Distributable cash flow for the fourth quarter of 2010 of $76.0 million corresponds to distribution coverage of approximately 1.4 times the $53.5 million in total distributions paid on February 14, 2011 (see the section of this release entitled "Targa Resources Partners - Non-GAAP Financial Measures" for a discussion of Adjusted EBITDA, gross margin, operating margin and distributable cash flow, and reconciliations of such measures to their most directly comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP").
"We are very pleased with our fourth quarter operating and financial results," said Rene Joyce, Chief Executive Officer of the Partnership's general partner and of Targa Resources Corp. "Our declared fourth quarter 2010 distribution rate represents an impressive 6% increase over the distribution rate for fourth quarter of 2009, an accomplishment largely a result of having purchased all of the remaining assets from TRC during the year at attractive prices and also a result of the strong performance of our businesses.
"We believe that with our scale and diversity in key producing oil and gas basins and in Mont Belvieu, Texas, a key hub for natural gas liquids logistics services, and with strong pro forma year end liquidity of approximately $900 million, the Partnership is well positioned to continue to capitalize on attractive growth opportunities. Looking forward to 2011, we are focused on successful execution of growth projects under construction in both divisions, completing new commercial and acquisition negotiations that are in process, and developing additional growth projects and acquisition opportunities."
On January 21, 2011, the Partnership announced a cash distribution for the fourth quarter of 2010 of 54.75¢ per common unit, or $2.19 per unit on an annualized basis. The cash distribution was paid on February 14, 2011 on all outstanding common units to holders of record as of the close of business on February 3, 2011. The total distribution paid was $53.5 million with $40.0 million paid to our public common unitholders and $6.4 million, $1.0 million and $6.0 million paid to TRC for its common unit ownership, general partner interests and incentive distribution rights.
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