Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of midstream energy assets in North America. The company operates in two segments, Gathering and Processing, and Logistics and Transportation. It engages in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil. The company is also involved in the purchase and resale of NGL products; and wholesale of propane, as well as provision of related logistics services to multi-state retailers, independent retailers, and other end-users. In addition, it offers NGL balancing services; and transportation services to refineries and petrochemical companies in the Gulf Coast area, as well as purchases, markets, and resells natural gas. The company operates approximately 28,400 miles of natural gas pipelines, including 42 owned and operated processing plants; and owns or operates a total of 34 storage wells with a gross storage capacity of approximately 76 million barrels. As of December 31, 2021, it leased and managed approximately 648 railcars; 119 transport tractors; and two company-owned pressurized NGL barges. The company was incorporated in 2005 and is headquartered in Houston, Texas.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	20,929.8	16,060.3	16,381.5	17,520.7	19,945.8	21,356	21,356	21,356
Revenue % Chg.	23.5%	-23.3%	2%
EBIT	1,729	2,626.2	2,695.4	3,281	3,557.9	3,961	3,961	3,961
EBIT Margin	8.3%	16.4%	16.5%
Tax Rate	7.9%	18.7%	19.8%
NOPAT	1,592	2,135.2	2,160.6	2,575.6	2,810.8	3,129.2	3,129.2	3,129.2
NOPAT Margin	7.6%	13.3%	13.2%	14.7%	14.1%	14.7%	14.7%	14.7%
D&A	1,100.8	1,335.5	1,433.6	1,517.8	1,650.9	1,745.8	1,745.8	1,745.8
D&A / Revenue	5.3%	8.3%	8.8%
Capex	-1,334.3	-2,385.4	-2,965.8	-3,780.1	-3,396.7	-2,667.7	-2,667.7	-2,667.7
Capex / Revenue	-6.4%	-14.9%	-18.1%
Chg. NWC	-364	139.2	38.7	-37.2	-42.3	-45.3	-45.3	-45.3
Chg. NWC / Revenue	-1.7%	0.9%	0.2%
Unlevered FCF (UFCF)	994.5	1,224.5	667.1	276.2	1,022.6	2,162.1	2,162.1	2,162.1
UFCF % Chg.	-46.6%	23.1%	-45.5%	-58.6%	270.2%	111.4%	—	—
PV of UFCF	—	—	—	256.5	882	1,732.1	1,608.7	1,494.1
Sum of PV of UFCF	—	—	—	256.5	1,138.6	2,870.7	4,479.4	5,973.4

Cost of Debt
Tax Rate
After Tax Cost of Debt	4.7%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	8.7%
Total Debt	14,290.2
Market Cap	39,868.5
Total Capital	54,158.7
Debt Weighting	26.4%
Equity Weighting	73.6%
WACC	7.7%

Exit Multiple EV/FCF
Terminal Value	57,302.7
PV of Terminal Value	36,776.6
Cumulative PV of UFCF	5,973.4
Net Debt	17,307.2
Equity Value	25,442.8
Shares Outstanding	214.7
Implied Share Price	118.5
Current Share Price	185.7
Implied Upside / (Downside)	-36.2%