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EX - 99.1 2 trgp - ex991_6.htm EX - 99.1 TR TARGA Targa Resources Corp. Reports First Quarter 2021 Financial Results and Increases 2021 Financial Outlook Exhibit 99.1 First Quarter 2021 Financial Results 811 Louisiana , Suite 2100 Houston , TX 77002 713.584.1000 HOUSTON - May 6 , 2021 - Targa Resources Corp. ( NYSE : TRGP ) ( “ TRC ” , the “ Company ” or “ Targa " ) today reported first quarter 2021 results . First quarter 2021 net income attributable to Targa Resources Corp. was $ 146.4 million compared to a net loss of ( $ 1,737.8 ) million for the first quarter of 2020. The net loss in the first quarter of 2020 was primarily related to the non - cash pre - tax impairment loss of $ 2,442.8 million associated with the Company's long - lived assets . The Company reported adjusted earnings before interest , income taxes , depreciation and amortization , and other non - cash items ( " Adjusted EBITDA ” ) of $ 515.7 million for the first quarter of 2021 compared to $ 428.1 million for the first quarter of 2020 ( see the section of this release entitled " Non - GAAP Financial Measures " for a discussion of Adjusted EBITDA , distributable cash flow , free 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 " ) ) . On April 15 , 2021 , TRC declared a quarterly dividend of $ 0.10 per share of its common stock for the three months ended March 31 , 2021 , or $ 0.40 per share on an annualized basis . Total cash dividends of approximately $ 23.3 million will be paid on May 14 , 2021 on all outstanding shares of common stock to holders of record as of the close of business on April 30 , 2021. Also , on April 15 , 2021 , TRC declared a quarterly cash dividend of $ 23.75 per share of its Series A Preferred Stock . Total cash dividends of approximately $ 21.8 million will be paid on May 13 , 2021 on all outstanding shares of Series A Preferred Stock to holders of record as of the close of business on April 30 , 2021 . The Company reported distributable cash flow and free cash flow before dividends for the first quarter of 2021 of $ 397.4 million and $ 336.4 million , respectively . First Quarter 2021 - Sequential Quarter over Quarter Commentary . Targa reported first quarter 2021 Adjusted EBITDA of $ 515.7 million , representing an 18 percent increase over the fourth quarter 2020 . The sequential increase in Adjusted EBITDA was primarily attributable to an aggregate benefit recognized from the severe winter storm in February 2021 , lower operating and general and administrative expenses , and higher realized commodity prices . Targa estimates an aggregate benefit of approximately $ 30 million from the winter storm during the first quarter of 2021 , which impacted both the Company's Gathering and Processing ( " G & P " ) and Logistics and Transportation ( " L & T " ) segments . As previously disclosed , over a ten day period around the winter storm , Targa experienced on average an approximately 50 percent reduction across both its G & P and L & T system volumes . Overall system volumes quickly rebounded and returned to pre - storm levels later in the first quarter . In the G & P segment , the gross margin impact from the short - term operational disruption and impacts associated with the winter storm was offset by storm related benefits and higher realized commodity prices . The sequential increase in L & T segment gross margin was primarily due to higher marketing margin , partially offset by the short - term operational disruption and impacts associated with the winter storm . Lower sequential operating expenses were attributable to certain one - time maintenance expenses including hurricane damage repairs and integrity spending during the fourth quarter , while lower general and administrative expenses were largely attributable to higher compensation and legal costs recognized during the fourth quarter . Beginning in the first quarter of 2021 , Targa is reporting certain fuel and power costs previously included in Operating Expenses in Product Purchases and Fuel to better reflect the direct relationship of these costs to Targa's revenue - generating activities and align with Targa's evaluation of the performance of the business . Prior periods have been updated to reflect this change . For the G & P segment , the retrospective gross margin and operating expenses for the three months ended December 31 , 2020 were $ 380.0 million and $ 116.1 million , respectively . For the L & T segment , the retrospective gross margin and operating expenses for the three months ended December 31 , 2020 were $ 399.2 million and $ 77.2 million , respectively .