The Company's distributable cash flow for the fourth quarter 2012 was $24.6 million compared to $19.4 million in total declared dividends for the quarter (see the section of this release entitled "Targa Resources Corp. - Non-GAAP Financial Measures" for a discussion of distributable cash flow and reconciliations of this measure to its most directly comparable financial measure calculated and presented in accordance with GAAP).

Targa Resources Corp. - Capitalization, Liquidity and Financing Update

Total funded debt of the Company as of December 31, 2012, excluding debt of the Partnership, was $82.0 million in borrowings outstanding under its $150 million senior secured revolving credit facility due 2017. This resulted in $68 million in available revolver capacity as of December 31, 2012.

The Company's cash balance, excluding cash held at the Partnership and its subsidiaries, was $8.3 million as of December 31, 2012, resulting in total liquidity of $76.3 million.

Conference Call

Targa Resources Partners and Targa Resources Corp. will host a joint conference call for investors and analysts at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on February 14, 2013 to discuss fourth quarter and full year 2012 financial results. The conference call can be accessed via Webcast through the Events and Presentations section of the Partnership's website at www.targaresources.com , by going directly to http://ir.targaresources.com/events.cfm?company=LP or by dialing 877-881-2598. The pass code for the dial-in is 92708088. Please dial in ten minutes prior to the scheduled start time. A replay will be available approximately two hours following completion of the Webcast through the Investor's section of the Partnership's and the Company's website. Telephone replay access numbers are 855-859-2056 or 404-537-3406 with pass code 92708088 and will remain available until February 28, 2013.

Targa Resources Partners – Consolidated Financial Results of Operations
  Three Months Ended December 31, Year Ended December 31,
  2012 2011 2012 2011
  (In millions except per unit data)
Revenues   $ 1,526.8  $ 1,933.3  $ 5,883.6  $ 6,987.1
Product purchases  1,267.2  1,674.5  4,878.9  6,039.0
Gross margin (1)  259.6  258.8  1,004.7  948.1
Operating expenses  85.8  72.9  313.0  287.0
Operating margin (2)  173.8  185.9  691.7  661.1
Depreciation and amortization expense  55.2  46.0  197.3  178.2
General and administrative expense  31.6  29.2  131.6  127.8
Other operating expense  1.1  0.5  19.9  0.2
Income from operations  85.9  110.2  342.9  354.9
Interest expense, net  (29.0)  (27.3)  (116.8)  (107.7)
Equity earnings  2.2  3.6  1.9  8.8
Loss on debt redemption and early debt extinguishment  (12.8)  --   (12.8)  -- 
Loss on mark-to-market derivative instruments  --   --   --   (5.0)
Other   (6.2)  (0.5)  (7.8)  (1.2)
Income tax expense (benefit)  (1.5)  0.9  (4.2)  (4.3)
Net income   38.6  86.9  203.2  245.5
Less: Net income attributable to noncontrolling interest  5.1  11.4  28.6  41.0
Net income attributable to Targa Resources Partners LP  $ 33.5  $ 75.5  $ 174.6  $ 204.5
         
Net income attributable to general partner  20.5  11.9  66.7  38.0
Net income attributable to limited partners   13.0  63.5  107.9  166.5
Net income attributable to Targa Resources Partners LP  $ 33.5  $ 75.5  $ 174.6  $ 204.5
         
Basic and diluted net income per limited partner unit  $ 0.14  $ 0.75  $ 1.20  $ 1.98
         
Financial data:        
Adjusted EBITDA (3)  $ 130.6  $ 146.3  $ 514.9  $ 490.8
Distributable cash flow (4)  86.4  107.2  353.9  336.7
Capital expenditures  1,213.1  112.7  1,612.9  490.0
         
Operating data:        
Plant natural gas inlet, MMcf/d (5)(6)  2,110.2  2,189.6  2,098.3  2,162.1
Gross NGL production, MBbl/d  135.2  129.1  128.7  123.9
Natural gas sales, BBtu/d (6)  937.1  876.4  927.6  779.3
NGL sales, MBbl/d  306.2  282.9  284.5  269.6
Condensate sales, MBbl/d  3.5  2.7  3.5  3.0
 
(1) Gross margin is a non-GAAP financial measure and is discussed under "Targa Resources Partners - Non-GAAP Financial Measures."
(2) Operating margin is a non-GAAP financial measure and is discussed under "Targa Resources Partners - Non-GAAP Financial Measures."
(3) Adjusted EBITDA is net income before: interest, income taxes, depreciation and amortization, gains or losses on debt repurchases and debt redemptions, early debt extinguishments and asset disposals and non-cash risk management activities related to derivative instruments. This is a non-GAAP financial measure and is discussed under "Targa Resources Partners - Non-GAAP Financial Measures."
(4) Distributable cash flow is income attributable to Targa Resources Partners LP plus depreciation and amortization, deferred taxes and amortization of debt issue costs included in interest expense, adjusted for non-cash losses (gains) on mark-to-market derivative contracts, debt repurchases and asset disposals, less maintenance capital expenditures (net of any reimbursements of project costs). This is a non-GAAP financial measure and is discussed under "Targa Resources Partners - Non-GAAP Financial Measures."
(5) Plant natural gas inlet represents the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant.
(6) Plant natural gas inlet volumes include producer take-in-kind volumes, while natural gas sales exclude producer take-in-kind volumes.

Targa Resources Partners – Review of Consolidated Fourth Quarter and Full Year Results

Three Months Ended December 31, 2012 Compared to Three Months Ended December 31, 2011

Revenues, including the impacts of hedging, decreased due to the impact of lower realized prices on commodities ($590.5 million), partially offset by higher commodity sales volumes ($151.4 million) and higher fee-based and other revenues ($32.5 million).

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