Summary
Targa Resources Corp. (TRGP) reported strong performance for the nine months ended September 30, 2013, with revenues increasing to $4.40 billion compared to $4.36 billion in the prior year period. Net income available to common shareholders saw a significant increase to $44.6 million from $26.9 million, reflecting improved operational execution and strategic investments. The company's financial position strengthened, with total assets growing to $5.73 billion from $5.11 billion year-over-year. Key drivers for this growth included increased volumes across its gathering, processing, and logistics segments, complemented by higher realized prices for natural gas and condensate. The company also made strategic debt management moves, including the redemption of certain senior notes, contributing to a more robust financial structure. These positive trends highlight Targa's ability to capitalize on market opportunities and expand its midstream infrastructure footprint. The company continues to invest in growth projects, evidenced by significant capital expenditures. The commissioning of Cedar Bayou Fractionators Train 4 and Phase I of the international export expansion project are significant achievements that are expected to enhance future revenue streams and market reach. The Badlands acquisition, though subject to contingent payments, is being integrated and is anticipated to drive future volume growth. Despite some challenges, such as lower NGL prices and operational issues at certain joint ventures, Targa Resources demonstrated resilience and strategic focus, positioning itself for continued growth in the midstream energy sector.
Financial Highlights
48 data points| Gross Profit | $297.00M |
| Operating Income | $88.50M |
| Interest Expense | $33.40M |
| Net Income | $16.30M |
| EPS (Basic) | $0.39 |
| EPS (Diluted) | $0.39 |
| Shares Outstanding (Basic) | 41.60M |
| Shares Outstanding (Diluted) | 42.10M |
Key Highlights
- 1Revenues increased by 1% to $4.40 billion for the nine months ended September 30, 2013, compared to $4.36 billion in the same period of 2012.
- 2Net income available to common shareholders significantly grew by 66% to $44.6 million for the nine months ended September 30, 2013, from $26.9 million in the prior year.
- 3Total assets increased by 12% to $5.73 billion as of September 30, 2013, from $5.11 billion as of December 31, 2012, indicating asset growth and expansion.
- 4The company reported a substantial increase in operating margin by 4% to $542.6 million for the nine months ended September 30, 2013, from $519.4 million in 2012.
- 5Significant capital expenditures were made, totaling $727.1 million for the nine months ended September 30, 2013, primarily for expansion projects.
- 6Strategic debt management included the redemption of $100 million in 6.375% Senior Notes and the entire outstanding balance of 11.25% Senior Notes due 2017, resulting in losses on debt redemption but improving the debt profile.
- 7Commissioning of Cedar Bayou Fractionators Train 4 and Phase I of the international export expansion project in August and September 2013, respectively, expanding capacity and export capabilities.