Delaware
|
|
20-3701075
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
1000 Louisiana St, Suite 4300, Houston, Texas
|
|
77002
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer R
|
Accelerated filer £
|
Non-accelerated filer £
|
Smaller reporting company £
|
4
|
||
|
|
|
|
4
|
|
|
|
|
|
5
|
|
|
|
|
|
6
|
|
|
|
|
|
7
|
|
|
|
|
|
8
|
|
|
|
|
|
9
|
|
|
|
|
|
10
|
|
|
|
|
28
|
||
|
|
|
55
|
||
|
|
|
58
|
||
|
|
|
PART II—OTHER INFORMATION
|
||
|
|
|
59
|
||
|
|
|
59
|
||
|
|
|
59
|
||
|
|
|
59
|
||
|
|
|
59
|
||
|
|
|
59
|
||
|
|
|
60
|
||
|
|
|
SIGNATURES
|
||
|
|
|
62
|
· | the Partnership’s and our ability to access the debt and equity markets, which will depend on general market conditions and the credit ratings for our debt obligations; |
· | the amount of collateral required to be posted from time to time in the Partnership’s transactions; |
· | the Partnership’s success in risk management activities, including the use of derivative instruments to hedge commodity risks; |
· | the level of creditworthiness of counterparties to various transactions of the Partnership; |
· | changes in laws and regulations, particularly with regard to taxes, safety and protection of the environment; |
· | the timing and extent of changes in natural gas, natural gas liquids (“NGL”), crude oil and other commodity prices, interest rates and demand for the Partnership’s services; |
· | weather and other natural phenomena; |
· | industry changes, including the impact of consolidations and changes in competition; |
· | the Partnership’s ability to obtain necessary licenses, permits and other approvals; |
· | the level and success of crude oil and natural gas drilling around the Partnership’s assets, its success in connecting natural gas supplies to its gathering and processing systems, oil supplies to its gathering systems and NGL supplies to its logistics and marketing facilities and the Partnership’s success in connecting its facilities to transportation and markets; |
· | the Partnership’s and our ability to grow through acquisitions or internal growth projects and the successful integration and future performance of such assets; |
· | general economic, market and business conditions; and |
· | the risks described elsewhere in “Part II - Other Information, Item 1A. Risk Factors.” of this Quarterly Report, our Annual Report on Form 10-K for the year ended December 31, 2012 (“Annual Report”) and our reports and registration statements filed from time to time with the United States Securities and Exchange Commission (“SEC”). |
Bbl
|
Barrels (equal to 42 U.S. gallons)
|
Btu
|
British thermal units, a measure of heating value
|
BBtu
|
Billion British thermal units
|
/d
|
Per day
|
/hr
|
Per hour
|
gal
|
U.S. gallons
|
GPM
|
Liquid volume equivalent expressed as gallons per 1000 cu. ft. of natural gas
|
LPG
|
Liquefied petroleum gas
|
MBbl
|
Thousand barrels
|
MMBbl
|
Million barrels
|
MMBtu
|
Million British thermal units
|
MMcf
|
Million cubic feet
|
NGL(s)
|
Natural gas liquid(s)
|
NYMEX
|
New York Mercantile Exchange
|
GAAP
|
Accounting principles generally accepted in the United States of America
|
LIBOR
|
London Interbank Offer Rate
|
NYSE
|
New York Stock Exchange
|
Price Index Definitions
|
|
IF-NGPL MC
|
Inside FERC Gas Market Report, Natural Gas Pipeline, Mid-Continent
|
IF-PB
|
Inside FERC Gas Market Report, Permian Basin
|
IF-WAHA
|
Inside FERC Gas Market Report, West Texas WAHA
|
NY-WTI
|
NYMEX, West Texas Intermediate Crude Oil
|
OPIS-MB
|
Oil Price Information Service, Mont Belvieu, Texas
|
|
September 30,
|
December 31,
|
||||||
|
2013
|
2012
|
||||||
|
(Unaudited)
|
|||||||
|
(In millions)
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
83.7
|
$
|
76.3
|
||||
Trade receivables, net of allowances of $0.9 million and $0.9 million
|
498.5
|
514.9
|
||||||
Inventories
|
201.7
|
99.4
|
||||||
Assets from risk management activities
|
10.9
|
29.3
|
||||||
Other current assets
|
14.2
|
13.4
|
||||||
Total current assets
|
809.0
|
733.3
|
||||||
Property, plant and equipment
|
5,454.0
|
4,708.0
|
||||||
Accumulated depreciation
|
(1,344.6
|
)
|
(1,170.0
|
)
|
||||
Property, plant and equipment, net
|
4,109.4
|
3,538.0
|
||||||
Other intangible assets, net
|
660.3
|
680.8
|
||||||
Long-term assets from risk management activities
|
3.9
|
5.1
|
||||||
Investment in unconsolidated affiliate
|
51.2
|
53.1
|
||||||
Other long-term assets
|
91.5
|
94.7
|
||||||
Total assets
|
$
|
5,725.3
|
$
|
5,105.0
|
||||
|
||||||||
LIABILITIES AND OWNERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued liabilities
|
$
|
679.6
|
$
|
679.0
|
||||
Deferred income taxes
|
2.0
|
0.2
|
||||||
Liabilities from risk management activities
|
5.5
|
7.4
|
||||||
Total current liabilities
|
687.1
|
686.6
|
||||||
Long-term debt
|
2,867.9
|
2,475.3
|
||||||
Long-term liabilities from risk management activities
|
1.6
|
4.8
|
||||||
Deferred income taxes
|
136.1
|
131.2
|
||||||
Other long-term liabilities
|
58.0
|
53.7
|
||||||
|
||||||||
Commitments and contingencies (see Note 14)
|
||||||||
|
||||||||
Owners' equity:
|
||||||||
Targa Resources Corp. stockholders' equity:
|
||||||||
Common stock ($0.001 par value, 300,000,000 shares authorized, 42,529,218 shares issued and 42,331,487 shares outstanding as of September 30, 2013, and 42,492,233shares issued and 42,294,502 shares outstanding as of December 31, 2012)
|
-
|
-
|
||||||
Preferred stock ($0.001 par value, 100,000,000 shares authorized, no shares issued and outstanding as of September 30, 2013 and December 31, 2012)
|
-
|
-
|
||||||
Additional paid-in capital
|
147.6
|
184.4
|
||||||
Retained earnings (accumulated deficit)
|
12.6
|
(32.0
|
)
|
|||||
Accumulated other comprehensive income
|
0.3
|
1.2
|
||||||
Treasury stock, at cost (197,731 shares as of September 30, 2013 and as of December 31, 2012)
|
(9.5
|
)
|
(9.5
|
)
|
||||
Total Targa Resources Corp. stockholders' equity
|
151.0
|
144.1
|
||||||
Noncontrolling interests in subsidiaries
|
1,823.6
|
1,609.3
|
||||||
Total owners' equity
|
1,974.6
|
1,753.4
|
||||||
Total liabilities and owners' equity
|
$
|
5,725.3
|
$
|
5,105.0
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
|
(Unaudited)
|
|||||||||||||||
|
(In millions, except per share amounts)
|
|||||||||||||||
Revenues
|
$
|
1,556.8
|
$
|
1,393.5
|
$
|
4,396.2
|
$
|
4,358.4
|
||||||||
Costs and expenses:
|
||||||||||||||||
Product purchases
|
1,259.8
|
1,153.0
|
3,573.8
|
3,611.8
|
||||||||||||
Operating expenses
|
97.6
|
78.3
|
279.8
|
227.2
|
||||||||||||
Depreciation and amortization expenses
|
69.0
|
48.6
|
198.7
|
144.3
|
||||||||||||
General and administrative expenses
|
37.7
|
35.7
|
112.5
|
106.5
|
||||||||||||
Other operating expense
|
4.2
|
18.9
|
8.3
|
18.8
|
||||||||||||
Income from operations
|
88.5
|
59.0
|
223.1
|
249.8
|
||||||||||||
Other income (expense):
|
||||||||||||||||
Interest expense, net
|
(33.4
|
)
|
(30.0
|
)
|
(97.9
|
)
|
(91.0
|
)
|
||||||||
Equity earnings (loss)
|
5.6
|
(2.2
|
)
|
10.1
|
(0.3
|
)
|
||||||||||
Loss on debt redemption
|
(7.4
|
)
|
-
|
(14.7
|
)
|
-
|
||||||||||
Other
|
9.1
|
(1.8
|
)
|
15.3
|
(2.1
|
)
|
||||||||||
Income before income taxes
|
62.4
|
25.0
|
135.9
|
156.4
|
||||||||||||
Income tax expense:
|
||||||||||||||||
Current
|
(6.6
|
)
|
(4.3
|
)
|
(23.3
|
)
|
(20.3
|
)
|
||||||||
Deferred
|
(6.4
|
)
|
(1.7
|
)
|
(7.0
|
)
|
(4.4
|
)
|
||||||||
|
(13.0
|
)
|
(6.0
|
)
|
(30.3
|
)
|
(24.7
|
)
|
||||||||
Net income
|
49.4
|
19.0
|
105.6
|
131.7
|
||||||||||||
Less: Net income attributable to noncontrolling interests
|
33.1
|
10.3
|
61.0
|
104.8
|
||||||||||||
Net income available to common shareholders
|
$
|
16.3
|
$
|
8.7
|
$
|
44.6
|
$
|
26.9
|
||||||||
|
||||||||||||||||
Net income available per common share - basic
|
$
|
0.39
|
$
|
0.21
|
$
|
1.07
|
$
|
0.66
|
||||||||
Net income available per common share - diluted
|
$
|
0.39
|
$
|
0.21
|
$
|
1.06
|
$
|
0.64
|
||||||||
Weighted average shares outstanding - basic
|
41.6
|
41.0
|
41.6
|
41.0
|
||||||||||||
Weighted average shares outstanding - diluted
|
42.1
|
41.9
|
42.1
|
41.8
|
|
Three Months Ended September 30,
|
|||||||||||||||||||||||
|
2013
|
2012
|
||||||||||||||||||||||
|
Pre-
Tax
|
Related Income Tax
|
After
Tax
|
Pre-
Tax
|
Related
Income Tax
|
After
Tax
|
||||||||||||||||||
|
||||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Net income attributable to Targa Resources Corp.
|
$
|
16.3
|
$
|
8.7
|
||||||||||||||||||||
Other comprehensive income (loss) attributable to Targa Resources Corp.
|
||||||||||||||||||||||||
Commodity hedging contracts:
|
||||||||||||||||||||||||
Change in fair value
|
$
|
(1.6
|
)
|
$
|
0.6
|
(1.0
|
)
|
$
|
(3.7
|
)
|
$
|
2.0
|
(1.7
|
)
|
||||||||||
Settlements reclassified to revenues
|
(0.6
|
)
|
0.2
|
(0.4
|
)
|
(3.0
|
)
|
1.6
|
(1.4
|
)
|
||||||||||||||
Interest rate swaps:
|
||||||||||||||||||||||||
Settlements reclassified to interest expense, net
|
0.2
|
(0.1
|
)
|
0.1
|
0.3
|
(1.0
|
)
|
(0.7
|
)
|
|||||||||||||||
Other comprehensive income (loss) attributable to Targa Resources Corp.
|
$
|
(2.0
|
)
|
$
|
0.7
|
(1.3
|
)
|
$
|
(6.4
|
)
|
$
|
2.6
|
(3.8
|
)
|
||||||||||
Comprehensive income (loss) attributable to Targa Resources Corp.
|
$
|
15.0
|
$
|
4.9
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Net income attributable to noncontrolling interests
|
$
|
33.1
|
$
|
10.3
|
||||||||||||||||||||
Other comprehensive income (loss) attributable to noncontrolling interests
|
||||||||||||||||||||||||
Commodity hedging contracts:
|
||||||||||||||||||||||||
Change in fair value
|
$
|
(9.7
|
)
|
$
|
-
|
(9.7
|
)
|
$
|
(18.9
|
)
|
$
|
(0.2
|
)
|
(19.1
|
)
|
|||||||||
Settlements reclassified to revenues
|
(3.9
|
)
|
-
|
(3.9
|
)
|
(12.4
|
)
|
(0.1
|
)
|
(12.5
|
)
|
|||||||||||||
Interest rate swaps:
|
||||||||||||||||||||||||
Settlements reclassified to interest expense, net
|
1.3
|
-
|
1.3
|
1.6
|
-
|
1.6
|
||||||||||||||||||
Other comprehensive income (loss) attributable to noncontrolling interests
|
$
|
(12.3
|
)
|
$
|
-
|
(12.3
|
)
|
$
|
(29.7
|
)
|
$
|
(0.3
|
)
|
(30.0
|
)
|
|||||||||
Comprehensive income (loss) attributable to noncontrolling interests
|
$
|
20.8
|
$
|
(19.7
|
)
|
|||||||||||||||||||
|
||||||||||||||||||||||||
Total comprehensive income (loss)
|
$
|
35.8
|
$
|
(14.8
|
)
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
|
2013
|
2012
|
||||||||||||||||||||||
|
Pre-
Tax
|
Related
Income Tax
|
After
Tax
|
Pre-
Tax
|
Related
Income Tax
|
After
Tax
|
||||||||||||||||||
|
||||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Net income attributable to Targa Resources Corp.
|
$
|
44.6
|
$
|
26.9
|
||||||||||||||||||||
Other comprehensive income (loss) attributable to Targa Resources Corp.
|
||||||||||||||||||||||||
Commodity hedging contracts:
|
||||||||||||||||||||||||
Change in fair value
|
$
|
0.3
|
$
|
(0.1
|
)
|
0.2
|
$
|
11.5
|
$
|
(2.5
|
)
|
9.0
|
||||||||||||
Settlements reclassified to revenues
|
(2.3
|
)
|
0.9
|
(1.4
|
)
|
(6.6
|
)
|
1.4
|
(5.2
|
)
|
||||||||||||||
Interest rate swaps:
|
||||||||||||||||||||||||
Settlements reclassified to interest expense, net
|
0.6
|
(0.3
|
)
|
0.3
|
1.0
|
(1.3
|
)
|
(0.3
|
)
|
|||||||||||||||
Other comprehensive income (loss) attributable to Targa Resources Corp.
|
$
|
(1.4
|
)
|
$
|
0.5
|
(0.9
|
)
|
$
|
5.9
|
$
|
(2.4
|
)
|
3.5
|
|||||||||||
Comprehensive income attributable to Targa Resources Corp.
|
$
|
43.7
|
$
|
30.4
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Net income attributable to noncontrolling interests
|
$
|
61.0
|
$
|
104.8
|
||||||||||||||||||||
Other comprehensive income (loss) attributable to noncontrolling interests
|
||||||||||||||||||||||||
Commodity hedging contracts:
|
||||||||||||||||||||||||
Change in fair value
|
$
|
2.1
|
$
|
-
|
2.1
|
$
|
59.4
|
$
|
-
|
59.4
|
||||||||||||||
Settlements reclassified to revenues
|
(14.7
|
)
|
-
|
(14.7
|
)
|
(25.1
|
)
|
-
|
(25.1
|
)
|
||||||||||||||
Interest rate swaps:
|
||||||||||||||||||||||||
Settlements reclassified to interest expense, net
|
4.1
|
-
|
4.1
|
5.1
|
-
|
5.1
|
||||||||||||||||||
Other comprehensive income (loss) attributable to noncontrolling interests
|
$
|
(8.5
|
)
|
$
|
-
|
(8.5
|
)
|
$
|
39.4
|
$
|
-
|
39.4
|
||||||||||||
Comprehensive income attributable to noncontrolling interests
|
$
|
52.5
|
$
|
144.2
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Total comprehensive income
|
$
|
96.2
|
$
|
174.6
|
|
Retained
|
Accumulated
|
||||||||||||||||||||||||||||||||||
|
Additional
|
Earnings
|
Other
|
|||||||||||||||||||||||||||||||||
|
Common Stock
|
Paid in
|
(Accumulated
|
Comprehensive
|
Treasury Shares
|
Noncontrolling
|
||||||||||||||||||||||||||||||
|
Shares
|
Amount
|
Capital
|
Deficit)
|
Income (Loss)
|
Shares
|
Amount
|
Interests
|
Total
|
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||||||||||||||
|
(In millions, except shares in thousands)
|
|||||||||||||||||||||||||||||||||||
Balance, December 31, 2012
|
42,295
|
$
|
-
|
$
|
184.4
|
$
|
(32.0
|
)
|
$
|
1.2
|
198
|
$
|
(9.5
|
)
|
$
|
1,609.3
|
$
|
1,753.4
|
||||||||||||||||||
Compensation on equity grants
|
36
|
-
|
5.6
|
-
|
-
|
-
|
-
|
4.4
|
10.0
|
|||||||||||||||||||||||||||
Accrual of distribution equivalent rights
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1.1
|
)
|
(1.1
|
)
|
|||||||||||||||||||||||||
Sale of Partnership limited partner interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
377.4
|
377.4
|
|||||||||||||||||||||||||||
Receivables from unit offerings
|
-
|
-
|
(3.3
|
)
|
-
|
-
|
-
|
-
|
-
|
(3.3
|
)
|
|||||||||||||||||||||||||
Impact of Partnership equity transactions
|
-
|
-
|
23.8
|
-
|
-
|
-
|
-
|
(23.8
|
)
|
-
|
||||||||||||||||||||||||||
Dividends
|
-
|
-
|
(62.9
|
)
|
-
|
-
|
-
|
-
|
-
|
(62.9
|
)
|
|||||||||||||||||||||||||
Distributions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(195.1
|
)
|
(195.1
|
)
|
|||||||||||||||||||||||||
Other comprehensive income (loss)
|
-
|
-
|
-
|
-
|
(0.9
|
)
|
-
|
-
|
(8.5
|
)
|
(9.4
|
)
|
||||||||||||||||||||||||
Net income
|
-
|
-
|
-
|
44.6
|
-
|
-
|
-
|
61.0
|
105.6
|
|||||||||||||||||||||||||||
Balance, September 30, 2013
|
42,331
|
$
|
-
|
$
|
147.6
|
$
|
12.6
|
$
|
0.3
|
198
|
$
|
(9.5
|
)
|
$
|
1,823.6
|
$
|
1,974.6
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011
|
42,398
|
$
|
-
|
$
|
229.5
|
$
|
(70.1
|
)
|
$
|
(1.3
|
)
|
-
|
$
|
-
|
$
|
1,172.6
|
$
|
1,330.7
|
||||||||||||||||||
Compensation on equity grants
|
94
|
-
|
10.5
|
-
|
-
|
-
|
-
|
2.5
|
13.0
|
|||||||||||||||||||||||||||
Accrual of distribution equivalent rights
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(0.4
|
)
|
(0.4
|
)
|
|||||||||||||||||||||||||
Sale of Partnership limited partner interests
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
115.2
|
115.2
|
|||||||||||||||||||||||||||
Impact of Partnership equity transactions
|
-
|
-
|
(20.3
|
)
|
-
|
-
|
-
|
-
|
20.3
|
-
|
||||||||||||||||||||||||||
Dividends
|
-
|
-
|
(46.5
|
)
|
-
|
-
|
-
|
-
|
-
|
(46.5
|
)
|
|||||||||||||||||||||||||
Distributions
|
-
|
-
|
(1.2
|
)
|
-
|
-
|
-
|
-
|
(158.1
|
)
|
(159.3
|
)
|
||||||||||||||||||||||||
Other comprehensive income (loss)
|
-
|
-
|
-
|
-
|
3.5
|
-
|
-
|
39.4
|
42.9
|
|||||||||||||||||||||||||||
Net income
|
-
|
-
|
-
|
26.9
|
-
|
-
|
-
|
104.8
|
131.7
|
|||||||||||||||||||||||||||
Balance, September 30, 2012
|
42,492
|
$
|
-
|
$
|
172.0
|
$
|
(43.2
|
)
|
$
|
2.2
|
-
|
$
|
-
|
$
|
1,296.3
|
$
|
1,427.3
|
|
Nine Months Ended September 30,
|
|||||||
|
2013
|
2012
|
||||||
|
(Unaudited)
|
|||||||
Cash flows from operating activities
|
(In millions)
|
|||||||
Net income
|
$
|
105.6
|
$
|
131.7
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Amortization in interest expense
|
12.1
|
14.7
|
||||||
Compensation on equity grants
|
10.0
|
13.0
|
||||||
Depreciation and amortization expense
|
198.7
|
144.3
|
||||||
Accretion of asset retirement obligations
|
3.0
|
3.0
|
||||||
Deferred income tax expense
|
7.0
|
4.4
|
||||||
Equity (earnings) loss, net of distributions
|
-
|
0.3
|
||||||
Risk management activities
|
-
|
1.7
|
||||||
Loss (gain) on sale or disposition of assets
|
3.1
|
15.5
|
||||||
Loss on debt redemption
|
14.7
|
-
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Receivables and other assets
|
19.7
|
162.9
|
||||||
Commodity Inventories
|
(110.3
|
)
|
4.9
|
|||||
Accounts payable and other liabilities
|
(5.5
|
)
|
(206.2
|
)
|
||||
Net cash provided by operating activities
|
258.1
|
290.2
|
||||||
Cash flows from investing activities
|
||||||||
Outlays for property, plant and equipment
|
(708.2
|
)
|
(365.1
|
)
|
||||
Business acquisition, net of cash acquired
|
-
|
(25.8
|
)
|
|||||
Purchase of materials and supplies
|
(35.3
|
)
|
-
|
|||||
Investment in unconsolidated affiliate
|
-
|
(16.8
|
)
|
|||||
Return of capital from unconsolidated affiliate
|
1.9
|
2.3
|
||||||
Other, net
|
4.0
|
1.6
|
||||||
Net cash used in investing activities
|
(737.6
|
)
|
(403.8
|
)
|
||||
Cash flows from financing activities
|
||||||||
Partnership loan facilities:
|
||||||||
Borrowings
|
1,743.0
|
1,120.0
|
||||||
Repayments
|
(1,521.2
|
)
|
(938.0
|
)
|
||||
Partnership accounts receivable securitization facility:
|
||||||||
Borrowings
|
261.6
|
-
|
||||||
Repayments
|
(93.6
|
)
|
-
|
|||||
Non-Partnership loan facilities:
|
||||||||
Borrowings
|
36.0
|
-
|
||||||
Repayments
|
(48.0
|
)
|
-
|
|||||
Costs incurred in connection with financing arrangements
|
(13.6
|
)
|
(10.0
|
)
|
||||
Distributions
|
(195.1
|
)
|
(159.3
|
)
|
||||
Equity offering of the Partnership units
|
379.6
|
120.7
|
||||||
Dividends to common shareholders
|
(61.8
|
)
|
(44.9
|
)
|
||||
Net cash provided by financing activities
|
486.9
|
88.5
|
||||||
Net change in cash and cash equivalents
|
7.4
|
(25.1
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
76.3
|
145.8
|
||||||
Cash and cash equivalents, end of period
|
$
|
83.7
|
$
|
120.7
|
· | a 2% general partner interest, which we hold through our 100% ownership interest in the general partner of the Partnership; |
· | all Incentive Distribution Rights (“IDRs”); and |
· | 12,945,659 common units of the Partnership, representing a 11.9% limited partnership interest. |
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
Year Ended December 31, 2012
|
September 30, 2012
|
September 30, 2012
|
|||||||||||||
|
As reported in
10-K
|
Pro forma
|
Pro forma
|
Pro forma
|
||||||||||||
|
(In millions, except per share amounts)
|
|||||||||||||||
Revenues
|
$
|
5,885.7
|
$
|
5,909.9
|
$
|
1,401.3
|
$
|
4,374.0
|
||||||||
Net income
|
159.3
|
129.5
|
12.1
|
105.9
|
||||||||||||
Less: Net income attributable to noncontrolling interests
|
121.2
|
83.5
|
1.4
|
72.4
|
||||||||||||
Net income attributable to Targa Resources Corp.
|
$
|
38.1
|
$
|
46.0
|
$
|
10.7
|
$
|
33.5
|
||||||||
|
||||||||||||||||
Net income per common share - Basic
|
$
|
0.93
|
$
|
1.12
|
$
|
0.26
|
$
|
0.82
|
||||||||
Net income per common share - Diluted
|
$
|
0.91
|
$
|
1.10
|
$
|
0.26
|
$
|
0.80
|
· | depreciation expense associated with the fair value adjustments to property, plant and equipment using the straight-line method over a useful life of 15-20 years. The pro forma information included in our 2012 Form 10-K utilized a 30 year useful life; |
· | amortization expense associated with the fair value adjustments to definite-lived intangibles in a manner that follows the expected pattern of services provided to customers, over a useful life of 20 years. The pro forma information included in our 2012 Form 10-K utilized a straight-line method over a 30 year life; and |
· | adjustment to pro forma revenues to report purchases and sales on a net, rather than gross, basis for certain Badlands natural gas processing agreements in which we are in substance an agent rather than a principal. |
|
September 30, 2013
|
December 31, 2012
|
||||||
Commodities
|
$
|
163.3
|
$
|
82.3
|
||||
Materials and supplies
|
38.4
|
17.1
|
||||||
|
$
|
201.7
|
$
|
99.4
|
|
September 30, 2013
|
December 31, 2012
|
||||||||||||||||||||||||||
|
Targa
Resources
Partners LP
|
TRC Non-
Partnership
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC Non-
Partnership
|
Targa
Resources
Corp.
Consolidated
|
Estimated
Useful Lives
(In Years)
|
|||||||||||||||||||||
Gathering systems
|
$
|
2,119.7
|
$
|
-
|
$
|
2,119.7
|
$
|
1,975.3
|
$
|
-
|
$
|
1,975.3
|
5 to 20
|
|||||||||||||||
Processing and fractionation facilities
|
1,528.4
|
6.6
|
1,535.0
|
1,251.6
|
6.6
|
1,258.2
|
5 to 25
|
|||||||||||||||||||||
Terminaling and storage facilities
|
691.5
|
-
|
691.5
|
462.0
|
-
|
462.0
|
5 to 25
|
|||||||||||||||||||||
Transportation assets
|
292.6
|
-
|
292.6
|
292.5
|
-
|
292.5
|
10 to 25
|
|||||||||||||||||||||
Other property, plant and equipment
|
109.2
|
0.2
|
109.4
|
84.6
|
0.2
|
84.8
|
3 to 25
|
|||||||||||||||||||||
Land
|
88.7
|
-
|
88.7
|
87.1
|
-
|
87.1
|
- | |||||||||||||||||||||
Construction in progress
|
617.1
|
-
|
617.1
|
548.1
|
-
|
548.1
|
- | |||||||||||||||||||||
Property, plant and equipment
|
$
|
5,447.2
|
$
|
6.8
|
$
|
5,454.0
|
$
|
4,701.2
|
$
|
6.8
|
$
|
4,708.0
|
||||||||||||||||
Accumulated depreciation
|
(1,342.4
|
)
|
(2.2
|
)
|
(1,344.6
|
)
|
(1,168.0
|
)
|
(2.0
|
)
|
(1,170.0
|
)
|
||||||||||||||||
Property, plant and equipment, net
|
$
|
4,104.8
|
$
|
4.6
|
$
|
4,109.4
|
$
|
3,533.2
|
$
|
4.8
|
$
|
3,538.0
|
||||||||||||||||
|
||||||||||||||||||||||||||||
Intangible assets
|
$
|
681.8
|
$
|
-
|
$
|
681.8
|
$
|
681.9
|
$
|
-
|
$
|
681.9
|
20 | |||||||||||||||
Accumulated amortization
|
(21.5
|
)
|
-
|
(21.5
|
)
|
(1.1
|
)
|
-
|
(1.1
|
)
|
||||||||||||||||||
Intangible assets, net
|
$
|
660.3
|
$
|
-
|
$
|
660.3
|
$
|
680.8
|
$
|
-
|
$
|
680.8
|
|
September 30, 2013
|
December 31, 2012
|
||||||
Commodities
|
$
|
451.0
|
$
|
416.8
|
||||
Other goods and services
|
135.0
|
154.4
|
||||||
Interest
|
42.3
|
39.5
|
||||||
Compensation and benefits
|
32.5
|
40.7
|
||||||
Other
|
18.8
|
27.6
|
||||||
|
$
|
679.6
|
$
|
679.0
|
|
September 30, 2013
|
December 31, 2012
|
||||||
Long-term debt:
|
||||||||
Non-Partnership obligations:
|
||||||||
TRC Senior secured revolving credit facility, variable rate, due October 2017 (1)
|
$
|
70.0
|
$
|
82.0
|
||||
Obligations of the Partnership: (2)
|
||||||||
Senior secured revolving credit facility, variable rate, due October 2017 (3)
|
400.0
|
620.0
|
||||||
Senior unsecured notes, 11¼% fixed rate, due July 2017 (4)
|
-
|
72.7
|
||||||
Unamortized discount
|
-
|
(2.5
|
)
|
|||||
Senior unsecured notes, 7⅞% fixed rate, due October 2018
|
250.0
|
250.0
|
||||||
Senior unsecured notes, 6⅞% fixed rate, due February 2021
|
483.6
|
483.6
|
||||||
Unamortized discount
|
(28.7
|
)
|
(30.5
|
)
|
||||
Senior unsecured notes, 6⅜% fixed rate, due August 2022
|
300.0
|
400.0
|
||||||
Senior unsecured notes, 5¼% fixed rate, due May 2023
|
600.0
|
600.0
|
||||||
Senior unsecured notes, 4¼% fixed rate, due November 2023
|
625.0
|
-
|
||||||
Accounts receivable securitization facility, due January 2014 (5)
|
168.0
|
-
|
||||||
Total long-term debt
|
$
|
2,867.9
|
$
|
2,475.3
|
||||
Irrevocable standby letters of credit:
|
||||||||
Letters of credit outstanding under TRC Senior secured credit facility (1)
|
$
|
-
|
$
|
-
|
||||
Letters of credit outstanding under the Partnership senior secured revolving credit facility (3)
|
50.0
|
45.3
|
||||||
|
$
|
50.0
|
$
|
45.3
|
(1) | As of September 30, 2013, availability under TRC’s $150 million senior secured revolving credit facility was $80.0 million. |
(2) | While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. |
(3) | As of September 30, 2013, availability under the Partnership’s $1.2 billion senior secured revolving credit facility was $750.0 million. |
(4) | The outstanding balance of the 11¼% Notes was redeemed on July 15, 2013. See “Senior Notes Repayments and Redemptions” below. |
(5) | All amounts outstanding under the Partnership’s Securitization Facility are reflected as long-term debt in our balance sheet because the Partnership has the ability and intent to fund the Securitization Facility’s borrowing with availability under the Partnership’s Revolver (“the TRP Revolver”). |
|
Range of Interest
Rates Incurred
|
|
Weighted Average
Interest Rate Incurred
|
TRC senior secured revolving credit facility
|
2.9% - 3.0%
|
|
2.9%
|
Partnership's senior secured revolving credit facility
|
1.9% - 4.5%
|
|
2.3%
|
Partnership's accounts receivable securitization facility
|
0.9%
|
|
0.9%
|
1) | at least 65% of the aggregate principal amount of the 4¼% Notes (excluding the 4¼% Notes held by the Partnership) remains outstanding immediately after the occurrence of such redemption; and |
2) | the redemption occurs within 180 days of the date of the closing of such equity offering. |
Year
|
Redemption Price
|
2018
|
102.125%
|
2019
|
101.417%
|
2020
|
100.708%
|
2021 and thereafter
|
100.000%
|
|
|
Distributions
|
|||||||||||||||||||||||
Three Months Ended
|
Date Paid or to be
Paid
|
Limited Partners
|
General Partner
|
Distributions to
Targa Resources
Corp.
|
Distributions per
limited partner
unit
|
||||||||||||||||||||
Common
|
Incentive
|
2
|
%
|
Total
|
|||||||||||||||||||||
(In millions, except per unit amounts)
|
|||||||||||||||||||||||||
September 30, 2013
|
November 14, 2013
|
$
|
79.4
|
$
|
26.9
|
$
|
2.2
|
$
|
108.5
|
$
|
38.6
|
$
|
0.7325
|
||||||||||||
June 30, 2013
|
August 14, 2013
|
75.8
|
24.6
|
2.0
|
102.4
|
35.9
|
0.7150
|
||||||||||||||||||
March 31, 2013
|
May 15, 2013
|
71.7
|
22.1
|
1.9
|
95.7
|
33.0
|
0.6975
|
||||||||||||||||||
December 31, 2012
|
February 14, 2013
|
69.0
|
20.1
|
1.8
|
90.9
|
30.7
|
0.6800
|
Three Months Ended
|
Date Paid or to be Paid
|
Total
Dividend
Declared
|
Amount of
Dividend Paid
|
Accrued
Dividends (1)
|
Dividend Declared
per Share of
Common Stock
|
||||||||||||
|
|
||||||||||||||||
(In millions, except per share amounts)
|
|||||||||||||||||
September 30, 2013
|
November 15, 2013
|
$
|
24.1
|
$
|
23.7
|
$
|
0.4
|
$
|
0.57000
|
||||||||
June 30, 2013
|
August 15, 2013
|
22.5
|
22.1
|
0.4
|
0.53250
|
||||||||||||
March 31, 2013
|
May 16, 2013
|
21.0
|
20.6
|
0.4
|
0.49500
|
||||||||||||
December 31, 2012
|
February 15, 2013
|
19.4
|
19.0
|
0.4
|
0.45750
|
(1) | Represents accrued dividends on restricted stock and restricted stock units that are payable upon vesting. |
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Net income
|
$
|
49.4
|
$
|
19.0
|
$
|
105.6
|
$
|
131.7
|
||||||||
Less: Net income attributable to noncontrolling interests
|
33.1
|
10.3
|
61.0
|
104.8
|
||||||||||||
Net income attributable to common shareholders
|
$
|
16.3
|
$
|
8.7
|
$
|
44.6
|
$
|
26.9
|
||||||||
|
||||||||||||||||
Weighted average shares outstanding - basic
|
41.6
|
41.0
|
41.6
|
41.0
|
||||||||||||
|
||||||||||||||||
Net income available per common share - basic
|
$
|
0.39
|
$
|
0.21
|
$
|
1.07
|
$
|
0.66
|
||||||||
|
||||||||||||||||
Weighted average shares outstanding
|
41.6
|
41.0
|
41.6
|
41.0
|
||||||||||||
Dilutive effect of unvested stock awards
|
0.5
|
0.9
|
0.5
|
0.8
|
||||||||||||
Weighted average shares outstanding - diluted
|
42.1
|
41.9
|
42.1
|
41.8
|
||||||||||||
|
||||||||||||||||
Net income available per common share - diluted
|
$
|
0.39
|
$
|
0.21
|
$
|
1.06
|
$
|
0.64
|
Commodity
|
|
Instrument
|
|
Unit
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
Natural Gas
|
|
Swaps
|
|
MMBtu/d
|
|
41,090
|
|
33,050
|
|
19,551
|
|
10,000
|
NGL
|
|
Swaps
|
|
Bbl/d
|
|
5,650
|
|
1,000
|
|
-
|
|
-
|
Condensate
|
|
Swaps
|
|
Bbl/d
|
|
2,045
|
|
1,450
|
|
-
|
|
-
|
|
Fair Value as of September 30, 2013
|
Fair Value as of December 31, 2012
|
|||||||||||||||
Balance Sheet
Location
|
Derivative
Assets |
Derivative
Liabilities |
Derivative
Assets |
Derivative
Liabilities |
|||||||||||||
Derivatives designated as hedging instruments
|
|
||||||||||||||||
Commodity contracts
|
Current
|
$
|
10.8
|
$
|
5.4
|
$
|
29.2
|
$
|
7.2
|
||||||||
Long-term
|
3.9
|
1.6
|
5.1
|
4.8
|
|||||||||||||
Total derivatives designated as hedging instruments
|
$
|
14.7
|
$
|
7.0
|
$
|
34.3
|
$
|
12.0
|
|||||||||
|
|||||||||||||||||
Derivatives not designated as hedging instruments
|
|||||||||||||||||
Commodity contracts
|
Current
|
$
|
0.1
|
$
|
0.1
|
$
|
0.1
|
$
|
0.2
|
||||||||
Total derivatives not designated as hedging instruments
|
$
|
0.1
|
$
|
0.1
|
$
|
0.1
|
$
|
0.2
|
|||||||||
|
|||||||||||||||||
Total current position
|
$
|
10.9
|
$
|
5.5
|
$
|
29.3
|
$
|
7.4
|
|||||||||
Total long-term position
|
3.9
|
1.6
|
5.1
|
4.8
|
|||||||||||||
Total derivatives
|
$
|
14.8
|
$
|
7.1
|
$
|
34.4
|
$
|
12.2
|
|
Gross Presentation
|
Pro forma Net Presentation
|
||||||||||||||
|
Asset
|
Liability
|
Asset
|
Liability
|
||||||||||||
September 30, 2013
|
Position
|
Position
|
Position
|
Position
|
||||||||||||
Current position
|
||||||||||||||||
Counterparties with offsetting position
|
$
|
10.3
|
$
|
3.8
|
$
|
6.5
|
$
|
-
|
||||||||
Counterparties without offsetting position - assets
|
0.6
|
-
|
0.6
|
-
|
||||||||||||
Counterparties without offsetting position - liabilities
|
-
|
1.7
|
-
|
1.7
|
||||||||||||
|
10.9
|
5.5
|
7.1
|
1.7
|
||||||||||||
Long-term position
|
||||||||||||||||
Counterparties with offsetting position
|
2.8
|
1.1
|
1.7
|
-
|
||||||||||||
Counterparties without offsetting position - assets
|
1.1
|
-
|
1.1
|
-
|
||||||||||||
Counterparties without offsetting position - liabilities
|
-
|
0.5
|
-
|
0.5
|
||||||||||||
|
3.9
|
1.6
|
2.8
|
0.5
|
||||||||||||
Total derivatives
|
||||||||||||||||
Counterparties with offsetting position
|
13.1
|
4.9
|
8.2
|
-
|
||||||||||||
Counterparties without offsetting position - assets
|
1.7
|
-
|
1.7
|
-
|
||||||||||||
Counterparties without offsetting position - liabilities
|
-
|
2.2
|
-
|
2.2
|
||||||||||||
|
$
|
14.8
|
$
|
7.1
|
$
|
9.9
|
$
|
2.2
|
||||||||
|
||||||||||||||||
December 31, 2012
|
||||||||||||||||
Current position
|
||||||||||||||||
Counterparties with offsetting position
|
$
|
23.8
|
$
|
7.4
|
$
|
16.4
|
$
|
-
|
||||||||
Counterparties without offsetting position - assets
|
5.5
|
-
|
5.5
|
-
|
||||||||||||
Counterparties without offsetting position - liabilities
|
-
|
-
|
-
|
-
|
||||||||||||
|
29.3
|
7.4
|
21.9
|
-
|
||||||||||||
Long-term position
|
||||||||||||||||
Counterparties with offsetting position
|
4.4
|
2.8
|
1.6
|
-
|
||||||||||||
Counterparties without offsetting position - assets
|
0.7
|
-
|
0.7
|
-
|
||||||||||||
Counterparties without offsetting position - liabilities
|
-
|
2.0
|
-
|
2.0
|
||||||||||||
|
5.1
|
4.8
|
2.3
|
2.0
|
||||||||||||
Total derivatives
|
||||||||||||||||
Counterparties with offsetting position
|
28.2
|
10.2
|
18.0
|
-
|
||||||||||||
Counterparties without offsetting position - assets
|
6.2
|
-
|
6.2
|
-
|
||||||||||||
Counterparties without offsetting position - liabilities
|
-
|
2.0
|
-
|
2.0
|
||||||||||||
|
$
|
34.4
|
$
|
12.2
|
$
|
24.2
|
$
|
2.0
|
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)
|
||||||||||||||||
Derivatives in Cash Flow |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
Hedging Relationships
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Commodity contracts
|
$
|
(11.3
|
)
|
$
|
(22.6
|
)
|
$
|
2.4
|
$
|
70.9
|
||||||
|
$
|
(11.3
|
)
|
$
|
(22.6
|
)
|
$
|
2.4
|
$
|
70.9
|
Gain (Loss) Reclassified from OCI into Income (Effective Portion)
|
||||||||||||||||
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
Location of Gain (Loss) |
2013
|
2012
|
2013
|
2012
|
||||||||||||
Interest expense, net
|
$
|
(1.5
|
)
|
$
|
(1.9
|
)
|
$
|
(4.7
|
)
|
$
|
(6.1
|
)
|
||||
Revenues
|
4.5
|
15.4
|
17.0
|
31.7
|
||||||||||||
|
$
|
3.0
|
$
|
13.5
|
$
|
12.3
|
$
|
25.6
|
|
September 30, 2013
|
December 31, 2012
|
||||||
Commodity hedges, before tax
|
$
|
1.1
|
$
|
3.2
|
||||
Commodity hedges, after tax
|
0.6
|
1.9
|
||||||
Interest rate hedges, before tax
|
(0.5
|
)
|
(1.2
|
)
|
||||
Interest rate hedges, after tax
|
(0.3
|
)
|
(0.7
|
)
|
• | senior secured revolving credit facilities and the Partnership’s Securitization Facility are based on carrying value which approximates fair value as its interest rate is based on prevailing market rates; |
• | senior unsecured notes are based on quoted market prices derived from trades of the debt. |
• | Level 1 – observable inputs such as quoted prices in active markets; |
• | Level 2 – inputs other than quoted prices in active markets that we can directly or indirectly observe to the extent that the markets are liquid for the relevant settlement periods; and |
• | Level 3 – unobservable inputs in which little or no market data exists, therefore we must develop our own assumptions. |
|
September 30, 2013
|
|||||||||||||||||||
|
Carrying
Value
|
Fair Value
|
||||||||||||||||||
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||
Financial Instruments Recorded on Our Consolidated Balance Sheet at Fair Value:
|
||||||||||||||||||||
Assets from commodity derivative contracts
|
$
|
14.8
|
$
|
14.8
|
$
|
-
|
$
|
13.6
|
$
|
1.2
|
||||||||||
Liabilities from commodity derivative contracts
|
7.1
|
7.1
|
-
|
6.7
|
0.4
|
|||||||||||||||
Badlands contingent consideration liability
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Financial Instruments Recorded on Our Consolidated Balance Sheet at Carrying Value:
|
||||||||||||||||||||
Cash and cash equivalents
|
83.7
|
83.7
|
-
|
-
|
-
|
|||||||||||||||
TRC Senior secured revolving credit facility
|
70.0
|
70.0
|
-
|
70.0
|
-
|
|||||||||||||||
Partnership's Senior secured revolving credit facility
|
400.0
|
400.0
|
-
|
400.0
|
-
|
|||||||||||||||
Partnership's Senior unsecured notes
|
2,229.9
|
2,261.0
|
-
|
2,261.0
|
-
|
|||||||||||||||
Partnership's accounts receivable securitization facility
|
168.0
|
168.0
|
-
|
168.0
|
-
|
|
December 31, 2012
|
|||||||||||||||||||
|
Carrying
Value
|
Fair Value
|
||||||||||||||||||
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||
Financial Instruments Recorded on Our Consolidated Balance Sheet at Fair Value:
|
||||||||||||||||||||
Assets from commodity derivative contracts
|
$
|
34.3
|
$
|
34.3
|
$
|
-
|
$
|
34.3
|
$
|
-
|
||||||||||
Liabilities from commodity derivative contracts
|
12.1
|
12.1
|
-
|
11.5
|
0.6
|
|||||||||||||||
Badlands contingent consideration liability
|
15.3
|
15.3
|
-
|
-
|
15.3
|
|||||||||||||||
Financial Instruments Recorded on Our Consolidated Balance Sheet at Carrying Value:
|
||||||||||||||||||||
Cash and cash equivalents
|
76.3
|
76.3
|
-
|
-
|
-
|
|||||||||||||||
TRC Senior secured revolving credit facility
|
82.0
|
82.0
|
-
|
82.0
|
-
|
|||||||||||||||
Partnership's Senior secured revolving credit facility
|
620.0
|
620.0
|
-
|
620.0
|
-
|
|||||||||||||||
Partnership's Senior unsecured notes
|
1,773.3
|
1,945.2
|
-
|
1,945.2
|
-
|
|
Commodity
Derivative
Contracts
|
Contingent
Liability
|
||||||
Balance, December 31, 2012
|
$
|
(0.6
|
)
|
$
|
(15.3
|
)
|
||
Settlements included in Revenue
|
1.4
|
-
|
||||||
Change in valuation of contingent liability included in Other Income
|
-
|
15.3
|
||||||
Balance, September 30, 2013
|
$
|
0.8
|
$
|
-
|
|
Nine Months Ended September 30,
|
|||||||
|
2013
|
2012
|
||||||
Cash:
|
||||||||
Interest paid, net of capitalized interest
|
$
|
83.0
|
$
|
82.9
|
||||
Income taxes paid, net of refunds
|
23.1
|
24.4
|
||||||
Non-cash:
|
||||||||
Deadstock inventory transferred to property, plant and equipment
|
28.3
|
2.9
|
||||||
Accrued dividends on unvested equity awards
|
1.1
|
1.6
|
||||||
Receivables from unit offerings
|
3.3
|
-
|
||||||
Change in capital accruals
|
3.8
|
9.3
|
||||||
Transfers from materials and supplies to property, plant and equipment
|
15.1
|
-
|
||||||
Change in ARO estimate
|
1.4
|
-
|
|
Three Months Ended September 30, 2013
|
|||||||||||||||||||||||||||||||
|
Partnership
|
|||||||||||||||||||||||||||||||
|
Field
Gathering
and
Processing
|
Coastal
Gathering
and
Processing
|
Logistics
Assets
|
Marketing
and
Distribution
|
Other
|
Corporate
and
Eliminations
|
TRC Non-
Partnership
|
Consolidated
|
||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||||||||||
Sales of commodities
|
$
|
56.5
|
$
|
71.1
|
$
|
38.8
|
$
|
1,249.5
|
$
|
4.8
|
$
|
-
|
$
|
(0.1
|
)
|
$
|
1,420.6
|
|||||||||||||||
Fees from midstream services
|
27.4
|
7.4
|
53.0
|
48.4
|
-
|
-
|
-
|
136.2
|
||||||||||||||||||||||||
83.9
|
78.5
|
91.8
|
1,297.9
|
4.8
|
-
|
(0.1
|
)
|
1,556.8
|
||||||||||||||||||||||||
Intersegment revenues
|
||||||||||||||||||||||||||||||||
Sales of commodities
|
318.9
|
163.1
|
1.8
|
118.5
|
-
|
(602.3
|
)
|
-
|
-
|
|||||||||||||||||||||||
Fees from midstream services
|
0.8
|
-
|
42.1
|
8.4
|
-
|
(51.3
|
)
|
-
|
-
|
|||||||||||||||||||||||
|
319.7
|
163.1
|
43.9
|
126.9
|
-
|
(653.6
|
)
|
-
|
-
|
|||||||||||||||||||||||
Revenues
|
$
|
403.6
|
$
|
241.6
|
$
|
135.7
|
$
|
1,424.8
|
$
|
4.8
|
$
|
(653.6
|
)
|
$
|
(0.1
|
)
|
$
|
1,556.8
|
||||||||||||||
Operating margin
|
$
|
70.6
|
$
|
21.1
|
$
|
70.5
|
$
|
32.5
|
$
|
4.8
|
$
|
-
|
$
|
(0.1
|
)
|
$
|
199.4
|
|||||||||||||||
Other financial information:
|
||||||||||||||||||||||||||||||||
Total assets
|
$
|
3,095.9
|
$
|
385.8
|
$
|
1,407.5
|
$
|
638.8
|
$
|
14.8
|
$
|
105.2
|
$
|
77.3
|
$
|
5,725.3
|
||||||||||||||||
Capital expenditures
|
$
|
177.5
|
$
|
4.3
|
$
|
99.9
|
$
|
1.7
|
$
|
-
|
$
|
1.1
|
$
|
-
|
$
|
284.5
|
|
Three Months Ended September 30, 2012
|
|||||||||||||||||||||||||||||||
|
Partnership
|
|||||||||||||||||||||||||||||||
|
Field
Gathering
and
Processing
|
Coastal
Gathering
and
Processing
|
Logistics
Assets
|
Marketing
and
Distribution
|
Other
|
Corporate
and
Eliminations
|
TRC Non-
Partnership
|
Consolidated
|
||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||||||||||
Sales of commodities
|
$
|
42.2
|
$
|
60.5
|
$
|
52.9
|
$
|
1,136.4
|
$
|
14.0
|
$
|
-
|
$
|
0.6
|
$
|
1,306.6
|
||||||||||||||||
Fees from midstream services
|
8.5
|
7.4
|
43.6
|
27.4
|
-
|
-
|
-
|
86.9
|
||||||||||||||||||||||||
|
50.7
|
67.9
|
96.5
|
1,163.8
|
14.0
|
-
|
0.6
|
1,393.5
|
||||||||||||||||||||||||
Intersegment revenues
|
||||||||||||||||||||||||||||||||
Sales of commodities
|
274.8
|
150.5
|
0.5
|
151.5
|
-
|
(577.3
|
)
|
-
|
-
|
|||||||||||||||||||||||
Fees from midstream services
|
0.3
|
-
|
27.6
|
7.2
|
-
|
(35.1
|
)
|
-
|
-
|
|||||||||||||||||||||||
|
275.1
|
150.5
|
28.1
|
158.7
|
-
|
(612.4
|
)
|
-
|
-
|
|||||||||||||||||||||||
Revenues
|
$
|
325.8
|
$
|
218.4
|
$
|
124.6
|
$
|
1,322.5
|
$
|
14.0
|
$
|
(612.4
|
)
|
$
|
0.6
|
$
|
1,393.5
|
|||||||||||||||
Operating margin
|
$
|
53.8
|
$
|
18.0
|
$
|
50.4
|
$
|
25.4
|
$
|
14.0
|
$
|
-
|
$
|
0.6
|
$
|
162.2
|
||||||||||||||||
Other financial information:
|
||||||||||||||||||||||||||||||||
Total assets
|
$
|
1,717.3
|
$
|
421.8
|
$
|
977.5
|
$
|
491.7
|
$
|
44.8
|
$
|
117.8
|
$
|
110.6
|
$
|
3,881.5
|
||||||||||||||||
Capital expenditures
|
$
|
66.7
|
$
|
28.2
|
$
|
64.0
|
$
|
0.9
|
$
|
-
|
$
|
1.7
|
$
|
-
|
$
|
161.5
|
|
Nine Months Ended September 30, 2013
|
|||||||||||||||||||||||||||||||
|
Partnership
|
|||||||||||||||||||||||||||||||
|
Field
Gathering
and
Processing
|
Coastal
Gathering
and
Processing
|
Logistics
Assets
|
Marketing
and
Distribution
|
Other
|
Corporate
and
Eliminations
|
TRC Non-
Partnership
|
Consolidated
|
||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||||||||||
Sales of commodities
|
$
|
145.7
|
$
|
223.8
|
$
|
117.0
|
$
|
3,528.4
|
$
|
17.0
|
$
|
-
|
$
|
(0.2
|
)
|
$
|
4,031.7
|
|||||||||||||||
Fees from midstream services
|
70.3
|
25.9
|
147.6
|
120.7
|
-
|
-
|
-
|
364.5
|
||||||||||||||||||||||||
|
216.0
|
249.7
|
264.6
|
3,649.1
|
17.0
|
-
|
(0.2
|
)
|
4,396.2
|
|||||||||||||||||||||||
Intersegment revenues
|
||||||||||||||||||||||||||||||||
Sales of commodities
|
882.9
|
450.9
|
3.6
|
354.7
|
-
|
(1,692.1
|
)
|
-
|
-
|
|||||||||||||||||||||||
Fees from midstream services
|
2.4
|
-
|
111.8
|
20.8
|
-
|
(135.0
|
)
|
-
|
-
|
|||||||||||||||||||||||
|
885.3
|
450.9
|
115.4
|
375.5
|
-
|
(1,827.1
|
)
|
-
|
-
|
|||||||||||||||||||||||
Revenues
|
$
|
1,101.3
|
$
|
700.6
|
$
|
380.0
|
$
|
4,024.6
|
$
|
17.0
|
$
|
(1,827.1
|
)
|
$
|
(0.2
|
)
|
$
|
4,396.2
|
||||||||||||||
Operating margin
|
$
|
191.8
|
$
|
61.2
|
$
|
178.9
|
$
|
94.0
|
$
|
17.0
|
$
|
-
|
$
|
(0.3
|
)
|
$
|
542.6
|
|||||||||||||||
Other financial information:
|
||||||||||||||||||||||||||||||||
Total assets
|
$
|
3,095.9
|
$
|
385.8
|
$
|
1,407.5
|
$
|
638.8
|
$
|
14.8
|
$
|
105.2
|
$
|
77.3
|
$
|
5,725.3
|
||||||||||||||||
Capital expenditures
|
$
|
388.8
|
$
|
15.1
|
$
|
317.7
|
$
|
2.4
|
$
|
-
|
$
|
3.1
|
$
|
-
|
$
|
727.1
|
|
Nine Months Ended September 30, 2012
|
|||||||||||||||||||||||||||||||
|
Partnership
|
|||||||||||||||||||||||||||||||
|
Field
Gathering
and
Processing
|
Coastal
Gathering
and
Processing
|
Logistics
Assets
|
Marketing
and
Distribution
|
Other
|
Corporate
and
Eliminations
|
TRC Non-
Partnership
|
Consolidated
|
||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||||||||||
Sales of commodities
|
$
|
134.2
|
$
|
172.0
|
$
|
152.9
|
$
|
3,622.2
|
$
|
28.1
|
$
|
-
|
$
|
1.6
|
$
|
4,111.0
|
||||||||||||||||
Fees from midstream services
|
27.3
|
15.9
|
125.6
|
78.5
|
-
|
0.1
|
-
|
247.4
|
||||||||||||||||||||||||
|
161.5
|
187.9
|
278.5
|
3,700.7
|
28.1
|
0.1
|
1.6
|
4,358.4
|
||||||||||||||||||||||||
Intersegment revenues
|
||||||||||||||||||||||||||||||||
Sales of commodities
|
851.9
|
532.7
|
0.6
|
398.3
|
-
|
(1,783.5
|
)
|
-
|
-
|
|||||||||||||||||||||||
Fees from midstream services
|
0.9
|
0.1
|
76.2
|
23.5
|
-
|
(100.7
|
)
|
-
|
-
|
|||||||||||||||||||||||
|
852.8
|
532.8
|
76.8
|
421.8
|
-
|
(1,884.2
|
)
|
-
|
-
|
|||||||||||||||||||||||
Revenues
|
$
|
1,014.3
|
$
|
720.7
|
$
|
355.3
|
$
|
4,122.5
|
$
|
28.1
|
$
|
(1,884.1
|
)
|
$
|
1.6
|
$
|
4,358.4
|
|||||||||||||||
Operating margin
|
$
|
180.6
|
$
|
92.3
|
$
|
139.2
|
$
|
77.8
|
$
|
28.1
|
$
|
-
|
$
|
1.4
|
$
|
519.4
|
||||||||||||||||
Other financial information:
|
||||||||||||||||||||||||||||||||
Total assets
|
$
|
1,717.3
|
$
|
421.8
|
$
|
977.5
|
$
|
491.7
|
$
|
44.8
|
$
|
117.8
|
$
|
110.6
|
$
|
3,881.5
|
||||||||||||||||
Capital expenditures
|
$
|
139.6
|
$
|
32.8
|
$
|
213.8
|
$
|
10.4
|
$
|
-
|
$
|
3.2
|
$
|
0.4
|
$
|
400.2
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Sales of commodities
|
||||||||||||||||
Natural gas sales
|
$
|
317.7
|
$
|
252.1
|
$
|
920.5
|
$
|
642.7
|
||||||||
NGL sales
|
1,025.2
|
957.4
|
2,885.6
|
3,198.4
|
||||||||||||
Condensate sales
|
35.3
|
29.0
|
95.3
|
87.0
|
||||||||||||
Petroleum products
|
37.9
|
52.7
|
113.4
|
152.5
|
||||||||||||
Derivative activities
|
4.5
|
15.4
|
16.9
|
30.4
|
||||||||||||
|
1,420.6
|
1,306.6
|
4,031.7
|
4,111.0
|
||||||||||||
Fees from midstream services
|
||||||||||||||||
Fractionating and treating fees
|
38.2
|
28.6
|
98.9
|
84.0
|
||||||||||||
Storage, terminaling, transportation and export fees
|
63.0
|
41.6
|
170.3
|
107.4
|
||||||||||||
Gathering and processing fees
|
30.0
|
11.8
|
75.5
|
30.1
|
||||||||||||
Other
|
5.0
|
4.9
|
19.8
|
25.9
|
||||||||||||
|
136.2
|
86.9
|
364.5
|
247.4
|
||||||||||||
|
||||||||||||||||
Total revenues
|
$
|
1,556.8
|
$
|
1,393.5
|
$
|
4,396.2
|
$
|
4,358.4
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
Operating margin
|
$
|
199.4
|
$
|
162.2
|
$
|
542.6
|
$
|
519.4
|
||||||||
Depreciation and amortization expense
|
(69.0
|
)
|
(48.6
|
)
|
(198.7
|
)
|
(144.3
|
)
|
||||||||
General and administrative expense
|
(37.7
|
)
|
(35.7
|
)
|
(112.5
|
)
|
(106.5
|
)
|
||||||||
Interest expense, net
|
(33.4
|
)
|
(30.0
|
)
|
(97.9
|
)
|
(91.0
|
)
|
||||||||
Income tax expense
|
(13.0
|
)
|
(6.0
|
)
|
(30.3
|
)
|
(24.7
|
)
|
||||||||
Other, net
|
3.1
|
(22.9
|
)
|
2.4
|
(21.2
|
)
|
||||||||||
Net income
|
$
|
49.4
|
$
|
19.0
|
$
|
105.6
|
$
|
131.7
|
· | noncontrolling interests in the Partnership; |
· | our separate debt obligations; |
· | certain general and administrative costs applicable to us as a separate public company; |
· | certain non-operating assets and liabilities that we retained; and |
· | federal income taxes. |
· | gathering, compressing, treating, processing and selling natural gas; |
· | storing, fractionating, treating, transporting and selling NGLs and NGL products; |
· | gathering, storing and terminaling crude oil; and |
· | storing, terminaling and selling refined petroleum products. |
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Reconciliation of net income attributable to
|
||||||||||||||||
Targa Resources Corp. to distributable Cash Flow
|
||||||||||||||||
Net income of Targa Resources Corp.
|
$
|
49.4
|
$
|
19.0
|
$
|
105.6
|
$
|
131.7
|
||||||||
Less: Net income of Targa Resources Partners LP
|
(65.0
|
)
|
(28.1
|
)
|
(143.0
|
)
|
(164.7
|
)
|
||||||||
Net loss for TRC Non-Partnership
|
(15.6
|
)
|
(9.1
|
)
|
(37.4
|
)
|
(33.0
|
)
|
||||||||
TRC Non-Partnership income tax expense
|
12.3
|
5.1
|
27.8
|
22.0
|
||||||||||||
Distributions from the Partnership
|
38.6
|
26.2
|
107.5
|
72.6
|
||||||||||||
Non-cash loss (gain) on hedges
|
0.1
|
(0.6
|
)
|
0.2
|
(1.6
|
)
|
||||||||||
Depreciation - Non-Partnership
|
0.1
|
0.7
|
0.2
|
2.2
|
||||||||||||
Current cash tax expense, net (1)
|
(1.9
|
)
|
(2.6
|
)
|
(15.2
|
)
|
(15.2
|
)
|
||||||||
Taxes funded with cash on hand (2)
|
1.9
|
2.2
|
6.9
|
6.6
|
||||||||||||
Targa Resources Corp. distributable cash flow
|
$
|
35.5
|
$
|
21.9
|
$
|
90.0
|
$
|
53.6
|
(1)
|
Excludes $1.2 million and $3.6 million of non-cash current tax expense arising from amortization of deferred long-term tax assets from drop-down gains realized for tax purposes and paid in 2010 for the three and nine months ended September 30, 2013 and 2012, and includes 2012 cash tax overpayment applied to 2013 cash tax liability.
|
(2)
|
Current period portion of amount established at our IPO to fund taxes on deferred gains related to drop-down transactions that were treated as sales for income tax purposes.
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
(In millions)
|
|||||||||||||||
Targa Resources Corp. distributable Cash Flow
|
||||||||||||||||
Distributions declared by Targa Resources Partners LP associated with:
|
||||||||||||||||
General Partner Interests
|
$
|
2.2
|
$
|
1.5
|
$
|
6.1
|
$
|
4.4
|
||||||||
Incentive Distribution Rights
|
26.9
|
16.1
|
73.6
|
43.2
|
||||||||||||
Common Units
|
9.5
|
8.6
|
27.8
|
25.0
|
||||||||||||
Total distributions declared by Targa Resources Partners LP
|
38.6
|
26.2
|
107.5
|
72.6
|
||||||||||||
Income (expenses) of TRC Non-Partnership
|
||||||||||||||||
General and administrative expenses
|
(2.3
|
)
|
(2.2
|
)
|
(6.8
|
)
|
(6.5
|
)
|
||||||||
Interest expense, net
|
(0.8
|
)
|
(1.0
|
)
|
(2.3
|
)
|
(3.2
|
)
|
||||||||
Current cash tax expense, net (1)
|
(1.9
|
)
|
(2.6
|
)
|
(15.2
|
)
|
(15.2
|
)
|
||||||||
Taxes funded with cash on hand (2)
|
1.9
|
2.2
|
6.9
|
6.6
|
||||||||||||
Other income (expense)
|
-
|
(0.7
|
)
|
(0.1
|
)
|
(0.7
|
)
|
|||||||||
Targa Resources Corp. distributable cash flow
|
$
|
35.5
|
$
|
21.9
|
$
|
90.0
|
$
|
53.6
|
(1)
|
Excludes $1.2 million and $3.6 million of non-cash current tax expense arising from amortization of deferred long-term tax assets from drop-down gains realized for tax purposes and paid in 2010 for the three and nine months ended September 30, 2013 and 2012, and includes 2012 cash tax overpayment applied to 2013 cash tax liability.
|
(2)
|
Current period portion of amount established at our IPO to fund taxes on deferred gains related to drop-down transactions that were treated as sales for income tax purposes.
|
· | the financial performance of the Partnership’s assets without regard to financing methods, capital structure or historical cost basis; |
· | the Partnership’s operating performance and return on capital as compared to other companies in the midstream energy sector, without regard to financing or capital structure; and |
· | the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities. |
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
|
(In millions)
|
|||||||||||||||
Reconciliation of Targa Resources Partners LP gross margin and operating margin to net income:
|
||||||||||||||||
Gross margin
|
$
|
297.1
|
$
|
239.9
|
$
|
822.6
|
$
|
745.1
|
||||||||
Operating expenses
|
(97.6
|
)
|
(78.3
|
)
|
(279.7
|
)
|
(227.1
|
)
|
||||||||
Operating margin
|
199.5
|
161.6
|
542.9
|
518.0
|
||||||||||||
Depreciation and amortization expenses
|
(68.9
|
)
|
(47.9
|
)
|
(198.5
|
)
|
(142.1
|
)
|
||||||||
General and administrative expenses
|
(35.4
|
)
|
(33.5
|
)
|
(105.7
|
)
|
(100.0
|
)
|
||||||||
Interest expense, net
|
(32.6
|
)
|
(29.0
|
)
|
(95.6
|
)
|
(87.8
|
)
|
||||||||
Income tax expense
|
(0.7
|
)
|
(0.9
|
)
|
(2.5
|
)
|
(2.7
|
)
|
||||||||
Gain (loss) on sale or disposition of assets
|
0.7
|
(15.6
|
)
|
(3.1
|
)
|
(15.5
|
)
|
|||||||||
Loss on debt redemption and early debt extinguishments
|
(7.4
|
)
|
-
|
(14.7
|
)
|
-
|
||||||||||
Change in contingent consideration
|
9.1
|
-
|
15.3
|
-
|
||||||||||||
Other, net
|
0.7
|
(6.6
|
)
|
4.9
|
(5.2
|
)
|
||||||||||
Targa Resources Partners LP Net income
|
$
|
65.0
|
$
|
28.1
|
$
|
143.0
|
$
|
164.7
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
|
(In millions)
|
|||||||||||||||
Reconciliation of net cash provided by Targa Resources Partners LP operating activities to Adjusted EBITDA:
|
||||||||||||||||
Net cash provided by operating activities
|
$
|
99.5
|
$
|
90.5
|
$
|
276.3
|
$
|
315.5
|
||||||||
Net income attributable to noncontrolling interests
|
(5.3
|
)
|
(3.9
|
)
|
(18.1
|
)
|
(23.5
|
)
|
||||||||
Interest expense, net (1)
|
28.8
|
24.5
|
83.8
|
74.2
|
||||||||||||
Loss on debt redemption and early debt extinguishments
|
(7.4
|
)
|
-
|
(14.7
|
)
|
-
|
||||||||||
Change in contingent consideration
|
(9.1
|
)
|
-
|
(15.3
|
)
|
-
|
||||||||||
Current income tax expense
|
0.7
|
0.5
|
1.7
|
1.5
|
||||||||||||
Other (2)
|
(3.0
|
)
|
(5.3
|
)
|
(1.9
|
)
|
(14.5
|
)
|
||||||||
Changes in operating assets and liabilities which used (provided) cash:
|
||||||||||||||||
Accounts receivable and other assets
|
124.9
|
42.6
|
93.4
|
(166.1
|
)
|
|||||||||||
Accounts payable and other liabilities
|
(73.2
|
)
|
(32.7
|
)
|
9.4
|
197.3
|
||||||||||
Targa Resources Partners LP Adjusted EBITDA
|
$
|
155.9
|
$
|
116.2
|
$
|
414.6
|
$
|
384.4
|
(1) | Net of amortization of debt issuance costs, discount and premium included in interest expense of $3.8 million and $4.5 million for the three months ended September 30, 2013 and 2012, and $11.8 million and $13.6 million for the nine months ended September 30, 2013 and 2012. |
(2) | Includes equity earnings from unconsolidated investments – net of distributions, accretion expense associated with asset retirement obligations, amortization of stock-based compensation, gain on sale or disposal of assets. |
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
|
(In millions)
|
|||||||||||||||
Reconciliation of net income attributable to Targa Resources Partners LP to Adjusted EBITDA:
|
||||||||||||||||
Net income attributable to Targa Resources Partners LP
|
$
|
59.7
|
$
|
24.2
|
$
|
124.9
|
$
|
141.2
|
||||||||
Interest expense, net
|
32.6
|
29.0
|
95.6
|
87.8
|
||||||||||||
Income tax expense
|
0.7
|
0.9
|
2.5
|
2.7
|
||||||||||||
Depreciation and amortization expenses
|
68.9
|
47.9
|
198.5
|
142.1
|
||||||||||||
(Gain) loss on sale or disposition of assets
|
(0.7
|
)
|
15.6
|
3.1
|
15.5
|
|||||||||||
Loss on debt redemption and early debt extinguishments
|
7.4
|
-
|
14.7
|
-
|
||||||||||||
Change in contingent consideration
|
(9.1
|
)
|
-
|
(15.3
|
)
|
-
|
||||||||||
Risk management activities
|
(0.3
|
)
|
1.6
|
(0.2
|
)
|
3.8
|
||||||||||
Noncontrolling interests adjustment (1)
|
(3.3
|
)
|
(3.0
|
)
|
(9.2
|
)
|
(8.7
|
)
|
||||||||
Targa Resources Partners LP Adjusted EBITDA
|
$
|
155.9
|
$
|
116.2
|
$
|
414.6
|
$
|
384.4
|
(1) | Noncontrolling interest portion of depreciation and amortization expenses. |
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
|
(In millions)
|
|||||||||||||||
Reconciliation of net income attributable to Targa Resources Partners LP to distributable cash flow:
|
||||||||||||||||
Net income attributable to Targa Resources Partners LP
|
$
|
59.7
|
$
|
24.2
|
$
|
124.9
|
$
|
141.2
|
||||||||
Depreciation and amortization expenses
|
68.9
|
47.9
|
198.5
|
142.1
|
||||||||||||
Deferred income tax expense
|
-
|
0.4
|
0.8
|
1.2
|
||||||||||||
Amortization in interest expense
|
3.8
|
4.5
|
11.8
|
13.6
|
||||||||||||
Loss on debt redemption and early debt extinguishment
|
7.4
|
-
|
14.7
|
-
|
||||||||||||
Change in contingent consideration
|
(9.1
|
)
|
-
|
(15.3
|
)
|
-
|
||||||||||
(Gain) loss on sale or disposition of assets
|
(0.7
|
)
|
15.6
|
3.1
|
15.5
|
|||||||||||
Risk management activities
|
(0.3
|
)
|
1.6
|
(0.2
|
)
|
3.8
|
||||||||||
Maintenance capital expenditures
|
(17.0
|
)
|
(16.2
|
)
|
(60.4
|
)
|
(48.0
|
)
|
||||||||
Other (1)
|
(1.9
|
)
|
(0.8
|
)
|
(2.5
|
)
|
(1.8
|
)
|
||||||||
Targa Resources Partners LP distributable cash flow
|
$
|
110.8
|
$
|
77.2
|
$
|
275.4
|
$
|
267.6
|
(1) | Includes the noncontrolling interest portion of maintenance capital expenditures, depreciation and amortization expenses. |
|
September 30, 2013
|
December 31, 2012
|
||||||||||||||||||||||
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC - Non-
Partnership
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC - Non-
Partnership
|
||||||||||||||||||
|
||||||||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Current assets:
|
||||||||||||||||||||||||
Cash and cash equivalents (1)
|
$
|
83.7
|
$
|
74.1
|
$
|
9.6
|
$
|
76.3
|
$
|
68.0
|
$
|
8.3
|
||||||||||||
Trade receivables, net
|
498.5
|
498.5
|
-
|
514.9
|
514.9
|
-
|
||||||||||||||||||
Inventory
|
201.7
|
201.7
|
-
|
99.4
|
99.4
|
-
|
||||||||||||||||||
Assets from risk management activities
|
10.9
|
10.9
|
-
|
29.3
|
29.3
|
-
|
||||||||||||||||||
Other current assets (1)
|
14.2
|
3.5
|
10.7
|
13.4
|
3.3
|
10.1
|
||||||||||||||||||
Total current assets
|
809.0
|
788.7
|
20.3
|
733.3
|
714.9
|
18.4
|
||||||||||||||||||
Property, plant and equipment, at cost (1)
|
5,454.0
|
5,447.2
|
6.8
|
4,708.0
|
4,701.2
|
6.8
|
||||||||||||||||||
Accumulated depreciation
|
(1,344.6
|
)
|
(1,342.4
|
)
|
(2.2
|
)
|
(1,170.0
|
)
|
(1,168.0
|
)
|
(2.0
|
)
|
||||||||||||
Property, plant and equipment, net
|
4,109.4
|
4,104.8
|
4.6
|
3,538.0
|
3,533.2
|
4.8
|
||||||||||||||||||
Other intangible assets, net
|
660.3
|
660.3
|
-
|
680.8
|
680.8
|
-
|
||||||||||||||||||
Long-term assets from risk management activities
|
3.9
|
3.9
|
-
|
5.1
|
5.1
|
-
|
||||||||||||||||||
Other long-term assets (2)
|
142.7
|
90.3
|
52.4
|
147.8
|
91.7
|
56.1
|
||||||||||||||||||
Total assets
|
$
|
5,725.3
|
$
|
5,648.0
|
$
|
77.3
|
$
|
5,105.0
|
$
|
5,025.7
|
$
|
79.3
|
||||||||||||
|
||||||||||||||||||||||||
LIABILITIES AND OWNERS' EQUITY
|
||||||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||||||
Accounts payable and accrued liabilities (3)
|
$
|
679.6
|
$
|
650.3
|
$
|
29.3
|
$
|
679.0
|
$
|
639.8
|
$
|
39.2
|
||||||||||||
Affiliate payable (receivable) (4)
|
-
|
46.9
|
(46.9
|
)
|
-
|
61.4
|
(61.4
|
)
|
||||||||||||||||
Deferred income taxes (5)
|
2.0
|
-
|
2.0
|
0.2
|
-
|
0.2
|
||||||||||||||||||
Liabilities from risk management activities
|
5.5
|
5.5
|
-
|
7.4
|
7.4
|
-
|
||||||||||||||||||
Total current liabilities
|
687.1
|
702.7
|
(15.6
|
)
|
686.6
|
708.6
|
(22.0
|
)
|
||||||||||||||||
Long-term debt
|
2,867.9
|
2,797.9
|
70.0
|
2,475.3
|
2,393.3
|
82.0
|
||||||||||||||||||
Long-term liabilities from risk management activities
|
1.6
|
1.6
|
-
|
4.8
|
4.8
|
-
|
||||||||||||||||||
Deferred income taxes (5)
|
136.1
|
12.0
|
124.1
|
131.2
|
11.2
|
120.0
|
||||||||||||||||||
Other long-term liabilities (6)
|
58.0
|
51.8
|
6.2
|
53.7
|
47.7
|
6.0
|
||||||||||||||||||
Total liabilities
|
3,750.7
|
3,566.0
|
184.7
|
3,351.6
|
3,165.6
|
186.0
|
||||||||||||||||||
Total owners' equity
|
1,974.6
|
2,082.0
|
(107.4
|
)
|
1,753.4
|
1,860.1
|
(106.7
|
)
|
||||||||||||||||
Total liabilities and owners' equity
|
$
|
5,725.3
|
$
|
5,648.0
|
$
|
77.3
|
$
|
5,105.0
|
$
|
5,025.7
|
$
|
79.3
|
(1) | Corporate assets consisting of cash and prepaid insurance, as applicable. |
(2) | Long-term tax assets primarily related to gains on 2010 drop-down transactions recognized as sales of assets for tax purposes. |
(3) | Accrued current employee liabilities related to payroll and incentive compensation plans and taxes payable. |
(4) | Intercompany receivable with the Partnership. |
(5) | Current and long-term deferred income tax balances. |
(6) | Long-term liabilities related to incentive compensation plans and deferred rent related to the headquarters office lease. |
|
Three Months Ended September 30,
|
|||||||||||||||||||||||
|
2013
|
2012
|
||||||||||||||||||||||
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC - Non-
Partnership
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC - Non-
Partnership
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Revenues (1)
|
$
|
1,556.8
|
$
|
1,556.9
|
$
|
(0.1
|
)
|
$
|
1,393.5
|
$
|
1,392.9
|
$
|
0.6
|
|||||||||||
Costs and Expenses:
|
||||||||||||||||||||||||
Product purchases
|
1,259.8
|
1,259.8
|
-
|
1,153.0
|
1,153.0
|
-
|
||||||||||||||||||
Operating expenses
|
97.6
|
97.6
|
-
|
78.3
|
78.3
|
-
|
||||||||||||||||||
Depreciation and amortization (2)
|
69.0
|
68.9
|
0.1
|
48.6
|
47.9
|
0.7
|
||||||||||||||||||
General and administrative (3)
|
37.7
|
35.4
|
2.3
|
35.7
|
33.5
|
2.2
|
||||||||||||||||||
Other operating (income) expense
|
4.2
|
4.2
|
-
|
18.9
|
18.9
|
-
|
||||||||||||||||||
Income from operations
|
88.5
|
91.0
|
(2.5
|
)
|
59.0
|
61.3
|
(2.3
|
)
|
||||||||||||||||
Other income (expense):
|
||||||||||||||||||||||||
Interest expense, net - third party (4)
|
(33.4
|
)
|
(32.6
|
)
|
(0.8
|
)
|
(30.0
|
)
|
(29.0
|
)
|
(1.0
|
)
|
||||||||||||
Equity earnings (loss)
|
5.6
|
5.6
|
-
|
(2.2
|
)
|
(2.2
|
)
|
-
|
||||||||||||||||
Loss on debt redemption
|
(7.4
|
)
|
(7.4
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||
Other income (expense)
|
9.1
|
9.1
|
-
|
(1.8
|
)
|
(1.1
|
)
|
(0.7
|
)
|
|||||||||||||||
Income (loss) before income taxes
|
62.4
|
65.7
|
(3.3
|
)
|
25.0
|
29.0
|
(4.0
|
)
|
||||||||||||||||
Income tax expense (5)
|
(13.0
|
)
|
(0.7
|
)
|
(12.3
|
)
|
(6.0
|
)
|
(0.9
|
)
|
(5.1
|
)
|
||||||||||||
Net income (loss)
|
$
|
49.4
|
$
|
65.0
|
$
|
(15.6
|
)
|
$
|
19.0
|
$
|
28.1
|
$
|
(9.1
|
)
|
||||||||||
Less: Net income attributable to noncontrolling interests (6)
|
33.1
|
5.3
|
27.8
|
10.3
|
3.9
|
6.4
|
||||||||||||||||||
Net income (loss) after noncontrolling interests
|
$
|
16.3
|
$
|
59.7
|
$
|
(43.4
|
)
|
$
|
8.7
|
$
|
24.2
|
$
|
(15.5
|
)
|
(1) | Amortization of AOCI related to Versado hedges dropped down to the Partnership, and OCI related to terminated hedges. |
(2) | Depreciation on assets excluded from drop-down transactions. |
(3) | General and administrative expenses retained by TRC related to its status as a public entity. |
(4) | Interest expense related to TRC debt obligations. |
(5) | Reflects TRC’s federal and state income taxes. |
(6) | TRC noncontrolling interest in the Partnership. |
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
|
2013
|
2012
|
||||||||||||||||||||||
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC - Non-
Partnership
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC - Non-
Partnership
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Revenues (1)
|
$
|
4,396.2
|
$
|
4,396.4
|
$
|
(0.2
|
)
|
$
|
4,358.4
|
$
|
4,356.8
|
$
|
1.6
|
|||||||||||
Costs and Expenses:
|
||||||||||||||||||||||||
Product purchases
|
3,573.8
|
3,573.8
|
-
|
3,611.8
|
3,611.7
|
0.1
|
||||||||||||||||||
Operating expenses
|
279.8
|
279.7
|
0.1
|
227.2
|
227.1
|
0.1
|
||||||||||||||||||
Depreciation and amortization (2)
|
198.7
|
198.5
|
0.2
|
144.3
|
142.1
|
2.2
|
||||||||||||||||||
General and administrative (3)
|
112.5
|
105.7
|
6.8
|
106.5
|
100.0
|
6.5
|
||||||||||||||||||
Other operating (income) expense
|
8.3
|
8.3
|
-
|
18.8
|
18.8
|
-
|
||||||||||||||||||
Income from operations
|
223.1
|
230.4
|
(7.3
|
)
|
249.8
|
257.1
|
(7.3
|
)
|
||||||||||||||||
Other income (expense):
|
||||||||||||||||||||||||
Interest expense, net - third party (4)
|
(97.9
|
)
|
(95.6
|
)
|
(2.3
|
)
|
(91.0
|
)
|
(87.8
|
)
|
(3.2
|
)
|
||||||||||||
Equity earnings (loss)
|
10.1
|
10.1
|
-
|
(0.3
|
)
|
(0.3
|
)
|
-
|
||||||||||||||||
Loss on debt redemption
|
(14.7
|
)
|
(14.7
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||
Other income (expense)
|
15.3
|
15.3
|
-
|
(2.1
|
)
|
(1.6
|
)
|
(0.5
|
)
|
|||||||||||||||
Income (loss) before income taxes
|
135.9
|
145.5
|
(9.6
|
)
|
156.4
|
167.4
|
(11.0
|
)
|
||||||||||||||||
Income tax expense (5)
|
(30.3
|
)
|
(2.5
|
)
|
(27.8
|
)
|
(24.7
|
)
|
(2.7
|
)
|
(22.0
|
)
|
||||||||||||
Net income (loss)
|
$
|
105.6
|
$
|
143.0
|
$
|
(37.4
|
)
|
$
|
131.7
|
$
|
164.7
|
$
|
(33.0
|
)
|
||||||||||
Less: Net income attributable to noncontrolling interests (6)
|
61.0
|
18.1
|
42.9
|
104.8
|
23.5
|
81.3
|
||||||||||||||||||
Net income (loss) after noncontrolling interests
|
$
|
44.6
|
$
|
124.9
|
$
|
(80.3
|
)
|
$
|
26.9
|
$
|
141.2
|
$
|
(114.3
|
)
|
(1) | Amortization of AOCI related to Versado hedges dropped down to the Partnership, and OCI related to terminated hedges. |
(2) | Depreciation on assets excluded from drop-down transactions. |
(3) | General and administrative expenses retained by TRC related to its status as a public entity. |
(4) | Interest expense related to TRC debt obligations. |
(5) | Reflects TRC’s federal and state income taxes. |
(6) | TRC noncontrolling interest in the Partnership. |
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
|
2013
|
2012
|
||||||||||||||||||||||
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC - Non-
Partnership
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC - Non-
Partnership
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Cash flows from operating activities
|
||||||||||||||||||||||||
Net income (loss)
|
$
|
105.6
|
$
|
143.0
|
$
|
(37.4
|
)
|
$
|
131.7
|
$
|
164.7
|
$
|
(33.0
|
)
|
||||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||||||||||
Amortization in interest expense (1)
|
12.1
|
11.8
|
0.3
|
14.7
|
13.6
|
1.1
|
||||||||||||||||||
Compensation on equity grants (2)
|
10.0
|
4.4
|
5.6
|
13.0
|
2.6
|
10.4
|
||||||||||||||||||
Depreciation and amortization expense (3)
|
198.7
|
198.5
|
0.2
|
144.3
|
142.1
|
2.2
|
||||||||||||||||||
Accretion of asset retirement obligations
|
3.0
|
3.0
|
-
|
3.0
|
2.9
|
0.1
|
||||||||||||||||||
Deferred income tax expense (4)
|
7.0
|
0.8
|
6.2
|
4.4
|
1.2
|
3.2
|
||||||||||||||||||
Equity earnings, net of distributions
|
-
|
-
|
-
|
0.3
|
0.3
|
-
|
||||||||||||||||||
Risk management activities (5)
|
-
|
(0.2
|
)
|
0.2
|
1.7
|
3.8
|
(2.1
|
)
|
||||||||||||||||
Loss (gain) on sale of assets
|
3.1
|
3.1
|
-
|
15.5
|
15.5
|
-
|
||||||||||||||||||
Loss on debt redemption
|
14.7
|
14.7
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Changes in operating assets and liabilities (6)
|
(96.1
|
)
|
(102.8
|
)
|
6.7
|
(38.4
|
)
|
(31.2
|
)
|
(7.2
|
)
|
|||||||||||||
Net cash provided by (used in) operating activities
|
258.1
|
276.3
|
(18.2
|
)
|
290.2
|
315.5
|
(25.3
|
)
|
||||||||||||||||
Cash flows from investing activities
|
||||||||||||||||||||||||
Outlays for property, plant and equipment (3)
|
(708.2
|
)
|
(708.2
|
)
|
-
|
(365.1
|
)
|
(364.8
|
)
|
(0.3
|
)
|
|||||||||||||
Business acquisitions, net of cash acquired
|
-
|
-
|
-
|
(25.8
|
)
|
(25.8
|
)
|
-
|
||||||||||||||||
Purchase of materials and supplies
|
(35.3
|
)
|
(35.3
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||
Investment in unconsolidated affiliate
|
-
|
-
|
-
|
(16.8
|
)
|
(16.8
|
)
|
-
|
||||||||||||||||
Return of capital from unconsolidated affiliate
|
1.9
|
1.9
|
-
|
2.3
|
2.3
|
-
|
||||||||||||||||||
Other
|
4.0
|
4.0
|
-
|
1.6
|
1.6
|
-
|
||||||||||||||||||
Net cash used in investing activities
|
(737.6
|
)
|
(737.6
|
)
|
-
|
(403.8
|
)
|
(403.5
|
)
|
(0.3
|
)
|
|||||||||||||
Cash flows from financing activities
|
||||||||||||||||||||||||
Loan Facilities - Partnership:
|
||||||||||||||||||||||||
Borrowings
|
1,743.0
|
1,743.0
|
-
|
1,120.0
|
1,120.0
|
-
|
||||||||||||||||||
Repayments
|
(1,521.2
|
)
|
(1,521.2
|
)
|
-
|
(938.0
|
)
|
(938.0
|
)
|
-
|
||||||||||||||
Accounts receivable securitization facility - Partnership
|
||||||||||||||||||||||||
Borrowings
|
261.6
|
261.6
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Repayments
|
(93.6
|
)
|
(93.6
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||
Loan Facilities - Non-Partnership:
|
||||||||||||||||||||||||
Borrowings (1)
|
36.0
|
-
|
36.0
|
-
|
-
|
-
|
||||||||||||||||||
Repayments (1)
|
(48.0
|
)
|
-
|
(48.0
|
)
|
-
|
-
|
-
|
||||||||||||||||
Costs incurred in connection with financing arrangements
|
(13.6
|
)
|
(13.6
|
)
|
-
|
(10.0
|
)
|
(10.0
|
)
|
-
|
||||||||||||||
Proceeds from sale of common units of the Partnership, net (7)
|
379.6
|
385.7
|
(6.1
|
)
|
120.7
|
173.8
|
(53.1
|
)
|
||||||||||||||||
Distributions to owners (8)
|
(195.1
|
)
|
(294.5
|
)
|
99.4
|
(159.3
|
)
|
(225.4
|
)
|
66.1
|
||||||||||||||
Dividends to common and common equivalent shareholders
|
(61.8
|
)
|
-
|
(61.8
|
)
|
(44.9
|
)
|
-
|
(44.9
|
)
|
||||||||||||||
Contributions (distributions) (9)
|
-
|
-
|
-
|
-
|
0.9
|
(0.9
|
)
|
|||||||||||||||||
Net cash provided by (used in) financing activities
|
486.9
|
467.4
|
19.5
|
88.5
|
121.3
|
(32.8
|
)
|
|||||||||||||||||
Net change in cash and cash equivalents
|
7.4
|
6.1
|
1.3
|
(25.1
|
)
|
33.3
|
(58.4
|
)
|
||||||||||||||||
Cash and cash equivalents, beginning of period
|
76.3
|
68.0
|
8.3
|
145.8
|
55.6
|
90.2
|
||||||||||||||||||
Cash and cash equivalents, end of period
|
$
|
83.7
|
$
|
74.1
|
$
|
9.6
|
$
|
120.7
|
$
|
88.9
|
$
|
31.8
|
(1) | Cash and non-cash activity related to TRC debt obligations. |
(2) | Compensation on TRC’s equity grants. |
(3) | Cash and non-cash activity related to corporate administrative assets. |
(4) | TRC’s federal and state income taxes. |
(5) | Non-cash OCI hedge realizations related to predecessor operations. |
(6) | See Balance Sheet – Partnership versus Non-Partnership for a description of the Non-Partnership operating assets and liabilities. |
(7) | Contributions to the Partnership to maintain 2% General Partner ownership and in 2012 to purchase the limited partner units. |
(8) | Distributions received by TRC from the Partnership for its general partner interest, limited partner interest and IDRs. |
(9) | Other activity with the Partnership. |
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||||||||||||||||
|
2013
|
2012
|
2013 vs. 2012
|
2013
|
2012
|
2013 vs. 2012
|
||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
(In millions, except operating statistics and price amounts)
|
|||||||||||||||||||||||||||||||
Revenues
|
$
|
1,556.8
|
$
|
1,393.5
|
$
|
163.3
|
12
|
%
|
$
|
4,396.2
|
$
|
4,358.4
|
$
|
37.8
|
1
|
%
|
||||||||||||||||
Product purchases
|
1,259.8
|
1,153.0
|
106.8
|
9
|
%
|
3,573.8
|
3,611.8
|
(38.0
|
)
|
(1
|
%)
|
|||||||||||||||||||||
Gross margin (1)
|
297.0
|
240.5
|
56.5
|
23
|
%
|
822.4
|
746.6
|
75.8
|
10
|
%
|
||||||||||||||||||||||
Operating expenses
|
97.6
|
78.3
|
19.3
|
25
|
%
|
279.8
|
227.2
|
52.6
|
23
|
%
|
||||||||||||||||||||||
Operating margin (2)
|
199.4
|
162.2
|
37.2
|
23
|
%
|
542.6
|
519.4
|
23.2
|
4
|
%
|
||||||||||||||||||||||
Depreciation and amortization expenses
|
69.0
|
48.6
|
20.4
|
42
|
%
|
198.7
|
144.3
|
54.4
|
38
|
%
|
||||||||||||||||||||||
General and administrative expenses
|
37.7
|
35.7
|
2.0
|
6
|
%
|
112.5
|
106.5
|
6.0
|
6
|
%
|
||||||||||||||||||||||
Other operating (income) expense
|
4.2
|
18.9
|
(14.7
|
)
|
(78
|
%)
|
8.3
|
18.8
|
(10.5
|
)
|
(56
|
%)
|
||||||||||||||||||||
Income from operations
|
88.5
|
59.0
|
29.5
|
50
|
%
|
223.1
|
249.8
|
(26.7
|
)
|
(11
|
%)
|
|||||||||||||||||||||
Interest expense, net
|
(33.4
|
)
|
(30.0
|
)
|
(3.4
|
)
|
11
|
%
|
(97.9
|
)
|
(91.0
|
)
|
(6.9
|
)
|
8
|
%
|
||||||||||||||||
Equity earnings (loss)
|
5.6
|
(2.2
|
)
|
7.8
|
NM
|
10.1
|
(0.3
|
)
|
10.4
|
NM
|
||||||||||||||||||||||
Loss on debt redemption
|
(7.4
|
)
|
-
|
(7.4
|
)
|
0
|
%
|
(14.7
|
)
|
-
|
(14.7
|
)
|
0
|
%
|
||||||||||||||||||
Other
|
9.1
|
(1.8
|
)
|
10.9
|
NM
|
15.3
|
(2.1
|
)
|
17.4
|
NM
|
||||||||||||||||||||||
Income tax expense
|
(13.0
|
)
|
(6.0
|
)
|
(7.0
|
)
|
117
|
%
|
(30.3
|
)
|
(24.7
|
)
|
(5.6
|
)
|
23
|
%
|
||||||||||||||||
Net income
|
49.4
|
19.0
|
30.4
|
160
|
%
|
105.6
|
131.7
|
(26.1
|
)
|
(20
|
%)
|
|||||||||||||||||||||
Less: Net income attributable to noncontrolling interests
|
33.1
|
10.3
|
22.8
|
221
|
%
|
61.0
|
104.8
|
(43.8
|
)
|
(42
|
%)
|
|||||||||||||||||||||
Net income (loss) available to common shareholders
|
$
|
16.3
|
$
|
8.7
|
$
|
7.6
|
87
|
%
|
$
|
44.6
|
$
|
26.9
|
$
|
17.7
|
66
|
%
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Operating statistics:
|
||||||||||||||||||||||||||||||||
Crude oil gathered, MBbl/d
|
52.4
|
-
|
52.4
|
-
|
40.8
|
-
|
40.8
|
-
|
||||||||||||||||||||||||
Plant natural gas inlet, MMcf/d (3) (4)
|
2,126.5
|
1,968.6
|
157.9
|
8
|
%
|
2,092.0
|
2,094.3
|
(2.3
|
)
|
0
|
%
|
|||||||||||||||||||||
Gross NGL production, MBbl/d
|
142.3
|
123.4
|
18.9
|
15
|
%
|
135.6
|
126.6
|
9.0
|
7
|
%
|
||||||||||||||||||||||
Export volumes, MBbl/d
|
55.2
|
31.1
|
24.2
|
78
|
%
|
47.1
|
40.8
|
6.3
|
16
|
%
|
||||||||||||||||||||||
Natural gas sales, BBtu/d (4)
|
988.0
|
981.8
|
6.2
|
1
|
%
|
930.8
|
924.4
|
6.4
|
1
|
%
|
||||||||||||||||||||||
NGL sales, MBbl/d
|
303.9
|
282.0
|
21.9
|
8
|
%
|
289.4
|
277.1
|
12.3
|
4
|
%
|
||||||||||||||||||||||
Condensate sales, MBbl/d
|
3.7
|
3.6
|
0.1
|
4
|
%
|
3.7
|
3.5
|
0.2
|
6
|
%
|
(1) | Gross margin is a non-GAAP financial measure and is discussed under “Management’s Discussion and Analysis of Financial Condition and Results of Operations – How We Evaluate the Partnership’s Operations” and “Non-GAAP Financial Measures.” |
(2) | Operating margin is a non-GAAP financial measure and is discussed under “Management’s Discussion and Analysis of Financial Condition and Results of Operations – How We Evaluate the Partnership’s Operations” and “Non-GAAP Financial Measures.” |
(3) | Plant natural gas inlet represents the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant. |
(4) | Plant natural gas inlet volumes include producer take-in-kind volumes, while natural gas sales exclude producer take-in-kind volumes. |
|
Partnership
|
|||||||||||||||||||||||||||
|
Field Gathering
and Processing
|
Coastal Gathering
and Processing
|
Logistics
Assets
|
Marketing and
Distribution
|
Other
|
TRC Non-
Partnership
|
Consolidated
Operating Margin
|
|||||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||||||
Three Months Ended September 30,
|
||||||||||||||||||||||||||||
2013
|
$
|
70.6
|
$
|
21.1
|
$
|
70.5
|
$
|
32.5
|
$
|
4.8
|
$
|
(0.1
|
)
|
$
|
199.4
|
|||||||||||||
2012
|
53.8
|
18.0
|
50.4
|
25.4
|
14.0
|
0.6
|
162.2
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||
2013
|
$
|
191.8
|
$
|
61.2
|
$
|
178.9
|
$
|
94.0
|
$
|
17.0
|
$
|
(0.3
|
)
|
$
|
542.6
|
|||||||||||||
2012
|
180.6
|
92.3
|
139.2
|
77.8
|
28.1
|
1.4
|
519.4
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||||||||||||||||
|
2013
|
2012
|
2013 vs. 2012
|
2013
|
2012
|
2013 vs. 2012
|
||||||||||||||||||||||||||
|
($ in millions)
|
|||||||||||||||||||||||||||||||
Gross margin
|
$
|
113.5
|
$
|
84.0
|
$
|
29.5
|
35
|
%
|
$
|
315.3
|
$
|
271.2
|
$
|
44.1
|
16
|
%
|
||||||||||||||||
Operating expenses
|
42.9
|
30.2
|
12.7
|
42
|
%
|
123.5
|
90.6
|
32.9
|
36
|
%
|
||||||||||||||||||||||
Operating margin
|
$
|
70.6
|
$
|
53.8
|
$
|
16.8
|
31
|
%
|
$
|
191.8
|
$
|
180.6
|
$
|
11.2
|
6
|
%
|
||||||||||||||||
Operating statistics (1):
|
||||||||||||||||||||||||||||||||
Plant natural gas inlet, MMcf/d (2),(3)
|
||||||||||||||||||||||||||||||||
Sand Hills
|
153.4
|
154.6
|
(1.2
|
)
|
(1
|
%)
|
156.0
|
143.7
|
12.3
|
9
|
%
|
|||||||||||||||||||||
SAOU
|
163.9
|
126.0
|
37.9
|
30
|
%
|
152.8
|
121.1
|
31.7
|
26
|
%
|
||||||||||||||||||||||
North Texas System
|
310.9
|
246.5
|
64.4
|
26
|
%
|
287.7
|
237.9
|
49.8
|
21
|
%
|
||||||||||||||||||||||
Versado
|
159.3
|
159.2
|
0.1
|
0
|
%
|
163.6
|
166.3
|
(2.7
|
)
|
(2
|
%)
|
|||||||||||||||||||||
Badlands
|
12.5
|
-
|
12.5
|
-
|
13.4
|
-
|
13.4
|
-
|
||||||||||||||||||||||||
|
799.9
|
686.3
|
113.6
|
17
|
%
|
773.5
|
669.0
|
104.5
|
16
|
%
|
||||||||||||||||||||||
Gross NGL production, MBbl/d
|
||||||||||||||||||||||||||||||||
Sand Hills
|
17.9
|
17.8
|
0.1
|
1
|
%
|
17.6
|
16.8
|
0.8
|
5
|
%
|
||||||||||||||||||||||
SAOU
|
23.7
|
19.5
|
4.2
|
22
|
%
|
22.4
|
18.8
|
3.6
|
19
|
%
|
||||||||||||||||||||||
North Texas System
|
31.8
|
26.6
|
5.2
|
20
|
%
|
30.9
|
26.1
|
4.8
|
18
|
%
|
||||||||||||||||||||||
Versado
|
19.6
|
19.0
|
0.6
|
3
|
%
|
19.9
|
19.3
|
0.6
|
3
|
%
|
||||||||||||||||||||||
Badlands
|
1.8
|
-
|
1.8
|
-
|
1.7
|
-
|
1.7
|
-
|
||||||||||||||||||||||||
|
94.8
|
82.9
|
11.9
|
14
|
%
|
92.5
|
81.0
|
11.5
|
14
|
%
|
||||||||||||||||||||||
Crude oil gathered, MBbl/d
|
52.4
|
-
|
52.4
|
-
|
40.8
|
-
|
40.8
|
-
|
||||||||||||||||||||||||
Natural gas sales, BBtu/d (3)
|
404.4
|
333.5
|
70.9
|
21
|
%
|
374.5
|
319.9
|
54.6
|
17
|
%
|
||||||||||||||||||||||
NGL sales, MBbl/d
|
72.4
|
68.7
|
3.7
|
5
|
%
|
70.1
|
67.1
|
3.0
|
5
|
%
|
||||||||||||||||||||||
Condensate sales, MBbl/d
|
3.5
|
3.4
|
0.1
|
2
|
%
|
3.4
|
3.3
|
0.1
|
2
|
%
|
||||||||||||||||||||||
Average realized prices (4):
|
||||||||||||||||||||||||||||||||
Natural gas, $/MMBtu
|
3.32
|
2.59
|
0.73
|
28
|
%
|
3.46
|
2.40
|
1.06
|
44
|
%
|
||||||||||||||||||||||
NGL, $/gal
|
0.78
|
0.79
|
(0.01
|
)
|
(1
|
%)
|
0.73
|
0.90
|
(0.17
|
)
|
(19
|
%)
|
||||||||||||||||||||
Condensate, $/Bbl
|
101.93
|
86.82
|
15.11
|
17
|
%
|
93.11
|
90.40
|
2.71
|
3
|
%
|
(1) | Segment operating statistics include the effect of intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the quarter and the denominator is the number of calendar days during the quarter. |
(2) | Plant natural gas inlet represents the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant. |
(3) | Plant natural gas inlet volumes include producer take-in-kind volumes, while natural gas sales exclude producer take-in-kind volumes. |
(4) | Average realized prices exclude the impact of hedging activities presented in Other. |
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||||||||||||||||
|
2013
|
2012
|
2013 vs. 2012
|
2013
|
2012
|
2013 vs. 2012
|
||||||||||||||||||||||||||
|
($ in millions)
|
|||||||||||||||||||||||||||||||
Gross margin
|
$
|
33.6
|
$
|
31.7
|
$
|
1.9
|
6
|
%
|
$
|
96.1
|
$
|
127.2
|
$
|
(31.1
|
)
|
(24
|
%)
|
|||||||||||||||
Operating expenses
|
12.5
|
13.7
|
(1.2
|
)
|
(9
|
%)
|
34.9
|
34.9
|
-
|
0
|
%
|
|||||||||||||||||||||
Operating margin
|
$
|
21.1
|
$
|
18.0
|
$
|
3.1
|
17
|
%
|
$
|
61.2
|
$
|
92.3
|
$
|
(31.1
|
)
|
(34
|
%)
|
|||||||||||||||
Operating statistics (1):
|
||||||||||||||||||||||||||||||||
Plant natural gas inlet, MMcf/d (2),(3)
|
||||||||||||||||||||||||||||||||
LOU (4)
|
354.8
|
324.5
|
30.3
|
9
|
%
|
338.0
|
245.0
|
93.0
|
38
|
%
|
||||||||||||||||||||||
Coastal Straddles
|
466.1
|
607.7
|
(141.6
|
)
|
(23
|
%)
|
469.5
|
735.5
|
(266.0
|
)
|
(36
|
%)
|
||||||||||||||||||||
VESCO
|
505.6
|
350.0
|
155.6
|
44
|
%
|
510.9
|
444.8
|
66.1
|
15
|
%
|
||||||||||||||||||||||
|
1,326.5
|
1,282.2
|
44.3
|
3
|
%
|
1,318.5
|
1,425.3
|
(106.8
|
)
|
(7
|
%)
|
|||||||||||||||||||||
Gross NGL production, MBbl/d
|
||||||||||||||||||||||||||||||||
LOU
|
11.3
|
8.9
|
2.4
|
27
|
%
|
9.6
|
8.4
|
1.2
|
14
|
%
|
||||||||||||||||||||||
Coastal Straddles
|
13.2
|
14.8
|
(1.6
|
)
|
(11
|
%)
|
13.2
|
16.0
|
(2.8
|
)
|
(17
|
%)
|
||||||||||||||||||||
VESCO
|
23.0
|
16.9
|
6.1
|
36
|
%
|
20.3
|
21.1
|
(0.8
|
)
|
(4
|
%)
|
|||||||||||||||||||||
|
47.4
|
40.6
|
6.8
|
17
|
%
|
43.1
|
45.5
|
(2.4
|
)
|
(5
|
%)
|
|||||||||||||||||||||
Natural gas sales, BBtu/d (3)
|
294.3
|
317.2
|
(22.9
|
)
|
(7
|
%)
|
285.0
|
304.8
|
(19.8
|
)
|
(7
|
%)
|
||||||||||||||||||||
NGL sales, MBbl/d
|
43.2
|
38.4
|
4.8
|
13
|
%
|
40.0
|
42.1
|
(2.1
|
)
|
(5
|
%)
|
|||||||||||||||||||||
Condensate sales, MBbl/d
|
0.3
|
0.2
|
0.1
|
38
|
%
|
0.4
|
0.2
|
0.2
|
77
|
%
|
||||||||||||||||||||||
Average realized prices:
|
||||||||||||||||||||||||||||||||
Natural gas, $/MMBtu
|
3.61
|
2.87
|
0.74
|
26
|
%
|
3.72
|
2.59
|
1.13
|
44
|
%
|
||||||||||||||||||||||
NGL, $/gal
|
0.80
|
0.85
|
(0.05
|
)
|
(6
|
%)
|
0.82
|
0.99
|
(0.17
|
)
|
(17
|
%)
|
||||||||||||||||||||
Condensate, $/Bbl
|
107.21
|
96.07
|
11.14
|
12
|
%
|
107.19
|
107.17
|
0.02
|
0
|
%
|
(1) | Segment operating statistics include intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume during the quarter and the denominator is the number of calendar days during the quarter. |
(2) | Plant natural gas inlet represents the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant. |
(3) | Plant natural gas inlet volumes include producer take-in-kind volumes, while natural gas sales exclude producer take-in-kind volumes. |
(4) | Includes volumes from the Big Lake processing plant acquired in July 2012. |
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||||||||||||||||
|
2013
|
2012
|
2013 vs. 2012
|
2013
|
2012
|
2013 vs. 2012
|
||||||||||||||||||||||||||
|
($ in millions)
|
|||||||||||||||||||||||||||||||
Gross margin
|
$
|
100.1
|
$
|
74.5
|
$
|
25.6
|
34
|
%
|
$
|
271.2
|
$
|
208.0
|
$
|
63.2
|
30
|
%
|
||||||||||||||||
Operating expenses
|
29.6
|
24.1
|
5.5
|
23
|
%
|
92.3
|
68.8
|
23.5
|
34
|
%
|
||||||||||||||||||||||
Operating margin
|
$
|
70.5
|
$
|
50.4
|
$
|
20.1
|
40
|
%
|
$
|
178.9
|
$
|
139.2
|
$
|
39.7
|
29
|
%
|
||||||||||||||||
Operating statistics (1):
|
||||||||||||||||||||||||||||||||
Fractionation volumes, MBbl/d
|
316.4
|
293.3
|
23.1
|
8
|
%
|
277.2
|
299.4
|
(22.2
|
)
|
(7
|
%)
|
|||||||||||||||||||||
LSNG treating volumes, MBbl/d
|
9.6
|
24.8
|
(15.2
|
)
|
(61
|
%)
|
18.2
|
23.7
|
(5.5
|
)
|
(23
|
%)
|
||||||||||||||||||||
Benzene treating volumes, MBbl/d
|
8.1
|
19.8
|
(11.7
|
)
|
(59
|
%)
|
15.2
|
20.2
|
(5.0
|
)
|
(25
|
%)
|
(1) | Segment operating statistics include intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the quarter and the denominator is the number of calendar days during the quarter. |
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||||||||||||||||
|
2013
|
2012
|
2013 vs. 2012
|
2013
|
2012
|
2013 vs. 2012
|
||||||||||||||||||||||||||
|
($ in millions)
|
|||||||||||||||||||||||||||||||
Gross margin
|
$
|
43.4
|
$
|
35.4
|
$
|
8.0
|
23
|
%
|
$
|
125.5
|
$
|
106.2
|
$
|
19.3
|
18
|
%
|
||||||||||||||||
Operating expenses
|
10.9
|
10.0
|
0.9
|
9
|
%
|
31.5
|
28.4
|
3.1
|
11
|
%
|
||||||||||||||||||||||
Operating margin
|
$
|
32.5
|
$
|
25.4
|
$
|
7.1
|
28
|
%
|
$
|
94.0
|
$
|
77.8
|
$
|
16.2
|
21
|
%
|
||||||||||||||||
Operating statistics (1):
|
||||||||||||||||||||||||||||||||
NGL sales, MBbl/d
|
306.7
|
289.4
|
17.3
|
6
|
%
|
291.2
|
282.2
|
9.0
|
3
|
%
|
||||||||||||||||||||||
Average realized prices:
|
||||||||||||||||||||||||||||||||
NGL realized price, $/gal
|
0.88
|
0.88
|
-
|
0
|
%
|
0.88
|
1.00
|
(0.12
|
)
|
(12
|
%)
|
(1) | Segment operating statistics include intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the quarter and the denominator is the number of calendar days during the quarter. |
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||||||||
|
2013
|
2012
|
2013 vs. 2012
|
2013
|
2012
|
2013 vs. 2012
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Gross margin
|
$
|
4.8
|
$
|
14.0
|
$
|
(9.2
|
)
|
$
|
17.0
|
$
|
28.1
|
$
|
(11.1
|
)
|
||||||||||
Operating margin
|
$
|
4.8
|
$
|
14.0
|
$
|
(9.2
|
)
|
$
|
17.0
|
$
|
28.1
|
$
|
(11.1
|
)
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||||||||
|
2013
|
2012
|
2013 vs. 2012
|
2013
|
2012
|
2013 vs. 2012
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Natural gas
|
$
|
3.8
|
$
|
8.0
|
$
|
(4.2
|
)
|
$
|
8.1
|
$
|
26.9
|
$
|
(18.8
|
)
|
||||||||||
NGL
|
3.3
|
6.0
|
(2.7
|
)
|
11.3
|
3.5
|
7.8
|
|||||||||||||||||
Crude oil
|
(2.3
|
)
|
-
|
(2.3
|
)
|
(2.4
|
)
|
(2.3
|
)
|
(0.1
|
)
|
|||||||||||||
|
$
|
4.8
|
$
|
14.0
|
$
|
(9.2
|
)
|
$
|
17.0
|
$
|
28.1
|
$
|
(11.1
|
)
|
• | a 2% general partner interest, which we hold through our 100% ownership interest in the general partner of the Partnership; |
• | all of the outstanding IDRs; and |
• | 12,945,659 of the 108,458,496 outstanding common units of the Partnership, representing an 11.9% limited partnership interest. |
October 28, 2013
|
||||
(In millions)
|
||||
Cash on hand
|
$
|
7.0
|
||
Total availability under TRC's credit facility
|
150.0
|
|||
Less: Outstanding borrowings under TRC's credit facility
|
(77.0
|
)
|
||
Less: Outstanding letters of credit outstanding under TRC's credit facility
|
-
|
|||
Total liquidity
|
$
|
80.0
|
· | $9.5 million or $37.9 million annually based on our common unit ownership in the Partnership; |
· | $26.9 million or $107.7 million annually based on our IDRs; and |
· | $2.2 million or $8.7 million annually based on our 2% general partner interests. |
Three Months Ended
|
Date Paid or to be Paid
|
Total
Dividend
Declared
|
Amount of
Dividend Paid
|
Accrued
Dividends (1)
|
Dividend Declared
per Share of
Common Stock
|
||||||||||||
(In millions, except per share amounts)
|
|||||||||||||||||
September 30, 2013
|
November 15, 2013
|
$
|
24.1
|
$
|
23.7
|
$
|
0.4
|
$
|
0.57000
|
||||||||
June 30, 2013
|
August 15, 2013
|
22.5
|
22.1
|
0.4
|
0.53250
|
||||||||||||
March 31, 2013
|
May 16, 2013
|
21.0
|
20.6
|
0.4
|
0.49500
|
||||||||||||
December 31, 2012
|
February 15, 2013
|
19.4
|
19.0
|
0.4
|
0.45750
|
(1) | Represents accrued dividends on restricted stock and restricted stock units that are payable upon vesting. |
|
October 28, 2013
|
|||
|
(In millions)
|
|||
Cash on hand
|
$
|
127.0
|
||
Total availability under the TRP Revolver
|
1,200.0
|
|||
Total availability under the Securitization Facility
|
200.0
|
|||
|
1,527.0
|
|||
Less: Outstanding borrowings under the TRP Revolver
|
(418.0
|
)
|
||
Outstanding borrowings under the Securitization Facility
|
(200.0
|
)
|
||
Outstanding letters of credit under the TRP Revolver
|
(49.4
|
)
|
||
Total liquidity
|
$
|
859.6
|
Nine Months Ended September 30, 2013
|
Targa Resources
Corp. Consolidated
|
Targa Resources
Partners LP
|
TRC - Non-
Partnership
|
|||||||||
|
(In millions)
|
|||||||||||
Net cash provided by (used in):
|
||||||||||||
Operating activities
|
$
|
258.1
|
$
|
276.3
|
$
|
(18.2
|
)
|
|||||
Investing activities
|
(737.6
|
)
|
(737.6
|
)
|
-
|
|||||||
Financing activities
|
486.9
|
467.4
|
19.5
|
|||||||||
Nine Months Ended September 30, 2012
|
||||||||||||
Net cash provided by (used in):
|
||||||||||||
Operating activities
|
$
|
290.2
|
$
|
315.5
|
$
|
(25.3
|
)
|
|||||
Investing activities
|
(403.8
|
)
|
(403.5
|
)
|
(0.3
|
)
|
||||||
Financing activities
|
88.5
|
121.3
|
(32.8
|
)
|
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
|
2013
|
2012
|
||||||||||||||||||||||
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC-Non
Partnership
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC-Non
Partnership
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||||||||||
Cash received from customers
|
$
|
4,393.6
|
$
|
4,393.5
|
$
|
0.1
|
$
|
4,501.5
|
$
|
4,502.0
|
$
|
(0.5
|
)
|
|||||||||||
Cash received from (paid to) derivative counterparties
|
16.9
|
16.9
|
-
|
32.7
|
32.7
|
-
|
||||||||||||||||||
Cash outlays for:
|
||||||||||||||||||||||||
Product purchases
|
(3,668.9
|
)
|
(3,668.9
|
)
|
-
|
(3,808.8
|
)
|
(3,808.2
|
)
|
(0.6
|
)
|
|||||||||||||
Operating expenses
|
(276.4
|
)
|
(276.4
|
)
|
-
|
(218.8
|
)
|
(218.8
|
)
|
-
|
||||||||||||||
General and administrative expenses
|
(110.2
|
)
|
(114.7
|
)
|
4.5
|
(109.4
|
)
|
(110.5
|
)
|
1.1
|
||||||||||||||
Cash distributions from equity investment (1)
|
10.1
|
10.1
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Interest paid, net of amounts capitalized (2)
|
(83.0
|
)
|
(81.0
|
)
|
(2.0
|
)
|
(82.9
|
)
|
(80.4
|
)
|
(2.5
|
)
|
||||||||||||
Income taxes paid
|
(23.1
|
)
|
(2.3
|
)
|
(20.8
|
)
|
(24.4
|
)
|
(2.1
|
)
|
(22.3
|
)
|
||||||||||||
Other cash receipts (payments)
|
(0.9
|
)
|
(0.9
|
)
|
-
|
0.3
|
0.8
|
(0.5
|
)
|
|||||||||||||||
Net cash provided by operating activities
|
$
|
258.1
|
$
|
276.3
|
$
|
(18.2
|
)
|
$
|
290.2
|
$
|
315.5
|
$
|
(25.3
|
)
|
(1) | Excludes $1.9 million and $2.3 million included in investing activities for the nine months ended September 30, 2013 and 2012 related to distributions from GCF that exceeded cumulative equity earnings. |
(2) | Net of capitalized interest paid of $22.6 million and $8.5 million included in investing activities for the nine months ended September 30, 2013 and 2012. |
· | $220.0 million related to net repayments under credit facility; |
· | $377.4 million from the sale of common units under the 2012 and 2013 EDAs; |
· | $7.9 million related general partner contributions to maintain 2% general partner ownership; |
· | $168.0 million of net borrowings under the Securitization Facility; |
· | $618.1 million of new debt from the issuance of 4¼% Notes; |
· | $106.4 million related to the redemption of $100 million face value of 6⅜% Senior Notes; and |
· | $76.8 million related to the redemption of $72.7 million face value of 11¼% Senior Notes. |
|
|
Cash Distributions
|
Dividend
|
Total
|
||||||||||||||||||||||||||
For the Three
Months Ended |
Date Paid
or to be Paid |
Cash
Distribution |
Limited
Partner |
General
Partner |
IDRs
|
Distributions
to Targa |
Declared
Per TRC |
Dividend
Declared to |
||||||||||||||||||||||
|
|
(In millions, except per unit amounts)
|
||||||||||||||||||||||||||||
September 30, 2013
|
November 14, 2013
|
$
|
0.7325
|
$
|
9.5
|
$
|
2.2
|
$
|
26.9
|
$
|
38.6
|
$
|
0.57000
|
$
|
24.1
|
|||||||||||||||
June 30, 2013
|
August 14, 2013
|
0.7150
|
9.3
|
2.0
|
24.6
|
35.9
|
0.53250
|
22.5
|
||||||||||||||||||||||
March 31, 2013
|
May 15, 2013
|
0.6975
|
9.0
|
1.9
|
22.1
|
33.0
|
0.49500
|
21.0
|
||||||||||||||||||||||
December 31, 2012
|
February 14, 2013
|
0.6800
|
8.8
|
1.8
|
20.1
|
30.7
|
0.45750
|
19.4
|
(1) | Distributions to us comprise amounts attributable to our (i) limited partner units, (ii) general partner units, and (iii) IDRs. |
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
|
2013
|
2012
|
||||||||||||||||||||||
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC - Non-
Partnership
|
Targa
Resources
Corp.
Consolidated
|
Targa
Resources
Partners LP
|
TRC - Non-
Partnership
|
||||||||||||||||||
|
||||||||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Capital expenditures:
|
||||||||||||||||||||||||
Business acquisitions, net of cash acquired
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
25.8
|
$
|
25.8
|
$
|
-
|
||||||||||||
Expansion (1)
|
666.6
|
666.6
|
-
|
326.1
|
326.0
|
0.1
|
||||||||||||||||||
Maintenance
|
60.5
|
60.5
|
-
|
48.3
|
48.0
|
0.3
|
||||||||||||||||||
Gross additions to property, plant and equipment
|
727.1
|
727.1
|
-
|
400.2
|
399.8
|
0.4
|
||||||||||||||||||
Transfers from materials and supplies to property, plant and equipment
|
(15.1
|
)
|
(15.1
|
)
|
-
|
-
|
-
|
|||||||||||||||||
Change in capital project payables and accruals
|
(3.8
|
)
|
(3.8
|
)
|
-
|
(9.3
|
)
|
(9.2
|
)
|
(0.1
|
)
|
|||||||||||||
Cash outlays for capital projects
|
$
|
708.2
|
$
|
708.2
|
$
|
-
|
$
|
390.9
|
$
|
390.6
|
$
|
0.3
|
(1) | Excludes the Partnership’s investment in GCF, which is accounted for as an equity investment. Cash calls for expansion are reflected in Investment in unconsolidated affiliate in cash flows from investing activities on our Consolidated Statements of Cash Flows in our Consolidated Financial Statements. |
Natural Gas
|
||||||||||||||||||||||||||
Instrument
|
|
Price
|
MMBtu/d
|
|||||||||||||||||||||||
Type
|
Index
|
$/MMBtu
|
2013
|
2014
|
2015
|
2016
|
Fair Value
|
|||||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||
Swap
|
IF-WAHA
|
4.45
|
18,354
|
$
|
1.6
|
|||||||||||||||||||||
Swap
|
IF-WAHA
|
3.86
|
14,780
|
0.5
|
||||||||||||||||||||||
Swap
|
IF-WAHA
|
4.05
|
8,736
|
0.4
|
||||||||||||||||||||||
Swap
|
IF-WAHA
|
4.25
|
4,436
|
0.3
|
||||||||||||||||||||||
Total Swaps
|
|
18,354
|
14,780
|
8,736
|
4,436
|
|||||||||||||||||||||
Swap
|
IF-PB
|
4.50
|
14,871
|
1.4
|
||||||||||||||||||||||
Swap
|
IF-PB
|
3.80
|
11,966
|
0.3
|
||||||||||||||||||||||
Swap
|
IF-PB
|
4.02
|
7,076
|
0.3
|
||||||||||||||||||||||
Swap
|
IF-PB
|
4.22
|
3,608
|
0.3
|
||||||||||||||||||||||
Total Swaps
|
|
14,871
|
11,966
|
7,076
|
3,608
|
|||||||||||||||||||||
Swap
|
IF-NGPL MC
|
4.14
|
7,865
|
0.5
|
||||||||||||||||||||||
Swap
|
IF-NGPL MC
|
3.58
|
6,304
|
(0.2
|
)
|
|||||||||||||||||||||
Swap
|
IF-NGPL MC
|
3.88
|
3,739
|
0.2
|
||||||||||||||||||||||
Swap
|
IF-NGPL MC
|
4.13
|
1,956
|
0.4
|
||||||||||||||||||||||
Total Swaps
|
|
7,865
|
6,304
|
3,739
|
1,956
|
|||||||||||||||||||||
Total
|
|
41,090
|
33,050
|
19,551
|
10,000
|
|||||||||||||||||||||
|
|
$
|
6.0
|
NGL
|
||||||||||||||||||
Instrument
|
|
Price
|
Bbl/d
|
|||||||||||||||
Type
|
|
Index |
$/Gal
|
2013
|
2014
|
Fair Value
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||
Swap
|
|
OPIS-MB |
1.05
|
5,650
|
$
|
2.8
|
||||||||||||
Swap
|
|
OPIS-MB |
1.21
|
1,000
|
3.3
|
|||||||||||||
Total
|
|
5,650
|
1,000
|
|||||||||||||||
|
|
$
|
6.1
|
Condensate
|
||||||||||||||||||
Instrument
|
|
Price
|
Bbl/d
|
|||||||||||||||
Type
|
|
Index |
$/Bbl
|
2013
|
2014
|
Fair Value
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||
Swap
|
|
NY-WTI
|
93.23
|
2,045
|
$
|
(1.6
|
) | |||||||||||
Swap
|
|
NY-WTI
|
89.80
|
1,450
|
(2.8
|
) | ||||||||||||
Total
|
|
2,045
|
1,450
|
|||||||||||||||
|
|
$
|
(4.4
|
) |
Number
|
Description
|
3.1 | Amended and Restated Certificate of Incorporation of Targa Resources Corp. (incorporated by reference to Exhibit 3.1 to Targa Resources Corp.’s Current Report on Form 8-K filed December 16, 2010 (File No. 001-34991)). |
3.2 | Amended and Restated Bylaws of Targa Resources Corp. (incorporated by reference to Exhibit 3.1 to Targa Resources Corp.’s Current Report on Form 8-K filed December 16, 2010 (File No. 001-34991)). |
3.3 | Certificate of Limited Partnership of Targa Resources Partners LP (incorporated by reference to Exhibit 3.2 to Targa Resources Partners LP’s Registration Statement on Form S-1 filed November 16, 2006 (File No. 333-138747)). |
3.4 | Certificate of Formation of Targa Resources GP LLC (incorporated by reference to Exhibit 3.3 to Targa Resources Partners LP’s Registration Statement on Form S-1/A filed January 19, 2007 (File No. 333-138747)). |
3.5 | First Amended and Restated Agreement of Limited Partnership of Targa Resources Partners LP (incorporated by reference to Exhibit 3.1 to Targa Resources Partners LP’s Current Report on Form 8-K filed February 16, 2007 (File No. 001-33303)). |
3.6 | Amendment No. 1, dated May 13, 2008, to the First Amended and Restated Agreement of Limited Partnership of Targa Resources Partners LP (incorporated by reference to Exhibit 3.5 to Targa Resources Partners LP’s Quarterly Report on Form 10-Q filed May 14, 2008 (File No. 001-33303)). |
3.7 | Amendment No. 2, dated May 25, 2012, to the First Amended and Restated Agreement of Limited Partnership of Targa Resources Partners LP (incorporated by reference to Exhibit 3.1 to Targa Resources Partners LP’s Current Report on Form 8-K filed May 25, 2012 (File No. 001-33303)). |
3.8 | Limited Liability Company Agreement of Targa Resources GP LLC (incorporated by reference to Exhibit 3.4 to Targa Resources Partners LP’s Registration Statement on Form S-1/A filed January 19, 2007 (File No. 333-138747)). |
3.9 | Amended and Restated Certificate of Incorporation of Targa Resources, Inc. (incorporated by reference to Exhibit 3.1 to Targa Resources, Inc.’s Registration Statement on Form S-4 filed October 31, 2007 (File No. 333-147066)). |
3.10 | Amendment to Amended and Restated Certificate of Incorporation of Targa Resources, Inc. (incorporated by reference to Exhibit 3.9 to Targa Resources Corp.’s Annual Report on Form 10-K filed February 28, 2011 (File No. 001-33303)). |
3.11 | Amended and Restated Bylaws of Targa Resources, Inc. (incorporated by reference to Exhibit 3.2 to Targa Resources, Inc.’s Registration Statement on Form S-4 filed October 31, 2007 (File No. 333-147066)). |
4.1 | Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Targa Resources Corp.’s Registration Statement on Form S-1/A filed November 12, 2010 (File No. 333-169277)). |
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2* | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1** | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2** | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS* | XBRL Instance Document |
101.SCH* | XBRL Taxonomy Extension Schema Document |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith |
** | Furnished herewith |
|
Targa Resources Corp.
|
||
|
(Registrant)
|
||
|
|
|
|
Date: November 4, 2013
|
By:
|
/s/ Matthew J. Meloy
|
|
|
|
Matthew J. Meloy
|
|
|
|
Senior Vice President, Chief Financial Officer and Treasurer
|
|
|
|
(Principal Financial Officer)
|
Common Stock and Related Matters
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock and Related Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock and Related Matters | Note 10 — Common Stock and Related Matters The following table details the dividends declared and/or paid by us for the nine months ended September 30, 2013:
________
|
_4]8J$'W)=1+R0?I'P0P9%Q`L9%@D_9%1$O)";(N&'W!81
M+^2N2/@A$K#/2Y%4/@W+Y"O$I/JM,GY,0+]"#`LH`0,+,>R@!"0LQ+"&$O"P
M$,,F2D#%0@S+*`$;"S'LHQB$%#92#$H*.RD&*86M%(.6PEZ*04QA,\6@IF,U
MG4%-QVHZ@YJ.U70&-1VKZ0QJ.E93OWX6>L6*#%M:6;+>HE7E`[TE?E:^M]2V
M\XW#)4AC\:4Q[CI-_X%6,42_L^53#D.,UVW:!N8HQ-3SKW5L8#HA9B>?TS4P
M)R%F-Y]S:F#.0DPCGW-N8"Y"S%X^Y]+`7!F8GH&Y-C!]`S,P,$,#,S(P-P;F
MUL#<&1@1"Y0ZN-I,&I%W5B7ULAP*NNHGA62M>K)*R-8"%-*U`(5\+4`A80M0
MR-@"%%*V`(6<+4`A:0M0R-H"%-*V`(6\+4`A<0M0R-P"%%*W`(7<+4`A>:M^
MM0[96X!"^A:@D+\%*"1P`0H9[$,N9'`!"AE<@$(&%Z"0P04H:+!WQ%W08!\*
M&NQ#08-]*&BP#P4-?H-RC4 +H\!K#](]=R6=
M:C.8*-2-3;-S3W3Q"F->&<\\_NCBS8V-?+4N")K#QU"[(UF%3'C9)IN1QK
MEOIG;T?5[']4*?!4U23NUF",JC3V$U=T89N3W#][.ZK@E%Q?*P6>JIJY8;<&
M8U0EL176M-`VIZ$_#^W/.05'HQIEUD7Q_C938%?CQ0DPD%,[%]8N,A)M326<#
M3S:7VI0,^;W";.!2G]+M!=E=WJCB;.!R3NW45V>#7(W0VV_?42-B.E\CZMY,
MX!)D?_&!]"FJU0LS83,A=E(B:G@)K61[69%`HHW$$1+'2'20Z")Q@L0I$F=(
MG"-QD1!OYZWJC^G+A,C.VZXWIJ_P-7I(7"/11V*`Q!")$1(W2-PB<8>$"".I
M<26^2*I<&<+6R>'RO<2WMG_27Q!:*5/Z1__S,7,PP;U/3_9/6$!A`X45%'90
M6$)A"X4UE-3#LE.5BEB&L(O",@K;**RCI#Z^S2R%3P1)A
=.;2%F6]CY[$J`"_OUN(`*
M*R[Q+IZB=IO8!V8B`IFK:$&J<=06TG'AJ6#0J'&-9&<#V76X1.*!(BWCH>[G
MJI25'.;QQ!O([>%N_VP0V#]#O%B`U#K['_>P*D6!ECQ4`ZX(A!JT\C3(T7A*
M*5X)T&"(1P.$6-$841XHWX*&OMY5&M7XVD*ZD$2-&M=(I!24@N82+X_6*O;@
MA$"A\K`0R\6N#,?%0G1