Targa Resources Corp.
Firstly, Targa Resources Corp. is a leading provider of midstream services; also, Fourth Quarter and Full Year 2021 Financial Results
Secondly, the Company’s assets connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuels and feedstocks.
In addition, the Company is primarily engaged in the business of gathering, compressing, treating, processing, transporting; and purchasing and selling natural gas.
In conclusion, Targa also focuses operations on transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products.
Midstream leader provider financial results
First, along the fourth quarter of 2021, the net income attributable to Targa Resources Corp. was $(313.6) million; compared to $33.6 million for the fourth quarter of 2020.
Next, for the full year 2021, net income attributable to Targa Resources Corp. was $71.2 million; compared to ($1,553.9) million for 2020. I
Consequently, the Company reported adjusted earnings before interest, income taxes, depreciation and amortization, and other non-cash items (“adjusted EBITDA”) of $570.6 million for the fourth quarter of 2021 compared to $438.1 million for the fourth quarter of 2020.
Finally, for the full year 2021, Targa reported $2,052.0 million of adjusted EBITDA; compared to $1,636.6 million for the full year 2020.
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The dividend
On January 20, 2022, TRC declared a quarterly dividend of $0.35 per share of its common stock for the fourth quarter of 2021; or $1.40 per share on an annualized basis.
On the other hand, the company paid a total cash dividends of approximately $80 million on February 15, 2022; on all outstanding shares of common stock to holders of record as of the close of business on January 31, 2022.
Also, on January 20, 2022, TRC declared a quarterly cash dividend of $23.75 per share of its Series A Preferred Stock (“Series A Preferred”) for the fourth quarter of 2021.
Besides, on February 14, 2022, they paid a total cash dividends of approximately $22 million ; on all outstanding shares of Series A Preferred to holders of record as of the close of business; on January 31, 2022.
In the end, the Company reported a distributable cash flow; and an adjusted free cash flow for the fourth quarter of 2021 of $420.7 million and $240.8 million, respectively.
For the full year 2021, the Company announced a distributable cash flow; and an adjusted free cash flow of $1,541.4 million and $1,133.7 million, respectively.
Financing Update
In February 2022, Targa entered into a Credit Agreement with Bank of America, N.A., as the Administrative Agent, Collateral Agent and Swing Line Lender, and the other lender’s party thereto (the “New TRC Revolver”).
Common Share Repurchases
In the fourth quarter of 2021, Targa repurchased 756,478 shares of its common stock; at a weighted average price of $52.81for a total net cost of approximately $40 million. There was approximately $369 million remaining under its $500 million authorized common share repurchase program as of December 31, 2021.
Midstream leader growth Projects
In response to increasing production and to meet the infrastructure needs of producers; Targa announced plans to construct a new 275 MMcf/d cryogenic natural gas processing plant; in Permian Midland (the “Legacy II plant”)
The plant will begin operations in the second quarter of 2023.
The Company previously announced that it was ordering long-lead items for the Legacy II plant; besides it included some growth capital spending for the Legacy II plant in the fourth quarter of 2021.
Targa also announced today its plans to construct a new 275 MMcf/d cryogenic natural gas processing plant (the “Midway plant”); which will be located between, and connected to, Targa’s existing Permian Delaware and Permian Midland systems.
Midstream provider operational and Financial Expectations
Targa’s operational and financial expectations assume natural gas liquids (“NGL”) composite barrel prices average $0.85 per gallon; crude oil prices average $75 per barrel; and Waha natural gas prices averaged $3.75 per million British Thermal Units (“MMbtu”) for 2022.
Also, for 2022, Targa estimates full-year adjusted EBITDA to be between $2.3 billion and $2.5 billion; with the midpoint of the range representing a 17 percent increase over the full year 2021 adjusted EBITDA.
Finally, Targa’s full-year 2022 adjusted EBITDA; estimate is pro forma for the sale of its 25 percent equity interest in the Gulf Coast Express Pipeline.
An earnings supplement presentation and an updated investor presentation are available here.
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