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EX - 99.1 2 trgp - ex991_6.htm EX - 99.1 TR TARGA Targa Resources Corp. Reports Second Quarter 2021 Financial Results and Increases 2021 Financial Outlook Exhibit 99.1 Second Quarter 2021 Financial Results 811 Louisiana , Suite 2100 Houston , TX 77002 713.584.1000 HOUSTON - August 5 , 2021 - Targa Resources Corp. ( NYSE : TRGP ) ( “ TRC ” , the “ Company ” or “ Targa " ) today reported second quarter 2021 results . Second quarter 2021 net income attributable to Targa Resources Corp. was $ 56.2 million compared to net income of $ 81.0 million for the second quarter of 2020 . The Company reported adjusted earnings before interest , income taxes , depreciation and amortization , and other non - cash items ( " Adjusted EBITDA ” ) of $ 460.0 million for the second quarter of 2021 compared to $ 351.2 million for the second 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 July 15 , 2021 , TRC declared a quarterly dividend of $ 0.10 per share of its common stock for the three months ended June 30 , 2021 , or $ 0.40 per share on an annualized basis . Total cash dividends of approximately $ 23.3 million will be paid on August 16 , 2021 on all outstanding shares of common stock to holders of record as of the close of business on July 30 , 2021. Also , on July 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 August 13 , 2021 on all outstanding shares of Series A Preferred Stock to holders of record as of the close of business on July 30 , 2021 . The Company reported distributable cash flow and free cash flow before dividends for the second quarter of 2021 of $ 339.5 million and $ 256.1 million , respectively . Second Quarter 2021 - Sequential Quarter over Quarter Commentary . Targa reported second quarter 2021 Adjusted EBITDA of $ 460.0 million , representing an 11 percent decrease when compared to the first quarter of 2021. The sequential decrease in Adjusted EBITDA was primarily attributable to the aggregate benefit from the impacts of the major winter storm and higher marketing margin realized during the first quarter of 2021. Higher realized commodity prices and higher sequential volumes across Targa's Gathering and Processing ( " G & P " ) and Logistics and Transportation ( " L & T ” ) systems during the second quarter partially offset the decrease in Adjusted EBITDA . In the G & P segment , the sequential increase in segment gross margin was primarily attributable to higher Permian , Central and Badlands natural gas volumes , and higher natural gas liquids ( “ NGL ” ) and condensate prices . Natural gas inlet volumes in the Permian and Central rebounded following the impacts of the major winter storm in the first quarter , and from higher production and producer activity levels , primarily in the Permian . In the L & T segment , lower sequential gross margin was attributable to lower marketing margin , partially offset by higher pipeline transportation , fractionation and LPG export volumes . Targa's Grand Prix NGL Pipeline and its fractionation complex in Mont Belvieu operated at record levels during the second quarter primarily due to higher supply volumes from Targa's Permian G & P systems . Higher sequential operating expenses were attributable to an increase in repairs and maintenance , increased system throughput expenses , and higher labor and materials costs . Capitalization and Liquidity . The Company's total consolidated debt as of June 30 , 2021 was $ 6,975.5 million , net of $ 47.6 million of debt issuance costs , with $ 360.0 million outstanding under Targa Resources Partners LP's ( " TRP " or the " Partnership " ) accounts receivable securitization facility ( the " Securitization Facility ” ) , $ 6,635.7 million of outstanding TRP senior notes , and $ 27.4 million of finance lease liabilities . Total consolidated liquidity as of June 30 , 2021 , was over $ 2.9 billion , including $ 209.0 million of cash and $ 40.0 million available under the Securitization Facility . As of June 30 , 2021 , TRC did not have any borrowings under its $ 670.0 million senior secured revolving credit facility ( the " TRC Revolver " ) . TRP had $ 170.0 million of borrowings and $ 48.8 million in letters of credit outstanding under its $ 2.2 billion senior secured revolving credit facility ( the " TRP Revolver " ) , resulting in available senior secured revolving credit facility capacity of $ 1,981.2 million .