Research Desk Line-up: Williams Cos. Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Targa Resources Corp. (NYSE: TRGP) ("Targa"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TRGP, following the Company's posting of its second quarter fiscal 2017 operating results on August 03, 2017. The midstream energy Company turned profitable after posting a loss in the prior year's same quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Oil & Gas Pipelines industry. Pro-TD has currently selected The Williams Companies, Inc. (NYSE: WMB) for due-diligence and potential coverage as the Company announced on August 02, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Williams Cos. when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TRGP; also brushing on WMB. With the links below you can directly download the report of your stock of interest free of charge at:
For the three months ended June 30, 2017, Targa reported revenue of $1.87 billion, up 18% compared to revenue of $1.58 billion in Q2 2017.
Targa's revenue from sales of commodities totaled $1.62 billion, up 24% compared to revenue of $1.31 billion in Q2 2016. The increase in commodity sales was primarily due to higher commodity prices, and higher petroleum products and condensate volumes, partially offset by decreased NGL sales and the impact of hedge settlements. The Company's Midstream service fee dropped 10% to $243.9 million. Fee-based and other revenues decreased primarily due to lower export fees and volumes and partially offset by higher crude gathering and gas processing fees.
For Q2 2017, net income attributable to Targa was $57.6 million compared to a net loss of ($23.2) million for Q2 2016. During Q2 2017, the Company reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $257.9 million compared to $257.1 million for the year ago corresponding period.
Capitalization, Liquidity, and Financing
For Q2 2017, Targa reported distributable cash flow of $196.0 million compared to total common dividends to be paid of $196.2 million and total Series A Preferred Stock dividends to be paid of $22.9 million.
As of June 30, 2017, Targa's total consolidated debt was $4.44 billion including $435.0 million outstanding under the Company's $670.0 million senior secured revolving credit facility due 2020. The consolidated debt included $4.00 billion of Targa Resource Partners LP ("TRP") debt, with no amounts outstanding under TRP's $1.6 billion senior secured revolving credit facility due 2020; $250.0 million outstanding under TRP's accounts receivable securitization facility; and $3.78 billion of outstanding TRP senior notes.
As of June 30, 2017, Targa had senior secured revolving credit facility capacity available of $235.0 million. TRP had no borrowings outstanding under its $1.6 billion senior secured revolving credit facility and $20.4 million in outstanding letters of credit. As of June 30, 2017, Targa's total consolidated liquidity, including $98.7 million of cash, was approximately $1.9 billion.
On June 01, 2017, Targa completed a public offering of 17,000,000 shares of its common stock at a price to the public of $46.10, providing net proceeds after underwriting discounts, commissions, and other expenses of $777.3 million.
2017 Forecasted Capital Expenditures
In May 2017, Targa announced plans to construct a new common carrier NGL pipeline, Grand Prix, which will transport volumes from the Permian Basin, and also from its North Texas system, to its fractionation and storage complex in the NGL market hub at Mont Belvieu. Grand Prix is expected to be in service in Q2 2019. The initial capacity of the pipeline from the Permian Basin will be approximately 300 MBbl/d and will be expandable to 550 MBbl/d with the addition of pump stations. The total net growth capital expenditures for Grand Prix are expected to be approximately $1.3 billion, with approximately $330 million of spending in 2017.
Targa is forecasting 2017 net growth capital expenditures for announced projects of approximately $1.38 billion; an increase from the previously disclosed $1.21 billion.
At the close of trading session on Monday, August 21, 2017, Targa Resources' stock price marginally rose 0.12% to end the day at $43.36. A total volume of 2.11 million shares were exchanged during the session. The Company's shares have a dividend yield of 8.39%. At Monday's closing price, the stock's net capitalization stands at $9.20 billion.
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SOURCE: Pro-Trader Daily