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Simplified corporate structure here, we have two public companies now with the IPO of Targa Resources Corp in 2010 that was the end game for Warburg Pincus a private equity sponsor. They still have an ownership interest, but we’re no longer controlled by Warburg and they’ve been monetizing their position since the time of the IPO.The Targa Resources Corp is a holding Company, its sole assets are the general partner interest, the Ides and some of the LP units of the partnership. Targa Resources Partners has been public since 2007. It’s a master limited partnership, approximately 84% owned by the public. All of our businesses are now at the partnership and Matt will walk you through a description of those, we show them here grouped according to our two divisions and four reporting segments. The partnership is also the issuer of our senior notes with approximately 1.4 billion face value of double BB Ba3 notes outstanding. We’ve got little market cap data here on the equity side. On the left we have the partnership of about 3.8 billion equity market cap, 5.3 total on a standalone basis, Targa Resources Corp is 1.9 billion. If you eliminate the equity owned by the parent, the consolidated enterprise value is approximately $6.8 billion. The price performance of both Companies here is shown on the bottom relative to a couple of indices, reflects the strong industry fundamentals that we have around our businesses and the solid position that we have for growing our assets in that environment. We will talk more about that. The Targa story has really been execution and growth. The industry dynamics that are feeding our businesses and driving volume growth are twofold. First, we have an incredible activity on the exploration and production side as the shale technologies are being deployed in places like the Permian Basin, to increase oil production. We’re seeing volume increases throughout many of our businesses. But more importantly that volume increase on the gathering and processing side drives volume increases in natural gas liquids, which as I mentioned earlier all liquids essentially go to Belvieu over the second largest player. Those dynamics are driving volume growth and investment opportunities for us to cross our business.
We put $300 million of growth capital in service in 2011. We have a $1 billion in 2012 and 2013 of projects underway now that we’re coming online in that timeframe. That provides clear visibility to EBITDA growth for the enterprise.We manage our growth with discipline and we’re very well positioned for that growth as we stand today. We did a couple of financings in January and so we stand at 2.8 times debt-to-EBITDA pro forma for those financings and have $1.1 billion of liquidity. That track record of disciplined financial management and execution around our growth gives us very good ratings momentum. We had upgrades from both agencies over the last 12 months and as a scale of the Company continues that’s certainly something we would look forward to over the next couple of years. And importantly the visibility of our growth projects allows us to have clarity on what we see is – as a growth in EBITDA for the enterprise and distribution growth of 10% to 15% for the partnership for 2012. Capital formation, this slide shows on the up right about $3 billion of investment in expansion and acquisitions and dropdowns at partnership since its formation in 2007. Our target is about a 50/50 mix of debt and equity and we show the funding for those growth investments on the bottom. The red line represents the cumulative run rate and that number tags out at about 55% on the conservative side of our 50/50 target. Read the rest of this transcript for free on seekingalpha.com