Related Party Transactions - Targa

6 Months Ended

Jun. 30, 2020

Note 10 — Related Party Transactions – Targa

Relationship with Targa

We do not have any employees. Targa provides operational, general and administrative and other services to us associated with our existing assets and assets acquired from third parties. Targa performs centralized corporate functions for us, such as legal, accounting, treasury, insurance, risk management, health, safety and environmental, information technology, human resources, credit, payroll, internal audit, taxes, engineering and marketing.

Our Partnership Agreement governs the reimbursement of costs incurred by Targa on behalf of us. Targa charges us for all the direct costs of the employees assigned to our operations, as well as all general and administrative support costs other than costs attributable to Targa’s status as a separate reporting company. We generally reimburse Targa monthly for cost allocations to the extent that Targa has made a cash outlay.

The following table summarizes transactions with Targa:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Targa billings of payroll and related costs included in operating expenses	$	66.6	$	61.6	$	132.2	$	115.7
Targa allocation of general and administrative expense		56.0		61.1		108.5		128.8
Cash distributions to Targa based on general partner and limited partner ownership		50.3		435.0		289.4		673.5
Cash contributions from Targa related to limited partner ownership (1)		49.0		186.2		49.0		186.2
Cash contributions from Targa to maintain its 2% general partner ownership		1.0		3.8		1.0		3.8

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(1)	The cash contributions from Targa related to limited partner ownership were allocated 98% to the limited partner and 2% to general partner. See Note 7 – Partnership Units and Related Matters.