þ
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT
OF 1934
|
||
For the
quarterly period ended September 30, 2009
|
|||
or
|
|||
o |
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT
OF 1934
|
||
For the transition period
from to
|
Delaware
(State
or other jurisdiction of
incorporation
or organization)
|
65-1295427
(I.R.S.
Employer
Identification
No.)
|
|
1000
Louisiana, Suite 4300, Houston, Texas
(Address of
principal executive offices)
|
77002
(Zip
Code)
|
Large
accelerated filer þ
|
Accelerated
filer o
|
Non-accelerated
filer o
|
Smaller
reporting company o
|
|||
(Do
not check if a smaller reporting
company)
|
Bbl
|
Barrels
|
BBtu
|
Billion
British thermal units, a measure of heating value
|
/d
|
Per
day
|
gal
|
Gallons
|
MBbl
|
Thousand
barrels
|
MMBtu
|
Million
British thermal units
|
MMcf
|
Million
cubic feet
|
NGL(s)
|
Natural
gas liquid(s)
|
Price
Index Definitions
|
|
IF-CGT
|
Inside
FERC Gas Market Report, Columbia Gulf Transmission,
Louisiana
|
IF-HSC
|
Inside
FERC Gas Market Report, Houston Ship Channel/Beaumont,
Texas
|
IF-NGPL
MC
|
Inside
FERC Gas Market Report, Natural Gas Pipeline,
Mid-Continent
|
IF-Waha
|
Inside
FERC Gas Market Report, West Texas Waha
|
NY-HH
|
NYMEX,
Henry Hub Natural Gas
|
NY-WTI
|
NYMEX,
West Texas Intermediate Crude Oil
|
OPIS-MB
|
Oil
Price Information Service, Mont Belvieu,
Texas
|
|
·
|
our
ability to access the debt and equity markets, which will depend on
general market conditions and the credit ratings for our debt
obligations;
|
|
·
|
the
amount of collateral required to be posted from time to time in our
transactions;
|
|
·
|
our
success in risk management activities, including the use of derivative
financial instruments to hedge commodity and interest rate
risks;
|
|
·
|
the
level of creditworthiness of counterparties to
transactions;
|
|
·
|
changes
in laws and regulations, particularly with regard to taxes, safety and
protection of the environment;
|
|
·
|
the
timing and extent of changes in natural gas, natural gas liquids and other
commodity prices, interest rates and demand for our
services;
|
|
·
|
weather
and other natural phenomena;
|
|
·
|
industry
changes, including the impact of consolidations and changes in
competition;
|
|
·
|
our
ability to obtain necessary licenses, permits and other
approvals;
|
|
·
|
the
level and success of crude oil and natural gas drilling around our assets
and our success in connecting natural gas supplies to our gathering and
processing systems and NGL supplies to our logistics and marketing
facilities;
|
|
·
|
our
ability to grow through acquisitions or internal growth projects and the
successful integration and future performance of such
assets;
|
|
·
|
general
economic, market and business conditions;
and
|
|
·
|
the
risks described in this Quarterly Report and our Annual Report on Form
10-K for the year ended December 31, 2008 (the “Annual
Report”).
|
TARGA
RESOURCES PARTNERS LP
|
||||||||
CONSOLIDATED
BALANCE SHEETS
|
||||||||
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 57,766 | $ | 95,308 | ||||
Trade
receivables, net of allowances of $1,950 and $2,207
|
251,332 | 236,137 | ||||||
Inventory
|
42,251 | 72,183 | ||||||
Assets
from risk management activities
|
48,472 | 91,816 | ||||||
Other
current assets
|
509 | 782 | ||||||
Total
current assets
|
400,330 | 496,226 | ||||||
Property,
plant and equipment, at cost
|
2,083,138 | 2,036,378 | ||||||
Accumulated
depreciation
|
(392,752 | ) | (317,322 | ) | ||||
Property,
plant and equipment, net
|
1,690,386 | 1,719,056 | ||||||
Long
term assets from risk management activities
|
18,860 | 68,296 | ||||||
Investment
in unconsolidated affiliate
|
17,811 | 18,465 | ||||||
Other
assets
|
20,931 | 12,776 | ||||||
Total
assets
|
$ | 2,148,318 | $ | 2,314,819 | ||||
LIABILITIES
AND OWNERS' EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable to third parties
|
$ | 123,648 | $ | 138,745 | ||||
Accounts
payable to affiliates
|
84,549 | 17,227 | ||||||
Accrued
liabilities
|
83,730 | 104,112 | ||||||
Liabilities
from risk management activities
|
10,903 | 11,664 | ||||||
Total
current liabilities
|
302,830 | 271,748 | ||||||
Long
term debt payable to third parties
|
939,424 | 696,845 | ||||||
Long
term debt payable to Targa Resources, Inc.
|
- | 773,883 | ||||||
Long
term liabilities from risk management activities
|
15,645 | 9,679 | ||||||
Deferred
income taxes
|
3,559 | 3,337 | ||||||
Other
long-term liabilities
|
6,501 | 6,239 | ||||||
Commitments
and contingencies (see Note 15)
|
||||||||
Owners'
equity:
|
||||||||
Common
unitholders (61,639,846 and 34,652,000 units issued and
|
||||||||
outstanding
as of September 30, 2009 and December 31, 2008)
|
847,663 | 769,921 | ||||||
Subordinated
unitholders (11,528,231 units issued and outstanding as of
|
||||||||
December
31, 2008)
|
- | (85,185 | ) | |||||
General
partner (1,257,957 and 942,455 units issued and outstanding as
of
|
||||||||
September
30, 2009 and December 31, 2008)
|
9,804 | 5,556 | ||||||
Net
parent investment
|
- | (223,534 | ) | |||||
Accumulated
other comprehensive income
|
9,361 | 72,238 | ||||||
866,828 | 538,996 | |||||||
Noncontrolling
interest in subsidiary
|
13,531 | 14,092 | ||||||
Total
owners' equity
|
880,359 | 553,088 | ||||||
Total
liabilities and owners' equity
|
$ | 2,148,318 | $ | 2,314,819 | ||||
See
notes to consolidated financial statements
|
TARGA
RESOURCES PARTNERS LP
|
||||||||||||||||
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
||||||||||||||||
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
(In
thousands, except per unit amounts)
|
||||||||||||||||
Revenues
from third parties
|
$ | 961,269 | $ | 2,079,737 | $ | 2,682,044 | $ | 6,001,098 | ||||||||
Revenues
from affiliates
|
42,509 | 135,114 | 140,240 | 413,466 | ||||||||||||
Total
operating revenues
|
1,003,778 | 2,214,851 | 2,822,284 | 6,414,564 | ||||||||||||
Costs
and expenses:
|
||||||||||||||||
Product
purchases from third parties
|
676,139 | 1,791,858 | 1,966,793 | 5,042,268 | ||||||||||||
Product
purchases from affiliates
|
198,089 | 318,570 | 492,503 | 943,187 | ||||||||||||
Operating
expenses
|
40,866 | 51,663 | 123,023 | 149,159 | ||||||||||||
Operating
expenses from affiliates
|
6,608 | 16,592 | 19,073 | 48,531 | ||||||||||||
Depreciation
and amortization expenses
|
25,597 | 24,431 | 75,490 | 72,785 | ||||||||||||
General
and administrative expenses
|
17,078 | 19,116 | 55,474 | 57,433 | ||||||||||||
Casualty
loss adjustment
|
- | - | (845 | ) | - | |||||||||||
Gain
on sale of assets
|
(1 | ) | (13 | ) | (7 | ) | (4,440 | ) | ||||||||
964,376 | 2,222,217 | 2,731,504 | 6,308,923 | |||||||||||||
Income
(loss) from operations
|
39,402 | (7,366 | ) | 90,780 | 105,641 | |||||||||||
Other
income (expense):
|
||||||||||||||||
Interest
expense from affiliate
|
(13,701 | ) | (14,832 | ) | (43,414 | ) | (44,400 | ) | ||||||||
Other
interest expense, net
|
(16,097 | ) | (10,617 | ) | (35,344 | ) | (27,175 | ) | ||||||||
Equity
in earnings of unconsolidated investment
|
1,417 | 1,102 | 3,221 | 3,028 | ||||||||||||
Loss
on debt repurchases (See Note 9)
|
(1,483 | ) | - | (1,483 | ) | - | ||||||||||
Other
|
1,132 | (5,700 | ) | 1,831 | (5,535 | ) | ||||||||||
(28,732 | ) | (30,047 | ) | (75,189 | ) | (74,082 | ) | |||||||||
Income
(loss) before income taxes
|
10,670 | (37,413 | ) | 15,591 | 31,559 | |||||||||||
Income
tax (expense) benefit:
|
||||||||||||||||
Current
|
308 | (145 | ) | - | (436 | ) | ||||||||||
Deferred
|
(88 | ) | (502 | ) | (800 | ) | (1,406 | ) | ||||||||
220 | (647 | ) | (800 | ) | (1,842 | ) | ||||||||||
Net
income (loss)
|
10,890 | (38,060 | ) | 14,791 | 29,717 | |||||||||||
Less:
Net income attributable to noncontrolling interest
|
888 | 162 | 1,179 | 91 | ||||||||||||
Net
income (loss) attributable to Targa Resources Partners LP
|
$ | 10,002 | $ | (38,222 | ) | $ | 13,612 | $ | 29,626 | |||||||
Net
loss attributable to predecessor operations
|
$ | (4,208 | ) | $ | (52,914 | ) | $ | (2,377 | ) | $ | (38,207 | ) | ||||
Net
income attributable to general partner
|
2,809 | 294 | 6,765 | 5,524 | ||||||||||||
Net
income allocable to limited partners
|
11,401 | 14,398 | 9,224 | 62,309 | ||||||||||||
Basic
and diluted net income per limited partner unit
|
$ | 0.23 | $ | 0.31 | $ | 0.19 | $ | 1.35 | ||||||||
Basic
and diluted weighted average limited partner units
|
||||||||||||||||
outstanding
|
50,611 | 46,180 | 47,692 | 46,175 | ||||||||||||
See
notes to consolidated financial statements
|
TARGA
RESOURCES PARTNERS LP
|
||||||||||||||||
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
||||||||||||||||
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(Unaudited)
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||
Net
income (loss)
|
$ | 10,890 | $ | (38,060 | ) | $ | 14,791 | $ | 29,717 | |||||||
Other
comprehensive income (loss):
|
||||||||||||||||
Commodity
hedges:
|
||||||||||||||||
Change
in fair value
|
(10,141 | ) | 185,008 | (31,043 | ) | (35,221 | ) | |||||||||
Reclassification
adjustment for settled periods
|
(16,675 | ) | 19,985 | (36,578 | ) | 49,696 | ||||||||||
Interest
rate hedges:
|
||||||||||||||||
Change
in fair value
|
(7,570 | ) | (1,698 | ) | (3,096 | ) | (1,968 | ) | ||||||||
Reclassification
adjustment for settled periods
|
2,718 | 869 | 7,840 | 1,485 | ||||||||||||
Foreign
currency translation adjustment
|
(463 | ) | (235 | ) | - | (477 | ) | |||||||||
Other
comprehensive income (loss)
|
(32,131 | ) | 203,929 | (62,877 | ) | 13,515 | ||||||||||
Comprehensive
income (loss)
|
(21,241 | ) | 165,869 | (48,086 | ) | 43,232 | ||||||||||
Less:
Comprehensive income attributable to
|
||||||||||||||||
noncontrolling
interest
|
888 | 162 | 1,179 | 91 | ||||||||||||
Comprehensive
income (loss) attributable to
|
||||||||||||||||
Targa
Resources Partners LP
|
$ | (22,129 | ) | $ | 165,707 | $ | (49,265 | ) | $ | 43,141 | ||||||
See
notes to consolidated financial statements
|
TARGA
RESOURCES PARTNERS LP
|
||||||||||||||||||||||||||||
CONSOLIDATED
STATEMENT OF CHANGES IN OWNERS' EQUITY
|
||||||||||||||||||||||||||||
Partners' Capital
|
Accumulated
|
|||||||||||||||||||||||||||
Other
|
Net
|
|||||||||||||||||||||||||||
Limited Partners
|
General
|
Comprehensive
|
Parent
|
Noncontrolling
|
||||||||||||||||||||||||
Common
|
Subordinated
|
Partner
|
Income
|
Investment
|
Interest
|
Total
|
||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||||
Balance,
December 31, 2008
|
$ | 769,921 | $ | (85,185 | ) | $ | 5,556 | $ | 72,238 | $ | (223,534 | ) | $ | 14,092 | $ | 553,088 | ||||||||||||
Issuance
of common units:
|
||||||||||||||||||||||||||||
Equity
offering
|
103,470 | - | 2,216 | - | - | - | 105,686 | |||||||||||||||||||||
Acquisition
related
|
129,850 | - | 2,650 | - | - | - | 132,500 | |||||||||||||||||||||
Contribution
under common control
|
(8,122 | ) | - | - | - | 7,322 | - | (800 | ) | |||||||||||||||||||
Distributions
to Parent
|
- | - | - | - | (68,707 | ) | - | (68,707 | ) | |||||||||||||||||||
Settlement
of affiliated indebtedness
|
- | - | - | - | 287,296 | - | 287,296 | |||||||||||||||||||||
Distributions
to noncontrolling interest
|
- | - | - | - | - | (1,740 | ) | (1,740 | ) | |||||||||||||||||||
Amortization
of equity awards
|
249 | - | - | - | - | - | 249 | |||||||||||||||||||||
Other
comprehensive loss
|
- | - | - | (62,877 | ) | - | - | (62,877 | ) | |||||||||||||||||||
Conversion
of subordinated units
|
(97,624 | ) | 97,624 | - | - | - | - | - | ||||||||||||||||||||
Net
income (loss)
|
9,732 | (508 | ) | 6,765 | - | (2,377 | ) | 1,179 | 14,791 | |||||||||||||||||||
Distributions
to unitholders
|
(59,813 | ) | (11,931 | ) | (7,383 | ) | - | - | - | (79,127 | ) | |||||||||||||||||
Balance,
September 30, 2009
|
$ | 847,663 | $ | - | $ | 9,804 | $ | 9,361 | $ | - | $ | 13,531 | $ | 880,359 | ||||||||||||||
See
notes to consolidated financial statements
|
TARGA
RESOURCES PARTNERS LP
|
||||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
||||||||
Nine Months Ended September
30,
|
||||||||
2009
|
2008
|
|||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
Cash
flows from operating activities
|
||||||||
Net
income
|
$ | 14,791 | $ | 29,717 | ||||
Adjustments
to reconcile net income to net cash
|
||||||||
provided
by operating activities:
|
||||||||
Amortization
in interest expense
|
2,487 | 1,495 | ||||||
Amortization
in general and administrative expense
|
249 | 200 | ||||||
Depreciation
and other amortization expense
|
75,490 | 72,785 | ||||||
Interest
expense on affiliate indebtedness
|
43,414 | 44,400 | ||||||
Accretion
of asset retirement obligations
|
308 | 259 | ||||||
Deferred
income tax expense
|
800 | 1,406 | ||||||
Equity
in earnings of unconsolidated investments, net of
distributions
|
654 | (316 | ) | |||||
Risk
management activities
|
33,826 | (75,747 | ) | |||||
Loss
on debt repurchases
|
1,483 | - | ||||||
Gain
on sale of assets
|
(7 | ) | (4,440 | ) | ||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable and other assets
|
(14,667 | ) | 138,456 | |||||
Inventory
|
20,155 | 21,600 | ||||||
Accounts
payable and other liabilities
|
40,940 | (101,235 | ) | |||||
Net
cash provided by operating activities
|
219,923 | 128,580 | ||||||
Cash
flows from investing activities
|
||||||||
Additions
to property, plant and equipment
|
(46,327 | ) | (55,335 | ) | ||||
Other,
net
|
82 | 183 | ||||||
Net
cash used in investing activities
|
(46,245 | ) | (55,152 | ) | ||||
Cash
flows from financing activities
|
||||||||
Proceeds
from borrowings under credit facility
|
397,618 | 87,500 | ||||||
Repayments
on credit facility
|
(374,900 | ) | (323,800 | ) | ||||
Proceeds
from issuance of senior notes
|
237,433 | 250,000 | ||||||
Repurchases
of senior notes
|
(18,882 | ) | - | |||||
Repayment
of affiliated indebtedness
|
(397,500 | ) | - | |||||
Proceeds
from equity offerings
|
103,470 | - | ||||||
Distributions
to unitholders
|
(79,127 | ) | (64,574 | ) | ||||
General
partner contributions
|
2,216 | 8 | ||||||
Costs
incurred in connection with public offerings
|
(164 | ) | - | |||||
Costs
incurred in connection with financing arrangements
|
(9,558 | ) | (7,079 | ) | ||||
Distributions
to noncontrolling interest
|
(1,740 | ) | - | |||||
Parent
distributions
|
(70,086 | ) | (36,183 | ) | ||||
Net
cash used in financing activities
|
(211,220 | ) | (94,128 | ) | ||||
Net
change in cash and cash equivalents
|
(37,542 | ) | (20,700 | ) | ||||
Cash
and cash equivalents, beginning of period
|
95,308 | 64,342 | ||||||
Cash
and cash equivalents, end of period
|
$ | 57,766 | $ | 43,642 | ||||
See
notes to consolidated financial statements
|
Asset Group
|
Range of Years
|
Gas
gathering systems and processing systems
|
15
to 25
|
Fractionation,
terminalling and natural gas liquids storage facilities
|
5
to 25
|
Transportation
assets
|
10
to 25
|
Other
property and equipment
|
3
to 25
|
|
·
|
Targa
contributed the Downstream Business to us. On the contribution date, the
Downstream Business’ affiliate indebtedness payable to Targa was $530
million. Prior to the contribution, $287.3 million of the Downstream
Business’ affiliated indebtedness was settled through a capital
contribution from Targa.
|
|
·
|
We
repaid the affiliate indebtedness with: (i) $397.5 million in cash; (ii)
174,033 in general partner units with an agreed-upon value of $2.7
million; and (iii) 8,527,615 in common units with an agreed-upon value of
$129.8 million.
|
December 31, 2008
|
||||||||||||||||
Historical
|
||||||||||||||||
Targa
|
Targa
|
|||||||||||||||
Resources
|
Downstream
|
Resources
|
||||||||||||||
Partners LP
|
Business
|
Adjustments
|
Partners LP
|
|||||||||||||
Current
assets
|
$ | 255,510 | $ | 263,011 | $ | (22,295 | ) | $ | 496,226 | |||||||
Property,
plant and equipment, net
|
1,244,337 | 474,719 | - | 1,719,056 | ||||||||||||
Other
assets
|
81,059 | 18,478 | - | 99,537 | ||||||||||||
Total
assets
|
1,580,906 | 756,208 | (22,295 | ) | 2,314,819 | |||||||||||
Current
liabilities
|
$ | 106,504 | $ | 187,539 | $ | (22,295 | ) | $ | 271,748 | |||||||
Long-term
debt
|
696,845 | 773,883 | - | 1,470,728 | ||||||||||||
Other
long-term liabilities
|
15,193 | 4,062 | - | 19,255 | ||||||||||||
Owners
of Targa Resources Partners LP
|
762,364 | 166 | - | 762,530 | ||||||||||||
Net
parent investment
|
- | (223,534 | ) | (223,534 | ) | |||||||||||
Noncontrolling
interest in subsidiary
|
- | 14,092 | - | 14,092 | ||||||||||||
Total
owners' equity
|
762,364 | (209,276 | ) | - | 553,088 | |||||||||||
Total
liabilities and owners' equity
|
$ | 1,580,906 | $ | 756,208 | $ | (22,295 | ) | $ | 2,314,819 |
Three Months Ended September 30,
2008
|
||||||||||||||||
Historical
|
||||||||||||||||
Targa
|
Targa
|
|||||||||||||||
Resources
|
Downstream
|
Resources
|
||||||||||||||
Partners LP
|
Business
|
Adjustments
|
Partners LP
|
|||||||||||||
Revenues
|
$ | 578,747 | $ | 1,868,915 | $ | (232,811 | ) | $ | 2,214,851 | |||||||
Costs
and expenses:
|
||||||||||||||||
Product
purchases
|
512,443 | 1,830,796 | (232,811 | ) | 2,110,428 | |||||||||||
Operating
expenses
|
15,402 | 52,853 | - | 68,255 | ||||||||||||
Depreciation
and amortization expense
|
18,566 | 5,865 | - | 24,431 | ||||||||||||
General
and administrative expense and other
|
5,521 | 13,582 | - | 19,103 | ||||||||||||
551,932 | 1,903,096 | (232,811 | ) | 2,222,217 | ||||||||||||
Income
from operations
|
26,815 | (34,181 | ) | - | (7,366 | ) | ||||||||||
Other
income (expense):
|
||||||||||||||||
Interest
expense
|
(10,749 | ) | (14,700 | ) | - | (25,449 | ) | |||||||||
Other
expense
|
(974 | ) | (3,624 | ) | - | (4,598 | ) | |||||||||
Income
tax expense
|
(400 | ) | (247 | ) | - | (647 | ) | |||||||||
Net
income (loss)
|
14,692 | (52,752 | ) | - | (38,060 | ) | ||||||||||
Less:
Net income attributable to noncontrolling interest
|
- | 162 | - | 162 | ||||||||||||
Net loss attributable
to Targa Resources Partners LP
|
$ | 14,692 | $ | (52,914 | ) | $ | - | $ | (38,222 | ) |
Nine Months Ended September 30,
2008
|
||||||||||||||||
Historical
|
||||||||||||||||
Targa
|
Targa
|
|||||||||||||||
Resources
|
Downstream
|
Resources
|
||||||||||||||
Partners LP
|
Business
|
Adjustments
|
Partners LP
|
|||||||||||||
Revenues
|
$ | 1,721,336 | $ | 5,368,033 | $ | (674,805 | ) | $ | 6,414,564 | |||||||
Costs
and expenses:
|
||||||||||||||||
Product
purchases
|
1,509,752 | 5,150,441 | (674,738 | ) | 5,985,455 | |||||||||||
Operating
expenses
|
42,673 | 155,084 | (67 | ) | 197,690 | |||||||||||
Depreciation
and amortization expense
|
55,235 | 17,550 | - | 72,785 | ||||||||||||
General
and administrative expense and other
|
16,362 | 36,631 | - | 52,993 | ||||||||||||
1,624,022 | 5,359,706 | (674,805 | ) | 6,308,923 | ||||||||||||
Income
from operations
|
97,314 | 8,327 | - | 105,641 | ||||||||||||
Other
income (expense):
|
||||||||||||||||
Interest
expense
|
(27,443 | ) | (44,132 | ) | - | (71,575 | ) | |||||||||
Other expense
|
(938 | ) | (1,569 | ) | - | (2,507 | ) | |||||||||
Income
tax expense
|
(1,100 | ) | (742 | ) | - | (1,842 | ) | |||||||||
Net
income (loss)
|
67,833 | (38,116 | ) | - | 29,717 | |||||||||||
Less:
Net income attributable to noncontrolling interest
|
- | 91 | - | 91 | ||||||||||||
Net
income (loss) attributable to Targa Resources Partners
LP
|
$ | 67,833 | $ | (38,207 | ) | $ | - | $ | 29,626 |
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Natural
gas gathering systems
|
$ | 1,216,457 | $ | 1,187,139 | ||||
Processing
and fractionation facilities
|
403,038 | 374,011 | ||||||
Terminalling
and natural gas liquids storage facilities
|
236,978 | 221,883 | ||||||
Transportation
assets
|
150,658 | 144,466 | ||||||
Other
property, plant, and equipment
|
16,410 | 14,910 | ||||||
Land
|
49,770 | 49,770 | ||||||
Construction
in progress
|
9,827 | 44,199 | ||||||
2,083,138 | 2,036,378 | |||||||
Accumulated
depreciation
|
(392,752 | ) | (317,322 | ) | ||||
$ | 1,690,386 | $ | 1,719,056 |
Distributions Paid
|
Distributions
|
||||||||||||||||||||||||
For
the Three
|
Limited Partners
|
General Partner
|
per
limited
|
||||||||||||||||||||||
Date Paid
|
Months Ended
|
Common
|
Subordinated
|
Incentive
|
2% |
Total
|
partner unit
|
||||||||||||||||||
(In
thousands, except per unit amounts)
|
|||||||||||||||||||||||||
2009
|
|||||||||||||||||||||||||
August
14, 2009
|
June
30, 2009
|
$ | 23,915 | $ | - | $ | 1,933 | $ | 528 | $ | 26,376 | $ | 0.5175 | ||||||||||||
May
15, 2009
|
March
31, 2009
|
17,949 | 5,966 | 1,933 | 528 | 26,376 | 0.5175 | ||||||||||||||||||
February
13, 2009
|
December
31, 2008
|
17,949 | 5,965 | 1,933 | 528 | 26,375 | 0.5175 | ||||||||||||||||||
2008
|
|||||||||||||||||||||||||
August
14, 2008
|
June
30, 2008
|
17,759 | 5,908 | 1,711 | 518 | 25,896 | 0.5125 | ||||||||||||||||||
May
15, 2008
|
March
31, 2008
|
14,467 | 4,813 | 208 | 398 | 19,886 | 0.4175 | ||||||||||||||||||
February
14, 2008
|
December
31, 2007
|
13,768 | 4,582 | 66 | 376 | 18,792 | 0.3975 |
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Equity
in earnings
|
$ | 1,417 | $ | 1,102 | $ | 3,221 | $ | 3,028 | ||||||||
Cash
distributions
|
3,100 | 1,928 | 3,875 | 2,713 |
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Targa
Resources Partners LP:
|
||||||||
Senior
secured revolving credit facility, variable rate, due February
2012
|
$ | 510,483 | $ | 487,765 | ||||
Senior
unsecured notes, 8¼% fixed rate, due July 2016
|
209,080 | 209,080 | ||||||
Senior
unsecured notes, 11¼% fixed
rate, due July 2017 (1)
|
219,861 | - | ||||||
Targa
Downstream LP:
|
||||||||
Note
payable to Parent, 10% fixed rate, due December 2011 (including accrued
interest of $0 and $175,343)
|
- | 744,020 | ||||||
Targa
LSNG LP:
|
||||||||
Note
payable to Parent, 10% fixed rate, due December 2011 (including accrued
interest of $0 and $4,281)
|
- | 29,863 | ||||||
Total
long-term debt
|
$ | 939,424 | $ | 1,470,728 | ||||
Letters
of credit issued
|
$ | 58,844 | $ | 9,651 |
|
(1)
|
The
carrying amount of the notes includes $11.4 million of unamortized
original issue discount as of September 30,
2009.
|
Range of interest
rates paid
|
Weighted average
interest rate paid
|
||||
Senior
secured revolving credit facility
|
1.2%
to 4.5%
|
1.8% |
|
·
|
are
unsecured senior obligations;
|
|
·
|
rank
pari passu in
right of payment with our existing and future senior indebtedness,
including indebtedness under our senior secured revolving credit
facility;
|
|
·
|
are
senior in right of payment to any of our future subordinated indebtedness;
and
|
|
·
|
are
unconditionally guaranteed by us.
|
Year
|
Percentage
|
|||
2013
|
105.625 | % | ||
2014
|
102.813 | % | ||
2015
and thereafter
|
100.000 | % |
Nine Months Ended
September 30, 2009
|
||||
Beginning
of period
|
$ | 6,206 | ||
Liabilities
settled
|
- | |||
Change
in cash flow estimate
|
(35 | ) | ||
Accretion
expense
|
308 | |||
End
of period
|
$ | 6,479 |
Nine
Months Ended
|
||||
September 30, 2009
|
||||
Outstanding
at beginning of period
|
26,664 | |||
Granted
|
32,000 | |||
Vested
|
(10,672 | ) | ||
Outstanding
at end of period
|
47,992 | |||
Weighted
average grant date fair value per share
|
$ | 12.88 |
Nine Months Ended September
30,
|
||||||||
2009
|
2008
|
|||||||
Included
in revenues
|
||||||||
Logistics
Assets
|
$ | 1,926 | $ | 441 | ||||
NGL
Distribution and Marketing
|
- | 8,602 | ||||||
Wholesale
Marketing
|
500 | 5,920 | ||||||
$ | 2,426 | $ | 14,963 |
Asset Derivatives
|
Liability Derivatives
|
|||||||||||||||||
Balance
|
Fair Value as of
|
Balance
|
Fair Value as of
|
|||||||||||||||
Sheet
|
September
30,
|
December
31,
|
Sheet
|
September
30,
|
December
31,
|
|||||||||||||
Location
|
2009
|
2008
|
Location
|
2009
|
2008
|
|||||||||||||
Derivatives designated as hedging instruments
under ASC 815
|
||||||||||||||||||
Commodity
contracts
|
Current
assets
|
$ | 46,508 | $ | 88,206 |
Current
liabilities
|
$ | 1,383 | $ | - | ||||||||
Long
term assets
|
18,575 | 68,296 |
Long
term liabilities
|
9,415 | 123 | |||||||||||||
Interest
rate contracts
|
Current
assets
|
- | - |
Current
liabilities
|
7,876 | 8,020 | ||||||||||||
Long
term assets
|
- | - |
Long
term liabilities
|
6,230 | 9,556 | |||||||||||||
Total
derivatives designated
|
||||||||||||||||||
as
hedging instruments
|
65,083 | 156,502 | 24,904 | 17,699 | ||||||||||||||
Derivatives not designated as hedging instruments
under ASC 815
|
||||||||||||||||||
Commodity
contracts
|
Current
assets
|
1,964 | 3,610 |
Current
liabilities
|
1,644 | 3,644 | ||||||||||||
Long
term assets
|
285 | - |
Long
term liabilities
|
- | - | |||||||||||||
Total
derivatives not designated
|
||||||||||||||||||
as
hedging instruments
|
2,249 | 3,610 | 1,644 | 3,644 | ||||||||||||||
Total
derivatives
|
$ | 67,332 | $ | 160,112 | $ | 26,548 | $ | 21,343 |
Amount
of Gain (Loss)
|
Amount
of Gain (Loss)
|
|||||||||||||||
Derivatives
in
|
Recognized
in OCI on
|
Recognized
in OCI on
|
||||||||||||||
ASC
815
|
Derivatives (Effective
Portion)
|
Derivatives (Effective
Portion)
|
||||||||||||||
Cash
Flow Hedging
|
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
||||||||||||||
Relationships
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Interest
rate contracts
|
$ | (7,570 | ) | $ | (1,698 | ) | $ | (3,096 | ) | $ | (1,968 | ) | ||||
Commodity
contracts
|
(10,141 | ) | 185,008 | (31,043 | ) | (35,221 | ) | |||||||||
$ | (17,711 | ) | $ | 183,310 | $ | (34,139 | ) | $ | (37,189 | ) |
Amount
of Gain (Loss) Reclassified from OCI to Income
|
||||||||||||||||
Location
of Gain (Loss)
|
(Effective Portion)
|
|||||||||||||||
Reclassified
from
|
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
||||||||||||||
OCI into Income
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Interest
expense, net
|
$ | (2,718 | ) | $ | (869 | ) | $ | (7,840 | ) | $ | (1,485 | ) | ||||
Revenues
|
16,974 | (19,985 | ) | 36,877 | (49,696 | ) | ||||||||||
$ | 14,256 | $ | (20,854 | ) | $ | 29,037 | $ | (51,181 | ) |
Amount
of Gain (Loss) Recognized in Income on Derivatives
|
||||||||||||||||
Location
of Gain (Loss)
|
(Ineffective Portion)
|
|||||||||||||||
Reclassified
from
|
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
||||||||||||||
OCI into Income
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Interest
expense, net
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Revenues
|
(299 | ) | - | (299 | ) | - | ||||||||||
$ | (299 | ) | $ | - | $ | (299 | ) | $ | - |
Instrument
|
Avg.
Price
|
MMBtu per day
|
|||||||||||||||||||||||||||
Type
|
Index
|
$/MMBtu
|
2009
|
2010
|
2011
|
2012
|
2013
|
Fair Value
|
|||||||||||||||||||||
Sales
|
|||||||||||||||||||||||||||||
Swap
|
IF-HSC
|
7.39 | 1,966 | - | - | - | - | $ | 500 | ||||||||||||||||||||
Swap
|
IF-NGPL
MC
|
9.18 | 6,256 | - | - | - | - | 2,675 | |||||||||||||||||||||
Swap
|
IF-NGPL
MC
|
8.86 | - | 5,685 | - | - | - | 6,169 | |||||||||||||||||||||
Swap
|
IF-NGPL
MC
|
7.34 | - | - | 2,750 | - | - | 898 | |||||||||||||||||||||
Swap
|
IF-NGPL
MC
|
7.18 | - | - | - | 2,750 | - | 605 | |||||||||||||||||||||
6,256 | 5,685 | 2,750 | 2,750 | - | |||||||||||||||||||||||||
Swap
|
IF-Waha
|
7.79 | 9,936 | - | - | - | - | 2,999 | |||||||||||||||||||||
Swap
|
IF-Waha
|
6.53 | - | 11,709 | - | - | - | 2,630 | |||||||||||||||||||||
Swap
|
IF-Waha
|
6.10 | - | - | 11,250 | - | - | (1,553 | ) | ||||||||||||||||||||
Swap
|
IF-Waha
|
6.30 | - | - | - | 7,250 | - | (584 | ) | ||||||||||||||||||||
Swap
|
IF-Waha
|
5.59 | - | - | - | - | 4,000 | (1,251 | ) | ||||||||||||||||||||
9,936 | 11,709 | 11,250 | 7,250 | 4,000 | |||||||||||||||||||||||||
Total
Swaps
|
18,158 | 17,394 | 14,000 | 10,000 | 4,000 | ||||||||||||||||||||||||
Floor
|
IF-NGPL
MC
|
6.55 | 850 | - | - | - | - | 114 | |||||||||||||||||||||
Floor
|
IF-Waha
|
6.55 | 565 | - | - | - | - | 77 | |||||||||||||||||||||
Total
Floors
|
1,415 | - | - | - | - | ||||||||||||||||||||||||
Total
Sales
|
19,573 | 17,394 | 14,000 | 10,000 | 4,000 | ||||||||||||||||||||||||
Basis
Swap Oct 09-May 2011, Rec IF-CGT, Pay NYMEX less $0.11, 20,000
MMBtu/d
|
586 | ||||||||||||||||||||||||||||
Fuel
cost swap Oct 2009-May2011, Rec IF-CGT, Pay $5.96, 226
MMbtu/d
|
18 | ||||||||||||||||||||||||||||
$ | 13,883 |
Instrument
|
Avg.
Price
|
Barrels per day
|
|||||||||||||||||||||||||||
Type
|
Index
|
$/gal
|
2009
|
2010
|
2011
|
2012
|
2013
|
Fair Value
|
|||||||||||||||||||||
Sales
|
|||||||||||||||||||||||||||||
Swap
|
OPIS-MB
|
1.32 | 6,248 | - | - | - | - | $ | 10,931 | ||||||||||||||||||||
Swap
|
OPIS-MB
|
1.23 | - | 5,209 | - | - | - | 28,074 | |||||||||||||||||||||
Swap
|
OPIS-MB
|
0.89 | - | - | 3,800 | - | - | 48 | |||||||||||||||||||||
Swap
|
OPIS-MB
|
0.92 | - | - | - | 2,700 | - | 1,071 | |||||||||||||||||||||
Total
Swaps
|
6,248 | 5,209 | 3,800 | 2,700 | - | ||||||||||||||||||||||||
Floor
|
OPIS-MB
|
1.44 | - | - | 199 | - | - | 1,454 | |||||||||||||||||||||
Floor
|
OPIS-MB
|
1.43 | - | - | - | 231 | - | 1,755 | |||||||||||||||||||||
Total
Floors
|
- | - | 199 | 231 | - | ||||||||||||||||||||||||
Total
Sales
|
6,248 | 5,209 | 3,999 | 2,931 | - | ||||||||||||||||||||||||
$ | 43,333 |
Instrument
|
Avg.
Price
|
Barrels per day
|
|||||||||||||||||||||||||||
Type
|
Index
|
$/Bbl
|
2009
|
2010
|
2011
|
2012
|
2013
|
Fair Value
|
|||||||||||||||||||||
Sales
|
|||||||||||||||||||||||||||||
Swap
|
NY-WTI
|
69.00 | 322 | - | - | - | - | $ | (61 | ) | |||||||||||||||||||
Swap
|
NY-WTI
|
68.04 | - | 401 | - | - | - | (913 | ) | ||||||||||||||||||||
Swap
|
NY-WTI
|
71.00 | - | - | 200 | - | - | (446 | ) | ||||||||||||||||||||
Swap
|
NY-WTI
|
72.60 | - | - | - | 200 | - | (449 | ) | ||||||||||||||||||||
Swap
|
NY-WTI
|
74.00 | - | - | - | - | 200 | (459 | ) | ||||||||||||||||||||
Total
Swaps
|
322 | 401 | 200 | 200 | 200 | ||||||||||||||||||||||||
Floor
|
NY-WTI
|
60.00 | 50 | - | - | - | - | 3 | |||||||||||||||||||||
Total
Floors
|
50 | - | - | - | - | ||||||||||||||||||||||||
Total
Sales
|
372 | 401 | 200 | 200 | 200 | ||||||||||||||||||||||||
$ | (2,325 | ) |
Period
|
Commodity
|
Instrument Type
|
Daily Volume
|
Average Price
|
Index
|
Fair Value
|
|||||||||||
Purchases
|
|||||||||||||||||
Oct
2009 - Dec 2009
|
Natural
gas
|
Swap
|
2,935 |
MMBtu
|
$ | 9.15 |
per
MMBtu
|
NY-HH
|
$ | (1,189 | ) | ||||||
Jan
2010 - Jun 2010
|
Natural
gas
|
Swap
|
663 |
MMBtu
|
8.03 |
per
MMBtu
|
NY-HH
|
(247 | ) | ||||||||
Sales
|
|||||||||||||||||
Oct
2009 - Dec 2009
|
Natural
gas
|
Fixed
price sale
|
2,935 |
MMBtu
|
9.15 |
per
MMBtu
|
NY-HH
|
1,188 | |||||||||
Jan
2010 - Jun 2010
|
Natural
gas
|
Fixed
price sale
|
663 |
MMBtu
|
8.03 |
per
MMBtu
|
NY-HH
|
247 | |||||||||
$ | (1 | ) |
Period
|
Fixed Rate
|
Notional Amount
|
Fair Value
|
||||||||||
Remainder
of 2009
|
3.66 | % | $ | 300 |
million
|
$ | (647 | ) | |||||
2010
|
3.66 | % | 300 |
million
|
(9,166 | ) | |||||||
2011
|
3.41 | % | 300 |
million
|
(4,566 | ) | |||||||
2012
|
3.39 | % | 300 |
million
|
(913 | ) | |||||||
2013
|
3.39 | % | 300 |
million
|
569 | ||||||||
01/01-04/24/2014
|
3.39 | % | 300 |
million
|
617 | ||||||||
$ | (14,106 | ) |
Total
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
Assets
from commodity derivative contracts
|
$ | 67,332 | $ | - | $ | 67,332 | $ | - | ||||||||
Total
assets
|
$ | 67,332 | $ | - | $ | 67,332 | $ | - | ||||||||
Liabilities
from commodity derivative contracts
|
$ | 12,442 | $ | - | $ | 12,442 | $ | - | ||||||||
Liabilities
from interest rate derivatives
|
14,106 | - | 14,106 | - | ||||||||||||
Total
liabilities
|
$ | 26,548 | $ | - | $ | 26,548 | $ | - |
Commodity
Derivative Contracts
|
||||
Balance,
December 31, 2008
|
$ | 123,304 | ||
Unrealized
gains (losses) included in OCI
|
(26,557 | ) | ||
Settlements
|
(31,392 | ) | ||
Transfers
out of Level 3
|
(65,355 | ) | ||
Balance,
September 30, 2009
|
$ | - |
September 30, 2009
|
December 31, 2008
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
Senior
unsecured notes, 8¼% fixed rate
|
$ | 209,080 | $ | 193,922 | $ | 209,080 | $ | 128,333 | ||||||||
Senior
unsecured notes, 11¼% fixed rate (1)
|
219,861 | 242,266 | - | - |
|
(1)
|
The
carrying amount of the notes includes $11.4 million of unamortized
original issue discount as of September 30,
2009.
|
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Sales
to affiliates
|
$ | 42,509 | $ | 135,114 | $ | 140,240 | $ | 413,466 | ||||||||
Purchases
from affiliates
|
198,089 | 318,570 | 492,503 | 943,187 | ||||||||||||
Allocations
of general & administrative
|
||||||||||||||||
expenses
under Omnibus Agreement
|
18,197 | 17,458 | 47,436 | 51,934 | ||||||||||||
Net
change in affiliate receivable
|
(42,258 | ) | (63,685 | ) | - | 43,683 | ||||||||||
Unit
distributions to Targa
|
132,500 | - | 132,500 | - | ||||||||||||
Cash
distributions to Targa
|
8,427 | 8,137 | 25,280 | 18,580 | ||||||||||||
Settlement
of affiliated indebtedness
|
287,296 | - | 287,296 | - |
Period
|
Commodity
|
Daily Volumes
|
Average Price
|
Index
|
||||||||||
Oct
2009 - Dec 2009
|
Natural
gas
|
3,556 |
MMBtu
|
$ | 8.07 |
per
MMBtu
|
IF-Waha
|
|||||||
Oct
2009 - Dec 2009
|
Natural
gas
|
652 |
MMBtu
|
8.35 |
per
MMBtu
|
NY-HH
|
||||||||
Jan
2010 - Dec 2010
|
Natural
gas
|
3,289 |
MMBtu
|
7.39 |
per
MMBtu
|
IF-Waha
|
||||||||
Jan
2010 - Jun 2010
|
Natural
gas
|
497 |
MMBtu
|
8.17 |
per
MMBtu
|
NY-HH
|
||||||||
Oct
2009 - Dec 2009
|
NGL
|
3,000 |
Bbl
|
1.18 |
per
gallon
|
OPIS-MB
|
||||||||
Oct
2009 - Dec 2009
|
Condensate
|
202 |
Bbl
|
70.60 |
per
barrel
|
NY-WTI
|
||||||||
Jan
2010 - Dec 2010
|
Condensate
|
181 |
Bbl
|
69.28 |
per
barrel
|
NY-WTI
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Included
in revenues
|
$ | 34 | $ | 56 | $ | 159 | $ | 422 | ||||||||
Included
in costs and expenses
|
158 | 589 | 1,426 | 2,734 |
Three Months Ended September 30,
2009
|
||||||||||||||||||||||||
Natural Gas Gathering
and Processing
|
Logistics
Assets
|
NGL Distribution
and Marketing
|
Wholesale Marketing
|
Eliminations
and Other
|
Total
|
|||||||||||||||||||
Revenues
|
$ | 116,180 | $ | 30,349 | $ | 692,166 | $ | 122,574 | $ | - | $ | 961,269 | ||||||||||||
Revenues
from affiliates
|
156,898 | 24,727 | 71,614 | 19,418 | (230,148 | ) | 42,509 | |||||||||||||||||
Revenues
|
273,078 | 55,076 | 763,780 | 141,992 | (230,148 | ) | 1,003,778 | |||||||||||||||||
Product
purchases
|
160,151 | - | 438,150 | 77,154 | 684 | 676,139 | ||||||||||||||||||
Product
purchases from affiliates
|
52,530 | - | 317,579 | 61,488 | (233,508 | ) | 198,089 | |||||||||||||||||
Product
purchases
|
212,681 | - | 755,729 | 138,642 | (232,824 | ) | 874,228 | |||||||||||||||||
Operating
expenses
|
14,177 | 26,668 | (20 | ) | 41 | - | 40,866 | |||||||||||||||||
Operating
expenses from affiliates
|
- | 3,248 | - | - | 3,360 | 6,608 | ||||||||||||||||||
Operating
expenses
|
14,177 | 29,916 | (20 | ) | 41 | 3,360 | 47,474 | |||||||||||||||||
Operating
margin
|
$ | 46,220 | $ | 25,160 | $ | 8,071 | $ | 3,309 | $ | (684 | ) | $ | 82,076 | |||||||||||
Other
financial information:
|
||||||||||||||||||||||||
Equity
in earnings of
unconsolidated
investment
|
$ | - | $ | 1,417 | $ | - | $ | - | $ | - | $ | 1,417 | ||||||||||||
Identifiable
assets
|
1,309,344 | 490,481 | 234,716 | 70,630 | 43,147 | 2,148,318 | ||||||||||||||||||
Unconsolidated
investments
|
- | 17,811 | - | - | - | 17,811 | ||||||||||||||||||
Capital
expenditures
|
5,594 | 5,070 | - | - | - | 10,664 | ||||||||||||||||||
Revenues
by type:
|
||||||||||||||||||||||||
Commodity
Sales
|
$ | 270,802 | $ | - | $ | 762,371 | $ | 141,753 | $ | (205,079 | ) | $ | 969,847 | |||||||||||
Services
|
2,541 | 55,076 | 1,409 | 239 | (25,069 | ) | 34,196 | |||||||||||||||||
Other
|
(265 | ) | - | - | - | - | (265 | ) | ||||||||||||||||
$ | 273,078 | $ | 55,076 | $ | 763,780 | $ | 141,992 | $ | (230,148 | ) | $ | 1,003,778 |
Three Months Ended September 30,
2008
|
||||||||||||||||||||||||
Natural Gas Gathering
and Processing
|
Logistics
Assets
|
NGL Distribution
and Marketing
|
Wholesale Marketing
|
Eliminations
and Other
|
Total
|
|||||||||||||||||||
Revenues
|
$ | 224,535 | $ | 25,672 | $ | 1,514,958 | $ | 314,572 | $ | - | $ | 2,079,737 | ||||||||||||
Revenues
from affiliates
|
354,212 | 39,853 | 139,787 | 5,987 | (404,725 | ) | 135,114 | |||||||||||||||||
Revenues
|
578,747 | 65,525 | 1,654,745 | 320,559 | (404,725 | ) | 2,214,851 | |||||||||||||||||
Product
purchases
|
412,664 | (67 | ) | 1,179,431 | 199,830 | - | 1,791,858 | |||||||||||||||||
Product
purchases from affiliates
|
99,779 | 68 | 499,980 | 126,181 | (407,438 | ) | 318,570 | |||||||||||||||||
Product
purchases
|
512,443 | 1 | 1,679,411 | 326,011 | (407,438 | ) | 2,110,428 | |||||||||||||||||
Operating
expenses
|
15,405 | 35,938 | 304 | 16 | - | 51,663 | ||||||||||||||||||
Operating
expenses from affiliates
|
(1 | ) | 13,879 | - | 1 | 2,713 | 16,592 | |||||||||||||||||
Operating
expenses
|
15,404 | 49,817 | 304 | 17 | 2,713 | 68,255 | ||||||||||||||||||
Operating
margin
|
$ | 50,900 | $ | 15,707 | $ | (24,970 | ) | $ | (5,469 | ) | $ | - | $ | 36,168 | ||||||||||
Other
financial information:
|
||||||||||||||||||||||||
Equity
in earnings of
unconsolidated
investment
|
$ | - | $ | 1,102 | $ | - | $ | - | $ | - | $ | 1,102 | ||||||||||||
Unconsolidated
investments
|
- | 19,554 | - | - | - | 19,554 | ||||||||||||||||||
Capital
expenditures
|
11,091 | 9,240 | - | - | - | 20,331 | ||||||||||||||||||
Revenues
by type:
|
||||||||||||||||||||||||
Commodity
sales
|
$ | 576,471 | $ | - | $ | 1,653,998 | $ | 320,564 | $ | (364,835 | ) | $ | 2,186,198 | |||||||||||
Services
|
2,266 | 65,526 | 747 | (5 | ) | (39,889 | ) | 28,645 | ||||||||||||||||
Other
|
10 | (1 | ) | - | - | (1 | ) | 8 | ||||||||||||||||
$ | 578,747 | $ | 65,525 | $ | 1,654,745 | $ | 320,559 | $ | (404,725 | ) | $ | 2,214,851 |
Nine Months Ended September 30,
2009
|
||||||||||||||||||||||||
Natural Gas Gathering and
Processing
|
Logistics
Assets
|
NGL Distribution
and Marketing
|
Wholesale Marketing
|
Eliminations
and Other
|
Total
|
|||||||||||||||||||
Revenues
|
$ | 319,604 | $ | 87,127 | $ | 1,767,170 | $ | 508,143 | $ | - | $ | 2,682,044 | ||||||||||||
Revenues
from affiliates
|
433,171 | 67,715 | 247,601 | 52,509 | (660,756 | ) | 140,240 | |||||||||||||||||
Revenues
|
752,775 | 154,842 | 2,014,771 | 560,652 | (660,756 | ) | 2,822,284 | |||||||||||||||||
Product
purchases
|
457,629 | - | 1,198,110 | 311,054 | - | 1,966,793 | ||||||||||||||||||
Product
purchases from affiliates
|
135,216 | - | 784,089 | 238,752 | (665,554 | ) | 492,503 | |||||||||||||||||
Product
purchases
|
592,845 | - | 1,982,199 | 549,806 | (665,554 | ) | 2,459,296 | |||||||||||||||||
Operating
expenses
|
38,978 | 83,391 | 592 | 62 | - | 123,023 | ||||||||||||||||||
Operating
expenses from affiliates
|
10 | 14,265 | - | - | 4,798 | 19,073 | ||||||||||||||||||
Operating
expenses
|
38,988 | 97,656 | 592 | 62 | 4,798 | 142,096 | ||||||||||||||||||
Operating
margin
|
$ | 120,942 | $ | 57,186 | $ | 31,980 | $ | 10,784 | $ | - | $ | 220,892 | ||||||||||||
Other
financial information:
|
||||||||||||||||||||||||
Equity
in earnings of
unconsolidated
investment
|
$ | - | $ | 3,221 | $ | - | $ | - | $ | - | $ | 3,221 | ||||||||||||
Identifiable
assets
|
1,309,344 | 490,481 | 234,716 | 70,630 | 43,147 | 2,148,318 | ||||||||||||||||||
Unconsolidated
investments
|
- | 17,811 | - | - | - | 17,811 | ||||||||||||||||||
Capital
expenditures
|
21,341 | 15,853 | - | - | - | 37,194 | ||||||||||||||||||
Revenues
by type:
|
||||||||||||||||||||||||
Commodity
Sales
|
$ | 744,801 | $ | 29 | $ | 2,011,166 | $ | 559,426 | $ | (591,699 | ) | $ | 2,723,723 | |||||||||||
Services
|
8,221 | 152,888 | 3,607 | 726 | (69,057 | ) | 96,385 | |||||||||||||||||
Business
interruption
|
- | 1,926 | - | 500 | - | 2,426 | ||||||||||||||||||
Other
|
(247 | ) | (1 | ) | (2 | ) | - | - | (250 | ) | ||||||||||||||
$ | 752,775 | $ | 154,842 | $ | 2,014,771 | $ | 560,652 | $ | (660,756 | ) | $ | 2,822,284 |
Nine Months Ended September 30,
2008
|
||||||||||||||||||||||||
Natural Gas Gathering and
Processing
|
Logistics
Assets
|
NGL Distribution
and Marketing
|
Wholesale Marketing
|
Eliminations
and Other
|
Total
|
|||||||||||||||||||
Revenues
|
$ | 662,745 | $ | 74,120 | $ | 4,118,034 | $ | 1,146,199 | $ | - | $ | 6,001,098 | ||||||||||||
Revenues
from affiliates
|
1,058,591 | 108,243 | 457,260 | 35,033 | (1,245,661 | ) | 413,466 | |||||||||||||||||
Revenues
|
1,721,336 | 182,363 | 4,575,294 | 1,181,232 | (1,245,661 | ) | 6,414,564 | |||||||||||||||||
Product
purchases
|
1,267,179 | (101 | ) | 3,040,368 | 734,822 | - | 5,042,268 | |||||||||||||||||
Product
purchases from affiliates
|
242,574 | 101 | 1,518,377 | 433,426 | (1,251,291 | ) | 943,187 | |||||||||||||||||
Product
purchases
|
1,509,753 | - | 4,558,745 | 1,168,248 | (1,251,291 | ) | 5,985,455 | |||||||||||||||||
Operating
expenses
|
42,618 | 105,175 | 1,321 | 45 | - | 149,159 | ||||||||||||||||||
Operating
expenses from affiliates
|
54 | 42,847 | - | - | 5,630 | 48,531 | ||||||||||||||||||
Operating
expenses
|
42,672 | 148,022 | 1,321 | 45 | 5,630 | 197,690 | ||||||||||||||||||
Operating
margin
|
$ | 168,911 | $ | 34,341 | $ | 15,228 | $ | 12,939 | $ | - | $ | 231,419 | ||||||||||||
Other
financial information:
|
||||||||||||||||||||||||
Equity
in earnings of
unconsolidated
investment
|
$ | - | $ | 3,028 | $ | - | $ | - | $ | - | $ | 3,028 | ||||||||||||
Unconsolidated
investments
|
- | 19,554 | - | - | - | 19,554 | ||||||||||||||||||
Capital
expenditures
|
28,755 | 30,933 | - | - | - | 59,688 | ||||||||||||||||||
Revenues
by type:
|
||||||||||||||||||||||||
Commodity
Sales
|
$ | 1,713,790 | $ | 53 | $ | 4,564,413 | $ | 1,175,165 | $ | (1,135,762 | ) | $ | 6,317,659 | |||||||||||
Services
|
7,512 | 181,870 | 2,267 | 150 | (109,897 | ) | 81,902 | |||||||||||||||||
Business
interruption
|
- | 441 | 8,602 | 5,920 | - | 14,963 | ||||||||||||||||||
Other
|
34 | (1 | ) | 11 | (3 | ) | (1 | ) | 40 | |||||||||||||||
$ | 1,721,336 | $ | 182,363 | $ | 4,575,293 | $ | 1,181,232 | $ | (1,245,660 | ) | $ | 6,414,564 |
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Reconciliation
of operating margin to net income (loss):
|
||||||||||||||||
Operating
margin
|
$ | 82,076 | $ | 36,168 | $ | 220,892 | $ | 231,419 | ||||||||
Depreciation
and amortization expense
|
(25,597 | ) | (24,431 | ) | (75,490 | ) | (72,785 | ) | ||||||||
General
and administrative expense
|
(17,078 | ) | (19,116 | ) | (55,474 | ) | (57,433 | ) | ||||||||
Interest
expense, net
|
(29,798 | ) | (25,449 | ) | (78,758 | ) | (71,575 | ) | ||||||||
Income
tax benefit (expense)
|
220 | (647 | ) | (800 | ) | (1,842 | ) | |||||||||
Other,
net
|
1,067 | (4,585 | ) | 4,421 | 1,933 | |||||||||||
Net
income (loss)
|
$ | 10,890 | $ | (38,060 | ) | $ | 14,791 | $ | 29,717 |
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Noncash
Items:
|
||||||||||||||||
Additions
to property, plant and equipment
|
$ | - | $ | - | $ | 9,777 | $ | 4,277 | ||||||||
Issuance
of Common Units
|
129,850 | - | 129,850 | - | ||||||||||||
Issuance
of General Partner Units
|
2,650 | - | 2,650 | - | ||||||||||||
Settlement
of affiliated indebtedness
|
287,296 | - | 287,296 | - |
|
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(In
millions, except operating and price data)
|
||||||||||||||||
Revenues
|
$ | 1,003.8 | $ | 2,214.9 | $ | 2,822.3 | $ | 6,414.6 | ||||||||
Product
purchases
|
874.2 | 2,110.5 | 2,459.3 | 5,985.5 | ||||||||||||
Operating
expenses
|
47.5 | 68.3 | 142.1 | 197.7 | ||||||||||||
Depreciation
and amortization expense
|
25.6 | 24.4 | 75.5 | 72.8 | ||||||||||||
General
and administrative expense
|
17.1 | 19.1 | 55.5 | 57.4 | ||||||||||||
Casualty
loss adjustment
|
- | - | (0.8 | ) | - | |||||||||||
Gain
on sale of assets
|
- | - | - | (4.4 | ) | |||||||||||
Income
(loss) from operations
|
39.4 | (7.4 | ) | 90.7 | 105.6 | |||||||||||
Interest
expense, net
|
(29.8 | ) | (25.4 | ) | (78.8 | ) | (71.6 | ) | ||||||||
Other
income (expense)
|
1.0 | (4.7 | ) | 3.6 | (2.5 | ) | ||||||||||
Income
tax (expense) benefit
|
0.2 | (0.6 | ) | (0.8 | ) | (1.8 | ) | |||||||||
Net
income (loss)
|
10.8 | (38.1 | ) | 14.7 | 29.7 | |||||||||||
Less:
Net income attributable to noncontrolling interest
|
0.8 | 0.2 | 1.1 | 0.1 | ||||||||||||
Net
income (loss) attributable to Targa Resources Partners LP
|
$ | 10.0 | $ | (38.3 | ) | $ | 13.6 | $ | 29.6 | |||||||
Financial
and operating data:
|
||||||||||||||||
Financial
data:
|
||||||||||||||||
Operating
margin (1)
|
$ | 82.1 | $ | 36.1 | $ | 220.9 | $ | 231.4 | ||||||||
Adjusted
EBITDA (2)
|
69.1 | 22.5 | 201.8 | 186.7 | ||||||||||||
Distributable
cash flow (3)
|
51.5 | 1.0 | 158.6 | 132.4 | ||||||||||||
Operating
data:
|
||||||||||||||||
Gathering
throughput, MMcf/d (4)
|
490.2 | 438.3 | 465.2 | 455.0 | ||||||||||||
Plant
natural gas inlet, MMcf/d (5)(6)
|
464.1 | 415.8 | 442.5 | 430.8 | ||||||||||||
Gross
NGL production, MBbl/d
|
43.5 | 41.3 | 43.1 | 43.2 | ||||||||||||
Natural
gas sales, BBtu/d (6)
|
414.9 | 404.4 | 383.0 | 410.9 | ||||||||||||
NGL
sales, MBbl/d
|
262.7 | 282.5 | 278.6 | 290.2 | ||||||||||||
Condensate
sales, MBbl/d
|
2.6 | 2.4 | 2.8 | 2.4 | ||||||||||||
Average
realized prices:
|
||||||||||||||||
Natural
Gas, $/MMBtu
|
3.49 | 9.42 | 3.83 | 9.29 | ||||||||||||
NGL,
$/gal
|
0.81 | 1.66 | 0.71 | 1.56 | ||||||||||||
Condensate,
$/Bbl
|
71.25 | 103.87 | 55.84 | 103.75 |
|
(1)
|
Operating
margin is revenues less product purchases and operating expense. See
“Non-GAAP
|
|
(2)
|
Adjusted
EBITDA is net income before interest, income taxes, depreciation and
amortization and
|
|
(3)
|
Distributable
Cash Flow is net income plus depreciation and amortization and deferred
taxes,
|
|
(4)
|
Gathering
throughput represents the volume of natural gas gathered and passed
through natural gas
|
|
gathering
pipelines from connections to producing wells and central delivery
points.
|
|
(5)
|
Plant
natural gas inlet represents the volume of natural gas passing through the
meter located at the
|
|
(6)
|
Plant
inlet volumes include producer take-in-kind, while natural gas sales
exclude producer
|
|
·
|
a
decrease attributable to commodity prices of $1,099.2 million; comprising
decreases in natural gas, NGL and condensate revenues of $226.4 million,
$865.1 million, and $7.7 million;
and
|
|
·
|
a
decrease attributable to commodity sales volumes of $116.1 million;
comprising decrease in NGL revenues of $127.0 million, partially offset by
increases in natural gas and condensate revenues of $9.1 million and $1.8
million; offset by
|
|
·
|
an
increase in other revenues of $4.2 million, primarily from miscellaneous
processing activities.
|
|
·
|
a
decrease attributable to commodity prices of $3,302.1 million; comprising
decreases in natural gas, NGL and condensate revenues of $570.0 million,
$2,695.7 million, and $36.4 million;
and
|
|
·
|
a
decrease attributable to commodity sales volumes of $290.5 million;
comprising decrease in natural gas and NGL revenues of $74.6 million and
$226.4 million, partially offset by increases in condensate revenues of
$10.5 million; offset by
|
|
·
|
an
increase in other revenues of $0.3 million, primarily from miscellaneous
processing activities.
|
Three
Months
|
Nine
Months
|
|||||||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
($
in millions)
|
||||||||||||||||
Revenues
|
$ | 273.1 | $ | 578.6 | $ | 752.8 | $ | 1,721.4 | ||||||||
Product
purchases
|
(212.6 | ) | (512.5 | ) | (592.8 | ) | (1,509.8 | ) | ||||||||
Operating
expenses
|
(14.3 | ) | (15.5 | ) | (39.0 | ) | (42.7 | ) | ||||||||
Operating
margin (1)
|
$ | 46.2 | $ | 50.6 | $ | 121.0 | $ | 168.9 | ||||||||
Operating
statistics:
|
||||||||||||||||
Gathering
throughput, MMcf/d
|
||||||||||||||||
LOU
System
|
213.4 | 178.1 | 183.1 | 189.4 | ||||||||||||
SAOU
System
|
98.5 | 99.0 | 99.9 | 98.7 | ||||||||||||
North
Texas System
|
178.3 | 161.2 | 182.2 | 166.9 | ||||||||||||
490.2 | 438.3 | 465.2 | 455.0 | |||||||||||||
Plant
natural gas inlet, MMcf/d
|
||||||||||||||||
LOU
System
|
199.4 | 168.5 | 174.2 | 178.8 | ||||||||||||
SAOU
System
|
92.0 | 91.3 | 92.1 | 91.2 | ||||||||||||
North
Texas System
|
172.7 | 156.0 | 176.2 | 160.8 | ||||||||||||
464.1 | 415.8 | 442.5 | 430.8 | |||||||||||||
Gross
NGL production, MBbl/d
|
||||||||||||||||
LOU
System
|
9.0 | 9.2 | 8.5 | 10.1 | ||||||||||||
SAOU
System
|
14.0 | 14.1 | 14.2 | 14.2 | ||||||||||||
North
Texas System
|
20.5 | 18.0 | 20.4 | 18.9 | ||||||||||||
43.5 | 41.3 | 43.1 | 43.2 | |||||||||||||
Natural
gas sales, BBtu/d
|
414.9 | 404.4 | 383.0 | 410.9 | ||||||||||||
NGL
sales, MBbl/d
|
40.6 | 37.4 | 39.2 | 38.2 | ||||||||||||
Condensate
sales, MBbl/d
|
2.6 | 3.3 | 3.0 | 3.6 | ||||||||||||
Average
realized prices:
|
||||||||||||||||
Natural
gas, $/MMBtu
|
3.49 | 9.42 | 3.83 | 9.29 | ||||||||||||
NGL,
$/gal
|
0.73 | 1.46 | 0.64 | 1.40 | ||||||||||||
Condensate,
$/Bbl
|
71.25 | 95.58 | 54.00 | 92.72 |
|
(1)
|
See
“Non-GAAP Financial Measures” included in this Item
2.
|
|
·
|
a
decrease attributable to commodity prices of $325.2 million,
comprising decreases in natural gas, NGL and condensate revenues of
$226.4 million, $93.1 million and $5.7 million; partially
offset by
|
|
·
|
an
increase attributable to commodity sales volume of $20.9 million
comprising increases in natural gas and condensate revenues of $9.1
million and $19.1 million, partially offset by a decrease in NGL revenues
of $7.3 million; and
|
|
·
|
a
decrease in other revenues of $1.3 million, primarily from
miscellaneous processing
activities.
|
|
·
|
a
decrease attributable to commodity prices of $893.1 million,
comprising decreases in natural gas, NGL and condensate revenues of
$570.0 million, $290.8 million and
$32.2 million;
|
|
·
|
a
decrease attributable to commodity sales volume of $74.5 million
comprising decreases in natural gas and condensate revenues of $74.6
million and $16.4 million, partially offset by increases in NGL revenues
of $16.5 million; and
|
|
·
|
a
decrease in other revenues of $1.0 million, primarily from
miscellaneous processing
activities.
|
Three
Months
|
Nine
Months
|
|||||||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
($
in millions)
|
||||||||||||||||
Revenues
from services
|
$ | 55.1 | $ | 65.5 | $ | 152.9 | $ | 181.8 | ||||||||
Other
revenues (1)
|
(0.1 | ) | 0.1 | 2.0 | 0.6 | |||||||||||
55.0 | 65.6 | 154.9 | 182.4 | |||||||||||||
Operating
expenses
|
(29.9 | ) | (49.8 | ) | (97.7 | ) | (147.9 | ) | ||||||||
Operating
margin (2)
|
$ | 25.1 | $ | 15.8 | $ | 57.2 | $ | 34.5 | ||||||||
Equity
in earnings of GCF
|
$ | 1.4 | $ | 1.1 | $ | 3.2 | $ | 3.0 | ||||||||
Operating
statistics:
|
||||||||||||||||
Fractionation
volumes, MBbl/d
|
225.9 | 207.1 | 215.4 | 219.3 | ||||||||||||
Treating
volumes, MBbl/d (3)
|
27.5 | 20.4 | 18.5 | 19.0 |
|
(1)
|
Includes
business interruption insurance revenue of $0 and $1.9 million for
the three and nine months ended September 30, 2009, and $0 and $0.4
million for the three and nine months ended September 30,
2008.
|
|
(2)
|
See
“Non-GAAP Financial Measures” included in this Item
2.
|
|
(3)
|
Consists
of the volumes treated in our low sulfur natural gasoline
unit.
|
Three
Months
|
Nine
Months
|
|||||||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
($
in millions)
|
||||||||||||||||
NGL
sales revenues
|
$ | 762.4 | $ | 1,654.0 | $ | 2,011.2 | $ | 4,564.4 | ||||||||
Other
revenues (1)
|
1.4 | 0.8 | 3.6 | 10.9 | ||||||||||||
763.8 | 1,654.8 | 2,014.8 | 4,575.3 | |||||||||||||
Product
purchases
|
(755.7 | ) | (1,679.4 | ) | (1,982.2 | ) | (4,558.8 | ) | ||||||||
Operating
expenses
|
- | (0.3 | ) | (0.6 | ) | (1.5 | ) | |||||||||
Operating
margin (2)
|
$ | 8.1 | $ | (24.9 | ) | $ | 32.0 | $ | 15.0 | |||||||
Operating
statistics:
|
||||||||||||||||
NGL
sales, MBbl/d
|
244.5 | 258.1 | 251.2 | 257.5 | ||||||||||||
NGL
realized price, $/gal
|
0.81 | 1.66 | 0.70 | 1.54 |
|
(2)
|
See
“Non-GAAP Financial Measures” included in this Item
2.
|
Three
Months
|
Nine
Months
|
|||||||||||||||
Ended September 30,
|
Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
($
in millions)
|
||||||||||||||||
NGL
sales revenues
|
$ | 141.7 | $ | 320.6 | $ | 559.4 | $ | 1,175.3 | ||||||||
Other
revenues (1)
|
0.3 | - | 1.2 | 5.9 | ||||||||||||
142.0 | 320.6 | 560.6 | 1,181.2 | |||||||||||||
Product
purchases
|
(138.7 | ) | (326.0 | ) | (549.9 | ) | (1,168.2 | ) | ||||||||
Operating
margin (2)
|
$ | 3.3 | $ | (5.4 | ) | $ | 10.7 | $ | 13.0 | |||||||
Operating
statistics:
|
||||||||||||||||
NGL
sales, MBbl/d
|
41.2 | 47.0 | 54.9 | 60.1 | ||||||||||||
NGL
realized price, $/gal
|
0.89 | 1.77 | 0.89 | 1.70 |
|
(1)
|
Includes
business interruption insurance revenue of $0 and $0.5 million for the
three and nine months ended September 30, 2009, and $0 and $5.9
million for the three and nine months ended September 30,
2008.
|
|
(2)
|
See
“Non-GAAP Financial Measures” included in this Item
2.
|
Nine Months Ended September
30,
|
||||||||
2009
|
2008
|
|||||||
(In
millions)
|
||||||||
Net
cash provided by (used in):
|
||||||||
Operating
activities
|
$ | 219.9 | $ | 128.6 | ||||
Investing
activities
|
(46.2 | ) | (55.2 | ) | ||||
Financing
activities
|
(211.2 | ) | (94.1 | ) |
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(In
millions)
|
||||||||||||||||
Capital
expenditures:
|
||||||||||||||||
Expansion
|
$ | 5.8 | $ | 9.0 | $ | 25.0 | $ | 31.2 | ||||||||
Maintenance
|
4.7 | 11.4 | 12.1 | 28.5 | ||||||||||||
$ | 10.5 | $ | 20.4 | $ | 37.1 | $ | 59.7 |
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(In
millions)
|
||||||||||||||||
Natural
Gas Gathering and Processing
|
$ | 46.2 | $ | 50.6 | $ | 121.0 | $ | 168.9 | ||||||||
Logistics
Assets
|
25.1 | 15.8 | 57.2 | 34.5 | ||||||||||||
NGL
Distribution and Marketing Services
|
8.1 | (24.9 | ) | 32.0 | 15.0 | |||||||||||
Wholesale
Marketing
|
3.3 | (5.4 | ) | 10.7 | 13.0 | |||||||||||
Other
|
(0.6 | ) | - | - | - | |||||||||||
$ | 82.1 | $ | 36.1 | $ | 220.9 | $ | 231.4 |
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(In
millions)
|
||||||||||||||||
Reconciliation
of net income (loss) attributable to Targa Resources Partners LP to
operating margin:
|
||||||||||||||||
Net
income (loss) attributable to Targa Resources Partners LP
|
$ | 10.0 | $ | (38.3 | ) | $ | 13.6 | $ | 29.6 | |||||||
Add:
|
||||||||||||||||
Depreciation
and amortization expense
|
25.6 | 24.4 | 75.5 | 72.8 | ||||||||||||
General
and administrative expense
|
17.1 | 19.1 | 55.5 | 57.4 | ||||||||||||
Interest
expense, net
|
29.8 | 25.4 | 78.8 | 71.6 | ||||||||||||
Income
tax benefit (expense)
|
(0.2 | ) | 0.6 | 0.8 | 1.8 | |||||||||||
Other,
net
|
(0.2 | ) | 4.9 | (3.3 | ) | (1.8 | ) | |||||||||
Operating
margin
|
$ | 82.1 | $ | 36.1 | $ | 220.9 | $ | 231.4 |
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Reconciliation
of net cash provided by (used in) operating
|
(In
millions)
|
|||||||||||||||
activities
to Adjusted EBITDA:
|
||||||||||||||||
Net
cash provided by (used in) operating activities
|
$ | 64.8 | $ | (168.2 | ) | $ | 219.9 | $ | 128.6 | |||||||
Net
income attributable to noncontrolling interest
|
(0.8 | ) | (0.2 | ) | (1.1 | ) | (0.1 | ) | ||||||||
Termination
of commodity derivatives
|
- | 87.4 | - | 87.4 | ||||||||||||
Interest
expense, net (1)
|
14.8 | 10.0 | 32.9 | 25.7 | ||||||||||||
Other
|
(3.9 | ) | (1.2 | ) | (3.5 | ) | 4.0 | |||||||||
Changes
in operating working capital which used (provided) cash:
|
||||||||||||||||
Accounts
receivable and other
|
22.3 | (36.4 | ) | (5.5 | ) | (160.1 | ) | |||||||||
Accounts
payable and other liabilities
|
(28.1 | ) | 131.1 | (40.9 | ) | 101.2 | ||||||||||
Adjusted
EBITDA
|
$ | 69.1 | $ | 22.5 | $ | 201.8 | $ | 186.7 |
|
(1)
Net of amortization of debt issuance costs of $1.3 million and $2.5
million for the three and nine months ended September 30, 2009. Net of
amortization of debt issuance costs of $0.6 million and $1.5 million for
the three and nine months ended September 30, 2008. Excludes interest
expense from affiliate.
|
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Reconciliation
of net income (loss) to Adjusted EBITDA:
|
(In
millions)
|
|||||||||||||||
Net
income (loss) attributable to Targa Resources Partners LP
|
$ | 10.0 | $ | (38.3 | ) | $ | 13.6 | $ | 29.6 | |||||||
Add:
|
||||||||||||||||
Interest
expense, net
|
29.8 | 25.4 | 78.8 | 71.6 | ||||||||||||
Income
tax expense (benefit)
|
(0.2 | ) | 0.6 | 0.8 | 1.8 | |||||||||||
Depreciation
and amortization expense
|
25.6 | 24.4 | 75.5 | 72.8 | ||||||||||||
Non-cash
loss related to derivatives
|
4.1 | 10.6 | 33.8 | 11.6 | ||||||||||||
Noncontrolling
interest adjustment
|
(0.2 | ) | (0.2 | ) | (0.7 | ) | (0.7 | ) | ||||||||
Adjusted
EBITDA
|
$ | 69.1 | $ | 22.5 | $ | 201.8 | $ | 186.7 |
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Reconciliation
of net income (loss) attributable to distributable cash
flow:
|
(In
millions)
|
|||||||||||||||
Net
income (loss) attributable to Targa Resources Partners LP
|
$ | 10.0 | $ | (38.3 | ) | $ | 13.6 | $ | 29.6 | |||||||
Add:
|
||||||||||||||||
Depreciation
and amortization expense
|
25.6 | 24.4 | 75.5 | 72.8 | ||||||||||||
Deferred
income tax expense (benefit)
|
0.1 | 0.5 | 0.8 | 1.4 | ||||||||||||
Noncash
interest expense
|
15.0 | 15.4 | 45.9 | 45.9 | ||||||||||||
Loss
on debt repurchases
|
1.5 | - | 1.5 | - | ||||||||||||
Non-cash
loss related to derivatives
|
4.1 | 10.6 | 33.8 | 11.6 | ||||||||||||
Maintenance
capital expenditures
|
(4.7 | ) | (11.4 | ) | (12.1 | ) | (28.5 | ) | ||||||||
Other
|
(0.1 | ) | (0.2 | ) | (0.4 | ) | (0.4 | ) | ||||||||
Distributable
cash flow
|
$ | 51.5 | $ | 1.0 | $ | 158.6 | $ | 132.4 |
|
·
|
changes
in energy prices;
|
|
·
|
changes
in competition;
|
|
·
|
changes
in laws and regulations that limit the estimated economic life of an
asset;
|
|
·
|
changes
in technology that render an asset
obsolete;
|
|
·
|
changes
in expected salvage values; or
|
|
·
|
changes
in the forecast life of applicable resource basins, if
any.
|
Instrument
|
Avg.
Price
|
MMBtu per day
|
|||||||||||||||||||||||||||
Type
|
Index
|
$/MMBtu
|
2009
|
2010
|
2011
|
2012
|
2013
|
Fair Value
|
|||||||||||||||||||||
(In
thousands)
|
|||||||||||||||||||||||||||||
Sales
|
|||||||||||||||||||||||||||||
Swap
|
IF-HSC
|
7.39 | 1,966 | - | - | - | - | $ | 500 | ||||||||||||||||||||
Swap
|
IF-NGPL
MC
|
9.18 | 6,256 | - | - | - | - | 2,675 | |||||||||||||||||||||
Swap
|
IF-NGPL
MC
|
8.86 | - | 5,685 | - | - | - | 6,169 | |||||||||||||||||||||
Swap
|
IF-NGPL
MC
|
7.34 | - | - | 2,750 | - | - | 898 | |||||||||||||||||||||
Swap
|
IF-NGPL
MC
|
7.18 | - | - | - | 2,750 | - | 605 | |||||||||||||||||||||
6,256 | 5,685 | 2,750 | 2,750 | - | |||||||||||||||||||||||||
Swap
|
IF-Waha
|
7.79 | 9,936 | - | - | - | - | 2,999 | |||||||||||||||||||||
Swap
|
IF-Waha
|
6.53 | - | 11,709 | - | - | - | 2,630 | |||||||||||||||||||||
Swap
|
IF-Waha
|
6.10 | - | - | 11,250 | - | - | (1,553 | ) | ||||||||||||||||||||
Swap
|
IF-Waha
|
6.30 | - | - | - | 7,250 | - | (584 | ) | ||||||||||||||||||||
Swap
|
IF-Waha
|
5.59 | - | - | - | - | 4,000 | (1,251 | ) | ||||||||||||||||||||
9,936 | 11,709 | 11,250 | 7,250 | 4,000 | |||||||||||||||||||||||||
Total
Swaps
|
18,158 | 17,394 | 14,000 | 10,000 | 4,000 | ||||||||||||||||||||||||
Floor
|
IF-NGPL
MC
|
6.55 | 850 | - | - | - | - | 114 | |||||||||||||||||||||
Floor
|
IF-Waha
|
6.55 | 565 | - | - | - | - | 77 | |||||||||||||||||||||
Total
Floors
|
1,415 | - | - | - | - | ||||||||||||||||||||||||
Total
Sales
|
19,573 | 17,394 | 14,000 | 10,000 | 4,000 | ||||||||||||||||||||||||
$ | 13,279 |
Instrument
|
Avg.
Price
|
Barrels per day
|
||||||||||||||||||||||||||||
Type
|
Index
|
$/gal
|
2009
|
2010
|
2011
|
2012
|
2013
|
Fair Value
|
||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||||||
Sales
|
||||||||||||||||||||||||||||||
Swap
|
OPIS-MB
|
1.32 | 6,248 | - | - | - | - | $ | 10,931 | |||||||||||||||||||||
Swap
|
OPIS-MB
|
1.23 | - | 5,209 | - | - | - | 28,074 | ||||||||||||||||||||||
Swap
|
OPIS-MB
|
0.89 | - | - | 3,800 | - | - | 48 | ||||||||||||||||||||||
Swap
|
OPIS-MB
|
0.92 | - | - | - | 2,700 | - | 1,071 | ||||||||||||||||||||||
Total
Swaps
|
6,248 | 5,209 | 3,800 | 2,700 | - | |||||||||||||||||||||||||
Floor
|
OPIS-MB
|
1.44 | - | - | 199 | - | - | 1,454 | ||||||||||||||||||||||
Floor
|
OPIS-MB
|
1.43 | - | - | - | 231 | - | 1,755 | ||||||||||||||||||||||
Total
Floors
|
- | - | 199 | 231 | - | |||||||||||||||||||||||||
Total
Sales
|
6,248 | 5,209 | 3,999 | 2,931 | - | |||||||||||||||||||||||||
$ | 43,333 |
Instrument
|
Avg.
Price
|
Barrels per day
|
||||||||||||||||||||||||||||
Type
|
Index
|
$/Bbl
|
2009
|
2010
|
2011
|
2012
|
2013
|
Fair Value
|
||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||||||
Sales
|
||||||||||||||||||||||||||||||
Swap
|
NY-WTI
|
69.00 | 322 | - | - | - | - | $ | (61 | ) | ||||||||||||||||||||
Swap
|
NY-WTI
|
68.04 | - | 401 | - | - | - | (913 | ) | |||||||||||||||||||||
Swap
|
NY-WTI
|
71.00 | - | - | 200 | - | - | (446 | ) | |||||||||||||||||||||
Swap
|
NY-WTI
|
72.60 | - | - | - | 200 | - | (449 | ) | |||||||||||||||||||||
Swap
|
NY-WTI
|
74.00 | - | - | - | - | 200 | (459 | ) | |||||||||||||||||||||
Total
Swaps
|
322 | 401 | 200 | 200 | 200 | |||||||||||||||||||||||||
Floor
|
NY-WTI
|
60.00 | 50 | - | - | - | - | 3 | ||||||||||||||||||||||
Total
Floors
|
50 | - | - | - | - | |||||||||||||||||||||||||
Total
Sales
|
372 | 401 | 200 | 200 | 200 | |||||||||||||||||||||||||
$ | (2,325 | ) |
Period
|
Fixed Rate
|
Notional Amount
|
Fair Value
|
||||||||||
(In
thousands)
|
|||||||||||||
Remainder
of 2009
|
3.66 | % | $ | 300 |
million
|
$ | (647 | ) | |||||
2010
|
3.66 | % | 300 |
million
|
(9,166 | ) | |||||||
2011
|
3.41 | % | 300 |
million
|
(4,566 | ) | |||||||
2012
|
3.39 | % | 300 |
million
|
(913 | ) | |||||||
2013
|
3.39 | % | 300 |
million
|
569 | ||||||||
01/01-04/24/2014
|
3.39 | % | 300 |
million
|
617 | ||||||||
$ | (14,106 | ) |
|
• a decrease
in our liquidity as a result of our use of a significant portion of our
borrowing capacity under our senior secured credit facility to finance the
acquisition;
|
|
•
the failure to realize expected profitability or growth;
and
|
|
•
an increase in collateral demands by our
counterparties.
|
Exhibit
Number
|
Description
|
2.1*
|
Purchase
and Sale Agreement dated July 27, 2009, by and between Targa Resources
Partners LP, Targa GP Inc. and Targa LP Inc. (incorporated by reference to
Exhibit 2.1 to Targa Resources Partners LP’s Current Report on Form 8-K
filed July 29, 2009 (file No. 001-33303)).
|
3.1
|
Certificate
of Limited Partnership of Targa Resources Partners LP (incorporated by
reference to Exhibit 3.2 to Targa Resources Partners LP’s
Registration Statement on Form S-1 filed November 16, 2006
(File No. 333-138747)).
|
3.2
|
Certificate
of Formation of Targa Resources GP LLC (incorporated by reference to
Exhibit 3.3 to Targa Resources Partners LP’s Registration Statement
on Form S-1/A filed January 19, 2007 (File
No. 333-138747)).
|
3.3
|
Agreement
of Limited Partnership of Targa Resources Partners LP (incorporated by
reference to Exhibit 3.3 to Targa Resources Partners LP’s Annual
Report on Form 10-K filed April 2, 2007 (File
No. 001-33303)).
|
3.4
|
First
Amended and Restated Agreement of Limited Partnership of Targa Resources
Partners LP (incorporated by reference to Exhibit 3.1 to Targa
Resources Partners LP’s current report on Form 8-K filed
February 16, 2007 (File No. 001-33303)).
|
3.5
|
Amendment
No. 1, dated May 13, 2008, to the First Amended and Restated
Agreement of Limited Partnership of Targa Resources Partners LP
(incorporated by reference to Exhibit 3.5 to Targa Resources Partners
LP’s Quarterly Report on Form 10-Q filed May 14, 2008 (File
No. 001-33303)).
|
3.6
|
Limited
Liability Company Agreement of Targa Resources GP LLC (incorporated by
reference to Exhibit 3.4 to Targa Resources Partners LP’s
Registration Statement on Form S-1/A filed January 19, 2007
(File No. 333-138747)).
|
4.1
|
Indenture
dated as of July 6, 2009, among Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the Guarantors named therein and
U.S. Bank National Association (incorporated by reference to Exhibit 4.1
to Targa Resources Partners LP’s Current Report on Form 8-K filed July 6,
2009 (File No. 001-33303)).
|
4.2
|
Registration
Rights Agreement dated as of July 6, 2009, among Targa Resources Partners
LP, Targa Resources Partners Finance Corporation, the Guarantors named
therein and the initial purchasers named therein (incorporated by
reference to Exhibit 4.2 to Targa Resources Partners LP’s Current Report
on Form 8-K filed July 6, 2009 (File No. 001-33303)).
|
4.3**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Downstream GP LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.4**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Downstream GP LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.5**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Downstream LP, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.6**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Downstream LP, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.7**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa LSNG GP LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.8**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa LSNG GP LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.9**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa LSNG LP, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.10**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa LSNG LP, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.11**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Sparta LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.12**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Sparta LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.13**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Midstream Barge Company LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.14**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Midstream Barge Company LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.15**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Retail Electric LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.16**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Retail Electric LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.17**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa NGL Pipeline Company LLC, a subsidiary of Targa Resources Partners
LP, Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.18**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa NGL Pipeline Company LLC, a subsidiary of Targa Resources Partners
LP, Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.19**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Transport LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.20**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Transport LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.21**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Co-Generation LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.22**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Co-Generation LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.23**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Liquids GP LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.24**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Liquids GP LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.25**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Liquids Marketing and Trade, a subsidiary of Targa Resources
Partners LP, Targa Resources Partners Finance Corporation, the other
Subsidiary Guarantors and U.S. Bank National
Association.
|
4.26**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Liquids Marketing and Trade, a subsidiary of Targa Resources
Partners LP, Targa Resources Partners Finance Corporation, the other
Subsidiary Guarantors and U.S. Bank National
Association.
|
10.1
|
Commitment
Increase Supplement, dated July 29, 2009, by and among Targa
Resources Partners LP, Bank of America, N.A. and the other parties
signatory thereto (incorporated by reference to Exhibit 10.1 to Targa
Resources Partners LP's Current Report on Form 8-K filed August 4, 2009
(File No. 001-33303).
|
10.2
|
Contribution,
Conveyance and Assumption Agreement, dated September 24, 2009, by and
among Targa Resources Partners LP, Targa GP Inc., Targa LP Inc., Targa
Resources Operating LP and Targa North Texas GP LLC (incorporated by
reference to Exhibit 10.1 to Targa Resources Partners LP’s Current Report
on Form 8-K filed September 24, 2009 (file No.
001-33303)).
|
10.3
|
Second
Amended and Restated Omnibus Agreement, dated September 24, 2009, by
and among Targa Resources Partners LP, Targa Resources, Inc., Targa
Resources LLC and Targa Resources GP LLC (incorporated by reference to
Exhibit 10.2 to Targa Resources Partners LP’s Current Report on Form 8-K
filed September 24, 2009 (file No. 001-33303)).
|
10.4
|
Raw
Product Purchase Agreement dated September 24, 2009, to be effective
September 1, 2009, between Targa Liquids Marketing and Trade and Targa
Permian LP (incorporated by reference to Exhibit 10.3 to Targa Resources
Partners LP’s Current Report on Form 8-K filed September 24, 2009 (file
No. 001-33303)).
|
10.5
|
Specification
Product Purchase Agreement dated September 24 , 2009, to be effective
September 1, 2009, between Targa Liquids Marketing and Trade and Targa
Midstream Services Limited Partnership (SE La) (incorporated by reference
to Exhibit 10.4 to Targa Resources Partners LP’s Current Report on Form
8-K filed September 24, 2009 (file No. 001-33303)).
|
10.6
|
Raw
Product Purchase Agreement dated September 24 , 2009, to be effective
September 1, 2009, between Targa Liquids Marketing and Trade and Targa
Midstream Services Limited Partnership (Versado) (incorporated by
reference to Exhibit 10.5 to Targa Resources Partners LP’s Current Report
on Form 8-K filed September 24, 2009 (file No.
001-33303)).
|
10.7
|
Raw
Product Purchase Agreement dated September 24, 2009, to be effective
September 1, 2009, between Targa Liquids Marketing and Trade and Targa
Midstream Services Limited Partnership (West La) (incorporated by
reference to Exhibit 10.6 to Targa Resources Partners LP’s Current Report
on Form 8-K filed September 24, 2009 (file No.
001-33303)).
|
31.1**
|
Certification
of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)
of the Securities Exchange Act of 1934.
|
31.2**
|
Certification
of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)
of the Securities Exchange Act of 1934.
|
32.1**
|
Certification
of the Chief Executive Officer pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
32.2**
|
Certification
of the Chief Financial Officer pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
|
* Pursuant to Item
601(b)(2) of Regulation S-K, the registrant agrees to furnish
supplementally a copy of any omitted exhibit or schedule to the SEC
upon request.
|
Exhibit
Number
|
Description
|
2.1*
|
Purchase
and Sale Agreement dated July 27, 2009, by and between Targa Resources
Partners LP, Targa GP Inc. and Targa LP Inc. (incorporated by reference to
Exhibit 2.1 to Targa Resources Partners LP’s Current Report on Form 8-K
filed July 29, 2009 (file No. 001-33303)).
|
3.1
|
Certificate
of Limited Partnership of Targa Resources Partners LP (incorporated by
reference to Exhibit 3.2 to Targa Resources Partners LP’s
Registration Statement on Form S-1 filed November 16, 2006
(File No. 333-138747)).
|
3.2
|
Certificate
of Formation of Targa Resources GP LLC (incorporated by reference to
Exhibit 3.3 to Targa Resources Partners LP’s Registration Statement
on Form S-1/A filed January 19, 2007 (File
No. 333-138747)).
|
3.3
|
Agreement
of Limited Partnership of Targa Resources Partners LP (incorporated by
reference to Exhibit 3.3 to Targa Resources Partners LP’s Annual
Report on Form 10-K filed April 2, 2007 (File
No. 001-33303)).
|
3.4
|
First
Amended and Restated Agreement of Limited Partnership of Targa Resources
Partners LP (incorporated by reference to Exhibit 3.1 to Targa
Resources Partners LP’s current report on Form 8-K filed
February 16, 2007 (File No. 001-33303)).
|
3.5
|
Amendment
No. 1, dated May 13, 2008, to the First Amended and Restated
Agreement of Limited Partnership of Targa Resources Partners LP
(incorporated by reference to Exhibit 3.5 to Targa Resources Partners
LP’s Quarterly Report on Form 10-Q filed May 14, 2008 (File
No. 001-33303)).
|
3.6
|
Limited
Liability Company Agreement of Targa Resources GP LLC (incorporated by
reference to Exhibit 3.4 to Targa Resources Partners LP’s
Registration Statement on Form S-1/A filed January 19, 2007
(File No. 333-138747)).
|
4.1
|
Indenture
dated as of July 6, 2009, among Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the Guarantors named therein and
U.S. Bank National Association (incorporated by reference to Exhibit 4.1
to Targa Resources Partners LP’s Current Report on Form 8-K filed July 6,
2009 (File No. 001-33303)).
|
4.2
|
Registration
Rights Agreement dated as of July 6, 2009, among Targa Resources Partners
LP, Targa Resources Partners Finance Corporation, the Guarantors named
therein and the initial purchasers named therein (incorporated by
reference to Exhibit 4.2 to Targa Resources Partners LP’s Current Report
on Form 8-K filed July 6, 2009 (File No. 001-33303)).
|
4.3**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Downstream GP LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.4**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Downstream GP LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.5**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Downstream LP, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.6**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Downstream LP, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.7**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa LSNG GP LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.8**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa LSNG GP LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.9**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa LSNG LP, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.10**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa LSNG LP, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.11**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Sparta LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.12**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Sparta LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.13**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Midstream Barge Company LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.14**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Midstream Barge Company LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.15**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Retail Electric LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.16**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Retail Electric LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.17**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa NGL Pipeline Company LLC, a subsidiary of Targa Resources Partners
LP, Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.18**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa NGL Pipeline Company LLC, a subsidiary of Targa Resources Partners
LP, Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.19**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Transport LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.20**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Transport LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.21**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Co-Generation LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.22**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Co-Generation LLC, a subsidiary of Targa Resources Partners LP,
Targa Resources Partners Finance Corporation, the other Subsidiary
Guarantors and U.S. Bank National Association.
|
4.23**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Liquids GP LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.24**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Liquids GP LLC, a subsidiary of Targa Resources Partners LP, Targa
Resources Partners Finance Corporation, the other Subsidiary Guarantors
and U.S. Bank National Association.
|
4.25**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among
Targa Liquids Marketing and Trade, a subsidiary of Targa Resources
Partners LP, Targa Resources Partners Finance Corporation, the other
Subsidiary Guarantors and U.S. Bank National
Association.
|
4.26**
|
Supplemental
Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among
Targa Liquids Marketing and Trade, a subsidiary of Targa Resources
Partners LP, Targa Resources Partners Finance Corporation, the other
Subsidiary Guarantors and U.S. Bank National
Association.
|
10.1
|
Commitment
Increase Supplement, dated July 29, 2009, by and among Targa
Resources Partners LP, Bank of America, N.A. and the other parties
signatory thereto (incorporated by reference to Exhibit 10.1 to Targa
Resources Partners LP's Current Report on Form 8-K filed August 4, 2009
(File No. 001-33303).
|
10.2
|
Contribution,
Conveyance and Assumption Agreement, dated September 24, 2009, by and
among Targa Resources Partners LP, Targa GP Inc., Targa LP Inc., Targa
Resources Operating LP and Targa North Texas GP LLC (incorporated by
reference to Exhibit 10.1 to Targa Resources Partners LP’s Current Report
on Form 8-K filed September 24, 2009 (file No.
001-33303)).
|
10.3
|
Second
Amended and Restated Omnibus Agreement, dated September 24, 2009, by
and among Targa Resources Partners LP, Targa Resources, Inc., Targa
Resources LLC and Targa Resources GP LLC (incorporated by reference to
Exhibit 10.2 to Targa Resources Partners LP’s Current Report on Form 8-K
filed September 24, 2009 (file No. 001-33303)).
|
10.4
|
Raw
Product Purchase Agreement dated September 24, 2009, to be effective
September 1, 2009, between Targa Liquids Marketing and Trade and Targa
Permian LP (incorporated by reference to Exhibit 10.3 to Targa Resources
Partners LP’s Current Report on Form 8-K filed September 24, 2009 (file
No. 001-33303)).
|
10.5
|
Specification
Product Purchase Agreement dated September 24 , 2009, to be effective
September 1, 2009, between Targa Liquids Marketing and Trade and Targa
Midstream Services Limited Partnership (SE La) (incorporated by reference
to Exhibit 10.4 to Targa Resources Partners LP’s Current Report on Form
8-K filed September 24, 2009 (file No. 001-33303)).
|
10.6
|
Raw
Product Purchase Agreement dated September 24 , 2009, to be effective
September 1, 2009, between Targa Liquids Marketing and Trade and Targa
Midstream Services Limited Partnership (Versado) (incorporated by
reference to Exhibit 10.5 to Targa Resources Partners LP’s Current Report
on Form 8-K filed September 24, 2009 (file No.
001-33303)).
|
10.7
|
Raw
Product Purchase Agreement dated September 24, 2009, to be effective
September 1, 2009, between Targa Liquids Marketing and Trade and Targa
Midstream Services Limited Partnership (West La) (incorporated by
reference to Exhibit 10.6 to Targa Resources Partners LP’s Current Report
on Form 8-K filed September 24, 2009 (file No.
001-33303)).
|
31.1**
|
Certification
of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)
of the Securities Exchange Act of 1934.
|
31.2**
|
Certification
of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)
of the Securities Exchange Act of 1934.
|
32.1**
|
Certification
of the Chief Executive Officer pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
32.2**
|
Certification
of the Chief Financial Officer pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
|
* Pursuant to Item
601(b)(2) of Regulation S-K, the registrant agrees to furnish
supplementally a copy of any omitted exhibit or schedule to the SEC
upon request.
|
TARGA
DOWNSTREAM GP LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
DOWNSTREAM GP LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
DOWNSTREAM LP
By: Targa
Downstream GP LLC,
its
general partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
its
general partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
DOWNSTREAM LP
By: Targa
Downstream GP LLC,
its
general partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
its
general partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
LSNG GP LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
LSNG GP LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
LSNG LP
By: Targa
LSNG GP LLC,
its
general partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
its
general partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
LSNG LP
By: Targa
LSNG GP LLC,
its
general partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
its
general partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
SPARTA LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
SPARTA LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
MIDSTREAM
BARGE COMPANY LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
MIDSTREAM
BARGE COMPANY LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
RETAIL ELECTRIC LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
RETAIL ELECTRIC LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
NGL PIPELINE COMPANY LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
NGL PIPELINE COMPANY LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
TRANSPORT LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
TRANSPORT LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
CO-GENERATION LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
CO-GENERATION LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
LIQUIDS GP LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
LIQUIDS GP LLC
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
Its
General Partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
LIQUIDS MARKETING AND TRADE
By: Targa
Liquids GP LLC,
its
managing partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
its
general partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
TARGA
LIQUIDS MARKETING AND TRADE
By: Targa
Liquids GP LLC,
its
managing partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS LP
By: Targa
Resources GP LLC,
its
general partner
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
TARGA
RESOURCES PARTNERS FINANCE CORPORATION
|
|
By:
|
/s/
Matthew J. Meloy
|
Name:
|
Matthew
J. Meloy
|
Title:
|
Vice
President – Finance and Treasurer
|
U.S. BANK NATIONAL
ASSOCIATION,
as
Trustee
|
|
By:
|
/s/
Steven Finklea
|
Authorized
Signatory
|
|
1.
|
I
have reviewed this Quarterly Report on Form 10-Q for the period ended
September 30, 2009 of Targa Resources Partners
LP;
|
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|
4.
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
(c)
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
(d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
|
5.
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
By:
|
/s/ RENE R. JOYCE
|
Name:
|
Rene
R. Joyce
|
Title:
|
Chief
Executive Officer of Targa Resources GP LLC,
the
general partner of Targa Resources Partners LP
(Principal Executive
Officer)
|
1.
|
I
have reviewed this Quarterly Report on Form 10-Q for the period ended
September 30, 2009 of Targa Resources Partners
LP;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
(c)
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
(d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
5.
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
By:
|
/s/ JEFFREY
J. MCPARLAND
|
Name:
|
Jeffrey
J. McParland
|
Title:
|
Executive
Vice President and Chief Financial Officer of
Targa
Resources GP LLC, the general partner of Targa Resources Partners
LP
(Principal
Financial Officer)
|
By:
|
/s/ RENE R. JOYCE
|
Name:
|
Rene
R. Joyce
|
Title:
|
Chief
Executive Officer of Targa Resources GP LLC,
the
general partner of Targa Resources Partners LP
|
By:
|
/s/ JEFFREY
J. MCPARLAND
|
Name:
|
Jeffrey
J. McParland
|
Title:
|
Executive
Vice President and Chief Financial Officer
of
Targa Resources GP LLC
the
general partner of Targa Resources Partners LP
|