Summary
Targa Resources Corp. (TRGP) filed an 8-K on February 9, 2016, primarily to announce the timing of their Q4 and full-year 2015 earnings release and conference call. More significantly for investors, the filing disclosed a material weakness in internal controls related to the purchase accounting for the acquisitions of Atlas Energy, L.P. and Atlas Pipeline Partners, L.P. This weakness specifically pertains to the review of calculations used to estimate the preliminary fair value of assets and liabilities acquired in those mergers.
Key Highlights
- 1Announcement of Q4 and Full Year 2015 earnings release and conference call schedule.
- 2Disclosure of a material weakness in internal controls over financial reporting.
- 3The material weakness is related to purchase accounting calculations for the Atlas Energy and Atlas Pipeline Partners acquisitions.
- 4The weakness concerns the estimation of preliminary fair value of acquired assets and liabilities as of the acquisition date.
- 5The company has identified this issue through its review processes.
- 6Further details regarding the financial results and the remediation of the control weakness are expected to be provided in the upcoming earnings release and conference call.
Frequently Asked Questions
The main purpose of this 8-K filing is to announce the upcoming earnings release and conference call dates for Targa Resources Corp.'s fourth quarter and full year 2015 results. It also serves to disclose a material weakness identified in the company's internal controls.
The material weakness relates to the company's review of purchase accounting calculations used to determine the preliminary fair value of assets and liabilities acquired in the mergers with Atlas Energy, L.P. and Atlas Pipeline Partners, L.P.
A material weakness indicates a deficiency in internal control over financial reporting that could result in a misstatement of financial statements that is more than perfunctory. Investors should pay close attention to the upcoming earnings release for further details on the impact and the company's plan to remediate this weakness.
Investors can expect more detailed information regarding the financial results for the fourth quarter and full year 2015, as well as potential updates on the remediation of the identified material weakness, during the company's scheduled earnings release and conference call.