This Day On The Street
Continue to site
ADVERTISEMENT
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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs