Targa Resources Corp. Announces $500 Million Common Share Repurchase Program and Provides Updated 2020 Outlook
While there continue to be uncertainties around the impacts of COVID-19, the Company’s overall business performance has been strong, and Targa currently estimates its full-year 2020 Adjusted EBITDA to be at or around the high end of its previously provided outlook of
“Our expected strong performance and lower growth capital spending through the second half of 2020 creates additional free cash flow, which positions us to continue to execute on our strategy of reducing leverage over time,” said
About Targa Resources Corp.
For more information, please visit the Company’s website at www.targaresources.com.
This press release includes the Company’s non-GAAP financial measure Adjusted EBITDA. The following tables provide a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure. The Company utilizes Adjusted EBITDA to analyze the Company’s performance. Adjusted EBITDA is a non-GAAP measure. The GAAP measure most directly comparable to Adjusted EBITDA is net income (loss) attributable to the Company. Adjusted EBITDA should not be considered as an alternative to GAAP net income attributable to the Company and has important limitations as an analytical tool. Investors should not consider Adjusted EBITDA in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Additionally, because Adjusted EBITDA excludes some, but not all, items that affect net income, and are defined differently by different companies within the Company’s industry, the Company’s definition may not be comparable with similarly titled measures of other companies, thereby diminishing its utility. Management compensates for the limitations of Adjusted EBITDA as an analytical tool by reviewing the comparable GAAP measure, understanding the differences between the measures and incorporating these insights into the Company’s decision-making processes.
The Company defines Adjusted EBITDA as net income (loss) attributable to the Company before interest, income taxes, depreciation and amortization, and other items that the Company believes should be adjusted consistent with the Company’s core operating performance. The adjusting items are detailed in the Adjusted EBITDA reconciliation table and its footnotes. Adjusted EBITDA is used as a supplemental financial measure by the Company and by external users of the Company’s financial statements such as investors, commercial banks and others to measure the ability of the Company’s assets to generate cash sufficient to pay interest costs, support the Company’s indebtedness and pay dividends to the Company’s investors.
Targa currently estimates its full-year 2020 Adjusted EBITDA to be at or around the high end of its previously provided outlook of
|Reconciliation of Estimated Net Loss attributable to TRC to
Estimated Adjusted EBITDA
|Net loss attributable to TRC
|Impairment of long-lived assets
|Income attributable to TRP preferred limited partners
|Interest expense, net
|Income tax expense (benefit)
|Depreciation and amortization expense
|Equity (earnings) loss
|Distributions from unconsolidated affiliates and preferred partner interests, net
|Compensation on equity grants
|Risk management activities and other
|Severance and related benefits (1)
|Noncontrolling interests adjustments (2)
|TRC Estimated Adjusted EBITDA
|Represents one-time severance and related benefit expenses related to the Company’s cost reduction measures.
|Noncontrolling interest portion of depreciation and amortization expense (including the effects of the impairment of long-lived assets on non-controlling interests).
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 impact of pandemics such as COVID-19, actions by the
Contact the Company's investor relations department by email at InvestorRelations@targaresources.com or by phone at (713) 584-1133.
Vice President, Finance & Investor Relations
Chief Financial Officer
Source: Targa Resources Corp.