Summary
Targa Resources Corp. reported a strong financial performance for the nine months ended September 30, 2021, with total revenues more than doubling compared to the same period in 2020, reaching $11.5 billion. This significant increase was driven by a surge in commodity prices, particularly for NGLs, natural gas, and condensate, coupled with higher volumes across its Gathering and Processing and Logistics and Transportation segments. The company demonstrated robust operational execution, achieving substantial growth in its adjusted EBITDA and Distributable Cash Flow, indicating healthy cash generation capabilities. Key financial highlights include a significant improvement in net income attributable to common shareholders, shifting from a substantial loss in the prior year to a net profit of $319.3 million. This turnaround reflects the recovery in commodity markets and the company's strategic focus on operational efficiency and fee-based businesses. Targa also continued its deleveraging efforts by issuing new debt and using proceeds to redeem existing notes, further strengthening its balance sheet. The company signaled confidence in its future prospects with an announced increase in its common dividend and strategic capital allocation plans.
Financial Highlights
48 data points| Revenue | $4.46B |
| Cost of Revenue | $3.61B |
| Gross Profit | $845.00M |
| Operating Income | $366.50M |
| Net Income | $182.20M |
| EPS (Basic) | $0.70 |
| EPS (Diluted) | $0.66 |
| Shares Outstanding (Basic) | 228.80M |
| Shares Outstanding (Diluted) | 276.40M |
Key Highlights
- 1Total revenues increased significantly by 102% to $11.5 billion for the nine months ended September 30, 2021, compared to $5.7 billion in the prior year, primarily driven by higher commodity prices and volumes.
- 2Net income attributable to common shareholders improved dramatically, turning from a loss of $1.7 billion in the first nine months of 2020 to a profit of $319.3 million in the same period of 2021.
- 3Adjusted EBITDA grew by 24% to $1.5 billion for the nine months ended September 30, 2021, underscoring strong operational performance and cash-generating ability.
- 4Distributable Cash Flow increased by 28% to $1.1 billion for the first nine months of 2021, indicating robust cash generation after operating expenses and capital expenditures.
- 5The company actively managed its debt structure, issuing $1.0 billion in 4% Senior Notes due 2032 and using proceeds to redeem higher-cost debt, thereby reducing interest expense and extending maturity profiles.
- 6Targa announced plans to increase its common dividend to $0.35 per common share ($1.40 annualized) for the fourth quarter of 2021, reflecting confidence in its financial position and future cash flows.
- 7Capital expenditures for growth projects were $227.9 million for the nine months ended September 30, 2021, a decrease from the prior year as major projects commenced operations, but the company is ordering long-lead items for future expansions.