Delaware
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20-3701075
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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1000 Louisiana St, Suite 4300, Houston, Texas
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77002
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer R
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Accelerated filer £
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Non-accelerated filer £
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Smaller reporting company £
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PART II—OTHER INFORMATION
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·
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Targa Resources Partners LP’s (the “Partnership”) 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;
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·
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the amount of collateral required to be posted from time to time in the Partnership’s transactions;
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·
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the Partnership’s success in risk management activities, including the use of derivative instruments to hedge commodity risks;
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·
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the level of creditworthiness of counterparties to transactions;
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·
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changes in laws and regulations, particularly with regard to taxes, safety and protection of the environment;
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·
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the timing and extent of changes in natural gas, natural gas liquids (“NGL”) and other commodity prices, interest rates and demand for the Partnership’s services;
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·
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weather and other natural phenomena;
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·
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industry changes, including the impact of consolidations and changes in competition;
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·
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the Partnership’s ability to obtain necessary licenses, permits and other approvals;
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·
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the level and success of oil and natural gas drilling around the Partnership’s assets and its success in connecting natural gas supplies to its gathering and processing systems and NGL supplies to its logistics and marketing facilities;
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the Partnership’s and our ability to grow through acquisitions or internal growth projects and the successful integration and future performance of such assets;
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·
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general economic, market and business conditions; and
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·
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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, 2011 (“Annual Report”) and our reports and registration statements filed from time to time with the United States Securities and Exchange Commission (“SEC”).
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Bbl
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Barrels (equal to 42 gallons)
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Btu
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British thermal units, a measure of heating value
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BBtu
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Billion British thermal units
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/d
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Per day
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/hr
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Per hour
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gal
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U.S. gallons
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LPG
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Liquefied petroleum gas
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MBbl
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Thousand barrels
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MMBbl
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Million barrels
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MMBtu
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Million British thermal units
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MMcf
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Million cubic feet
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NGL(s)
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Natural gas liquid(s)
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NYMEX
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New York Mercantile Exchange
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GAAP
|
Accounting principles generally accepted in the United States of America
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NYSE
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New York Stock Exchange
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Price Index
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Definitions
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IF-NGPL MC
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Inside FERC Gas Market Report, Natural Gas Pipeline, Mid-Continent
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IF-PB
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Inside FERC Gas Market Report, Permian Basin
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IF-WAHA
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Inside FERC Gas Market Report, West Texas WAHA
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NY-WTI
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NYMEX, West Texas Intermediate Crude Oil
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OPIS-MB
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Oil Price Information Service, Mont Belvieu, Texas
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TARGA RESOURCES CORP.
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
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||||||
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March 31,
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December 31,
|
||||||
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2012
|
2011
|
||||||
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|
||||||
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(Unaudited)
|
|||||||
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(In millions)
|
|||||||
ASSETS
|
||||||||
Current assets:
|
|
|
||||||
Cash and cash equivalents
|
$ | 121.2 | $ | 145.8 | ||||
Trade receivables, net of allowances of $2.1 million and $2.4 million
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462.6 | 575.7 | ||||||
Inventory
|
45.5 | 92.2 | ||||||
Deferred income taxes
|
- | 0.1 | ||||||
Assets from risk management activities
|
40.5 | 41.0 | ||||||
Other current assets
|
6.4 | 11.7 | ||||||
Total current assets
|
676.2 | 866.5 | ||||||
Property, plant and equipment
|
3,920.2 | 3,821.1 | ||||||
Accumulated depreciation
|
(1,048.2 | ) | (1,001.6 | ) | ||||
Property, plant and equipment, net
|
2,872.0 | 2,819.5 | ||||||
Long-term assets from risk management activities
|
9.0 | 10.9 | ||||||
Investment in unconsolidated affiliate
|
42.7 | 36.8 | ||||||
Other long-term assets
|
98.5 | 97.3 | ||||||
Total assets
|
$ | 3,698.4 | $ | 3,831.0 | ||||
|
||||||||
LIABILITIES AND OWNERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued liabilities
|
$ | 536.1 | $ | 700.0 | ||||
Deferred income taxes
|
4.9 | - | ||||||
Liabilities from risk management activities
|
28.3 | 41.1 | ||||||
Total current liabilities
|
569.3 | 741.1 | ||||||
Long-term debt
|
1,469.7 | 1,567.0 | ||||||
Long-term liabilities from risk management activities
|
13.9 | 15.8 | ||||||
Deferred income taxes
|
118.0 | 120.5 | ||||||
Other long-term liabilities
|
62.2 | 55.9 | ||||||
|
||||||||
Commitments and contingencies (see Note 14)
|
||||||||
|
||||||||
Owners' equity:
|
||||||||
Targa Resources Corp. stockholders' equity:
|
||||||||
Common stock ($0.001 par value, 300,000,000 shares authorized, 42,440,793 and 42,398,148 shares issued and outstanding as of March 31, 2012 and December 31, 2011)
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- | - | ||||||
Preferred stock ($0.001 par value, 100,000,000 shares authorized, no shares issued and outstanding as of March 31, 2012 and December 31, 2011)
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- | - | ||||||
Additional paid-in capital
|
200.8 | 229.5 | ||||||
Accumulated deficit
|
(60.5 | ) | (70.1 | ) | ||||
Accumulated other comprehensive income (loss)
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- | (1.3 | ) | |||||
Total Targa Resources Corp. stockholders' equity
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140.3 | 158.1 | ||||||
Noncontrolling interests in subsidiaries
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1,325.0 | 1,172.6 | ||||||
Total owners' equity
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1,465.3 | 1,330.7 | ||||||
Total liabilities and owners' equity
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$ | 3,698.4 | $ | 3,831.0 | ||||
|
||||||||
See notes to consolidated financial statements
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TARGA RESOURCES CORP.
|
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||
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|||||||
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Three Months Ended March 31,
|
|||||||
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2012
|
2011
|
||||||
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|
||||||
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(Unaudited)
|
|||||||
|
(In millions, except per share amounts)
|
|||||||
Revenues
|
$ | 1,645.8 | $ | 1,618.6 | ||||
Costs and expenses:
|
||||||||
Product purchases
|
1,384.2 | 1,401.2 | ||||||
Operating expenses
|
71.6 | 65.9 | ||||||
Depreciation and amortization expenses
|
47.4 | 43.4 | ||||||
General and administrative expenses
|
34.9 | 34.6 | ||||||
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1,538.1 | 1,545.1 | ||||||
Income from operations
|
107.7 | 73.5 | ||||||
Other income (expense):
|
||||||||
Interest expense, net
|
(30.5 | ) | (28.5 | ) | ||||
Equity earnings
|
2.1 | 1.7 | ||||||
Other expense, net
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- | (0.1 | ) | |||||
Income before income taxes
|
79.3 | 46.6 | ||||||
Income tax expense:
|
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Current
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(8.7 | ) | (5.5 | ) | ||||
Deferred
|
(1.4 | ) | (0.3 | ) | ||||
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(10.1 | ) | (5.8 | ) | ||||
Net income
|
69.2 | 40.8 | ||||||
Less: Net income attributable to noncontrolling interests
|
59.6 | 34.0 | ||||||
Net income available to common shareholders
|
$ | 9.6 | $ | 6.8 | ||||
|
||||||||
Net income available per common share - basic
|
$ | 0.23 | $ | 0.17 | ||||
Net income available per common share - diluted
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$ | 0.23 | $ | 0.16 | ||||
Weighted average shares outstanding - basic
|
41.0 | 40.9 | ||||||
Weighted average shares outstanding - diluted
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41.8 | 41.3 | ||||||
|
||||||||
See notes to consolidated financial statements
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TARGA RESOURCES CORP.
|
||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
||||||||
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|
|||||||
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Three Months Ended March 31,
|
|||||||
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2012
|
2011
|
||||||
|
|
|
||||||
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(Unaudited)
|
|||||||
|
(In millions)
|
|||||||
Net income attributable to Targa Resources Corp.
|
$ | 9.6 | $ | 6.8 | ||||
Other comprehensive income (loss) attributable to Targa Resources Corp.
|
||||||||
Commodity hedging contracts:
|
||||||||
Change in fair value
|
2.4 | (9.2 | ) | |||||
Settlements reclassified to revenues
|
(0.6 | ) | 0.1 | |||||
Interest rate swaps:
|
||||||||
Change in fair value
|
- | 0.3 | ||||||
Settlements reclassified to interest expense, net
|
0.4 | 0.4 | ||||||
Related income taxes
|
(0.9 | ) | 3.4 | |||||
Other comprehensive income (loss) attributable to Targa Resources Corp.
|
1.3 | (5.0 | ) | |||||
Comprehensive income (loss) attributable to Targa Resources Corp.
|
10.9 | 1.8 | ||||||
|
||||||||
Net income attributable to noncontrolling interests
|
59.6 | 34.0 | ||||||
Other comprehensive income (loss) attributable to noncontrolling interests
|
||||||||
Commodity hedging contracts:
|
||||||||
Change in fair value
|
13.1 | (52.0 | ) | |||||
Settlements reclassified to revenues
|
(1.9 | ) | 3.9 | |||||
Interest rate swaps:
|
||||||||
Change in fair value
|
- | (0.1 | ) | |||||
Settlements reclassified to interest expense, net
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1.9 | 2.1 | ||||||
Other comprehensive income (loss) attributable to noncontrolling interests
|
13.1 | (46.1 | ) | |||||
Comprehensive income attributable to noncontrolling interests
|
72.7 | (12.1 | ) | |||||
|
||||||||
Total comprehensive income (loss)
|
$ | 83.6 | $ | (10.3 | ) | |||
|
||||||||
See notes to consolidated financial statements
|
TARGA RESOURCES CORP.
|
|||||||||||||||||||||
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS' EQUITY
|
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Accumulated
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|
||||||||||||||
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Additional
|
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Other
|
Non
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|
||||||||||||||
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Common Stock
|
Paid in
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Accumulated
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Comprehensive
|
Controlling
|
|
|||||||||||||||
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Shares
|
Amount
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Capital
|
Deficit
|
Income (Loss)
|
Interests
|
Total
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(In millions, except shares in thousands)
|
||||||||||||||||||||
Balance, December 31, 2011
|
42,398 | $ | - | $ | 229.5 | $ | (70.1 | ) | $ | (1.3 | ) | $ | 1,172.6 | $ | 1,330.7 | ||||||
Compensation on equity grants
|
43 | - | 3.9 | - | - | 0.6 | 4.5 | ||||||||||||||
Sale of Partnership limited partner interests
|
- | - | - | - | - | 115.2 | 115.2 | ||||||||||||||
Impact of Partnership equity transactions
|
- | - | (18.3 | ) | - | - | 18.3 | - | |||||||||||||
Dividends
|
- | - | (14.3 | ) | - | - | (0.1 | ) | (14.4 | ) | |||||||||||
Distributions
|
- | - | - | - | - | (54.3 | ) | (54.3 | ) | ||||||||||||
Other comprehensive income
|
- | - | - | - | 1.3 | 13.1 | 14.4 | ||||||||||||||
Net income
|
- | - | - | 9.6 | - | 59.6 | 69.2 | ||||||||||||||
Balance, March 31, 2012
|
42,441 | $ | - | $ | 200.8 | $ | (60.5 | ) | $ | - | $ | 1,325.0 | $ | 1,465.3 | |||||||
|
|||||||||||||||||||||
Balance, December 31, 2010
|
42,292 | $ | - | $ | 244.5 | $ | (100.8 | ) | $ | 0.6 | $ | 891.8 | $ | 1,036.1 | |||||||
Compensation on equity grants
|
58 | - | 3.3 | - | - | - | 3.3 | ||||||||||||||
Sale of Partnership limited partner interests
|
- | - | - | - | - | 298.1 | 298.1 | ||||||||||||||
Impact of Partnership equity transactions
|
- | - | 22.2 | - | - | (22.2 | ) | - | |||||||||||||
Dividends
|
- | - | (2.6 | ) | - | - | - | (2.6 | ) | ||||||||||||
Distributions
|
- | - | - | - | - | (43.0 | ) | (43.0 | ) | ||||||||||||
Other comprehensive loss
|
- | - | - | - | (5.0 | ) | (46.1 | ) | (51.1 | ) | |||||||||||
Net income
|
- | - | - | 6.8 | - | 34.0 | 40.8 | ||||||||||||||
Balance, March 31, 2011
|
42,350 | $ | - | $ | 267.4 | $ | (94.0 | ) | $ | (4.4 | ) | $ | 1,112.6 | $ | 1,281.6 | ||||||
|
|||||||||||||||||||||
See notes to consolidated financial statements
|
TARGA RESOURCES CORP.
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
|
|
|
||||||
|
Three Months Ended March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
|
|
||||||
|
(Unaudited)
|
|||||||
Cash flows from operating activities
|
(In millions)
|
|||||||
Net income
|
$ | 69.2 | $ | 40.8 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Amortization in interest expense
|
4.8 | 1.9 | ||||||
Compensation on equity grants
|
4.5 | 3.3 | ||||||
Depreciation and amortization expense
|
47.4 | 43.4 | ||||||
Accretion of asset retirement obligations
|
1.0 | 0.9 | ||||||
Deferred income tax expense
|
1.4 | 0.3 | ||||||
Equity earnings, net of distributions
|
- | (1.7 | ) | |||||
Risk management activities
|
0.9 | (0.3 | ) | |||||
Changes in operating assets and liabilities:
|
||||||||
Receivables and other assets
|
119.6 | 32.4 | ||||||
Inventory
|
44.3 | 47.3 | ||||||
Accounts payable and other liabilities
|
(154.3 | ) | (98.2 | ) | ||||
Net cash provided by operating activities
|
138.8 | 70.1 | ||||||
Cash flows from investing activities
|
||||||||
Outlays for property, plant and equipment
|
(103.0 | ) | (57.0 | ) | ||||
Business acquisitions
|
- | (29.0 | ) | |||||
Investment in unconsolidated affiliate
|
(6.2 | ) | (4.4 | ) | ||||
Unconsolidated affiliate distributions in excess of accumulated earnings
|
0.3 | - | ||||||
Other, net
|
0.8 | - | ||||||
Net cash used in investing activities
|
(108.1 | ) | (90.4 | ) | ||||
Cash flows from financing activities
|
||||||||
Partnership loan facilities:
|
||||||||
Borrowings
|
145.0 | 268.0 | ||||||
Repayments
|
(643.0 | ) | (832.0 | ) | ||||
Proceeds from issuance of senior notes
|
400.0 | 325.0 | ||||||
Cash paid on note exchange
|
- | (27.7 | ) | |||||
Costs incurred in connection with financing arrangements
|
(4.4 | ) | (6.2 | ) | ||||
Distributions to owners
|
(54.3 | ) | (43.0 | ) | ||||
Proceeds from sale of common units of the Partnership
|
115.2 | 298.1 | ||||||
Dividends to common and common equivalent shareholders
|
(13.8 | ) | (2.6 | ) | ||||
Net cash used in financing activities
|
(55.3 | ) | (20.4 | ) | ||||
Net change in cash and cash equivalents
|
(24.6 | ) | (40.7 | ) | ||||
Cash and cash equivalents, beginning of period
|
145.8 | 188.4 | ||||||
Cash and cash equivalents, end of period
|
$ | 121.2 | $ | 147.7 | ||||
|
||||||||
See notes to consolidated financial statements
|
·
|
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 14.5% limited partnership interest.
|
|
March 31, 2012
|
December 31, 2011
|
|
|||||||||||||||||||||||||
|
|
|
Targa
|
|
|
Targa
|
Estimated
|
|||||||||||||||||||||
|
Targa
|
TRC
|
Resources
|
Targa
|
TRC
|
Resources
|
Useful
|
|||||||||||||||||||||
|
Resources
|
Non-
|
Corp.
|
Resources
|
Non-
|
Corp.
|
Lives
|
|||||||||||||||||||||
|
Partners LP
|
Partnership
|
Consolidated
|
Partners LP
|
Partnership
|
Consolidated
|
(In Years)
|
|||||||||||||||||||||
Natural gas gathering systems
|
$ | 1,761.9 | $ | - | $ | 1,761.9 | $ | 1,740.6 | $ | - | $ | 1,740.6 |
5 to 20
|
|||||||||||||||
Processing and fractionation facilities
|
1,108.1 | 6.6 | 1,114.7 | 1,062.7 | 6.6 | 1,069.3 |
5 to 25
|
|||||||||||||||||||||
Terminaling and storage facilities
|
389.6 | - | 389.6 | 380.7 | - | 380.7 |
5 to 25
|
|||||||||||||||||||||
Transportation assets
|
281.8 | - | 281.8 | 281.2 | - | 281.2 |
10 to 25
|
|||||||||||||||||||||
Other property, plant and equipment
|
57.1 | 24.0 | 81.1 | 54.9 | 24.0 | 78.9 |
3 to 25
|
|||||||||||||||||||||
Land
|
72.0 | - | 72.0 | 71.2 | - | 71.2 | - | |||||||||||||||||||||
Construction in progress
|
215.4 | 3.7 | 219.1 | 195.6 | 3.6 | 199.2 | - | |||||||||||||||||||||
|
$ | 3,885.9 | $ | 34.3 | $ | 3,920.2 | $ | 3,786.9 | $ | 34.2 | $ | 3,821.1 |
|
March 31, 2012
|
December 31, 2011
|
||||||
Commodities
|
$ | 403.9 | $ | 514.0 | ||||
Other goods and services
|
58.7 | 88.2 | ||||||
Interest
|
26.5 | 32.4 | ||||||
Compensation and benefits
|
31.4 | 46.1 | ||||||
Other
|
15.6 | 19.3 | ||||||
|
$ | 536.1 | $ | 700.0 |
|
March 31,
|
December 31,
|
||||||
|
2012
|
2011
|
||||||
Long-term debt:
|
|
|
||||||
Non-Partnership obligations:
|
|
|
||||||
TRC Holdco loan facility, variable rate, due February 2015
|
$ | 89.3 | $ | 89.3 | ||||
TRI Senior secured revolving credit facility, variable rate, due July 2014 (1)
|
- | - | ||||||
Obligations of the Partnership: (2)
|
||||||||
Senior secured revolving credit facility, variable rate, due July 2015 (3)
|
- | 498.0 | ||||||
Senior unsecured notes, 8¼% fixed rate, due July 2016
|
209.1 | 209.1 | ||||||
Senior unsecured notes, 11¼% fixed rate, due July 2017
|
72.7 | 72.7 | ||||||
Unamortized discount
|
(2.8 | ) | (2.9 | ) | ||||
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
|
(32.2 | ) | (32.8 | ) | ||||
Senior unsecured notes, 6⅜% fixed rate, due August 2022
|
400.0 | - | ||||||
Total long-term debt
|
$ | 1,469.7 | $ | 1,567.0 | ||||
Irrevocable standby letters of credit:
|
||||||||
Letters of credit outstanding under TRI Senior secured credit facility (1)
|
$ | - | $ | - | ||||
Letters of credit outstanding under the Partnership senior secured revolving credit facility (3)
|
77.6 | 92.5 | ||||||
|
$ | 77.6 | $ | 92.5 |
(1)
|
As of March 31, 2012, the entire amount of TRI’s $75.0 million credit facility was available.
|
(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 March 31, 2012, availability under the Partnership’s $1.1 billion senior secured revolving credit facility was $1,022.4 million.
|
Range of Interest Rates Incurred | Weighted Average Interest Rate Incurred | ||
TRC Holdco Loan Facility
|
3.2% - 3.3%
|
|
3.3%
|
Partnership Senior Secured Revolving Credit Facility
|
2.5% - 2.9%
|
|
2.8%
|
1)
|
at least 65% of the aggregate principal amount of the 6⅜% Notes (excluding the 6⅜% 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
|
2017
|
103.188%
|
2018
|
102.125%
|
2019
|
101.063%
|
2020 and thereafter
|
100.000%
|
|
|
|
Distributions |
|
Distributions to Targa Resources Corp.
|
Distributions per limited partner unit
|
|||||||||||||||
Three Months Ended
|
|
Date Paid or to be Paid
|
Limited Partners | General Partner |
|
|
|
||||||||||||||
|
Common | Incentive | 2% | Total |
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(In millions, except per unit amounts)
|
|||||||||||||||||||||
March 31, 2012
|
|
May 15, 2012
|
$
|
55.5
|
$
|
12.7
|
$
|
1.4
|
$
|
69.6
|
$
|
22.2
|
$
|
0.6225
|
|||||||
December 31, 2011
|
|
February 14, 2012
|
|
53.7
|
|
11.0
|
|
1.3
|
|
66.0
|
|
20.1
|
|
0.6025
|
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)
|
||||||||||||||
March 31, 2012
|
|
May 16, 2012
|
$
|
15.5
|
$
|
15.0
|
$
|
0.5
|
$
|
0.36500
|
||||
December 31, 2011
|
|
February 15, 2012
|
|
14.3
|
|
13.8
|
|
0.5
|
|
0.33625
|
(1)
|
Represents accrued dividends on the restricted shares that are payable upon vesting.
|
|
Three Months Ended March 31,
|
|||||||
|
2012
|
2011
|
||||||
Net income
|
$ | 69.2 | $ | 40.8 | ||||
Less: Net income attributable to noncontrolling interest
|
59.6 | 34.0 | ||||||
Net income attributable to common shareholders
|
$ | 9.6 | $ | 6.8 | ||||
|
||||||||
Weighted average shares outstanding - basic
|
41.0 | 40.9 | ||||||
|
||||||||
Net income available per common share - basic
|
$ | 0.23 | $ | 0.17 | ||||
|
||||||||
Weighted average shares outstanding
|
41.0 | 40.9 | ||||||
Dilutive effect of unvested stock awards
|
0.8 | 0.4 | ||||||
Weighted average shares outstanding - diluted
|
41.8 | 41.3 | ||||||
|
||||||||
Net income available per common share - diluted
|
$ | 0.23 | $ | 0.16 |
|
Three Months Ended March 31, 2012
|
|||||||||||
|
Before-Tax Amount
|
Tax (Expense) or Benefit
|
Net-of-Tax Amount
|
|||||||||
Commodity hedging contracts:
|
|
|
|
|||||||||
Change in fair value
|
$ | 2.4 | $ | (0.9 | ) | $ | 1.5 | |||||
Settlements reclassified to revenues
|
(0.6 | ) | 0.2 | (0.4 | ) | |||||||
Interest rate hedges:
|
||||||||||||
Change in fair value
|
- | - | - | |||||||||
Settlements reclassified to interest expense, net
|
0.4 | (0.2 | ) | 0.2 | ||||||||
Other comprehensive income (loss) attributable to Targa Resources Corp.
|
$ | 2.2 | $ | (0.9 | ) | $ | 1.3 | |||||
|
||||||||||||
|
Three Months Ended March 31, 2011
|
|||||||||||
|
Before-Tax Amount
|
Tax (Expense) or Benefit
|
Net-of-Tax Amount
|
|||||||||
Commodity hedging contracts:
|
||||||||||||
Change in fair value
|
$ | (9.2 | ) | $ | 3.7 | $ | (5.5 | ) | ||||
Settlements reclassified to revenues
|
0.1 | - | 0.1 | |||||||||
Interest rate hedges:
|
||||||||||||
Change in fair value
|
0.3 | - | 0.3 | |||||||||
Settlements reclassified to interest expense, net
|
0.4 | (0.3 | ) | 0.1 | ||||||||
Other comprehensive income (loss) attributable to Targa Resources Corp.
|
$ | (8.4 | ) | $ | 3.4 | $ | (5.0 | ) |
Commodity
|
|
Instrument
|
|
Unit
|
|
2012
|
|
2013
|
|
2014
|
Natural Gas
|
|
Swaps
|
|
MMBtu/d
|
|
31,790
|
|
17,089
|
|
-
|
NGL
|
|
Swaps
|
|
Bbl/d
|
|
9,361
|
|
4,150
|
|
-
|
NGL
|
|
Puts (propane)
|
|
Bbl/d
|
|
294
|
|
-
|
|
-
|
NGL
|
|
Calls (ethane) (1)
|
|
Bbl/d
|
|
2,000
|
|
-
|
|
-
|
Condensate
|
|
Swaps
|
|
Bbl/d
|
|
1,660
|
|
1,795
|
|
700
|
(1)
|
Utilized in connection with 2,000 Bbl/d of 2012 ethane swaps providing a floor on ethane with upside.
|
|
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
|
|
|
Balance
|
|
Fair Value as of
|
|
Balance
|
|
Fair Value as of
|
||||||||
|
|
|
Sheet
|
|
March 31,
|
|
December 31,
|
|
Sheet
|
|
March 31,
|
|
December 31,
|
||||
|
|
|
Location
|
|
2012
|
|
2011
|
|
Location
|
|
2012
|
|
2011
|
||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Commodity contracts
|
Current assets
|
|
$
|
40.0
|
|
$
|
40.3
|
|
Current liabilities
|
$
|
27.8
|
|
$
|
40.6
|
||
|
|
|
Long-term assets |
9.0
|
|
|
10.9
|
|
Long-term liabilities |
|
13.9
|
|
|
15.8
|
|||
Total derivatives designated as hedging instruments
|
|
$
|
49.0
|
|
$
|
51.2
|
|
|
|
$
|
41.7
|
|
$
|
56.4
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Commodity contracts
|
Current assets
|
|
$
|
0.5
|
|
$
|
0.7
|
|
Current liabilities
|
$
|
0.5
|
|
$
|
0.5
|
||
Total derivatives not designated as hedging instruments
|
$
|
0.5
|
|
$
|
0.7
|
|
|
|
$
|
0.5
|
|
$
|
0.5
|
||||
Total derivatives
|
|
|
|
$
|
49.5
|
|
$
|
51.9
|
|
|
|
$
|
42.2
|
|
$
|
56.9
|
|
Gain (Loss)
|
|||||||
Derivatives in
|
Recognized in OCI on
|
|||||||
Cash Flow Hedging
|
Derivatives (Effective Portion)
|
|||||||
Relationships
|
2012
|
2011
|
||||||
Interest rate contracts
|
$ | - | $ | 0.2 | ||||
Commodity contracts
|
15.5 | (61.2 | ) | |||||
|
$ | 15.5 | $ | (61.0 | ) | |||
|
||||||||
|
Gain (Loss)
|
|||||||
|
Reclassified from OCI into
|
|||||||
|
Income (Effective Portion)
|
|||||||
Location of Gain (Loss)
|
2012 | 2011 | ||||||
Interest expense, net
|
$ | (2.3 | ) | $ | (2.5 | ) | ||
Revenues
|
2.5 | (4.0 | ) | |||||
|
$ | 0.2 | $ | (6.5 | ) |
Gain Recognized in Income on Derivatives
|
||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain Recognized in Income on Derivatices |
2012
|
2011
|
|||||||
Commodity contracts
|
Revenue
|
$ | 0.1 | $ | 1.0 |
|
March 31, 2012
|
December 31, 2011
|
||||||
Commodity hedges, before tax
|
$ | 2.2 | $ | 0.4 | ||||
Commodity hedges, after tax
|
1.3 | 0.2 | ||||||
Interest rate swaps, before tax
|
(2.3 | ) | (2.5 | ) | ||||
Interest rate swaps, after tax
|
(1.4 | ) | (1.4 | ) |
·
|
Level 1 – observable inputs such as quoted prices in active markets;
|
·
|
Level 2 – inputs other than quoted prices in active markets that are either directly or indirectly observable 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 requiring an entity to develop its own assumptions.
|
|
March 31, 2012
|
|||||||||||
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||
Assets from commodity derivative contracts
|
$ | 49.5 | $ | - | $ | 49.5 | $ | - | ||||
Liabilities from commodity derivative contracts
|
$ | 42.2 | $ | - | $ | 42.2 | $ | - | ||||
|
||||||||||||
|
December 31, 2011
|
|||||||||||
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||
Assets from commodity derivative contracts
|
$ | 51.9 | $ | - | $ | 51.9 | $ | - | ||||
Liabilities from commodity derivative contracts
|
$ | 56.9 | $ | - | $ | 56.9 | $ | - |
|
March 31, 2012
|
|||||||||||
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||
Long term debt
|
$ | 1,582.1 | $ | - | $ | 1,494.6 | $ | 87.5 | ||||
|
||||||||||||
|
December 31, 2011
|
|||||||||||
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||
Long term debt
|
$ | 1,144.8 | $ | - | $ | 1,057.3 | $ | 87.5 |
|
March 31, 2012
|
December 31, 2011
|
||||||||||||||
|
Carrying
|
Fair
|
Carrying
|
Fair
|
||||||||||||
|
Amount
|
Value
|
Amount
|
Value
|
||||||||||||
Holdco loan facility
|
$ | 89.3 | $ | 87.5 | $ | 89.3 | $ | 87.5 | ||||||||
Senior unsecured notes of the Partnership, 8¼% fixed rate
|
209.1 | 220.7 | 209.1 | 220.5 | ||||||||||||
Senior unsecured notes of the Partnership, 11¼% fixed rate
|
69.9 | 83.0 | 69.8 | 82.1 | ||||||||||||
Senior unsecured notes of the Partnership, 7⅞% fixed rate
|
250.0 | 271.6 | 250.0 | 264.5 | ||||||||||||
Senior unsecured notes of the Partnership, 6⅞% fixed rate
|
451.4 | 510.5 | 450.8 | 490.2 | ||||||||||||
Senior unsecured notes of the Partnership, 6⅜% fixed rate
|
400.0 | 408.8 | N/A | N/A |
|
Three Months Ending March 31, 2012
|
|||||||||||||||||||||||||||||||
|
Partnership
|
|
|
|||||||||||||||||||||||||||||
|
Field
|
Coastal
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Gathering
|
Gathering
|
|
Marketing
|
|
Corporate
|
|
|
||||||||||||||||||||||||
|
and
|
and
|
Logistics
|
and
|
|
and
|
TRC Non-
|
|
||||||||||||||||||||||||
|
Processing
|
Processing
|
Assets
|
Distribution
|
Other
|
Eliminations
|
Partnership
|
Consolidated
|
||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Sales of commodities
|
$ | 45.4 | $ | 59.8 | $ | 45.7 | $ | 1,417.2 | $ | 1.4 | $ | - | $ | 0.3 | $ | 1,569.8 | ||||||||||||||||
Fees from midstream services
|
8.0 | 2.9 | 36.2 | 18.7 | - | 0.1 | 0.1 | 66.0 | ||||||||||||||||||||||||
Other
|
2.9 | 0.8 | 2.5 | 4.0 | - | (0.1 | ) | (0.1 | ) | 10.0 | ||||||||||||||||||||||
|
56.3 | 63.5 | 84.4 | 1,439.9 | 1.4 | - | 0.3 | 1,645.8 | ||||||||||||||||||||||||
Intersegment revenues
|
||||||||||||||||||||||||||||||||
Sales of commodities
|
317.4 | 220.0 | - | 132.0 | - | (669.4 | ) | - | - | |||||||||||||||||||||||
Fees from midstream services
|
0.3 | - | 23.8 | 2.5 | - | (26.6 | ) | - | - | |||||||||||||||||||||||
Other
|
- | 0.1 | 0.2 | 6.8 | - | (7.1 | ) | - | - | |||||||||||||||||||||||
|
317.7 | 220.1 | 24.0 | 141.3 | - | (703.1 | ) | - | - | |||||||||||||||||||||||
Revenues
|
$ | 374.0 | $ | 283.6 | $ | 108.4 | $ | 1,581.2 | $ | 1.4 | $ | (703.1 | ) | $ | 0.3 | $ | 1,645.8 | |||||||||||||||
Operating margin
|
$ | 73.0 | $ | 46.3 | $ | 43.0 | $ | 26.1 | $ | 1.4 | $ | - | $ | 0.2 | $ | 190.0 | ||||||||||||||||
Other financial information:
|
||||||||||||||||||||||||||||||||
Total assets
|
$ | 1,661.1 | $ | 422.5 | $ | 823.0 | $ | 507.9 | $ | 49.5 | $ | 123.0 | $ | 111.3 | $ | 3,698.4 | ||||||||||||||||
Capital expenditures
|
$ | 26.2 | $ | 2.0 | $ | 60.1 | $ | 9.1 | $ | - | $ | 0.6 | $ | 0.3 | $ | 98.3 |
|
Three Months Ended March 31, 2011
|
|||||||||||||||||||||||||||||||
|
Partnership
|
|
|
|||||||||||||||||||||||||||||
|
Field
|
Coastal
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Gathering
|
Gathering
|
|
Marketing
|
|
Corporate
|
|
|
||||||||||||||||||||||||
|
and
|
and
|
Logistics
|
and
|
|
and
|
TRC Non-
|
|
||||||||||||||||||||||||
|
Processing
|
Processing
|
Assets
|
Distribution
|
Other
|
Eliminations
|
Partnership
|
Consolidated
|
||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Sales of commodities
|
$ | 45.7 | $ | 79.2 | $ | - | $ | 1,446.3 | $ | (4.4 | ) | $ | - | $ | 0.5 | $ | 1,567.3 | |||||||||||||||
Fees from midstream services
|
5.9 | 4.5 | 22.9 | 9.4 | - | - | 0.1 | 42.8 | ||||||||||||||||||||||||
Other
|
0.4 | 0.3 | 0.3 | 4.6 | - | - | 2.9 | 8.5 | ||||||||||||||||||||||||
|
52.0 | 84.0 | 23.2 | 1,460.3 | (4.4 | ) | - | 3.5 | 1,618.6 | |||||||||||||||||||||||
Intersegment revenues
|
||||||||||||||||||||||||||||||||
Sales of commodities
|
299.4 | 217.0 | 0.1 | 110.3 | - | (626.8 | ) | - | - | |||||||||||||||||||||||
Fees from midstream services
|
0.3 | 0.4 | 19.0 | 2.0 | - | (21.7 | ) | - | - | |||||||||||||||||||||||
Other
|
- | - | - | 5.6 | - | (5.6 | ) | - | - | |||||||||||||||||||||||
|
299.7 | 217.4 | 19.1 | 117.9 | - | (654.1 | ) | - | - | |||||||||||||||||||||||
Revenues
|
$ | 351.7 | $ | 301.4 | $ | 42.3 | $ | 1,578.2 | $ | (4.4 | ) | $ | (654.1 | ) | $ | 3.5 | $ | 1,618.6 | ||||||||||||||
Operating margin
|
$ | 61.1 | $ | 36.3 | $ | 22.3 | $ | 32.7 | $ | (4.4 | ) | $ | - | $ | 3.5 | $ | 151.5 | |||||||||||||||
Other financial information:
|
||||||||||||||||||||||||||||||||
Total assets
|
$ | 1,641.8 | $ | 431.3 | $ | 506.6 | $ | 458.7 | $ | 34.5 | $ | 67.8 | $ | 181.7 | $ | 3,322.4 | ||||||||||||||||
Capital expenditures
|
$ | 31.8 | $ | 1.4 | $ | 45.2 | $ | 0.1 | $ | - | $ | - | $ | 0.6 | $ | 79.1 |
|
Three Months Ended March 31,
|
|||||||
|
2012
|
2011
|
||||||
Sales of commodities
|
|
|
||||||
Natural gas sales
|
$ | 202.9 | $ | 248.7 | ||||
NGL sales
|
1,290.2 | 1,301.7 | ||||||
Condensate sales
|
29.0 | 21.5 | ||||||
Petroleum products
|
45.5 | - | ||||||
Derivative activities
|
2.2 | (4.6 | ) | |||||
|
1,569.8 | 1,567.3 | ||||||
Fees from midstream services
|
||||||||
Fractionating and treating fees
|
26.9 | 11.1 | ||||||
Storage and terminaling fees
|
11.5 | 13.9 | ||||||
Transportation fees
|
19.0 | 10.6 | ||||||
Gas processing fees
|
8.6 | 7.2 | ||||||
|
66.0 | 42.8 | ||||||
Other
|
||||||||
Business interruption insurance
|
- | 3.0 | ||||||
Other
|
10.0 | 5.5 | ||||||
|
10.0 | 8.5 | ||||||
Total revenues
|
$ | 1,645.8 | $ | 1,618.6 |
|
Three Months Ended March 31,
|
|||||||
|
2012
|
2011
|
||||||
Reconciliation of operating margin to net income
|
|
|
||||||
Operating margin
|
$ | 190.0 | $ | 151.5 | ||||
Depreciation and amortization expense
|
(47.4 | ) | (43.4 | ) | ||||
General and administrative expense
|
(34.9 | ) | (34.6 | ) | ||||
Interest expense, net
|
(30.5 | ) | (28.5 | ) | ||||
Income tax expense
|
(10.1 | ) | (5.8 | ) | ||||
Other, net
|
2.1 | 1.6 | ||||||
Net income
|
$ | 69.2 | $ | 40.8 |
·
|
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.
|
|
Three Months Ended March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
|
|
||||||
Targa Resources Corp. Distributable Cash Flow
|
(In millions)
|
|||||||
Distributions declared by Targa Resources Partners LP associated with:
|
|
|
||||||
General Partner Interests
|
$ | 1.4 | $ | 1.1 | ||||
Incentive Distribution Rights
|
12.7 | 6.8 | ||||||
Common Units
|
8.1 | 6.5 | ||||||
Total distributions from Targa Resources Partners LP
|
22.2 | 14.4 | ||||||
Income (expenses) of TRC Non-Partnership
|
||||||||
General and administrative expenses
|
(2.0 | ) | (2.8 | ) | ||||
Interest expense, net
|
(1.1 | ) | (1.0 | ) | ||||
Current cash tax expense (1)
|
(6.9 | ) | (2.9 | ) | ||||
Taxes funded with cash on hand (2)
|
2.2 | 2.5 | ||||||
Other income (expense)
|
- | 3.0 | ||||||
Distributable cash flow
|
$ | 14.4 | $ | 13.2 |
(1)
|
Excludes $1.2 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 months ended March 31, 2012 and 2011.
|
(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 March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
|
|
||||||
|
(In millions)
|
|||||||
Reconciliation of net income attributable to Targa Resources Corp. to Distributable Cash Flow
|
|
|
||||||
Net income of Targa Resources Corp.
|
$ | 69.2 | $ | 40.8 | ||||
Less: Net income of Targa Resources Partners LP
|
(81.8 | ) | (45.7 | ) | ||||
Net loss for TRC Non-Partnership
|
(12.6 | ) | (4.9 | ) | ||||
Plus: TRC Non-Partnership income tax expense
|
9.1 | 4.0 | ||||||
Plus: Distributions from the Partnership
|
22.2 | 14.4 | ||||||
Plus: Non-cash (gain) loss on hedges
|
(0.3 | ) | (0.6 | ) | ||||
Plus: Depreciation - Non-Partnership assets
|
0.7 | 0.7 | ||||||
Less: Current cash tax expense (1)
|
(6.9 | ) | (2.9 | ) | ||||
Plus: Taxes funded with cash on hand (2)
|
2.2 | 2.5 | ||||||
Distributable cash flow
|
$ | 14.4 | $ | 13.2 |
(1)
|
Excludes $1.2 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 months ended March 31, 2012 and 2011.
|
(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 March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
(In millions)
|
|||||||
Reconciliation of Targa Resources Partners LP gross margin and operating margin to net income:
|
|
|
||||||
Gross margin
|
$ | 261.4 | $ | 213.9 | ||||
Operating expenses
|
(71.6 | ) | (65.9 | ) | ||||
Operating margin
|
189.8 | 148.0 | ||||||
Depreciation and amortization expenses
|
(46.7 | ) | (42.7 | ) | ||||
General and administrative expenses
|
(32.9 | ) | (31.8 | ) | ||||
Interest expense, net
|
(29.4 | ) | (27.5 | ) | ||||
Income tax expense
|
(1.0 | ) | (1.8 | ) | ||||
Other, net
|
2.0 | 1.5 | ||||||
Targa Resources Partners LP Net income
|
$ | 81.8 | $ | 45.7 |
|
Three Months Ended March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
|
|
||||||
|
(In millions)
|
|||||||
Reconciliation of net cash provided by Targa Resources Partners LP operating activities to Adjusted EBITDA:
|
|
|
||||||
Net cash provided by operating activities
|
$ | 146.7 | $ | 98.6 | ||||
Net income attributable to noncontrolling interests
|
(11.7 | ) | (7.9 | ) | ||||
Interest expense, net (1)
|
24.8 | 25.7 | ||||||
Current income tax expense
|
0.6 | 1.4 | ||||||
Other (2)
|
(4.9 | ) | (2.0 | ) | ||||
Changes in operating assets and liabilities which used (provided) cash:
|
||||||||
Accounts receivable and other assets
|
(158.2 | ) | (71.3 | ) | ||||
Accounts payable and other liabilities
|
148.1 | 62.9 | ||||||
Targa Resources Partners LP Adjusted EBITDA
|
$ | 145.4 | $ | 107.4 |
(1)
|
Net of amortization of debt issuance costs, discount and premium included in interest expense of $4.6 million and $1.8 million for the three months ended March 31, 2012 and 2011.
|
(2)
|
Includes equity earnings from unconsolidated investments – net of distributions, accretion expense associated with asset retirement obligations, amortization of stock based compensation and gain (loss) on sale of assets.
|
|
Three Months Ended March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
|
|
||||||
|
(In millions)
|
|||||||
Reconciliation of net income attributable to Targa Resources Partners LP to Adjusted EBITDA:
|
|
|
||||||
Net income attributable to Targa Resources Partners LP
|
$ | 70.1 | $ | 37.8 | ||||
Add:
|
||||||||
Interest expense, net
|
29.4 | 27.5 | ||||||
Income tax expense
|
1.0 | 1.8 | ||||||
Depreciation and amortization expenses
|
46.7 | 42.7 | ||||||
Risk management activities
|
1.0 | 0.2 | ||||||
Noncontrolling interests adjustment (1)
|
(2.8 | ) | (2.6 | ) | ||||
Targa Resources Partners LP Adjusted EBITDA
|
$ | 145.4 | $ | 107.4 |
|
Three Months Ended March 31,
|
|||||||
|
2012
|
2011
|
||||||
|
|
|
||||||
|
(In millions)
|
|||||||
Reconciliation of net income attributable to Targa Resources Partners LP to distributable cash flow:
|
|
|
||||||
Net income attributable to Targa Resources Partners LP
|
$ | 70.1 | $ | 37.8 | ||||
Depreciation and amortization expenses
|
46.7 | 42.7 | ||||||
Deferred income tax expense
|
0.4 | 0.4 | ||||||
Amortization in interest expense
|
4.6 | 1.8 | ||||||
Risk management activities
|
1.0 | 0.2 | ||||||
Maintenance capital expenditures
|
(16.5 | ) | (12.8 | ) | ||||
Other (1)
|
(0.6 | ) | 2.0 | |||||
Distributable cash flow
|
$ | 105.7 | $ | 72.1 |
(1)
|
Includes reimbursements of certain environmental maintenance capital expenditures by us and the noncontrolling interest portion of maintenance capital expenditures, depreciation and amortization expenses.
|
|
March 31, 2012
|
December 31, 2011
|
||||||||||||||||||||||
|
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)
|
$ | 121.2 | $ | 86.3 | $ | 34.9 | $ | 145.8 | $ | 55.6 | $ | 90.2 | ||||||||||||
Trade receivables, net
|
462.6 | 462.6 | - | 575.7 | 575.9 | (0.2 | ) | |||||||||||||||||
Inventory
|
45.5 | 45.4 | 0.1 | 92.2 | 92.1 | 0.1 | ||||||||||||||||||
Deferred income taxes (2)
|
- | - | - | 0.1 | - | 0.1 | ||||||||||||||||||
Assets from risk management activities
|
40.5 | 40.5 | - | 41.0 | 41.0 | - | ||||||||||||||||||
Other current assets (1)
|
6.4 | 2.4 | 4.0 | 11.7 | 2.7 | 9.0 | ||||||||||||||||||
Total current assets
|
676.2 | 637.2 | 39.0 | 866.5 | 767.3 | 99.2 | ||||||||||||||||||
Property, plant and equipment, at cost (1)
|
3,920.2 | 3,885.9 | 34.3 | 3,821.1 | 3,786.9 | 34.2 | ||||||||||||||||||
Accumulated depreciation
|
(1,048.2 | ) | (1,026.7 | ) | (21.5 | ) | (1,001.6 | ) | (980.8 | ) | (20.8 | ) | ||||||||||||
Property, plant and equipment, net
|
2,872.0 | 2,859.2 | 12.8 | 2,819.5 | 2,806.1 | 13.4 | ||||||||||||||||||
Long-term assets from risk management activities
|
9.0 | 9.0 | - | 10.9 | 10.9 | - | ||||||||||||||||||
Other long-term assets (3)
|
141.2 | 81.7 | 59.5 | 134.1 | 73.7 | 60.4 | ||||||||||||||||||
Total assets
|
$ | 3,698.4 | $ | 3,587.1 | $ | 111.3 | $ | 3,831.0 | $ | 3,658.0 | $ | 173.0 | ||||||||||||
|
||||||||||||||||||||||||
LIABILITIES AND OWNERS' EQUITY
|
||||||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||||||
Accounts payable and accrued liabilities (4)
|
$ | 536.1 | $ | 501.1 | $ | 35.0 | $ | 700.0 | $ | 647.8 | $ | 52.2 | ||||||||||||
Affiliate payable (receivable) (5)
|
- | 54.0 | (54.0 | ) | - | 60.0 | (60.0 | ) | ||||||||||||||||
Deferred income taxes
|
4.9 | - | 4.9 | - | - | - | ||||||||||||||||||
Liabilities from risk management activities
|
28.3 | 28.3 | - | 41.1 | 41.1 | - | ||||||||||||||||||
Total current liabilities
|
569.3 | 583.4 | (14.1 | ) | 741.1 | 748.9 | (7.8 | ) | ||||||||||||||||
Long-term debt (6)
|
1,469.7 | 1,380.4 | 89.3 | 1,567.0 | 1,477.7 | 89.3 | ||||||||||||||||||
Long-term liabilities from risk management activities
|
13.9 | 13.9 | - | 15.8 | 15.8 | - | ||||||||||||||||||
Deferred income taxes (2)
|
118.0 | 9.9 | 108.1 | 120.5 | 9.5 | 111.0 | ||||||||||||||||||
Other long-term liabilities (7)
|
62.2 | 45.3 | 16.9 | 55.9 | 44.4 | 11.5 | ||||||||||||||||||
Total liabilities
|
2,233.1 | 2,032.9 | 200.2 | 2,500.3 | 2,296.3 | 204.0 | ||||||||||||||||||
Total owners' equity
|
1,465.3 | 1,554.2 | (88.9 | ) | 1,330.7 | 1,361.7 | (31.0 | ) | ||||||||||||||||
Total liabilities and owners' equity
|
$ | 3,698.4 | $ | 3,587.1 | $ | 111.3 | $ | 3,831.0 | $ | 3,658.0 | $ | 173.0 |
(1)
|
Corporate assets consisting of cash, administrative property and equipment, and prepaid insurance.
|
(2)
|
Current and long-term deferred income tax balances.
|
(3)
|
Long-term tax assets primarily related to gains on 2010 drop down transactions recognized as sales of assets for tax purposes.
|
(4)
|
Accrued current employee liabilities related to payroll and incentive compensation plans and taxes payable.
|
(5)
|
Intercompany receivable with the Partnership related to the ongoing execution of the Omnibus Agreement.
|
(6)
|
Long-term debt obligations of TRC and TRI.
|
(7)
|
Long-term liabilities related to incentive compensation plans and deferred rent related to the headquarters office lease.
|
|
Three Months Ended March 31,
|
|||||||||||||||||||||||
|
2012
|
2011
|
||||||||||||||||||||||
|
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)
|
$ | 1,645.8 | $ | 1,645.5 | $ | 0.3 | $ | 1,618.6 | $ | 1,615.1 | $ | 3.5 | ||||||||||||
Costs and Expenses:
|
||||||||||||||||||||||||
Product purchases
|
1,384.2 | 1,384.1 | 0.1 | 1,401.2 | 1,401.2 | - | ||||||||||||||||||
Operating expenses
|
71.6 | 71.6 | - | 65.9 | 65.9 | - | ||||||||||||||||||
Depreciation and amortization (2)
|
47.4 | 46.7 | 0.7 | 43.4 | 42.7 | 0.7 | ||||||||||||||||||
General and administrative (3)
|
34.9 | 32.9 | 2.0 | 34.6 | 31.8 | 2.8 | ||||||||||||||||||
Income from operations
|
107.7 | 110.2 | (2.5 | ) | 73.5 | 73.5 | - | |||||||||||||||||
Other income (expense):
|
||||||||||||||||||||||||
Interest expense, net - third party (4)
|
(30.5 | ) | (29.4 | ) | (1.1 | ) | (28.5 | ) | (27.5 | ) | (1.0 | ) | ||||||||||||
Equity earnings
|
2.1 | 2.1 | - | 1.7 | 1.7 | - | ||||||||||||||||||
Other income (expense)
|
- | (0.1 | ) | 0.1 | (0.1 | ) | (0.2 | ) | 0.1 | |||||||||||||||
Income before income taxes
|
79.3 | 82.8 | (3.5 | ) | 46.6 | 47.5 | (0.9 | ) | ||||||||||||||||
Income tax expense
|
(10.1 | ) | (1.0 | ) | (9.1 | ) | (5.8 | ) | (1.8 | ) | (4.0 | ) | ||||||||||||
Net income (loss)
|
$ | 69.2 | $ | 81.8 | $ | (12.6 | ) | $ | 40.8 | $ | 45.7 | $ | (4.9 | ) | ||||||||||
Less: Net income attributable to noncontrolling interests (5)
|
59.6 | 11.7 | 47.9 | 34.0 | 7.9 | 26.1 | ||||||||||||||||||
Net income (loss) after noncontrolling interests
|
$ | 9.6 | $ | 70.1 | $ | (60.5 | ) | $ | 6.8 | $ | 37.8 | $ | (31.0 | ) |
(1)
|
Business interruption revenues of $3.0 million for the three months ended March 31, 2011 and amortization of OCI related to Versado hedges dropped down to the Partnership, and OCI related to terminated hedges.
|
(2)
|
Depreciation on assets excluded from drop down transactions and corporate administrative assets.
|
(3)
|
General and administrative expenses retained by TRC related to its status as a public entity.
|
(4)
|
Interest expense and other gains and losses related to TRC and TRI debt obligations.
|
(5)
|
TRC noncontrolling interest in the Partnership.
|
|
Three Months Ended March 31,
|
|||||||||||||||||||||||
|
2012
|
2011
|
||||||||||||||||||||||
|
Targa Resources Corp. Consolidated
|
Targa Resources Partners LP
|
TRC - Non-Partnership
|
Targa Resources Corp. Consolidated
|
Targa Resources Partners LP
|
TRC - Non-Partnership
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Cash flows from operating activities
|
(In millions)
|
|||||||||||||||||||||||
Net income (loss)
|
$ | 69.2 | $ | 81.8 | $ | (12.6 | ) | $ | 40.8 | $ | 45.7 | $ | (4.9 | ) | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||||||||||
Amortization in interest expense
|
4.8 | 4.6 | 0.2 | 1.9 | 1.8 | 0.1 | ||||||||||||||||||
Compensation on equity grants
|
4.5 | 1.0 | 3.5 | 3.3 | 0.2 | 3.1 | ||||||||||||||||||
Depreciation and amortization expense (1)
|
47.4 | 46.7 | 0.7 | 43.4 | 42.7 | 0.7 | ||||||||||||||||||
Accretion of asset retirement obligations
|
1.0 | 1.0 | - | 0.9 | 0.9 | - | ||||||||||||||||||
Deferred income tax expense
|
1.4 | 0.4 | 1.0 | 0.3 | 0.4 | (0.1 | ) | |||||||||||||||||
Equity earnings, net of distributions
|
- | - | - | (1.7 | ) | (1.7 | ) | - | ||||||||||||||||
Risk management activities (2)
|
0.9 | 1.1 | (0.2 | ) | (0.3 | ) | 0.2 | (0.5 | ) | |||||||||||||||
Changes in operating assets and liabilities: (3)
|
9.6 | 10.1 | (0.5 | ) | (18.5 | ) | 8.4 | (26.9 | ) | |||||||||||||||
Net cash provided by (used in) operating activities
|
138.8 | 146.7 | (7.9 | ) | 70.1 | 98.6 | (28.5 | ) | ||||||||||||||||
Cash flows from investing activities
|
||||||||||||||||||||||||
Outlays for property, plant and equipment (1)
|
(103.0 | ) | (102.7 | ) | (0.3 | ) | (57.0 | ) | (55.5 | ) | (1.5 | ) | ||||||||||||
Business acquisitions
|
- | - | - | (29.0 | ) | (29.0 | ) | - | ||||||||||||||||
Investment in unconsolidated affiliate
|
(6.2 | ) | (6.2 | ) | - | (4.4 | ) | (4.4 | ) | - | ||||||||||||||
Return of capital from unconsolidated affiliate
|
0.3 | 0.3 | - | - | - | - | ||||||||||||||||||
Other
|
0.8 | 0.8 | - | - | - | - | ||||||||||||||||||
Net cash used in investing activities
|
(108.1 | ) | (107.8 | ) | (0.3 | ) | (90.4 | ) | (88.9 | ) | (1.5 | ) | ||||||||||||
Cash flows from financing activities
|
||||||||||||||||||||||||
Loan Facilities of the Partnership:
|
||||||||||||||||||||||||
Borrowings
|
545.0 | 545.0 | - | 593.0 | 593.0 | - | ||||||||||||||||||
Repayments
|
(643.0 | ) | (643.0 | ) | - | (859.7 | ) | (859.7 | ) | - | ||||||||||||||
Loan Facilities- Non-Partnership:
|
||||||||||||||||||||||||
Partnership equity transactions (4)
|
115.2 | 168.4 | (53.2 | ) | 298.1 | 304.4 | (6.3 | ) | ||||||||||||||||
Contributions (distributions) to owners (5)
|
(54.3 | ) | (74.7 | ) | 20.4 | (43.0 | ) | (56.4 | ) | 13.4 | ||||||||||||||
Capital contributions (distributions)
|
- | 0.5 | (0.5 | ) | - | 2.5 | (2.5 | ) | ||||||||||||||||
Dividends to common and common equivalent shareholders
|
(13.8 | ) | - | (13.8 | ) | (2.6 | ) | - | (2.6 | ) | ||||||||||||||
Costs incurred in connection with financing arrangements
|
(4.4 | ) | (4.4 | ) | - | (6.2 | ) | (6.2 | ) | - | ||||||||||||||
Net cash provided by (used in) financing activities
|
(55.3 | ) | (8.2 | ) | (47.1 | ) | (20.4 | ) | (22.4 | ) | 2.0 | |||||||||||||
Net change in cash and cash equivalents
|
(24.6 | ) | 30.7 | (55.3 | ) | (40.7 | ) | (12.7 | ) | (28.0 | ) | |||||||||||||
Cash and cash equivalents, beginning of period
|
145.8 | 55.6 | 90.2 | 188.4 | 76.3 | 112.1 | ||||||||||||||||||
Cash and cash equivalents, end of period
|
$ | 121.2 | $ | 86.3 | $ | 34.9 | $ | 147.7 | $ | 63.6 | $ | 84.1 |
(1)
|
Cash and non-cash activity related to corporate administrative assets.
|
(2)
|
Non-cash OCI hedge realizations related to predecessor operations.
|
(3)
|
See Balance Sheet – Partnership versus Non-Partnership for a description of the Non-Partnership operating assets and liabilities.
|
(4)
|
Contribution to the Partnership to maintain our 2% general partner interest and purchase of common units.
|
(5)
|
Cash distributions received by TRC for its general partner and limited partner interests and IDRs in the Partnership.
|
Three Months Ended March 31,
|
||||||||||||||||
2012
|
2011
|
2012 vs. 2011
|
||||||||||||||
Revenues
|
$ | 1,645.8 | $ | 1,618.6 | $ | 27.2 | 2% | |||||||||
Product purchases
|
1,384.2 | 1,401.2 | (17.0 | ) | (1% | ) | ||||||||||
Gross margin (1)
|
261.6 | 217.4 | 44.2 | 20% | ||||||||||||
Operating expenses
|
71.6 | 65.9 | 5.7 | 9% | ||||||||||||
Operating margin (2)
|
190.0 | 151.5 | 38.5 | 25% | ||||||||||||
Depreciation and amortization expenses
|
47.4 | 43.4 | 4.0 | 9% | ||||||||||||
General and administrative expenses
|
34.9 | 34.6 | 0.3 | 1% | ||||||||||||
Income from operations
|
107.7 | 73.5 | 34.2 | 47% | ||||||||||||
Interest expense, net
|
(30.5 | ) | (28.5 | ) | (2.0 | ) | 7% | |||||||||
Equity earnings
|
2.1 | 1.7 | 0.4 | 24% | ||||||||||||
Other
|
- | (0.1 | ) | 0.1 | (100% | ) | ||||||||||
Income tax expense
|
(10.1 | ) | (5.8 | ) | (4.3 | ) | 74% | |||||||||
Net income
|
69.2 | 40.8 | 28.4 | 70% | ||||||||||||
Less: Net income attributable to noncontrolling interests
|
59.6 | 34.0 | 25.6 | 75% | ||||||||||||
Net income (loss) available to common shareholders
|
$ | 9.6 | $ | 6.8 | $ | 2.8 | 41% | |||||||||
Operating statistics:
|
||||||||||||||||
Plant natural gas inlet, MMcf/d (3) (4)
|
2,232.7 | 2,168.6 | 64.1 | 3% | ||||||||||||
Gross NGL production, MBbl/d
|
132.3 | 119.1 | 13.2 | 11% | ||||||||||||
Natural gas sales, BBtu/d (4)
|
860.5 | 682.4 | 178.1 | 26% | ||||||||||||
NGL sales, MBbl/d
|
279.1 | 275.6 | 3.5 | 1% | ||||||||||||
Condensate sales, MBbl/d
|
3.1 | 2.6 | 0.5 | 19% |
(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
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Three Months Ended:
|
(In millions)
|
|||||||||||||||||||||||||||
March 31, 2012
|
$ | 73.0 | $ | 46.3 | $ | 43.0 | $ | 26.1 | $ | 1.4 | $ | 0.2 | $ | 190.0 | ||||||||||||||
March 31, 2011
|
61.1 | 36.3 | 22.3 | 32.7 | (4.4 | ) | 3.5 | 151.5 |
Three Months Ended March 31, | ||||||||||||||||
|
2012
|
2011
|
2012 vs. 2011
|
|||||||||||||
|
|
|
|
|
||||||||||||
|
($ in millions)
|
|||||||||||||||
Gross margin
|
$ | 102.3 | $ | 87.9 | $ | 14.4 | 16% | |||||||||
Operating expenses
|
29.3 | 26.8 | 2.5 | 9% | ||||||||||||
Operating margin
|
$ | 73.0 | $ | 61.1 | $ | 11.9 | 19% | |||||||||
Operating statistics:
|
||||||||||||||||
Plant natural gas inlet, MMcf/d (1),(2)
|
655.4 | 572.8 | 82.6 | 14% | ||||||||||||
Gross NGL production, MBbl/d
|
79.1 | 69.5 | 9.6 | 14% | ||||||||||||
Natural gas sales, BBtu/d (2),(3)
|
313.3 | 263.1 | 50.2 | 19% | ||||||||||||
NGL sales, MBbl/d (3)
|
65.0 | 56.4 | 8.6 | 15% | ||||||||||||
Condensate sales, MBbl/d (3)
|
2.9 | 2.3 | 0.6 | 26% | ||||||||||||
Average realized prices (4):
|
||||||||||||||||
Natural gas, $/MMBtu
|
2.57 | 3.80 | (1.23 | ) | (32% | ) | ||||||||||
NGL, $/gal
|
1.06 | 1.11 | (0.05 | ) | (5% | ) | ||||||||||
Condensate, $/Bbl
|
99.23 | 91.04 | 8.19 | 9% |
(1)
|
Plant natural gas inlet represents the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant.
|
(2)
|
Plant natural gas inlet volumes include producer take-in-kind volumes, while natural gas sales exclude producer take-in-kind volumes.
|
(3)
|
Segment operating statistics include the effect of intersegment sales, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the quarter and the denominator is the number of calendar days during the quarter.
|
(4)
|
Average realized prices exclude the impact of hedging activities.
|
Three Months Ended March 31, | ||||||||||||||||
|
2012
|
2011
|
2012 vs. 2011
|
|||||||||||||
|
|
|
|
|
||||||||||||
|
($ in millions)
|
|||||||||||||||
Gross margin
|
$ | 56.7 | $ | 46.5 | $ | 10.2 | 22% | |||||||||
Operating expenses
|
10.4 | 10.2 | 0.2 | 2% | ||||||||||||
Operating margin
|
$ | 46.3 | $ | 36.3 | $ | 10.0 | 28% | |||||||||
Operating statistics:
|
||||||||||||||||
Plant natural gas inlet, MMcf/d (1),(2)
|
1,577.3 | 1,595.8 | (18.5 | ) | (1% | ) | ||||||||||
Gross NGL production, MBbl/d
|
53.2 | 49.6 | 3.6 | 7% | ||||||||||||
Natural gas sales, BBtu/d (2),(3)
|
282.0 | 254.5 | 27.5 | 11% | ||||||||||||
NGL sales, MBbl/d (3)
|
47.3 | 43.5 | 3.8 | 9% | ||||||||||||
Condensate sales, MBbl/d (3)
|
0.3 | 0.3 | - | - | ||||||||||||
Average realized prices:
|
||||||||||||||||
Natural gas, $/MMBtu
|
2.62 | 4.15 | (1.53 | ) | (37% | ) | ||||||||||
NGL, $/gal
|
1.16 | 1.21 | (0.05 | ) | (4% | ) | ||||||||||
Condensate, $/Bbl
|
127.86 | 92.23 | 35.63 | 39% |
(1)
|
Plant natural gas inlet represents the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant.
|
(2)
|
Plant natural gas inlet volumes include producer take-in-kind volumes, while natural gas sales exclude producer take-in-kind volumes.
|
(3)
|
Segment operating statistics include the effect of intersegment sales, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the quarter and the denominator is the number of calendar days during the quarter.
|
Three Months Ended March 31, | ||||||||||||||||
|
2012
|
2011
|
2012 vs. 2011 | |||||||||||||
|
|
|
|
|
||||||||||||
|
($ in millions)
|
|||||||||||||||
Gross margin
|
$ | 64.4 | $ | 42.3 | $ | 22.1 | 52% | |||||||||
Operating expenses
|
21.4 | 20.0 | 1.4 | 7% | ||||||||||||
Operating margin
|
$ | 43.0 | $ | 22.3 | $ | 20.7 | 93% | |||||||||
Operating statistics (1):
|
||||||||||||||||
Fractionation volumes, MBbl/d
|
293.7 | 209.3 | 84.4 | 40% | ||||||||||||
Treating volumes, MBbl/d (2)
|
19.1 | 10.2 | 8.9 | 87% |
(1)
|
Segment operating statistics include the effect of intersegment sales, 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)
|
Includes the volumes related to the natural gasoline hydrotreater at our Mt. Belvieu facility.
|
Three Months Ended March 31, | ||||||||||||||||
|
2012
|
2011
|
2012 vs. 2011
|
|||||||||||||
|
($ in millions)
|
|||||||||||||||
Gross margin
|
$ | 35.4 | $ | 44.6 | $ | (9.2 | ) | (21% | ) | |||||||
Operating expenses
|
9.3 | 11.9 | (2.6 | ) | (22% | ) | ||||||||||
Operating margin
|
$ | 26.1 | $ | 32.7 | $ | (6.6 | ) | (20% | ) | |||||||
Operating statistics (1):
|
||||||||||||||||
Natural gas sales, BBtu/d
|
1,023.5 | 664.3 | 359.2 | 54% | ||||||||||||
NGL sales, MBbl/d
|
282.7 | 272.4 | 10.3 | 4% | ||||||||||||
Average realized prices:
|
||||||||||||||||
Natural gas, $/MMBtu
|
2.60 | 4.06 | (1.46 | ) | (36% | ) | ||||||||||
NGL realized price, $/gal
|
1.21 | 1.28 | (0.07 | ) | (5% | ) |
(1)
|
Segment operating statistics include the effect of intersegment sales, 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 March 31, | ||||||||||||
|
2012
|
2011
|
2012 vs. 2011
|
|||||||||
|
|
|
|
|||||||||
|
(In millions)
|
|||||||||||
Gross margin
|
$ | 1.4 | $ | (4.4 | ) | $ | 5.8 | |||||
Operating margin
|
$ | 1.4 | $ | (4.4 | ) | $ | 5.8 |
|
Three Months Ended March 31,
|
|
||||||||||
|
2012
|
2011
|
2012 vs. 2011
|
|||||||||
|
|
|
|
|||||||||
|
(in millions)
|
|||||||||||
Natural gas
|
$ | 8.6 | $ | 6.2 | $ | 2.4 | ||||||
NGL
|
(5.5 | ) | (8.9 | ) | 3.4 | |||||||
Crude oil
|
(1.7 | ) | (1.7 | ) | - | |||||||
|
$ | 1.4 | $ | (4.4 | ) | $ | 5.8 |
·
|
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 89,170,989 outstanding common units of the Partnership, representing a 14.5% limited partnership interest.
|
·
|
2% of all cash distributed in a quarter.
|
·
|
13% of all cash distributed in a quarter after $0.3881 has been distributed in respect of each common unit of the Partnership for that quarter;
|
·
|
23% of all cash distributed in a quarter after $0.4219 has been distributed in respect of each common unit of the Partnership for that quarter; and
|
·
|
48% of all cash distributed in a quarter after $0.50625 has been distributed in respect of each common unit of the Partnership for that quarter.
|
·
|
$8.1 million or $32.2 million annually based on our common unit ownership in the Partnership;
|
·
|
$12.7 million or $50.9 million annually based on our IDRs; and
|
·
|
$1.4 million or $5.6 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)
|
||||||||||||||
March 31, 2012
|
|
May 16, 2012
|
$
|
15.5
|
$
|
15.0
|
$
|
0.5
|
$
|
0.36500
|
||||
December 31, 2011
|
|
February 15, 2012
|
|
14.3
|
|
13.8
|
|
0.5
|
|
0.33625
|
(1)
|
Represents accrued dividends on the restricted shares that are payable upon vesting.
|
Three Months Ended March 31, 2012
|
Targa Resources Corp. Consolidated
|
Targa Resources Partners LP
|
TRC - Non-Partnership
|
|||||||||
|
|
|
|
|||||||||
Net cash provided by (used in):
|
(In millions)
|
|||||||||||
Operating activities
|
$ | 138.8 | $ | 146.7 | $ | (7.9 | ) | |||||
Investing activities
|
(108.1 | ) | (107.8 | ) | (0.3 | ) | ||||||
Financing activities
|
(55.3 | ) | (8.2 | ) | (47.1 | ) | ||||||
Three Months Ended March 31, 2011
|
||||||||||||
Net cash provided by (used in):
|
||||||||||||
Operating activities
|
$ | 70.1 | $ | 98.6 | $ | (28.5 | ) | |||||
Investing activities
|
(90.4 | ) | (88.9 | ) | (1.5 | ) | ||||||
Financing activities
|
(20.4 | ) | (22.4 | ) | 2.0 |
|
Three Months Ended March 31,
|
|
||||||||||
|
2012
|
2011
|
Variance
|
|||||||||
|
|
|
|
|||||||||
|
(in millions)
|
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|||||||||
Cash received from customers
|
$ | 1,763.4 | $ | 1,637.2 | $ | 126.2 | ||||||
Cash received from (paid to) derivative counterparties
|
2.7 | (4.3 | ) | 7.0 | ||||||||
Cash outlays for:
|
||||||||||||
Product purchases
|
(1,475.6 | ) | (1,401.8 | ) | (73.8 | ) | ||||||
Operating expenses
|
(71.6 | ) | (61.0 | ) | (10.6 | ) | ||||||
General and administrative expenses
|
(41.8 | ) | (41.9 | ) | 0.1 | |||||||
Cash distributions from equity investment
|
2.0 | - | 2.0 | |||||||||
Interest paid
|
(32.4 | ) | (29.1 | ) | (3.3 | ) | ||||||
Income taxes paid
|
0.1 | (0.3 | ) | 0.4 | ||||||||
Other cash receipts (payments)
|
(0.1 | ) | (0.2 | ) | 0.1 | |||||||
Net cash provided by operating activities
|
$ | 146.7 | $ | 98.6 | $ | 48.1 |
·
|
On January 23, 2012, the Partnership completed a public offering of 4,000,000 common units at a price of $38.30 per common unit ($37.11 per common unit, net of underwriting discounts). As part of this offering, a wholly-owned subsidiary of ours purchased 1,300,000 common units with an aggregate value of $49.8 million (based on the offering price of $38.30). The units our wholly-owned subsidiary purchased were not subject to any underwriter discounts or commissions. Net proceeds from this offering were approximately $150.0 million. Pursuant to the exercise of the underwriters’ overallotment option, the Partnership issued an additional 405,000 common units to the underwriters, providing net proceeds of approximately $15.0 million. In addition, we contributed $3.4 million for 89,898 general partner units to maintain our 2% general partner interest in the Partnership. The Partnership used the net proceeds from the offering for general partnership purposes and repayment of indebtedness.
|
·
|
On January 31, 2012 the Partnership privately placed $400.0 million of the 6⅜% Notes, resulting in approximately $395.6 million of net proceeds, which were used to reduce borrowings under the Partnership’s Revolver and for general partnership purposes.
|
|
|
|
Cash Distributions
|
Dividend
|
Total
|
|||||||||||||||||||||||||
|
|
Cash
|
|
|
|
Distributions
|
Declared
|
Dividend
|
||||||||||||||||||||||
|
|
Distribution
|
Limited
|
General
|
|
to Targa
|
Per TRC
|
Declared to
|
||||||||||||||||||||||
For the Three
|
Date Paid or
|
Per Limited
|
Partner
|
Partner
|
|
Resources
|
Common
|
Common
|
||||||||||||||||||||||
Months Ended
|
to be Paid
|
Partner Unit
|
Units
|
Interest
|
IDRs
|
Corp. (1)
|
Share
|
Shareholders
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
(In millions, except per unit amounts)
|
||||||||||||||||||||||||||||
March 31, 2012
|
May 15, 2012
|
$ | 0.6225 | $ | 8.1 | $ | 1.4 | $ | 12.7 | $ | 22.2 | $ | 0.36500 | $ | 15.5 | |||||||||||||||
December 31, 2011
|
February 14, 2012
|
0.6025 | 7.8 | 1.3 | 11.0 | 20.1 | 0.33625 | 14.3 |
(1)
|
Distributions to us are comprised of amounts attributable to our (i) limited partner units, (ii) general partner units, and (iii) IDRs.
|
|
Three Months Ended March 31,
|
|||||||||||||||||||||||
|
2012
|
2011
|
||||||||||||||||||||||
|
Targa Resources Corp. Consolidated
|
Targa Resources Partners LP
|
TRC - Non-Partnership
|
Targa Resources Corp. Consolidated
|
Targa Resources Partners LP
|
TRC - Non-Partnership
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
|
(In millions)
|
|||||||||||||||||||||||
Gross additions to property, plant and equipment
|
$ | 98.3 | $ | 98.0 | $ | 0.3 | $ | 79.1 | $ | 78.5 | $ | 0.6 | ||||||||||||
Change in accruals
|
4.7 | 4.7 | - | 6.9 | 6.0 | 0.9 | ||||||||||||||||||
Cash expenditures
|
$ | 103.0 | $ | 102.7 | $ | 0.3 | $ | 86.0 | $ | 84.5 | $ | 1.5 |
|
Three Months Ended March 31,
|
|||||||||||||||||||||||
|
2012
|
2011
|
||||||||||||||||||||||
|
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
|
$ | - | $ | - | $ | - | $ | 29.0 | $ | 29.0 | $ | - | ||||||||||||
Expansion
|
81.6 | 81.5 | 0.1 | 38.8 | 38.5 | 0.3 | ||||||||||||||||||
Maintenance
|
16.7 | 16.5 | 0.2 | 11.3 | 11.0 | 0.3 | ||||||||||||||||||
|
$ | 98.3 | $ | 98.0 | $ | 0.3 | $ | 79.1 | $ | 78.5 | $ | 0.6 |
Natural Gas
|
|
|
|
|||||||||||
Instrument
|
|
|
|
Price
|
|
MMBtu per day
|
|
|
|
|
|
|
||
Type
|
|
Index
|
|
$/MMBtu
|
|
2012
|
|
2013
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
|
Swap
|
|
IF-WAHA
|
|
6.61
|
|
14,850
|
|
|
|
$
|
17.1
|
|
|
|
Swap
|
|
IF-WAHA
|
|
5.28
|
|
|
|
7,230
|
|
|
5.0
|
|
|
|
Total Swaps
|
|
|
|
|
|
14,850
|
|
7,230
|
|
|
|
|
|
|
Swap
|
|
IF-PB
|
|
4.98
|
|
10,200
|
|
|
|
|
7.3
|
|
|
|
Swap
|
|
IF-PB
|
|
5.23
|
|
|
|
7,084
|
|
|
4.9
|
|
|
|
Total Swaps
|
|
|
|
|
|
10,200
|
|
7,084
|
|
|
|
|
|
|
Swap
|
|
IF-NGPL MC
|
|
6.03
|
|
6,740
|
|
|
|
|
6.8
|
|
|
|
Swap
|
|
IF-NGPL MC
|
|
4.89
|
|
|
|
2,775
|
|
|
1.6
|
|
|
|
Total Swaps
|
|
|
|
|
|
6,740
|
|
2,775
|
|
|
|
|
|
|
Total Sales
|
|
|
|
|
|
31,790
|
|
17,089
|
|
|
|
|
|
|
Natural Gas Basis Swaps
|
|
|
|
|
|
|
|
|
|
|||||
Basis Swaps
|
|
Various Indexes, Maturities Through December 2012
|
|
0.1
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
$
|
42.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NGL
|
|
|
|
|||||||||||
Instrument
|
|
|
|
Price
|
|
Barrels per day
|
|
|
|
|
|
|
||
Type
|
|
Index
|
|
$/Gal
|
|
2012
|
|
2013
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
|
Swap
|
|
OPIS-MB
|
|
0.95
|
|
9,361
|
|
|
|
$
|
(12.5)
|
|
|
|
Swap
|
|
OPIS-MB
|
|
0.98
|
|
|
|
4,150
|
|
|
(9.1)
|
|
|
|
Total Swaps
|
|
|
|
|
|
9,361
|
|
4,150
|
|
|
|
|
|
|
Put (propane)
|
|
OPIS-MB
|
|
1.43
|
|
294
|
|
|
|
|
0.7
|
|
|
|
Total Sales
|
|
|
|
|
|
9,655
|
|
4,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call (ethane) (1)
|
|
OPIS-MB
|
|
0.63
|
|
2,000
|
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(20.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensate
|
||||||||||||||
Instrument
|
|
|
|
Price
|
|
Barrels per day
|
|
|
|
|||||
Type
|
|
Index
|
|
$/Bbl
|
|
2012
|
|
2013
|
|
2014
|
|
Fair Value
|
||
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
||
Swap
|
|
NY-WTI
|
|
91.37
|
|
1,660
|
|
|
|
|
|
$
|
(6.0)
|
|
Swap
|
|
NY-WTI
|
|
93.34
|
|
|
|
1,795
|
|
|
|
|
(6.7)
|
|
Swap
|
|
NY-WTI
|
|
90.03
|
|
|
|
|
|
700
|
|
|
(2.2)
|
|
Total Sales
|
|
|
|
|
|
1,660
|
|
1,795
|
|
700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(14.9)
|
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
|
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)).
|
3.8
|
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)).
|
3.9
|
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 25, 2011 (File No. 001-33303)).
|
3.10
|
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)).
|
10.1
|
Indenture dated as of January 31, 2012 among Targa Resources Partners LP, Targa Resources Partners Finance Corporation, the Guarantors named therein and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 to Targa Resources Partners LP’s Current Report on Form 8-K filed January 31, 2012 (File No. 001-33303)).
|
10.2
|
Registration Rights Agreement dated as of January 31, 2012 among Targa Resources Partners LP, Targa Resources Partners Finance Corporation, the Guarantors named therein and the initial purchasers named therein (incorporated by reference to Exhibit 4.2 to Targa Resources Partners LP’s Current Report on Form 8-K filed January 31, 2012 (File No. 001-33303)).
|
10.3
|
Purchase Agreement dated January 26, 2012 by and among the Issuers, the Guarantors, and Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc., Citigroup Global Markets Inc. and RBS Securities Inc., as representatives of the several initial purchasers (incorporated by reference to Exhibit 10.1 to Targa Resources Partners LP’s Current Report on Form 8-K filed January 31, 2012 (File No. 001-33303).
|
31.1*
|
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: May 3, 2012 | By: | /s/ Matthew J. Meloy | ||
Matthew J. Meloy | ||||
Senior Vice President, Chief Financial Officer and Treasurer | ||||
(Principal Financial Officer) |
)S'ANH^1J
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
Commitments and Contingencies [Abstract] | |
Amount of project costs paid | $ 0.6 |
Amount of project costs paid to date | $ 16.2 |
Fair Value of Financial Instruments (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
|
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Fair Value of Financial Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments [Table Text Block] | The carrying value of the Partnership's Revolver approximates fair value as its interest rate is based on prevailing market rates. The fair value of the Partnership's senior unsecured notes is based on quoted market prices based on trades of such debt as of the dates indicated in the following table:
|
Accounts Payable and Accrued Liabilities (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable and Accrued Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | The components of accounts payable and accrued liabilities consist of the following.
|
Accounts Payable and Accrued Liabilities (Details) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Accounts Payable and Accrued Liabilities [Abstract] | ||
Commodities | $ 403.9 | $ 514.0 |
Other goods and services | 58.7 | 88.2 |
Interest | 26.5 | 32.4 |
Compensation and benefits | 31.4 | 46.1 |
Other | 15.6 | 19.3 |
Accounts payable and accrued liabilities | $ 536.1 | $ 700.0 |
Segment Information (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
Dec. 31, 2011
|
|
Segment Reporting Information [Line Items] | |||
Operating Margin | $ 190.0 | $ 151.5 | |
Other Information [Abstract] | |||
Assets | 3,698.4 | 3,322.4 | 3,831.0 |
Capital Expenditures | 98.3 | 79.1 | |
Depreciation and amortization expenses | 47.4 | 43.4 | |
General and administrative expenses | 34.9 | 34.6 | |
Interest expense, net | (30.5) | (28.5) | |
Income tax expense total | (10.1) | (5.8) | |
Other Nonrecurring (Income) Expense | 2.1 | 1.6 | |
Net Income (Loss) | 69.2 | 40.8 | |
Field Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Operating Margin | 73.0 | 61.1 | |
Other Information [Abstract] | |||
Assets | 1,661.1 | 1,641.8 | |
Capital Expenditures | 26.2 | 31.8 | |
Coastal Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Operating Margin | 46.3 | 36.3 | |
Other Information [Abstract] | |||
Assets | 422.5 | 431.3 | |
Capital Expenditures | 2.0 | 1.4 | |
Logistics Assets [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Operating Margin | 43.0 | 22.3 | |
Other Information [Abstract] | |||
Assets | 823.0 | 506.6 | |
Capital Expenditures | 60.1 | 45.2 | |
Marketing and Distribution [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Operating Margin | 26.1 | 32.7 | |
Other Information [Abstract] | |||
Assets | 507.9 | 458.7 | |
Capital Expenditures | 9.1 | 0.1 | |
Corporate and Eliminations [Member]
|
|||
Other Information [Abstract] | |||
Assets | 123.0 | 67.8 | |
Capital Expenditures | 0.6 | ||
TRC Non- Partnership [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Operating Margin | 0.2 | 3.5 | |
Other Information [Abstract] | |||
Assets | 111.3 | 181.7 | |
Capital Expenditures | 0.3 | 0.6 | |
Other Segment [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Operating Margin | 1.4 | (4.4) | |
Other Information [Abstract] | |||
Assets | 49.5 | 34.5 | |
Natural gas sales [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Sale of commodities | 202.9 | 248.7 | |
NGL sales [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Sale of commodities | 1,290.2 | 1,301.7 | |
Condensate sales [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Sale of commodities | 29.0 | 21.5 | |
Petroleum Products [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Sale of commodities | 45.5 | 0 | |
Derivative activities [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Sale of commodities | 2.2 | (4.6) | |
Fractionating and treating fees [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Fees from midstream services | 26.9 | 11.1 | |
Storage and terminaling fees [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Fees from midstream services | 11.5 | 13.9 | |
Transportation fees [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Fees from midstream services | 19.0 | 10.6 | |
Gas processing fees [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Fees from midstream services | 8.6 | 7.2 | |
Business interruption insurance [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Other sales revenue, net | 0 | 3.0 | |
Total Other Revenues [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Other sales revenue, net | 10.0 | 5.5 | |
Total outside Revenues [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 1,645.8 | 1,618.6 | |
Total outside Revenues [Member] | Field Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 56.3 | 52.0 | |
Total outside Revenues [Member] | Coastal Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 63.5 | 84.0 | |
Total outside Revenues [Member] | Logistics Assets [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 84.4 | 23.2 | |
Total outside Revenues [Member] | Marketing and Distribution [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 1,439.9 | 1,460.3 | |
Total outside Revenues [Member] | TRC Non- Partnership [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 0.3 | 3.5 | |
Total outside Revenues [Member] | Other Segment [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 1.4 | (4.4) | |
Sale of commodities [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 1,569.8 | 1,567.3 | |
Sale of commodities [Member] | Field Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 45.4 | 45.7 | |
Intersegment Revenue | 317.4 | 299.4 | |
Sale of commodities [Member] | Coastal Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 59.8 | 79.2 | |
Intersegment Revenue | 220.0 | 217.0 | |
Sale of commodities [Member] | Logistics Assets [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 45.7 | ||
Intersegment Revenue | 0.1 | ||
Sale of commodities [Member] | Marketing and Distribution [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 1,417.2 | 1,446.3 | |
Intersegment Revenue | 132.0 | 110.3 | |
Sale of commodities [Member] | Corporate and Eliminations [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Intersegment Revenue | (669.4) | (626.8) | |
Sale of commodities [Member] | TRC Non- Partnership [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 0.3 | 0.5 | |
Sale of commodities [Member] | Other Segment [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 1.4 | (4.4) | |
Fees from midstream services [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 66.0 | 42.8 | |
Fees from midstream services [Member] | Field Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 8.0 | 5.9 | |
Intersegment Revenue | 0.3 | 0.3 | |
Fees from midstream services [Member] | Coastal Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 2.9 | 4.5 | |
Intersegment Revenue | 0.4 | ||
Fees from midstream services [Member] | Logistics Assets [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 36.2 | 22.9 | |
Intersegment Revenue | 23.8 | 19.0 | |
Fees from midstream services [Member] | Marketing and Distribution [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 18.7 | 9.4 | |
Intersegment Revenue | 2.5 | 2.0 | |
Fees from midstream services [Member] | Corporate and Eliminations [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 0.1 | ||
Intersegment Revenue | (26.6) | (21.7) | |
Fees from midstream services [Member] | TRC Non- Partnership [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 0.1 | 0.1 | |
Other Revenue [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 10.0 | 8.5 | |
Other Revenue [Member] | Field Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 2.9 | 0.4 | |
Other Revenue [Member] | Coastal Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 0.8 | 0.3 | |
Intersegment Revenue | 0.1 | ||
Other Revenue [Member] | Logistics Assets [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 2.5 | 0.3 | |
Intersegment Revenue | 0.2 | ||
Other Revenue [Member] | Marketing and Distribution [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 4.0 | 4.6 | |
Intersegment Revenue | 6.8 | 5.6 | |
Other Revenue [Member] | Corporate and Eliminations [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | (0.1) | ||
Intersegment Revenue | (7.1) | (5.6) | |
Other Revenue [Member] | TRC Non- Partnership [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | (0.1) | 2.9 | |
Total Intersegment Revenues [Member] | Field Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Intersegment Revenue | 317.7 | 299.7 | |
Total Intersegment Revenues [Member] | Coastal Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Intersegment Revenue | 220.1 | 217.4 | |
Total Intersegment Revenues [Member] | Logistics Assets [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Intersegment Revenue | 24.0 | 19.1 | |
Total Intersegment Revenues [Member] | Marketing and Distribution [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Intersegment Revenue | 141.3 | 117.9 | |
Total Intersegment Revenues [Member] | Corporate and Eliminations [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Intersegment Revenue | (703.1) | (654.1) | |
Total Revenues [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 1,645.8 | 1,618.6 | |
Total Revenues [Member] | Field Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 374.0 | 351.7 | |
Total Revenues [Member] | Coastal Gathering and Processing [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 283.6 | 301.4 | |
Total Revenues [Member] | Logistics Assets [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 108.4 | 42.3 | |
Total Revenues [Member] | Marketing and Distribution [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 1,581.2 | 1,578.2 | |
Total Revenues [Member] | Corporate and Eliminations [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | (703.1) | (654.1) | |
Total Revenues [Member] | TRC Non- Partnership [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | 0.3 | 3.5 | |
Total Revenues [Member] | Other Segment [Member]
|
|||
Segment Reporting Information [Line Items] | |||
Revenue | $ 1.4 | $ (4.4) |
Basis of Presentation
|
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2012
|
|||||||
Basis of Presentation [Abstract] | |||||||
Basis of Presentation | Note 2 — Basis of Presentation We have prepared these unaudited consolidated financial statements in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. While we derived the year-end balance sheet data from audited financial statements, this interim report does not include all disclosures required by GAAP for annual periods. These unaudited consolidated financial statements and other information included in this Quarterly Report should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report. The unaudited consolidated financial statements for the three months ended March 31, 2012 and 2011 include all adjustments which we believe are necessary for a fair presentation of the results for interim periods. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts in prior periods have been reclassified to conform to the current year presentation. Our financial results for the three months ended March 31, 2012 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2012. One of our indirect subsidiaries is the sole general partner of the Partnership. Because we control the general partner of the Partnership, under GAAP, we must reflect our ownership interests in the Partnership on a consolidated basis. Accordingly, the Partnership’s financial results are included in our consolidated financial statements even though the distribution or transfer of Partnership assets is limited by the terms of the Partnership’s partnership agreement, as well as restrictive covenants in the Partnership’s lending agreements. The limited partner interests in the Partnership not owned by controlling affiliates of us are reflected in our results of operations as net income attributable to noncontrolling interests and in our balance sheet equity section as noncontrolling interests in subsidiaries. Throughout these footnotes, we make a distinction where relevant between financial results of the Partnership versus those of a standalone parent and its non-partnership subsidiaries. As of March 31, 2012, our interests in the Partnership consist of the following:
The Partnership is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products; and storing and terminaling refined petroleum products and crude oil. See Note 15 for an analysis of our and the Partnership’s operations by segment. |