NGL price declines have had a material negative impact on Targa’s expected distributable cash flow Expects more than 1.0x coverage for full year 2012, and maintains distribution growth outlook for 2012 at 10%-15% vs. 2011 However, distribution coverage may be lower than 1.0x for one of the next 2 quarters NGLS coverage last quarter was 1.5x, and the difference in total distributable cash flow and distributions was $36.1mm, so NGL prices are having a substantial quarterly impact
It's written in English...seems pretty clear to me:
HOUSTON, Jun 25, 2012 (GlobeNewswire via COMTEX) -- Targa Resources Partners LP (NGLS, Trade ) ("Targa Resources Partners" or the "Partnership" or "Targa") announced today that given the recent decline in the commodity price environment it is providing the following outlook regarding expected distribution coverage.
The Partnership currently expects distribution coverage in excess of 1.0x on an annual basis for 2012 and 2013, assuming current commodity prices of $2.50 per MMBtu for natural gas, $80 per barrel for crude oil and $0.75 per gallon for NGLs. Distribution coverage in any quarter may be above or below the annual level because of planned and unplanned interruptions and other factors, but is currently expected to exceed 1.0x on an annual basis. While there is no assurance that we will continue to have increases in distributions and each quarterly distribution declaration is subject to board approval, the above outlook for coverage reflects assumed distribution growth for 2012 and beyond, including the previous guidance for 2012 of a 10%-15% increase over full year 2011.
The recent decline in commodity prices does adversely impact the Partnership's financial results; however, the impact of commodity prices is somewhat mitigated by several factors including the Partnership's: (i) existing commodity hedges maintained by the Partnership, (ii) fee based margin, (iii) increasing throughput volumes in both its Gathering and Processing and Downstream businesses, and (iv) announced fee-based growth projects. More than 75% of the $1 billion total announced growth projects that are scheduled to come online in 2012 and 2013 are expected to provide predominately fee-based margin which will reduce the Partnership's sensitivity to commodity prices.