ 1,345.9$ 1,195.5$ 71.2$ (1,553.9)$ Income attributable to TRP preferred limited partners — — — — — 15.1 Interest (income) expense, net (1) 852.8 767.2 687.8 446.1 387.9 391.3 Income tax expense (benefit) 529.7 384.5 363.2 131.8 14.8 (248.1) Depreciation and amortization expense 1,515.3 1,423.0 1,329.6 1,096.0 870.6 865.1 Impairment of long-lived assets — — — — 452.3 2,442.8 (Gain) loss on sale or disposition of business and assets (6.1) (3.1) (5.3) (9.6) 2.0 58.4 Write-down of assets 18.8 6.2 6.9 9.8 10.3 55.6 (Gain) loss from financing activities (2) 2.4 0.8 2.1 49.6 16.6 (45.6) (Gain) loss from sale of equity-method investment — — — (435.9) — — Transaction costs related to business acquisition (3) — — — 23.9 — — Equity (earnings) loss (11.8) (9.4) (9.0) (9.1) 23.9 (72.6) Distributions from unconsolidated affiliates 28.5 25.3 18.6 27.2 116.5 108.6 Change in contingent considerations — — — — 0.1 (0.3) Compensation on equity grants 69.5 63.2 62.4 57.5 59.2 66.2 Risk management activities 5.3 164.6 (275.4) 302.5 116.0 (228.2) Noncontrolling interests adjustments (4) 11.4 3.9 (3.7) 15.8 (89.4) (224.3) Litigation and environmental reserves (5) 18.6 4.1 6.9 — — — Adjusted EBITDA 4,957.4$ 4,142.3$ 3,530.0$ 2,901.1$ 2,052.0$ 1,636.6$ Interest expense on debt obligations (6) (835.4) (752.4) (675.8) (447.6) (376.2) (388.9) Cash tax (expense) benefit (13.1) (17.5) (13.6) (6.7) (2.7) 44.4 Adjusted Cash Flow from Operations 4,108.9$ 3,372.4$ 2,840.6$ 2,446.8$ 1,673.1$ 1,292.1$ Weighted average diluted shares outstanding 216.9 221.3 226.0 231.1 228.6 232.2 Adjusted CFFO per share 18.94$ 15.24$ 12.57$ 10.59$ 7.32$ 5.56$
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Non-GAAP Measures Reconciliation INVESTOR PRESENTATION 29(1) Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest accounting. Full Year 2026E (in millions) Reconciliation of Estimated Net Income attributable to Targa Resources Corp. to Estimated Adjusted EBITDA Net income attributable to Targa Resources Corp. 2,200$ Interest expense, net 960 Income tax expense 610 Depreciation and amortization expense 1,650 Equity earnings (30) Distributions from unconsolidated affiliates 32 Compensation on equity grants 75 Risk management activities and other 10 Noncontrolling interests adjustments(1) (7) Estimated Adjusted EBITDA 5,500$
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Targa is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. Our operations are critical to the efficient, safe, and reliable delivery of energy across the United States and increasingly to the world. Our assets connect natural gas and natural gas liquids (NGLs) to domestic and international markets with growing demand for cleaner fuels and feedstocks. WWW.TARGARESOURCES.COM INVESTOR PRESENTATION INVESTORRELATIONS@TARGARESOURCES.COM 30