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 Second Quarter 2013 Financial Results

The increase in operating expenses was primarily due to the addition of Badlands, additional compression related expenses due to increased volumes, system expansions and higher system maintenance and repair costs.

Six Months Ended June 30, 2013 Compared to Six Months Ended June 30, 2012

The six month results were impacted by the same factors as discussed above for the three month comparison of 2013 to 2012.

Coastal Gathering and Processing

The Coastal Gathering and Processing segment assets are located in the onshore and near offshore region of the Louisiana Gulf Coast and the Gulf of Mexico. With the strategic location of the Partnership's assets in Louisiana, it has access to the Henry Hub, the largest natural gas hub in the U.S., and to a substantial NGL distribution system with access to markets throughout Louisiana and the Southeast United States.

The following table provides summary data regarding results of operations of this segment for the periods indicated:

  Three Months Ended June 30, Six Months Ended June 30,
  2013 2012 2013 2012
  ($ in millions)
Gross margin  $28.6  $38.8  $62.6  $95.5
Operating expenses   11.9  10.8  22.5  21.2
Operating margin  $16.7  $28.0  $40.1  $74.3
Operating statistics (1):        
Plant natural gas inlet, MMcf/d (2),(3)        
LOU (4)  317.7  214.7  329.5  204.8
Coastal Straddles  468.0  760.9  471.3  800.2
VESCO  493.3  442.3  513.6  492.6
   1,279.0  1,417.9  1,314.4  1,497.6
Gross NGL production, MBbl/d        
LOU  8.4  8.2  8.7  8.2
Coastal Straddles  13.1  15.8  13.3  16.7
VESCO  15.2  18.9  19.0  23.1
   36.7  42.9  41.0  48.0
Natural gas sales, BBtu/d (3)  285.3  315.1  280.2  298.5
NGL sales, MBbl/d   35.3  40.7  38.3  44.0
Condensate sales, MBbl/d   0.3  0.2  0.4  0.2
Average realized prices:        
Natural gas, $/MMBtu  4.09  2.27  3.78  2.43
NGL, $/gal  0.81  0.95  0.83  1.06
Condensate, $/Bbl   102.63  91.40  107.19  111.64
________        
(1)  Segment operating statistics include intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume during the quarter and the denominator is the number of calendar days during the quarter.
(2)  Plant natural gas inlet represents the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant.
(3)  Plant natural gas inlet volumes include producer take-in-kind volumes, while natural gas sales exclude producer take-in-kind volumes.
(4)  Includes volumes from the Big Lake processing plant acquired in July 2012.

Three Months Ended June 30, 2013 Compared to Three Months Ended June 30, 2012

The decrease in gross margin was primarily due to lower NGL prices, less favorable frac spread and lower throughput volumes. The decrease in plant inlet volumes was largely attributable to the decline in offshore and off-system supply volumes, the impact of the Yscloskey, Calumet and other third-party plant shutdowns and operational issues at VESCO and LOU. This volume decrease was partially offset by the addition of the Big Lake plant. The operational issues at VESCO included the impact of damage to one of the two third-party pipelines that provide NGL takeaway capacity for VESCO that constrained NGL production until repairs were completed in June. Lower natural gas sales volumes reflected decreased sales to other reportable segments for resale partially offset by an increase in demand from industrial customers.

8 of 18

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
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs