What was the primary driver of the significant revenue increase in the first half of 2014?

The primary drivers of the 55% revenue increase were higher commodity volumes and prices, coupled with increased fee-based and other revenues. Higher throughput volumes from system expansions and increased export activities were particularly impactful.

How did Targa Resources' expansion projects contribute to its performance?

Expansion projects, particularly in the Logistics and Marketing segments, were crucial. The Phase II International Export Expansion project and the commencement of new processing plants (Longhorn and High Plains) in the Field Gathering and Processing segment significantly boosted throughput volumes and revenue generation.

What is the company's outlook on its ability to fund operations and dividends?

Targa Resources Corp. expects that its cash inflows from distributions from its interests in Targa Resources Partners LP, combined with its existing liquidity, will provide sufficient resources to fund its operations, debt obligations, and projected quarterly dividends for at least the next twelve months.

What is the significance of the increase in net income attributable to noncontrolling interests?

The increase in net income attributable to noncontrolling interests primarily reflects higher earnings from Targa Resources Partners LP, indicating strong performance within the partnership's operations which Targa Resources Corp. consolidates.

TRGP 10-Q Quarterly Report Q2 FY2014 — Revenue, Net Income, EPS

Summary

Targa Resources Corp. (TRGP) reported strong financial performance for the six months ended June 30, 2014, driven by significant revenue growth across its segments. Consolidated revenues increased by 55% year-over-year to $4.41 billion, primarily due to higher commodity volumes and prices, alongside increased fee-based services. The company's operating margin saw a substantial improvement of 61%, reflecting the successful integration of recent expansions and strategic initiatives. Key operational highlights include robust growth in crude oil gathered, NGL production and sales, and particularly a significant surge in LPG export volumes, nearly tripling year-over-year. These expansions, especially in the Logistics and Marketing segments, underscore Targa's strategic focus on capitalizing on growing international demand. The company maintained compliance with its debt covenants and reported adequate liquidity to meet its obligations and fund projected dividends for the next twelve months.

Financial Highlights

49 data points

Beta

Net Income

$26.40M

EPS (Diluted)

$0.63

Total Assets

$6.33B

Cash & Equivalents

$75.90M

Free Cash Flow

-$116.10M

Financial Statements

Beta

Gross Profit	$384.00M
Operating Income	$150.30M
Interest Expense	$35.70M
Net Income	$26.40M
EPS (Basic)	$0.63
EPS (Diluted)	$0.63
Shares Outstanding (Basic)	42.00M
Shares Outstanding (Diluted)	42.10M

Key Highlights

1Consolidated revenues surged by 55% to $4.41 billion for the first six months of 2014 compared to the same period in 2013.
2Operating margin increased by 61% to $552.7 million, demonstrating strong operational performance and leverage from growth initiatives.
3LPG export volumes showed exceptional growth, increasing by 220% year-over-year, highlighting successful expansion into international markets.
4Field Gathering and Processing segment experienced strong volume growth and benefited from new plant operations, contributing significantly to overall performance.
5Logistics and Marketing segments saw substantial margin improvements, driven by increased fractionation and LPG export activities.
6Targa Resources Corp. maintained compliance with its debt covenants as of June 30, 2014.
7The company reported adequate liquidity, with $71.6 million in cash and available credit, to meet its obligations and projected dividend payments for the next twelve months.

Targa Resources Corp. Quarterly Report for Q2 Ended Jun 30, 2014

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions