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EX - 99.1 2 trgp - ex991_6.htm EX - 99.1 TR TARGA Exhibit 99.1 811 Louisiana , Suite 2100 Houston , TX 77002 713.584.1000 Targa Resources Corp. Reports Third Quarter 2021 Financial Results Increases 2021 Financial Outlook and Announces Updated Capital Allocation Strategy HOUSTON - November 4 , 2021 - Targa Resources Corp. ( NYSE : TRGP ) ( “ TRC ” , the “ Company ” or “ Targa ” ) today reported third quarter 2021 results . Third Quarter 2021 Financial Results Third quarter 2021 net income attributable to Targa Resources Corp. was $ 182.2 million compared to net income of $ 69.3 million for the third quarter of 2020 . The Company reported adjusted earnings before interest , income taxes , depreciation and amortization , and other non - cash items ( " Adjusted EBITDA ” ) of $ 505.9 million for the third quarter of 2021 compared to $ 419.1 million for the third quarter of 2020 ( see the section of this release entitled " Non - GAAP Financial Measures " for a discussion of adjusted EBITDA , distributable cash flow , adjusted free cash flow , adjusted gross margin and adjusted 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 October 14 , 2021 , TRC declared a quarterly dividend of $ 0.10 per share of its common stock for the three months ended September 30 , 2021 , or $ 0.40 per share on an annualized basis . Total cash dividends of approximately $ 23.3 million will be paid on November 15 , 2021 on all outstanding shares of common stock to holders of record as of the close of business on October 29 , 2021. Also , on October 14 , 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 November 12 , 2021 on all outstanding shares of Series A Preferred Stock to holders of record as of the close of business on October 29 , 2021 . The Company reported distributable cash flow and adjusted free cash flow before dividends for the third quarter of 2021 of $ 383.9 million and $ 297.2 million , respectively . 2021 Updated Operational and Financial Expectations Targa now estimates 2021 average Permian natural gas inlet volumes to exceed the top end of its previously disclosed 5 percent to 10 percent growth range over 2020 average Permian natural gas inlet volumes , which will also result in incremental volumes through Targa’s Logistics and Transportation ( " L & T " ) systems . For full year 2021 , Targa now estimates adjusted EBITDA to exceed the top end of its previously disclosed range of $ 1.9 billion to $ 2.0 billion , and Targa's year - end 2021 consolidated leverage ratio is estimated to be about 3.25 times . Targa now expects its 2021 net growth capital expenditures to be around $ 450 million due to increasing activity levels and some additional spending for long - lead items for Targa's next gas plant in Permian Midland . The estimate for full year 2021 net maintenance capital expenditures is unchanged at approximately $ 120 million . " Our outperformance as we have moved through this year is reflective of the strength of volume growth across Targa's integrated asset footprint , coupled with our success in utilizing commercial contract structures that protect our downside and allow us to benefit in a rising commodity price environment . With consolidated leverage now at the midpoint of our long - term target range , we are in position to return capital to our shareholders sooner than previous expectations , " said Matt Meloy , Chief Executive Officer of Targa . “ With year - end leverage estimated to be about 3.25 times , over the short , medium , and long - term , we have the flexibility to return capital to our shareholders through common dividend increases and share repurchases , while executing on the simplification of our capital structure and continuing to invest in accretive growth opportunities across our core integrated strategy . We remain focused on maintaining our balance sheet strength to preserve Targa's financial flexibility through business cycles and position Targa to maximize shareholder value . "