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HOUSTON, May 03, 2018 (GLOBE NEWSWIRE) — Targa Resources Corp. (NYSE:TRGP) (“TRC”, the “Company” or “Targa”) today reported first quarter 2018 results.
First Quarter 2018 Financial Results
First quarter 2018 net income (loss) attributable to Targa Resources Corp. was $22.9 million compared to ($119.3) million for the first quarter of 2017.
The Company reported earnings before interest, income taxes, depreciation and amortization, and other non-cash items (“Adjusted EBITDA”) of $306.6 million for the first quarter of 2018 compared to $276.7 million for the first quarter of 2017 (see the section of this release entitled “Targa Resources Corp. – Non-GAAP Financial Measures” for a discussion of Adjusted EBITDA, distributable cash flow, gross margin and operating margin, and reconciliations of such measures to their most directly comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”)).
“Our first quarter operational and financial performance was in-line with our expectations, and strong progress continued on our multiple capital projects underway. Our Joyce Plant is now operational providing much needed relief to our Midland Basin system. We also recently announced attractive Delaware Basin and Grand Prix expansions, which further leverage our existing integrated assets and position us to effectively compete for additional volumes,” said Joe Bob Perkins, Chief Executive Officer of Targa. “We remain focused on enhancing our attractive long-term outlook through continued execution across all areas of our business.”
On April 18, 2018, TRC declared a quarterly dividend of $0.91 per share of its common stock for the three months ended March 31, 2018, or $3.64 per share on an annualized basis. Total cash dividends of approximately $199.7 million will be paid on May 15, 2018 on all outstanding shares of common stock to holders of record as of the close of business on May 1, 2018. Also on April 18, 2018, TRC declared a quarterly cash dividend of $23.75 per share of its Series A Preferred Stock. Total cash dividends of approximately $22.9 million will be paid on May 14, 2018 on all outstanding shares of Series A Preferred Stock to holders of record as of the close of business on May 1, 2018.
The Company reported distributable cash flow for the first quarter of 2018 of $216.4 million compared to total common dividends to be paid of $199.7 million and total Series A Preferred Stock dividends to be paid of $22.9 million.
First quarter 2018 – Capitalization, Liquidity and Financing
The Company’s total consolidated debt as of March 31, 2018 was $5,364.2 million including $435.0 million outstanding under TRC’s $670.0 million senior secured revolving credit facility due 2020. The consolidated debt included $4,929.2 million of Targa Resources Partners LP (“TRP” or “the Partnership”) debt, net of $28.8 million of debt issuance costs, with $380.0 million outstanding under TRP’s $1.6 billion senior secured revolving credit facility due 2020, $300.0 million outstanding under TRP’s accounts receivable securitization facility and $4,278.0 million of outstanding TRP senior unsecured notes.
Total consolidated liquidity of the Company as of March 31, 2018, including $219.8 million of cash, was approximately $1.7 billion. As of March 31, 2018, TRC had available borrowing capacity under its senior secured revolving credit facility of $235.0 million. TRP had $380.0 million of borrowings and $25.9 million in letters of credit outstanding under its $1.6 billion senior secured revolving credit facility, resulting in available senior secured revolving credit facility capacity of $1,194.1 million. In addition to the availability under its senior secured revolving credit facility, the Partnership also had $50.0 million of availability under its accounts receivable securitization facility.
During the three months ended March 31, 2018, the Company issued 1,162,963 shares of common stock under an equity distribution agreement entered into in December 2016, resulting in net proceeds of $57.7 million.
In April 2018, TRC issued 640,228 shares of common stock under an equity distribution agreement entered into in May 2017, resulting in net proceeds of $29.0 million.
In April 2018, the Partnership issued $1.0 billion aggregate principal amount of 5⅞% senior notes due April 2026. The Partnership used the net proceeds of $992.3 million after costs from the offering to repay borrowings under its credit facilities and for general partnership purposes. Including the April 2018 senior notes issuance, TRC’s pro forma consolidated liquidity as of March 31, 2018 was approximately $2.7 billion.
Sale of Inland Marine Barge Business
Targa executed agreements on May 1, 2018 to sell its inland marine barge business to Kirby Corp. (NYSE:KEX) for approximately $69.3 million. Subject to customary regulatory approvals and other closing conditions, the transaction is expected to close during the second quarter, and Targa intends to use the sale proceeds to fund a portion of its capital growth program underway.
Conference Call
The Company will host a conference call for the investment community at 11:00 a.m. Eastern time (10:00 a.m. Central time) on May 3, 2018 to discuss first quarter 2018 results. The conference call can be accessed via webcast through the Events and Presentations section of Targa’s website at www.targaresources.com, by going directly to http://ir.targaresources.com/trc/events.cfm or by dialing 877-881-2598. The conference ID number for the dial-in is 6449338. Please dial in ten minutes prior to the scheduled start time. A replay will be available approximately two hours following the completion of the webcast through the Investors section of the Company’s website. Presentation slides will also be available in the Events and Presentations section of the Company’s website, or directly at http://ir.targaresources.com/trc/events.cfm.
Forward-Looking Statements
Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of business development efforts; and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2017, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact the Company’s investor relations department by email at [email protected] or by phone at (713) 584-1133.
Sanjay Lad
Director – Investor Relations
Jennifer Kneale
Chief Financial Officer
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