Targa Resources quarterly profit jumps 14% on higher transport volumes
Nov 2 (Reuters) - Targa Resources reported a near 14% jump in third-quarter profit on Thursday as the midstream services firm transported higher volumes of Natural Gas Liquids.
Brent crude rose around 27% in the July-September quarter after Russia and Saudi Arabia extended output cuts, encouraging energy-producing companies to drill more.
The company said its pipeline transported higher volumes mainly via its systems in the Permian and also benefited from higher service fees.
Natural Gas Liquids transportation volumes rose to 660.2 mbbl per day from 499.5 mbbl a day during the same period last year.
The company also enjoyed higher LNG export volumes in the July-September period.
Net income attributable to the company was $220 million, compared with $193 million last year.
The company reaffirmed its forecast for full-year adjusted earnings before interest, taxes, depreciation, and amortization between $3.5 billion and $3.7 billion, but said current expectations are trending toward the lower end of the range.
Commodity prices are lower than previously expected and volume growth in the Permian Basin has been less than initially projected given weather and operational issues, Targa said. (Reporting by Mrinalika Roy in Bengaluru Editing by Vinay Dwivedi)
