This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Targa Resources Partners LP And Targa Resources Corp. Report Fourth Quarter And Full Year 2010 Financial Results

In connection with the April 2010 acquisition of the Company's interest in the Permian assets and Coastal Straddles and its impact on the Partnership's structure used for internal management purposes, an updated evaluation of the Partnership's reportable segments was performed during the second quarter of 2010. As a result, the Partnership's operations are now presented under four reportable segments: (1) Field Gathering and Processing, (2) Coastal Gathering and Processing, (3) Logistics Assets and (4) Marketing and Distribution.

Field Gathering and Processing Segment

The Field Gathering and Processing segment gathers and processes natural gas from the Permian Basin in West Texas and Southeast New Mexico, and the Fort Worth Basin, including the Barnett Shale, in North Texas. The segment's processing plants include nine owned and operated facilities. The following table provides summary data regarding results of operations of this segment for the periods indicated:

   Three Months Ended December 31,   Year Ended December 31, 
   2010   2009   2010   2009 
   ($ in millions) 
Gross margin  $ 88.4  $ 81.2  $ 338.8  $ 268.3
Operating expenses  (28.6)  (21.4)  (102.2)  (85.1)
Operating margin  $ 59.8  $ 59.8  $ 236.6  $ 183.2
         
Operating statistics:        
Plant natural gas inlet, MMcf/d        
Permian  133.9  119.1  128.7  118.2
SAOU  107.2  89.7  99.8  91.5
North Texas System  189.9  165.7  180.4  173.6
Versado  173.6  196.6  178.8  198.6
   604.6  571.1  587.7  581.9
         
Gross NGL production, MBbl/d        
Permian  15.5  13.7  14.8  13.4
SAOU  16.2  13.8  15.3  14.1
North Texas System  21.7  19.3  20.7  20.1
Versado  20.6  22.0  20.4  22.2
   74.0  68.8  71.2  69.8
         
Natural gas sales, BBtu/d (1)  262.7  238.8  258.6  219.6
NGL sales, MBbl/d (1)  59.4  58.7  56.6  56.2
Condensate sales, MBbl/d (1)  2.6  2.6  2.9  3.2
Average realized prices (2):        
Natural gas, $/MMBtu  3.54  4.00  4.11  3.69
NGL, $/gal  1.00  0.87  0.93  0.69
Condensate, $/Bbl  81.18  73.23  75.48  55.84
 
(1) Segment operating statistics include the effect of intersegment sales, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the year and the denominator is the number of calendar days during the applicable period.
(2) Average realized prices do not include the impact of hedging activities.

Three Months Ended December 31, 2010 Compared to Three Months Ended December 31, 2009

The $7.2 million increase in gross margin for 2010 is primarily due to an increase in commodity sales prices ($22.2 million), an increase in natural gas and NGL sales volumes ($11.3 million) and fee-based and other revenues ($2.1 million) partially offset by a decrease in condensate revenue ($0.1 million) and increased commodity purchase costs ($28.3 million). The increased volumes were largely attributable to new well connects at North Texas, SAOU, and Permian assets, partially offset by production declines caused by unplanned downtime due to a water tank rupture in the third quarter at Versado's Eunice plant.

8 of 14

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,658.99 -221.37 -1.31%
S&P 500 1,940.50 -29.57 -1.50%
NASDAQ 4,386.6150 -76.2870 -1.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs