EX-99.1 2 trgp-ex991_21.htm EX-99.1 trgp-ex991_21.htm

 

Exhibit 99.1

 

 

811 Louisiana, Suite 2100

Houston, TX 77002

713.584.1000

 

Targa Resources Corp. Reports

First Quarter 2018 Financial Results

 

HOUSTON – May 3, 2018 - Targa Resources Corp. (NYSE: TRGP) (“TRC”, the “Company” or “Targa”) today reported first quarter 2018 results.

 

First Quarter 2018 Financial Results  

 

First quarter 2018 net income (loss) attributable to Targa Resources Corp. was $22.9 million compared to ($119.3) million for the first quarter of 2017.

 

The Company reported earnings before interest, income taxes, depreciation and amortization, and other non-cash items (“Adjusted EBITDA”) of $306.6 million for the first quarter of 2018 compared to $276.7 million for the first quarter of 2017 (see the section of this release entitled “Targa Resources Corp. - Non-GAAP Financial Measures” for a discussion of Adjusted EBITDA, distributable cash flow, gross margin and operating margin, and reconciliations of such measures to their most directly comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”)).

 

“Our first quarter operational and financial performance was in-line with our expectations, and strong progress continued on our multiple capital projects underway. Our Joyce Plant is now operational providing much needed relief to our Midland Basin system. We also recently announced attractive Delaware Basin and Grand Prix expansions, which further leverage our existing integrated assets and position us to effectively compete for additional volumes,” said Joe Bob Perkins, Chief Executive Officer of Targa. “We remain focused on enhancing our attractive long-term outlook through continued execution across all areas of our business.”

 

On April 18, 2018, TRC declared a quarterly dividend of $0.91 per share of its common stock for the three months ended March 31, 2018, or $3.64 per share on an annualized basis. Total cash dividends of approximately $199.7 million will be paid on May 15, 2018 on all outstanding shares of common stock to holders of record as of the close of business on May 1, 2018. Also on April 18, 2018, TRC declared a quarterly cash dividend of $23.75 per share of its Series A Preferred Stock.  Total cash dividends of approximately $22.9 million will be paid on May 14, 2018 on all outstanding shares of Series A Preferred Stock to holders of record as of the close of business on May 1, 2018.

 

The Company reported distributable cash flow for the first quarter of 2018 of $216.4 million compared to total common dividends to be paid of $199.7 million and total Series A Preferred Stock dividends to be paid of $22.9 million.

 

First quarter 2018 - Capitalization, Liquidity and Financing

 

The Company’s total consolidated debt as of March 31, 2018 was $5,364.2 million including $435.0 million outstanding under TRC’s $670.0 million senior secured revolving credit facility due 2020. The consolidated debt included $4,929.2 million of Targa Resources Partners LP (“TRP” or “the Partnership”) debt, net of $28.8 million of debt issuance costs, with $380.0 million outstanding under TRP’s $1.6 billion senior secured revolving credit facility due 2020, $300.0 million outstanding under TRP’s accounts receivable securitization facility and $4,278.0 million of outstanding TRP senior unsecured notes.

 

Total consolidated liquidity of the Company as of March 31, 2018, including $219.8 million of cash, was approximately $1.7 billion. As of March 31, 2018, TRC had available borrowing capacity under its senior secured revolving credit facility of $235.0 million. TRP had $380.0 million of borrowings and $25.9 million in letters of credit outstanding under its $1.6 billion senior secured revolving credit facility, resulting in available senior secured revolving credit facility capacity of $1,194.1 million. In addition to the availability under its senior secured revolving credit facility, the Partnership also had $50.0 million of availability under its accounts receivable securitization facility.

 

During the three months ended March 31, 2018, the Company issued 1,162,963 shares of common stock under an equity distribution agreement entered into in December 2016, resulting in net proceeds of $57.7 million.

 

 


 

In April 2018, TRC issued 640,228 shares of common stock under an equity distribution agreement entered into in May 2017, resulting in net proceeds of $29.0 million.

 

In April 2018, the Partnership issued $1.0 billion aggregate principal amount of 5⅞% senior notes due April 2026. The Partnership used the net proceeds of $992.3 million after costs from the offering to repay borrowings under its credit facilities and for general partnership purposes. Including the April 2018 senior notes issuance, TRC’s pro forma consolidated liquidity as of March 31, 2018 was approximately $2.7 billion.

 

Sale of Inland Marine Barge Business

 

Targa executed agreements on May 1, 2018 to sell its inland marine barge business to Kirby Corp. (NYSE: KEX) for approximately $69.3 million. Subject to customary regulatory approvals and other closing conditions, the transaction is expected to close during the second quarter, and Targa intends to use the sale proceeds to fund a portion of its capital growth program underway.

 

Conference Call

 

The Company will host a conference call for the investment community at 11:00 a.m. Eastern time (10:00 a.m. Central time) on May 3, 2018 to discuss first quarter 2018 results. The conference call can be accessed via webcast through the Events and Presentations section of Targa’s website at www.targaresources.com, by going directly to http://ir.targaresources.com/trc/events.cfm or by dialing 877-881-2598. The conference ID number for the dial-in is 6449338. Please dial in ten minutes prior to the scheduled start time. A replay will be available approximately two hours following the completion of the webcast through the Investors section of the Company’s website. Presentation slides will also be available in the Events and Presentations section of the Company’s website, or directly at http://ir.targaresources.com/trc/events.cfm.

Targa Resources Corp. – Consolidated Financial Results of Operations

 

 

 

Three Months Ended March 31,

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

2017

 

 

 

2018 vs. 2017

 

 

 

(In millions, except operating statistics and price amounts)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of commodities

$

 

2,173.7

 

 

$

 

1,858.1

 

 

$

 

315.6

 

 

 

17

%

Fees from midstream services

 

 

281.9

 

 

 

 

254.5

 

 

 

 

27.4

 

 

 

11

%

Total revenues

 

 

2,455.6

 

 

 

 

2,112.6

 

 

 

 

343.0

 

 

 

16

%

Product purchases

 

 

1,941.0

 

 

 

 

1,654.2

 

 

 

 

286.8

 

 

 

17

%

Gross margin (1)

 

 

514.6

 

 

 

 

458.4

 

 

 

 

56.2

 

 

 

12

%

Operating expenses

 

 

173.2

 

 

 

 

151.9

 

 

 

 

21.3

 

 

 

14

%

Operating margin (1)

 

 

341.4

 

 

 

 

306.5

 

 

 

 

34.9

 

 

 

11

%

Depreciation and amortization expense

 

 

198.1

 

 

 

 

191.1

 

 

 

 

7.0

 

 

 

4

%

General and administrative expense

 

 

56.7

 

 

 

 

48.7

 

 

 

 

8.0

 

 

 

16

%

Other operating (income) expense

 

 

0.3

 

 

 

 

16.2

 

 

 

 

(15.9

)

 

 

(98

%)

Income (loss) from operations

 

 

86.3

 

 

 

 

50.5

 

 

 

 

35.8

 

 

 

71

%

Interest income (expense), net

 

 

16.1

 

 

 

 

(63.0

)

 

 

 

79.1

 

 

 

126

%

Equity earnings (loss)

 

 

1.5

 

 

 

 

(12.6

)

 

 

 

14.1

 

 

 

112

%

Gain (loss) from financing activities

 

 

 

 

 

 

(5.8

)

 

 

 

5.8

 

 

 

100

%

Change in contingent considerations

 

 

(56.1

)

 

 

 

(3.3

)

 

 

 

(52.8

)

 

NM

 

Other income (expense), net

 

 

 

 

 

 

(5.2

)

 

 

 

5.2

 

 

 

100

%

Income tax (expense) benefit

 

 

(8.9

)

 

 

 

(71.1

)

 

 

 

62.2

 

 

 

87

%

Net income (loss)

 

 

38.9

 

 

 

 

(110.5

)

 

 

 

149.4

 

 

 

135

%

Less: Net income (loss) attributable to noncontrolling interests

 

 

16.0

 

 

 

 

8.8

 

 

 

 

7.2

 

 

 

82

%

Net income (loss) attributable to Targa Resources Corp.

 

 

22.9

 

 

 

 

(119.3

)

 

 

 

142.2

 

 

 

119

%

Dividends on Series A Preferred Stock

 

 

22.9

 

 

 

 

22.9

 

 

 

 

 

 

 

 

Deemed dividends on Series A Preferred Stock

 

 

7.0

 

 

 

 

6.1

 

 

 

 

0.9

 

 

 

15

%

Net income (loss) attributable to common shareholders

$

 

(7.0

)

 

$

 

(148.3

)

 

$

 

141.3

 

 

 

95

%

Financial and operating data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1)

$

 

306.6

 

 

$

 

276.7

 

 

$

 

29.9

 

 

 

11

%

Distributable cash flow (1)

 

 

216.4

 

 

 

 

194.0

 

 

 

 

22.4

 

 

 

12

%

Capital expenditures

 

 

558.0

 

 

 

 

174.6

 

 

 

 

383.4

 

 

 

220

%

Business acquisition (2)

 

 

 

 

 

 

1,032.4

 

 

 

 

(1,032.4

)

 

 

(100

%)

Operating statistics: (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil gathered, Badlands, MBbl/d

 

 

117.7

 

 

 

 

113.5

 

 

 

 

4.2

 

 

 

4

%

Crude oil gathered, Permian, MBbl/d (4)

 

 

49.4

 

 

 

 

9.2

 

 

 

 

40.2

 

 

NM

 

Plant natural gas inlet, MMcf/d  (5) (6)

 

 

3,752.3

 

 

 

 

3,223.6

 

 

 

 

528.7

 

 

 

16

%

 


 

Gross NGL production, MBbl/d

 

 

386.9

 

 

 

 

288.7

 

 

 

 

98.2

 

 

 

34

%

Export volumes, MBbl/d (7)

 

 

201.9

 

 

 

 

217.5

 

 

 

 

(15.6

)

 

 

(7

%)

Natural gas sales, BBtu/d  (6) (8)

 

 

2,107.1

 

 

 

 

1,813.3

 

 

 

 

293.8

 

 

 

16

%

NGL sales, MBbl/d (8)

 

 

574.9

 

 

 

 

533.6

 

 

 

 

41.3

 

 

 

8

%

Condensate sales, MBbl/d

 

 

16.2

 

 

 

 

10.7

 

 

 

 

5.5

 

 

 

51

%

 

(1)

Gross margin, operating margin, Adjusted EBITDA, and distributable cash flow are non-GAAP financial measures and are discussed under “Targa Resources Corp. – Non-GAAP Financial Measures.”

(2)

Includes the $416.3 million acquisition date fair value of the potential earn-out payments.

(3)

These volume statistics are presented with the numerator as the total volume sold during the quarter and the denominator as the number of calendar days during the quarter.

(4)

Includes operations from the Permian Acquisition for the period effective March 1, 2017. For the volume statistics presented, the numerator is the total volume sold during the period of the Company’s ownership while the denominator is the number of calendar days during the quarter.

(5)

Plant natural gas inlet represents the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant, other than in Badlands, where it represents total wellhead gathered volume.

(6)

Plant natural gas inlet volumes include producer take-in-kind volumes, while natural gas sales exclude producer take-in-kind volumes.

(7)

Export volumes represent the quantity of NGL products delivered to third-party customers at the Company’s Galena Park Marine Terminal that are destined for international markets.

(8)

Includes the impact of intersegment eliminations.

NM

Due to a low denominator, the noted percentage change is disproportionately high and as a result, considered not meaningful.

 

Three Months Ended March 31, 2018 Compared to Three Months Ended March 31, 2017

 

The increase in commodity sales was primarily due to increased commodity volumes ($244.8 million) and higher NGL and condensate prices ($206.6 million), partially offset by lower natural gas and petroleum product prices ($103.7 million) and the impact of hedges ($32.0 million). Fee-based and other revenues increased primarily due to higher gas processing and crude gathering fees.

 

The increase in product purchases was primarily due to increased volumes and higher NGL and condensate prices.

 

The higher operating margin and gross margin in 2018 reflects increased segment margin results for Gathering and Processing and Logistics and Marketing. Operating expenses increased compared to 2017 primarily due to plant and system expansions in the Permian region, the inclusion of the Permian Acquisition for a full quarter in 2018 as compared with one month in 2017 and the commencement in operations of the Raptor Plant at SouthTX in June 2017. See “—Review of Segment Performance” for additional information regarding changes in operating margin and gross margin on a segment basis.

 

Depreciation and amortization expense increased primarily due to the impact of the Permian Acquisition for a full quarter in 2018 and other growth investments.

 

General and administrative expense increased primarily due to higher compensation and benefits.

 

Other operating (income) expense in 2017 includes the loss due to the reduction in the carrying value of the Company's 100% ownership interest in Venice Gathering, L.L.C., which the Company sold in April 2017.  

 

The change in interest income (expense), net was primarily due to higher non-cash interest income related to the mandatorily redeemable preferred interests that is revalued quarterly at the estimated redemption value as of the reporting date, as well as higher capitalized interest. These factors more than offset the impact of higher average outstanding borrowings during 2018. The decrease in the estimated redemption value of the mandatorily redeemable preferred interests is primarily attributable to the February 2018 amendments to the agreements governing the WestTX and WestOK joint ventures.

 

Equity earnings increased in 2018, which reflects the commencement of operations at the Cayenne Pipeline, LLC joint venture, increased equity earnings at Gulf Coast Fractionators LP, and decreased equity losses from the T2 Joint Ventures, which in 2017 included a $12.0 million loss provision due to the impairment of the Company's investment in the T2 EF Cogen joint venture.

 

During 2017, the Company recorded a loss from financing activities of $5.8 million on the repayment of the outstanding balance on the Company's senior secured term loan.

 

During 2018, the Company recorded expense of $56.1 million resulting from the change in the fair value of contingent considerations, substantially all of which was due to the increase in fair value as of March 31, 2018 of the Permian Acquisition contingent consideration liability, which is based on a multiple of gross margin realized during the first two annual periods after the acquisition date. The increase in fair value of the contingent consideration during the three months ended March 31, 2018 was primarily related to an increase in underlying forecasted volumes for the remainder of the earn-out period and a shorter term over which such projections are discounted. The fair value of the contingent consideration represents the Company's current view of the future payment amounts, and may decrease or increase until the settlement dates, resulting in the recognition of additional other income (expense). During 2017, the Company recorded other expense of $3.2 million resulting from an increase in the fair value of the Permian Acquisition contingent consideration liability from the acquisition date to March 31, 2017.

 

 


 

Other expense in 2017 was primarily attributable to $5.1 million of non-recurring transaction costs related to the Permian Acquisition.

 

The income tax expense decreased in 2018 as compared with 2017. In 2017, the first quarter estimate for the full year effective tax rate resulted in a negative tax rate when applied to the first quarter loss. The first quarter 2018 estimate for the full year effective tax rate has normalized and does not have the inverse relationship with first quarter earnings that existed in 2017.

 

Net income attributable to noncontrolling interests was higher in 2018 due to increased earnings at the Company's consolidated joint ventures as compared with 2017.

 

Review of Segment Performance

 

The following discussion of segment performance includes inter-segment activities. The Company views segment operating margin as an important performance measure of the core profitability of its operations. This measure is a key component of internal financial reporting and is reviewed for consistency and trend analysis. For a discussion of operating margin, see “Targa Resources Corp. - Non-GAAP Financial Measures - Operating Margin.” Segment operating financial results and operating statistics include the effects of intersegment transactions. These intersegment transactions have been eliminated from the consolidated presentation.

The Company operates in two primary segments: (i) Gathering and Processing and (ii) Logistics and Marketing.

 

Gathering and Processing Segment

 

The Gathering and Processing segment includes assets used in the gathering of natural gas produced from oil and gas wells and processing this raw natural gas into merchantable natural gas by extracting NGLs and removing impurities; and assets used for crude oil gathering and terminaling. The Gathering and Processing segment's assets are located in the Permian Basin of West Texas and Southeast New Mexico; the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including exposure to the SCOOP and STACK plays) and South Central Kansas; the Williston Basin in North Dakota and in the onshore and near offshore regions of the Louisiana Gulf Coast and the Gulf of Mexico.

 

The following table provides summary data regarding results of operations of this segment for the periods indicated:

 

 

Three Months Ended March 31,

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2017

 

 

2018 vs. 2017

 

Gross margin

$

 

325.6

 

 

$

 

263.0

 

 

$

 

62.6

 

 

 

24

%

Operating expenses

 

 

104.8

 

 

 

 

85.6

 

 

 

 

19.2

 

 

 

22

%

Operating margin

$

 

220.8

 

 

$

 

177.4

 

 

$

 

43.4

 

 

 

24

%

Operating statistics (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plant natural gas inlet, MMcf/d (2),(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Permian Midland (4)

 

 

1,014.1

 

 

 

 

793.6

 

 

 

 

220.5

 

 

 

28

%

Permian Delaware (4)

 

 

409.2

 

 

 

 

338.0

 

 

 

 

71.2

 

 

 

21

%

Total Permian

 

 

1,423.3

 

 

 

 

1,131.6

 

 

 

 

291.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SouthTX

 

 

416.3

 

 

 

 

171.8

 

 

 

 

244.5

 

 

 

142

%

North Texas

 

 

235.1

 

 

 

 

282.5

 

 

 

 

(47.4

)

 

 

(17

%)

SouthOK

 

 

529.9

 

 

 

 

440.4

 

 

 

 

89.5

 

 

 

20

%

WestOK

 

 

350.1

 

 

 

 

393.1

 

 

 

 

(43.0

)

 

 

(11

%)

Total Central

 

 

1,531.4

 

 

 

 

1,287.8

 

 

 

 

243.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Badlands (5)

 

 

73.3

 

 

 

 

46.0

 

 

 

 

27.3

 

 

 

59

%

Total Field

 

 

3,028.0

 

 

 

 

2,465.4

 

 

 

 

562.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coastal

 

 

724.3

 

 

 

 

758.2

 

 

 

 

(33.9

)

 

 

(4

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

3,752.3

 

 

 

 

3,223.6

 

 

 

 

528.7

 

 

 

16

%

Gross NGL production, MBbl/d (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Permian Midland (4)

 

 

140.2

 

 

 

 

99.7

 

 

 

 

40.5

 

 

 

41

%

Permian Delaware (4)

 

 

45.7

 

 

 

 

37.9

 

 

 

 

7.8

 

 

 

21

%

Total Permian

 

 

185.9

 

 

 

 

137.6

 

 

 

 

48.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SouthTX

 

 

54.1

 

 

 

 

16.6

 

 

 

 

37.5

 

 

 

226

%

North Texas

 

 

25.9

 

 

 

 

32.0

 

 

 

 

(6.1

)

 

 

(19

%)

SouthOK

 

 

48.9

 

 

 

 

40.9

 

 

 

 

8.0

 

 

 

20

%

WestOK

 

 

19.4

 

 

 

 

22.8

 

 

 

 

(3.4

)

 

 

(15

%)

Total Central

 

 

148.3

 

 

 

 

112.3

 

 

 

 

36.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Badlands

 

 

10.2

 

 

 

 

5.5

 

 

 

 

4.7

 

 

 

85

%

 


 

Total Field

 

 

344.4

 

 

 

 

255.4

 

 

 

 

89.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coastal

 

 

42.6

 

 

 

 

33.3

 

 

 

 

9.3

 

 

 

28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

387.0

 

 

 

 

288.7

 

 

 

 

98.3

 

 

 

34

%

Crude oil gathered, Badlands, MBbl/d

 

 

117.7

 

 

 

 

113.5

 

 

 

 

4.2

 

 

 

4

%

Crude oil gathered, Permian, MBbl/d (4)

 

 

49.4

 

 

 

 

9.2

 

 

 

 

40.2

 

 

NM

 

Natural gas sales, BBtu/d (3)

 

 

1,767.3

 

 

 

 

1,547.4

 

 

 

 

219.9

 

 

 

14

%

NGL sales, MBbl/d

 

 

300.4

 

 

 

 

227.6

 

 

 

 

72.8

 

 

 

32

%

Condensate sales, MBbl/d

 

 

16.2

 

 

 

 

10.7

 

 

 

 

5.5

 

 

 

51

%

Average realized prices (6):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas, $/MMBtu

 

 

2.37

 

 

 

 

2.89

 

 

 

 

(0.52

)

 

 

(18

%)

NGL, $/gal

 

 

0.59

 

 

 

 

0.50

 

 

 

 

0.09

 

 

 

18

%

Condensate, $/Bbl

 

 

59.66

 

 

 

 

44.98

 

 

 

 

14.68

 

 

 

33

%

 

(1)

Segment operating statistics include the effect of intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the quarter and the denominator is the number of calendar days during the quarter.

(2)

Plant natural gas inlet represents the Company's undivided interest in the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant, other than Badlands.

(3)

Plant natural gas inlet volumes and gross NGL production volumes include producer take-in-kind volumes, while natural gas sales and NGL sales exclude producer take-in-kind volumes.

(4)

Includes operations from the Permian Acquisition for the period effective March 1, 2017. New Midland volumes are included within Permian Midland and New Delaware volumes are included within Permian Delaware. For the volume statistics presented, the numerator is the total volume sold during the period of the Company’s ownership while the denominator is the number of calendar days during the quarter.

(5)

Badlands natural gas inlet represents the total wellhead gathered volume.

(6)

Average realized prices exclude the impact of hedging activities presented in Other.

 

Three Months Ended March 31, 2018 Compared to Three Months Ended March 31, 2017

 

The increase in gross margin was primarily due to higher Permian volumes including those associated with the Permian Acquisition in March 2017, higher Central and Badlands region volumes and higher NGL prices. The overall increase in Gathering and Processing inlet volumes included all areas in the Permian region, SouthTX, SouthOK, and Badlands, partially offset by decreases at WestOK, North Texas and Coastal. The Coastal Gathering and Processing assets generate significantly lower unit margins than the Field Gathering and Processing assets.  NGL production, NGL sales and natural gas sales increased primarily due to higher Gathering and Processing inlet volumes and increased NGL recoveries primarily due to reduced ethane rejection.  Total crude oil gathered volumes increased in the Permian region due to the Permian Acquisition and higher production from new wells and system expansions.  In Badlands, total crude oil gathered volumes and natural gas gathered volumes increased primarily due to higher production from new wells and system expansions.

 

The increase in operating expenses was primarily driven by plant and system expansions in the Permian region, the inclusion of the Permian Acquisition in March 2017 and the commencement in operations of the Raptor Plant at SouthTX in June 2017.

 

Gross Operating Statistics Compared to Actual Reported

 

The table below provides a reconciliation between gross operating statistics and the actual reported operating statistics for the Field portion of the Gathering and Processing segment:

 

 

 

Three Months Ended March 31, 2018

 

Operating statistics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plant natural gas inlet, MMcf/d (1),(2)

 

Gross Volume (3)

 

 

Ownership %

 

 

Net Volume (3)

 

 

Actual Reported

 

Permian Midland

 

 

1,257.8

 

 

Varies (4)

 

 

 

1,014.1

 

 

 

1,014.1

 

Permian Delaware

 

 

409.2

 

 

 

100

%

 

 

409.2

 

 

 

409.2

 

Total Permian

 

 

1,667.0

 

 

 

 

 

 

 

1,423.3

 

 

 

1,423.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SouthTX

 

 

416.3

 

 

Varies (5)

 

 

 

294.3

 

 

 

416.3

 

North Texas

 

 

235.1

 

 

 

100

%

 

 

235.1

 

 

 

235.1

 

SouthOK

 

 

529.9

 

 

Varies (6)

 

 

 

429.0

 

 

 

529.9

 

WestOK

 

 

350.1

 

 

 

100

%

 

 

350.1

 

 

 

350.1

 

Total Central

 

 

1,531.4

 

 

 

 

 

 

 

1,308.5

 

 

 

1,531.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Badlands (7)

 

 

73.3

 

 

 

100

%

 

 

73.3

 

 

 

73.3

 

Total Field

 

 

3,271.7

 

 

 

 

 

 

 

2,805.1

 

 

 

3,028.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross NGL production, MBbl/d (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Permian Midland

 

 

174.8

 

 

Varies (4)

 

 

 

140.2

 

 

 

140.2

 

Permian Delaware

 

 

45.7

 

 

 

100

%

 

 

45.7

 

 

 

45.7

 

Total Permian

 

 

220.5

 

 

 

 

 

 

 

185.9

 

 

 

185.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

SouthTX

 

 

54.1

 

 

Varies (5)

 

 

 

36.7

 

 

 

54.1

 

North Texas

 

 

25.9

 

 

 

100

%

 

 

25.9

 

 

 

25.9

 

SouthOK

 

 

48.9

 

 

Varies (6)

 

 

 

40.4

 

 

 

48.9

 

WestOK

 

 

19.4

 

 

 

100

%

 

 

19.4

 

 

 

19.4

 

Total Central

 

 

148.3

 

 

 

 

 

 

 

122.4

 

 

 

148.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Badlands

 

 

10.2

 

 

 

100

%

 

 

10.2

 

 

 

10.2

 

Total Field

 

 

379.0

 

 

 

 

 

 

 

318.5

 

 

 

344.4

 

 

 

(1)

Plant natural gas inlet represents the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant, other than Badlands.

(2)

Plant natural gas inlet volumes and gross NGL production volumes include producer take-in-kind volumes.

(3)

For these volume statistics presented, the numerator is the total volume sold during the quarter and the denominator is the number of calendar days during the quarter.

(4)

Permian Midland includes operations in WestTX, of which the Company owns 73%, and other plants that are owned 100% by the Company. Operating results for the WestTX undivided interest assets are presented on a pro-rata net basis in the Company's reported financials.

(5)

SouthTX includes the Raptor Plant, which began operations in the second quarter of 2017, of which the Company owns a 50% interest through the Carnero Processing Joint Venture. The Carnero Processing Joint Venture is a consolidated subsidiary and its financial results are presented on a gross basis in the Company's reported financials.

(6)

SouthOK includes Centrahoma Processing, LLC, a joint venture that the Company operates (“Centrahoma” or the “Centrahoma Joint Venture”), of which the Company owns 60%, and other plants that are owned 100% by the Company. Centrahoma is a consolidated subsidiary and its financial results are presented on a gross basis in the Company's reported financials.

(7)

Badlands natural gas inlet represents the total wellhead gathered volume.

 

 

 

Three Months Ended March 31, 2017

 

Operating statistics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plant natural gas inlet, MMcf/d (1),(2)

 

Gross Volume (3)

 

 

Ownership %

 

 

Net Volume (3)

 

 

Actual Reported

 

Permian Midland (4)

 

 

987.1

 

 

Varies (5)

 

 

 

793.6

 

 

 

793.6

 

Permian Delaware (4)

 

 

338.0

 

 

 

100

%

 

 

338.0

 

 

 

338.0

 

Total Permian

 

 

1,325.1

 

 

 

 

 

 

 

1,131.6

 

 

 

1,131.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SouthTX

 

 

171.8

 

 

Varies (6)

 

 

 

161.6

 

 

 

171.8

 

North Texas

 

 

282.5

 

 

 

100

%

 

 

282.5

 

 

 

282.5

 

SouthOK

 

 

440.4

 

 

Varies (7)

 

 

 

366.1

 

 

 

440.4

 

WestOK

 

 

393.1

 

 

 

100

%

 

 

393.1

 

 

 

393.1

 

Total Central

 

 

1,287.8

 

 

 

 

 

 

 

1,203.3

 

 

 

1,287.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Badlands (8)

 

 

46.0

 

 

 

100

%

 

 

46.0

 

 

 

46.0

 

Total Field

 

 

2,658.9

 

 

 

 

 

 

 

2,380.9

 

 

 

2,465.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross NGL production, MBbl/d (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Permian Midland (4)

 

 

124.5

 

 

Varies (5)

 

 

 

99.7

 

 

 

99.7

 

Permian Delaware (4)

 

 

37.9

 

 

 

100

%

 

 

37.9

 

 

 

37.9

 

Total Permian

 

 

162.4

 

 

 

 

 

 

 

137.6

 

 

 

137.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SouthTX

 

 

16.6

 

 

Varies (6)

 

 

 

15.7

 

 

 

16.6

 

North Texas

 

 

32.0

 

 

 

100

%

 

 

32.0

 

 

 

32.0

 

SouthOK