Summary
Targa Resources Corp. reported its first quarter 2015 results, marked by the significant completion of the Atlas mergers on February 27, 2015. This transformative event substantially increased the company's asset base and complexity. While reported revenues decreased year-over-year due to lower commodity prices, the pro forma results and operational metrics reflect the combined entity's expanded scale and reach across key midstream infrastructure assets. Key financial shifts include a significant increase in total assets, property, plant, and equipment, and goodwill, driven by the Atlas acquisitions. Long-term debt also saw a substantial rise to finance these transactions. Despite a lower net income available to common shareholders compared to the prior year, the company highlighted its adjusted EBITDA and distributable cash flow, which provide a view of operational cash flow generation potential, especially considering the new, larger operational footprint.
Financial Highlights
52 data points| Gross Profit | $421.10M |
| Operating Expenses | $1.54B |
| Operating Income | $138.50M |
| Net Income | $3.20M |
| EPS (Basic) | $0.07 |
| EPS (Diluted) | $0.07 |
| Shares Outstanding (Basic) | 45.80M |
| Shares Outstanding (Diluted) | 45.90M |
Key Highlights
- 1Completion of Atlas mergers (ATLS and APL) on February 27, 2015, significantly expanding the company's midstream operations and asset base.
- 2Total assets more than doubled from $6.45 billion at year-end 2014 to $13.63 billion at March 31, 2015, largely due to the Atlas acquisitions.
- 3Long-term debt increased substantially from $2.89 billion to $5.84 billion to support the financing of the Atlas mergers.
- 4Reported revenues for the three months ended March 31, 2015, decreased to $1.68 billion from $2.29 billion in the prior year, primarily due to lower commodity prices, partially offset by increased volumes and contribution from the acquired TPL operations.
- 5Net income available to Targa Resources Corp. common shareholders declined to $3.2 million ($0.07 per diluted share) from $19.6 million ($0.47 per diluted share) in the prior year's quarter.
- 6The company reported $628.5 million in goodwill and $1.6 billion in intangible assets (net) as of March 31, 2015, reflecting the accounting for the Atlas acquisitions.
- 7Liquidity remains strong with $170.7 million in cash and cash equivalents and significant available credit facilities.