Summary
Targa Resources Corp. (TRC) reported its first quarter 2011 financial results, showcasing a notable increase in revenues driven by higher natural gas and NGL sales volumes and improved commodity prices. The company successfully managed operating expenses, leading to a significant expansion in operating margin. While TRC's consolidated net income saw a slight decrease year-over-year, primarily due to a substantial rise in non-controlling interests, the underlying operational performance of its midstream subsidiary, Targa Resources Partners LP (TRP), remained robust. TRP's strategic initiatives, including the acquisition of a refined products terminal and debt management, position it for continued growth. Investors should note the company's focus on cash flow generation and dividend payouts, supported by the stable performance of its gathering, processing, and logistics assets.
Financial Highlights
30 data points| Gross Profit | $217.40M |
| Operating Expenses | $1.55B |
| Operating Income | $73.50M |
| Interest Expense | $28.50M |
| Net Income | $6.80M |
| EPS (Basic) | $0.17 |
| EPS (Diluted) | $0.16 |
| Shares Outstanding (Basic) | 40.90M |
| Shares Outstanding (Diluted) | 41.30M |
Key Highlights
- 1Consolidated revenues increased by 9% to $1.62 billion, driven by higher sales volumes and commodity prices.
- 2Operating margin saw a significant increase of 23% to $151.5 million, reflecting improved gross margins and controlled operating expenses.
- 3The company completed the acquisition of a refined petroleum products and crude oil storage and terminaling facility for $29.0 million.
- 4Targa Resources Partners LP successfully issued $325 million in 6.875% Senior Notes due 2021, strengthening its balance sheet.
- 5Net income attributable to Targa Resources Corp. decreased to $6.8 million from $21.9 million in the prior year, largely due to a significant increase in non-controlling interests.
- 6The company announced a cash dividend of $0.2725 per share for the quarter, totaling $11.5 million.
- 7Cash provided by operating activities was $70.1 million, a slight decrease from $76.0 million in the prior year, impacted by changes in working capital.