We are leading player in both of these phases. The set of businesses operate very much on an integrated basis and as you’ll hear throughout our presentation with the increase in volumes going on, we are seeing growth opportunities across the business. What’s driving that growth? There’s kind of two basic factors; one is the E&P skills and technologies that have made the gas shales the hot story of the day are also being deployed in oil plays and in the liquid-rich combo plays, oil and gas plays. Secondly, the price environment we are in right now with very strong oil and strong NGL prices is driving a higher level of producer activity and increasing drilling completion and the supplies into our system. So those drivers are increasing volumes which result in investment opportunities and growth for us. Where also in the gathering and processing as well as in the downstream business. The downstream is mostly fee. It’s also getting most of the investment opportunities right now because there’s a need for new fractionation capacity, and so as we invest in that business we see the fee component of our business mix increasing and trending up over time.
Separate from those industry dynamics, 2010 was sort of a milestone year for Targa Resources. We were a drop-down story for three and a half years following the partnership IPO in 2007 and at the end of ’10 after the drop-downs were done, we had a very successful IPO for Targa Resources Corp., the parent company, which provided attractive liquidity for the sponsor and really moved Targa from being a portfolio company system to a parent company that’s a public pure-play general partner.
Here’s a quick look at the capital structure of the system, starting at the bottom or at the corporate structure for the system. The partnership at the bottom is the owner of all of our operating businesses. So there’s no assets at the top of Targa Resources Corp. The partnership is about 85% owned by the public with the balance of the common units owned by Targa Resources Corp., along with 100% of the general partner interest. Over on the side we’ve noted the outstanding series of senior unsecured notes for the partnership. That’s just over $1 billion in face value primarily in three series of notes. And I’d like to make a comment here for those of you who may not know the Targa story that well. We think there’s a pretty interesting relative value analysis to look at Targa versus our midstream peers. When you think about the scale and diversity of our business, the solid growth across all of our regions and the track record of discipline that we have managed the company through a lot of transaction cycles and more importantly some pretty big upsides in the business in energy market cycle, I think you’ll see that it’s a pretty compelling story. The Corp., up top, is standalone market cap about $1.4 billion and as I mentioned earlier, is a pure-play general partner.
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