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Actionable news in NGLS: TARGA RESOURCES PARTNERS LP,

Targa Resources Partners: 1000 Louisiana, Suite 4300

The following excerpt is from the company's SEC filing.

Houston, TX 77002

713-584-1000

www.targaresources.com

Targa Resources Partners LP and Targa Resources Corp. Report

Third Quarter 2015 Financial Results

HOUSTON November 3, 2015 Targa Resources Partners LP (NYSE: NGLS) (Targa Resources Partners, the Partnership or TRP) and Targa Resources Corp. (NYSE: TRGP) (TRC or the Company) today reported third quarter results.

Targa Resources Partners Third Quarter 2015 Financial Results

Third quarter 2015 net income attributable to Targa Resources Partners was $48.5 million compared to $128.3 million for the third quarter of 2014. Net income per diluted limited partner unit was $0.02 in the third quarter of 2015 compared to $0.78 for the third quarter of 2014. The Partnership reported earnings before interest, income taxes, depreciation and amortization and other non-cash items (Adjusted EBITDA) of $305.8 million for the third quarter of 2015 compared to $248.8 million for the third quarter of 2014. The Partnerships distributable cash flow for the third quarter of 2015 of $220.7 million corresponds to distribution coverage of approximately 1.1 times the $200.4 million in total distributions to be paid on November 13, 2015 (see the section of this release entitled Targa Resources Partners - Non-GAAP Financial Measures for a discussion of Adjusted EBITDA, gross margin, operating margin and distributable cash flow, 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)).

Targas third quarter results highlight the benefits of our diverse asset footprint, fee-based margin and our continued focus on cost savings and execution, said Joe Bob Perkins, Chief Executive Officer of the Partnership and of the Company. We continue to develop attractive projects, demonstrate access to capital markets and execute in a cost effective manner, positioning Targa to successfully navigate the challenging environment ahead.

On October 20, 2015, the Partnership announced a cash distribution for the third quarter 2015 of $0.8250 per common unit, or $3.30 per unit on an annualized basis, representing an unchanged distribution from the previous quarter and approximately 3% growth over the distribution for the third quarter 2014. The cash distribution will be paid on November 13, 2015 on all outstanding common units to holders of record as of the close of business on November 2, 2015. The total distribution paid will be $200.4 million, with $139.0 million to the Partnerships third-party limited partners and $61.4 million to TRC for its ownership of common units, incentive distribution rights (IDRs) and its 2% general partner interest in the Partnership.

Targa Resources Corp. Third Quarter 2015 Financial Results

TRC reported net income available to common shareholders of $12.7 million for the third quarter 2015 compared to $30.7 million for the third quarter 2014. The net income per diluted common share was $0.23 in the third quarter of 2015 compared to net income per diluted common share of $0.73 for the third quarter of 2014.

The Company, which as of September 30, 2015 owned a 2% general partner interest in the Partnership (held through its 100% ownership interest in the general partner of the Partnership), all of the IDRs and 16,309,594 common units of the Partnership, presents its results consolidated with those of the Partnership.

Third quarter 2015 distributions to be paid on November 13, 2015 by the Partnership to the Company will be $61.4 million, with $13.5 million, $43.9 million and $4.0 million paid with respect to common units, IDRs and general partner interests, respectively.

On October 20, 2015, TRC declared a quarterly dividend of $0.9100 per share of its common stock for the three months ended September 30, 2015, or $3.64 per share on an annualized basis, representing increases of approximately 4% over the previous quarters dividend and 24% over the dividend for the third quarter of 2014. Total cash dividends of approximately $50.9 million will be paid November 16, 2015 on all outstanding common shares to holders of record as of the close of business on November 2, 2015.

The Companys distributable cash flow for the third quarter 2015 was $53.7 million compared to $51.2 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 Partners Third Quarter 2015 - Capitalization, Liquidity and Financing

Total funded debt of the Partnership as of September 30, 2015 was $5,471.9 million including $435.0 million outstanding under the Partnerships $1.6 billion senior secured revolving credit facility, $135.5 million outstanding under the Partnerships accounts receivable securitization facility, and $4,901.4 million of senior unsecured notes, net of unamortized discounts.

As of September 30, 2015, after giving effect to $11.2 million in outstanding letters of credit, the Partnership had available revolver capacity of $1,153.8 million.

In September 2015, the Partnership issued $600 million in aggregate principal amount of 6

% Senior Notes due 2024 (the 6

% Notes). The 6

% Notes resulted in approximately $595.0 million of net proceeds after costs, which were used to reduce borrowings under the Partnerships senior secured revolving credit facility and for general partnership purposes. The 6

% Notes are unsecured senior obligations that have substantially the same terms and covenants as its other senior notes.

In October 2015, under its automatic shelf registration statement filed in April 2013 and amended by a post-effective amendment filed in October 2015 (the April 2013 Shelf), the Partnership completed an offering of 4,400,000 9.0% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (Preferred Units) at a price of $25.00 per unit. Pursuant to the exercise of the underwriters overallotment option, the Partnership sold an additional 600,000 Preferred Units at a price of $25.00 per unit. The Partnership received net proceeds after costs of approximately $121.1 million, which were to reduce borrowings under its senior secured credit facility and for general partnership purposes. The Preferred Units are listed on the NYSE under the symbol NGLS PRA.

Distributions on the Preferred Units are cumulative from the date of original issue and will be payable monthly in arrears on the 15th day of each month of each year, when, as and if declared by the board of directors of the Partnerships general partner. Distributions on the Preferred Units will be payable out of amounts legally available therefor from and including the date of original issue to, but not including, November 1, 2020, at a rate equal to 9.0% per annum of the stated liquidation preference. On and after November 1, 2020, distributions on the Preferred Units will accumulate at an annual floating rate equal to the one- month LIBOR plus a spread of 7.71%.

On October 20, 2015, the Partnership announced that the board of directors of its general partner declared a prorated monthly cash distribution of $0.10 per Preferred Unit. This cash distribution is the initial distribution payable on the Preferred Units for the period from October 15, 2015 through October 31, 2015, and will be paid November 16, 2015 on all outstanding Preferred Units to holders of record as of the close of business on October 30, 2015.

Targa Resources Corp. Third Quarter 2015 - Capitalization, Liquidity and Financing

Total funded debt of the Company as of September 30, 2015, excluding debt of the Partnership, was $602.4 million including $445.0 million outstanding under the Companys $670.0 million senior secured revolving credit facility due 2020 and $157.4 million, net of unamortized discounts, outstanding on the Companys senior secured term loan due 2022. This resulted in $225.0 million in available revolver capacity as of September 30, 2015.

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 November 3, 2015 to discuss third quarter financial results. The conference call can be accessed via Webcast through the Events and Presentations section of the Partnerships website at

, 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 60174409. 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 Partnerships website. An updated investor presentation will also be available in the Events and Presentations section of the Partnerships and the Companys websites following the completion of the conference call.

Targa Resources Partners Consolidated Financial Results of Operations

Three Months Ended September 30,

Nine Months Ended September 30,

($ in millions, except per unit data and operating statistics)

Revenues

Sales of commodities

1,321.3

2,009.2

4,119.6

5,853.3

Fees from midstream services

Total revenues:

1,632.1

2,288.3

5,011.2

6,583.7

Product purchases

1,172.4

1,880.5

3,677.7

5,412.2

Gross margin (1)

1,333.5

1,171.5

Operating expenses

Operating margin (2)

Depreciation and amortization expenses

General and administrative expenses

Other operating (income) expenses

Income from operations

Interest expense, net

(177.2

(104.1

Equity earnings

Loss from financing activities

Other income (expense)

Income tax (expense) benefit

Less: Net income attributable to noncontrolling interests

Net income attributable to Targa Resources Partners LP

Net income attributable to general partner

Net income attributable to limited partners

Basic net income per limited partner unit

Diluted net income per limited partner unit

Financial data:

Adjusted EBITDA (3)

Distributable cash flow (4)

Capital expenditures

Operating data:

Crude oil gathered, MBbl/d

Plant natural gas inlet, MMcf/d (5),(6),(7)

3,452.5

2,170.3

3,163.2

2,111.2

Gross NGL production, MBbl/d (7)

Export volumes, MBbl/d (8)

Natural gas sales, BBtu/d (6),(7)

1,932.3

1,721.4

NGL sales, MBbl/d (7)

Condensate sales, MBbl/d (7)

Gross margin is a non-GAAP financial measure and is discussed under Targa Resources Partners - Non-GAAP Financial Measures.

Operating margin is a non-GAAP financial measure and is discussed under Targa Resources Partners - Non-GAAP Financial Measures.

Adjusted EBITDA is net income attributable to Targa Resources Partners LP before: interest, income taxes, depreciation and amortization, gains or losses on debt repurchases, redemptions, amendments, exchanges and early debt extinguishments and asset disposals, risk management activities related to derivative instruments including the cash impact of hedges acquired in the Partnerships merger with Atlas Pipeline Partners, L.P. (the APL merger), non-cash compensation on TRP equity grants, transactions costs related to business acquisitions, earnings/losses from unconsolidated affiliates net of distributions and the noncontrolling interest portion of depreciation and amortization expenses. This is a non-GAAP financial measure and is discussed under Targa Resources Partners - Non-GAAP Financial Measures.

Distributable cash flow is net 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 risk management activities related to derivative instruments, including the cash impact of hedges acquired in the APL merger; debt repurchases, redemptions, amendments, exchanges and early debt extinguishments; non-cash compensation on TRP equity grants; transaction costs related to business acquisitions; earnings/losses from unconsolidated affiliates net of distributions and asset disposals and less maintenance capital expenditures (net of any reimbursements of project costs). This measure includes any impact of noncontrolling interests. This is a non-GAAP financial measure and is discussed under Targa Resources Partners - Non-GAAP Financial Measures.

Plant natural gas inlet represents the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant, other than in Badlands, where it represents total wellhead gathered volume.

Plant natural gas inlet volumes include producer take-in-kind volumes, while natural gas sales exclude producer take-in-kind volumes.

These volume statistics are presented with the numerator as the total volume sold during the quarter and the denominator as the number of calendar days during the quarter.

Export volumes represent the quantity of NGL products delivered to third party customers at the Galena Park Marine terminal that are destined for international markets.

Targa Resources Partners Review of Consolidated Third Quarter Results

Three Months Ended September 30, 2015 Compared to Three Months Ended September 30, 2014

Revenues from commodity sales declined as the effect of significantly lower commodity prices ($1,749.6 million) exceeded the favorable impacts of inclusion of a full quarter of operations of Targa Pipeline Partners LP (TPL) ($388.2 million), other volume increases ($648.3 million), and favorable hedge settlements ($21.8 million). Fee-based and other revenues increased due to the inclusion of TPLs fee revenue ($55.0 million), which were partially offset by lower export fees.

Offsetting lower commodity revenues was a commensurate reduction in product purchases due to significantly lower commodity costs ($1,050.9 million), which were partially offset by the inclusion of product purchases related to TPLs operations ($342.8 million).

The higher gross margin in 2015 was attributable to inclusion of TPL operations, increased throughput related to other system expansions in TRPs Field Gathering and Processing segment, recognition of a renegotiated commercial contract and increased terminaling and storage fees, partially offset by lower fractionation and export margin in TRPs Logistics and Marketing segments. Higher operating expenses are due to the inclusion of TPLs operations ($29.4 million), which more than offset the cost savings generated throughout TRPs other operating areas. See Targa Resources Partners Review of Segment Performance for additional information regarding changes in gross margin and operating margin on a segment basis.

The increase in depreciation and amortization expenses reflects the impact of TPL, the planned increased amortization of the Badlands intangible assets and growth investments placed in service after June 2014, including the international export expansion project, continuing development at Badlands and other system expansions.

Higher general and administrative expenses is due to the inclusion of TPL general and administrative costs ($8.4 million), which was partially offset by general and administrative savings ($5.9 million), primarily from lower compensation and related costs.

The increase in interest expense primarily reflects higher borrowings attributable to the APL merger and lower capitalized interest associated with major capital projects compared to 2014.

Net income attributable to noncontrolling interests decreased due to lower earnings in 2015 that impacted TRPs Cedar Bayou Fractionators, VESCO and Versado joint ventures, and the inclusion of losses from TPLs joint ventures.

Nine Months Ended September 30, 2015 Compared to Nine Months Ended September 30, 2014

Revenues declined as the effect of significantly lower commodity prices ($5,049.4 million) exceeded the favorable impacts of the inclusion of seven months of operations of TPL ($928.8 million), other volume increases ($2,321.9 million), and favorable hedge settlements ($60.7 million). Fee-based and other revenues increased due to the inclusion of TPLs operating results ($115.6 million), which were partially offset by lower export fees.

Offsetting lower commodity revenues was a commensurate reduction in product purchases due to significantly lower commodity costs ($2,550.1 million), which were partially offset by the inclusion of product purchases related to TPLs operations ($815.6 million).

The higher gross margin in 2015 was primarily attributable to increased Field Gathering and Processing throughput volumes primarily associated with the inclusion of TPLs operations and the recognition of a renegotiated commercial contract, partially offset by lower export margins and treating and reservation fees in TRPs Logistics and Marketing segments. Higher operating expenses are due to the inclusion of TPLs operations ($69.4 million), which more than offset the cost savings generated throughout TRPs other operating areas. See Targa Resources Partners Review of Segment Performance for additional information regarding changes in gross margin and operating margin on a segment basis.

Higher general and administrative expenses were primarily due to the inclusion of TPL general and administrative costs ($21.4 million), which partially offset other general and administrative savings ($6.6 million), primarily from lower compensation and related costs.

The nine months results were impacted by the same factors for depreciation and amortization expenses, interest expense, net and net income attributable to noncontrolling interests, as discussed above for the three month comparison of 2015 to 2014.

Targa Resources Partners Review of Segment Performance

The following discussion of segment performance includes inter-segment revenues. The Partnership views segment operating margin as an important performance measure of the core profitability of its...


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