Previous Statements by NGLS
» Targa Resources Management Discusses Q1 2011 Results - Earnings Call Transcript
» Targa Resources Partners Management Discusses Q4 2010 Results - Earnings Call Transcript
» Targa Resources Management Discusses Q3 2010 Results - Earnings Call Transcript
» Targa Resources Partners LP Q2 2010 Earnings Call Transcript
Before we begin, I would like to remind you that any statements made during this call that might include the company’s or the partnership’s expectations or predictions should be considered forward-looking statements and are covered by the Safe Harbor provision of the Securities Acts of 1933 and 1934. Please note that actual results could differ materially from those projections and any forward-looking statements.For a discussion of factors that could cause actual results to differ, please refer to our SEC filings including the partnership’s annual report on Form 10-K for the year ended December 31, 2010 and other quarterly reports on Form 10-Q, as well as the company’s registration statement on Form S-1 as amended. One quick reminder before starting into our results. With the closing of multiple acquisitions from TRC over the previous years and in accordance with accounting treatment for entities under common control, the results of operations of the Partnership includes historical results from these businesses for all periods reported. With that, I will turn it over to Rene Joyce. Rene R. Joyce Thanks Joe. Welcome and thanks to everyone for participating in our second quarter conference call. Besides Matt and myself, there are several other members of management who will be available to assist in the Q&A session. For today’s agenda, I will start off with a high-level review of performance, key accomplishments and business highlights for the quarter. We will then turn it over to Matt to review the Partnership’s consolidated financial results, the segment result and other financial matters for the Partnership. Matt will also review key financial matters related to Targa Resources Corp. Following Matt’s comments, I will provide additional updates on some of our ongoing activities, and of course, we will take your questions at the end. The Partnership reported very strong results for the second quarter of this year driven by favorable industry dynamics and the increased NGL volumes throughout the first asset base. Operating margins strengthened in both our Natural Gas Gathering and Processing division and our Logistics and Marketing division. We reported a strong second quarter adjusted EBITDA of almost $130 million, which helped drive distributable cash flow to $90 million. The result was a healthy distribution coverage ratio of almost 1.6 times based on our second quarter declared distribution of $0.57 or $2.28 on an annual basis.
The Partnership’s distribution represents an 8% increase compared to the second quarter of ’10. We are very proud of our consistent year-over-year distribution growth.Drilling and production activity remains high for our Gathering and Processing segment, significantly increasing inlet volumes at San Angelo in North Texas year-over-year. Our Coastal Gathering and Processing segment turned in a strong second quarter performance led by increased VESCO plant inlet volumes in a favorable pricing environment, resulting NGL production helps drive notable operating activity throughout system of downstream assets. For our Logistics and Marketing division, healthy operating results benefited from increased CBF and LSNG volumes, continued strong NGL prices and LPG export activity. At Galena Park LPG export activity was supported by multi-year deals as well as spot export opportunities. Mostly sea-based LPG exports benefit both our Logistics Assets in our Marketing and Distribution segments. As mentioned in our first quarter call, we closed the purchase of the Targa Channelview Terminal and we are currently pursuing incremental growth capital investment asset at the facility to expand its capabilities. Additionally, we continue to develop, negotiate and work to close additional refined products and crude storage and terminaling acquisitions that complement this existing business. I am pleased to report that the 78,000 barrel per day expansion at Cedar Bayou fractionator ramped up commercial operation through out the quarter completed on schedule and under budget this expansion increases our fee-based income to the segment. At the TRC level, TRC declared a second quarter cash annualized dividend of a $1.60 per share which was a 13% increase over the annualized rate paid with respect to the pro-rated fourth quarter 2010. That wraps up my initial review and I will hand it over to Matt. Read the rest of this transcript for free on seekingalpha.com