Summary
Targa Resources Corp. (TRGP) reported its third-quarter and nine-month results for the period ending September 30, 2011. The company experienced significant revenue growth, driven by higher NGL and condensate sales volumes and prices, as well as increased fee-based services. This growth translated into a substantial increase in operating margin, demonstrating improved operational performance across its gathering, processing, and logistics segments. Financially, Targa Resources Corp. saw its total assets grow, supported by strategic acquisitions in the logistics and marketing segment, including new terminaling facilities. The company also managed its debt effectively, issuing new notes and refinancing existing debt, while maintaining compliance with debt covenants. Cash flow from operations remained robust, providing resources for both operational needs and capital expenditures, including significant expansion projects planned for the coming years.
Financial Highlights
50 data points| Gross Profit | $228.10M |
| Operating Expenses | $1.64B |
| Operating Income | $70.80M |
| Interest Expense | $26.80M |
| Net Income | $4.90M |
| EPS (Basic) | $0.12 |
| EPS (Diluted) | $0.12 |
| Shares Outstanding (Basic) | 41.00M |
| Shares Outstanding (Diluted) | 41.50M |
Key Highlights
- 1Revenues increased by 40% to $1.71 billion for the third quarter of 2011 compared to the same period in 2010, primarily driven by higher NGL and condensate prices and volumes.
- 2Operating margin saw a significant increase of 26% to $151.6 million for the third quarter, indicating improved profitability from core operations.
- 3The company expanded its logistics and marketing segment through strategic acquisitions of two refined petroleum products and crude oil storage and terminaling facilities.
- 4Targa Resources Corp. successfully managed its debt, issuing $325 million in 6% Senior Notes and continuing to reduce borrowings under its credit facilities.
- 5Total assets grew to $3.79 billion as of September 30, 2011, up from $3.39 billion at the end of 2010, reflecting investments in property, plant, and equipment and strategic acquisitions.
- 6The company's cash flows from operating activities were strong, providing $164.6 million for the nine months ended September 30, 2011, enabling investment in growth initiatives.
- 7Significant capital expenditure projects are underway, including expansions of fractionation facilities and terminals, totaling an estimated $480 million net for 2011.