Delaware
|
001-33303
|
65-1295427
|
(State
or other jurisdiction
|
(Commission
|
(IRS
Employer
|
of
incorporation or organization)
|
File
Number)
|
Identification
No.)
|
1000
Louisiana, Suite 4300
|
||
Houston,
TX 77002
|
||
(Address
of principal executive office and Zip Code)
|
||
(713)
584-1000
|
||
(Registrants’
telephone number, including area code)
|
||
Exhibit
|
||
Number
|
Description
|
|
Exhibit 99.1
|
Consolidated
Balance Sheet of Targa Resources GP LLC as of September 30,
2009
|
TARGA
RESOURCES PARTNERS LP
|
|||
By:
Targa Resources GP LLC,
|
|||
its
general partner
|
|||
Dated:
December 7, 2009
|
By:
|
/s/ John Robert
Sparger
|
|
John
Robert Sparger
|
|||
Senior
Vice President and Chief Accounting Officer
|
|||
(Authorized
signatory and Principal Accounting
Officer)
|
Exhibit
|
||
Number
|
Description
|
|
Exhibit 99.1
|
Consolidated
Balance Sheet of Targa Resources GP LLC as of September 30,
2009
|
Bbl
|
Barrels
|
Btu
|
British
thermal units, a measure of heating value
|
gal
|
Gallons
|
MMBtu
|
Million
British thermal units
|
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
|
TARGA
RESOURCES GP LLC
|
||||
CONSOLIDATED
BALANCE SHEET
|
||||
September 30, 2009
|
||||
(Unaudited)
|
||||
(In
thousands)
|
||||
ASSETS
|
||||
Current
assets:
|
||||
Cash
and cash equivalents
|
$ | 57,766 | ||
Receivables
from third parties
|
251,332 | |||
Inventory
|
42,251 | |||
Assets
from risk management activities
|
48,472 | |||
Other
current assets
|
509 | |||
Total
current assets
|
400,330 | |||
Property,
plant and equipment, at cost
|
2,083,138 | |||
Accumulated
depreciation
|
(392,752 | ) | ||
Property,
plant and equipment, net
|
1,690,386 | |||
Long-term
assets from risk management activities
|
18,860 | |||
Investment
in unconsolidated affiliate
|
17,811 | |||
Other
assets
|
20,931 | |||
Total
assets
|
$ | 2,148,318 | ||
LIABILITIES
AND EQUITY
|
||||
Current
liabilities:
|
||||
Accounts
payable to third parties
|
$ | 123,648 | ||
Accounts
payable to affiliates
|
84,549 | |||
Accrued
liabilities
|
83,730 | |||
Liabilities
from risk management activities
|
10,903 | |||
Total
current liabilities
|
302,830 | |||
Long-term
debt payable to third parties
|
939,424 | |||
Long-term
liabilities from risk management activities
|
15,645 | |||
Deferred
income taxes
|
3,559 | |||
Other
long-term liabilities
|
6,501 | |||
Commitments
and contingencies (Note 12)
|
||||
Equity:
|
||||
Member's
interest
|
9,804 | |||
Accumulated
other comprehensive income
|
187 | |||
Total
member's equity
|
9,991 | |||
Noncontrolling
interest
|
870,368 | |||
Total
equity
|
880,359 | |||
Total
liabilities and equity
|
$ | 2,148,318 | ||
See
notes to consolidated balance sheet
|
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 the Partnership. 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.
|
|
·
|
The
Partnership 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.
|
Natural
gas gathering systems
|
$ | 1,216,457 | ||
Processing
and fractionation facilities
|
403,038 | |||
Terminalling
and natural gas liquids storage facilities
|
236,978 | |||
Transportation
assets
|
150,658 | |||
Other
property, plant, and equipment
|
16,410 | |||
Land
|
49,770 | |||
Construction
in progress
|
9,827 | |||
2,083,138 | ||||
Accumulated
depreciation
|
(392,752 | ) | ||
$ | 1,690,386 |
Senior
secured revolving credit facility, variable rate, due February
2012
|
$ | 510,483 | ||
Senior
unsecured notes, 8¼% fixed rate, due July 2016
|
209,080 | |||
Senior
unsecured notes, 11¼% fixed
rate, due July 2017 (1)
|
219,861 | |||
Total
long-term debt
|
$ | 939,424 | ||
Letters
of credit issued
|
$ | 58,844 |
|
(1)
|
The
carrying amount of the notes includes $11.4 million of unamortized
original
|
|
·
|
are
the Partnership’s unsecured senior
obligations;
|
|
·
|
rank
pari passu in
right of payment with the Partnership’s existing and future senior
indebtedness, including indebtedness under its credit
facility;
|
|
·
|
are
senior in right of payment to any of the Partnership’s future subordinated
indebtedness; and
|
|
·
|
are
unconditionally guaranteed by the
Partnership.
|
Year
|
Percentage
|
|||
2013
|
105.625% | |||
2014
|
102.813% | |||
2015
and thereafter
|
100.000% |
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 |
Non-affiliate
public unitholders
|
$ | 840,324 | ||
Targa
Resources, Inc.
|
20,870 | |||
Accumulated
other comprehensive income
|
9,174 | |||
Noncontrolling
interest
|
$ | 870,368 |
Asset Derivatives
|
Liability Derivatives
|
|||||||||
Balance
|
Fair
Value as of
|
Balance
|
Fair
Value as of
|
|||||||
Sheet
|
September
30,
|
Sheet
|
September
30,
|
|||||||
Location
|
2009
|
Location
|
2009
|
|||||||
Derivatives designated as hedging instruments
under ASC 815
|
||||||||||
Commodity
contracts
|
Current
assets
|
$ | 46,508 |
Current
liabilities
|
$ | 1,383 | ||||
Long
term assets
|
18,575 |
Long
term liabilities
|
9,415 | |||||||
Interest
rate contracts
|
Current
assets
|
- |
Current
liabilities
|
7,876 | ||||||
Long
term assets
|
- |
Long
term liabilities
|
6,230 | |||||||
Total
derivatives designated
|
||||||||||
as
hedging instruments
|
65,083 | 24,904 | ||||||||
Derivatives not designated as hedging instruments
under ASC 815
|
||||||||||
Commodity
contracts
|
Current
assets
|
1,964 |
Current
liabilities
|
1,644 | ||||||
Long
term assets
|
285 |
Long
term liabilities
|
- | |||||||
Total
derivatives not designated
|
||||||||||
as
hedging instruments
|
2,249 | 1,644 | ||||||||
Total
derivatives
|
$ | 67,332 | $ | 26,548 | ||||||
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 | ||||||||
01/01-4/24/2014
|
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
|
$ | - |
Carrying
|
Fair
|
|||||||
Amount
|
Value
|
|||||||
Senior
unsecured notes, 8¼% fixed rate
|
$ | 209,080 | $ | 193,922 | ||||
Senior
unsecured notes, 11¼% fixed rate (1)
|
219,861 | 242,266 |
|
(1)
|
The
carrying amount of the notes includes $11.4 million of
unamortized
|
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
|
Natural Gas Gathering and
Processing
|
Logistics
Assets
|
NGL
Distribution
and
Marketing
|
Wholesale Marketing
|
Eliminations
and Other
|
Total
|
|||||||||||||||||||
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 |