Targa Resources Partners LP (NGLS) Company Conference Call November 17, 2011 12:15 pm ET Executives Joe Bob Perkins – President, Targa Resources Partners Randall Fowler – Executive Vice President, Chief Financial Officer, Enterprise Products Frank Semple – Chairman, President, Chief Executive Officer, MarkWest Energy Partners Analysts Presentation Moderator
Going forward, Haynesville shale most recently we completed our Haynesville extension. That was a $1.6 billion project. We brought it in for $1.5 billion. It’s a 1.8 Bcf a day pipeline that takes natural gas from the Haynesville Bossier shale areas in north Louisiana going to the southeast. We connect with about 10 interstate pipelines, noteworthy Florida Gas and (inaudible), so we’ve been able to get producers gas into the southeast and in the Florid markets, and then also we connect with about 100 customers in the south Louisiana area, whether they be Louisiana Power and Light, whether it be some municipal utilities, or large industrial users. So again, we’re getting that producer gas instead of getting it to a hub where it needs to be transported further, we can come in and actually get them to real end-use consumers. So that project went into service last month. Incremental EBITDA, let’s call it between—over the life, probably 150 to $200 million a year, probably closer to about 160 as we start out.In the Eagleford, we’ll—I’m not sure—yeah, that’s what I thought. In the Eagleford, we’ve got a number of projects on the natural gas side, natural gas processing, NGL liquid takeaway and crude oil takeaway. Some of our natural gas pipeline projects are extensions off our base system. Some we completed in 2010; others we’ve completed in 2011, and what that enabled us to do was to quickly be able to get some Eagleford volumes into the seven plants that we already had down in the Eagleford. We have about 300 million cubic feet a day of capacity, so we were able to quickly get that Eagleford production in those plants. We filled those plants up. In the Eagleford, we probably have about between 3.5 and $4 billion worth of projects under construction. The first phase of the crude oil pipeline ought to be in service in the first half of next year. The extension that goes deeper into the Eagleford should be completed in the second half of next year, as well as our natural gas processing plant, and then our NGL takeaway back into Mount Bellevue.
Complementary to that, we’re building a six fractionator at Mount Bellevue, another 80,000 barrel a day fractionators. We originally had on the timeline that that would probably be first quarter 2013. Our guys have built so many of these 75 to 80,000 barrel a day fractionators that they’re able to come in and bring them in on our under budget, and really the last one we brought in about five months ahead of schedule. We think probably that fractionator comes on late 2012 instead of 2013.In total, we currently have about $4.5 billion worth of projects under construction. Not mentioned here is the proposed pipeline that we have coming out of the Marcellus, an ethane pipeline. That’d be about a 1,200 mile pipeline - 600 miles of it would be new build, 600 miles of it would be reversing an existing pipeline. We put out a press release here a few weeks ago on Chesapeake came in and took a big chunk of capacity – 75,000 barrels a day – that it would be ramping up over five years. We just completed an open season. We’re finishing the evaluations on that, and I would think we’d have an announcement on that ethane pipeline here in the next week or two. Read the rest of this transcript for free on seekingalpha.com