Summary
Targa Resources Corp. (TRGP) demonstrated a significant rebound in the first quarter of 2021 compared to the same period in 2020, driven by a substantial increase in commodity sales, primarily due to higher NGL, natural gas, and condensate prices. Total revenues surged by 77% year-over-year, largely on the back of an 89% increase in commodity sales. Despite an increase in product purchase costs, the company managed to improve its overall financial performance, as evidenced by a healthy increase in Adjusted EBITDA by 20% and Distributable Cash Flow by 32%. The company's operations were impacted by the February 2021 winter storm, which caused temporary disruptions. However, Targa reported an aggregate benefit of approximately $30 million from the storm's price and operational volatility. Furthermore, Targa successfully executed several financing activities, including the issuance of $1.0 billion in 4% Senior Notes due 2032, which were used to refinance existing debt and strengthen its balance sheet. The company also made progress on its Permian Midland Processing Expansion with the announced relocation of a processing plant.
Financial Highlights
48 data points| Revenue | $3.63B |
| Cost of Revenue | $2.84B |
| Gross Profit | $796.40M |
| Operating Income | $344.10M |
| Net Income | $146.40M |
| EPS (Basic) | $0.54 |
| EPS (Diluted) | $0.53 |
| Shares Outstanding (Basic) | 228.50M |
| Shares Outstanding (Diluted) | 274.70M |
Key Highlights
- 1Total revenues increased by 77% to $3.63 billion for the three months ended March 31, 2021, compared to $2.05 billion in the prior year period.
- 2Net income attributable to common shareholders swung to a profit of $124.6 million from a loss of $1,769.7 million in the first quarter of 2020.
- 3Adjusted EBITDA increased by 20% to $515.7 million, indicating improved operational profitability.
- 4Distributable cash flow grew by 32% to $397.4 million, showing enhanced cash generation capabilities.
- 5The company reported a net gain of $30 million from the February 2021 winter storm due to price and operational volatility.
- 6Targa issued $1.0 billion in 4% Senior Notes due 2032, strengthening its liquidity and extending debt maturities.
- 7Capital expenditures were significantly lower year-over-year, reflecting the completion of major projects in 2020, with management estimating 2021 net growth capital expenditures between $350-$450 million.