HOUSTON, May 02, 2024 (GLOBE NEWSWIRE) -- Targa Resources Corp. (NYSE:TRGP) ("TRGP," the "Company" or "Targa") today reported first quarter 2024 results. First quarter 2024 net income attributable to Targa Resources Corp. was $275.2 million compared to $497.0 million for the first quarter of 2023. The Company reported record adjusted earnings before interest, income taxes, depreciation and amortization, and other non-cash items ("adjusted EBITDA")(1) of $966.2 million for the first quarter of 2024 compared to $940.6 million for the first quarter of 2023. Highlights Record adjusted EBITDA for the first quarter of $966.2 million Record Permian and liquefied petroleum gas ("LPG") export volumes during the first quarter Starting up its new 120 thousand barrels per day ("MBbl/d") Train 9 fractionator in Mont Belvieu, TX in early May Announced a new 275 million cubic feet per day ("MMcf/d") Permian Midland gas plant Announced a 150 MBbl/d Train 11 fractionator in Mont Belvieu No change to 2024 and 2025 growth capital estimates Declared a 50% increase to its quarterly cash dividend for the first quarter to $3.00 per share annualized Repurchased approximately $124 million of common stock during the first quarter Continue to estimate full year 2024 adjusted EBITDA between $3.7 billion and $3.9 billion On April 11, 2024, the Company declared a quarterly cash dividend of $0.75 per common share, or $3.00 per common share on an annualized basis, for the first quarter of 2024. This dividend represents a 50 percent increase over the common dividend declared with respect to the first quarter of 2023. Total cash dividends of approximately $166 million will be paid on May 15, 2024 on all outstanding shares of common stock to holders of record as of the close of business on April 30, 2024. Targa repurchased 1,186,444 shares of its common stock during the first quarter of 2024 at a weighted average per share price of $104.26 for a total net cost of $123.7 million. There was $646.4 million remaining under the Company's $1.0 billion common share repurchase program as of March 31, 2024. First Quarter 2024 - Sequential Quarter over Quarter Commentary Targa reported record first quarter adjusted EBITDA of $966.2 million, representing a 1 percent increase compared to the fourth quarter of 2023. In the Gathering and Processing ("G&P") segment, higher sequential adjusted operating margin was attributable to record Permian natural gas inlet volumes and higher fees, despite the impacts of harsh winter weather in January, partially offset by lower natural gas prices. In the Logistics and Transportation ("L&T") segment, lower sequential adjusted operating margin was attributable to lower fractionation volumes, lower LPG export margin and the impacts of harsh winter weather in January, partially offset by strong NGL pipeline transportation volumes, record LPG export volumes and higher marketing margin. Fractionation volumes during the first quarter were reduced due to scheduled maintenance. Higher spot export fees resulted in higher LPG export margin during the fourth quarter of 2023. Marketing margin was higher during the first quarter due to increased seasonal optimization opportunities. Higher segment operating expenses attributable to system expansions were offset by lower general and administrative expenses due to lower compensation and benefits. Capitalization and Liquidity The Company's total consolidated debt as of March 31, 2024 was $13,056.0 million, net of $87.8 million of debt issuance costs and $29.7 million of unamortized discount, with $11,534.4 million of outstanding senior notes, $500.0 million outstanding under the Company's $1.5 billion term loan facility, $360.0 million outstanding under the Commercial Paper Program, $500.0 million outstanding under the Securitization Facility, and $279.1 million of finance lease liabilities. Total consolidated liquidity as of March 31, 2024 was approximately $2.6 billion, including $2.4 billion available under the TRGP Revolver, $109.9 million of cash and $100.0 million available under the Securitization Facility. Growth Projects Update Targa is currently starting up operations at its new 120 MBbl/d Train 9 fractionator in Mont Belvieu, TX, on-time and on-budget. Construction continues on Targa's 275 MMcf/d Greenwood II plant in Permian Midland, and its 230 MMcf/d Roadrunner II and 275 MMcf/d Bull Moose plants in Permian Delaware. In its L&T segment, construction continues on Targa's 120 MBbl/d Train 10 fractionator in Mont Belvieu, its Daytona NGL Pipeline and Targa continues to make progress on the reactivation of Gulf Coast Fractionators ("GCF"). Targa remains on-track to complete these expansions as previously disclosed. In May 2024, in response to increasing production and to meet the infrastructure needs of its customers, Targa announced the construction of a new 275 MMcf/d cryogenic natural gas processing plant in Permian Midland (the "Pembrook II plant") and the construction of a new 150 MBbl/d fractionator in Mont Belvieu ("Train 11"). The Pembrook II plant is expected to begin operations in the fourth quarter of 2025 and Train 11 is expected to begin operations in the third quarter of 2026. There is no change to Targa's estimate for 2024 net growth capital expenditures of between $2.3 billion to $2.5 billion and Targa continues to estimate approximately $1.4 billion of net growth capital expenditures in 2025. Net maintenance capital expenditures for 2024 are estimated to be approximately $225 million. An earnings supplement presentation and an updated investor presentation are available under Events and Presentations in the Investors section of the Company's website at www.targaresources.com/investors/events. 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 2, 2024 to discuss its first quarter results. The conference call can be accessed via webcast under Events and Presentations in the Investors section of the Company's website at www.targaresources.com/investors/events, or by going directly to https://edge.media-server.com/mmc/p/f5my8ung. A webcast replay will be available at the link above approximately two hours after the conclusion of the event. (1) Adjusted EBITDA is a non-GAAP financial measure and is discussed under "Non-GAAP Financial Measures."     Targa Resources Corp. – Consolidated Financial Results of Operations   Three Months Ended March 31,                 2024     2023     2024 vs. 2023     (In millions)   Revenues:                       Sales of commodities $ 3,953.0     $ 4,025.0     $ (72.0 )     (2 %) Fees from midstream services   609.4       495.5       113.9       23 % Total revenues   4,562.4       4,520.5       41.9       1 % Product purchases and fuel   3,218.0       3,019.0       199.0       7 % Operating expenses   278.0       258.2       19.8       8 % Depreciation and amortization expense   340.5       324.8       15.7       5 % General and administrative expense   86.5       82.4       4.1       5 % Other operating (income) expense   —       (0.6 )     0.6       100 % Income (loss) from operations   639.4       836.7       (197.3 )     (24 %) Interest expense, net   (228.6 )     (168.0 )     (60.6 )     36 % Equity earnings (loss)   2.8       (0.2 )     3.0     NM   Other, net   1.7       (3.0 )     4.7       157 % Income tax (expense) benefit   (82.7 )     (110.3 )     27.6       25 % Net income (loss)   332.6       555.2       (222.6 )     (40 %) Less: Net income (loss) attributable to noncontrolling interests   57.4       58.2       (0.8 )     (1 %) Net income (loss) attributable to Targa Resources Corp.   275.2       497.0       (221.8 )     (45 %) Premium on repurchase of noncontrolling interests, net of tax   —       490.7       (490.7 )     (100 %) Net income (loss) attributable to common shareholders $ 275.2     $ 6.3     $ 268.9     NM   Financial data:                       Adjusted EBITDA (1) $ 966.2     $ 940.6     $ 25.6       3 % Adjusted cash flow from operations (1)   738.4       771.2       (32.8 )     (4 %) Adjusted free cash flow (1)   2.8       314.0       (311.2 )     (99 %) ________________________ (1) Adjusted EBITDA, adjusted cash flow from operations and adjusted free cash flow are non-GAAP financial measures and are discussed under "Non-GAAP Financial Measures." 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, 2024 Compared to Three Months Ended March 31, 2023 The decrease in commodity sales reflects lower natural gas and NGL prices ($589.0 million), the unfavorable impact of hedges ($258.4 million) and lower condensate volumes ($7.4 million), partially offset by higher NGL and natural gas volumes ($759.3 million) and higher condensate prices ($23.4 million). The increase in fees from midstream services is primarily due to higher gas gathering and processing fees, and higher export volumes. The increase in product purchases and fuel reflects higher NGL and natural gas volumes and higher condensate prices, partially offset by lower natural gas and NGL prices. The increase in operating expenses is primarily due to higher rental and labor costs as a result of increased activity and system expansions. See "—Review of Segment Performance" for additional information on a segment basis. The increase in depreciation and amortization expense is primarily due to the impact of system expansions on the Company's asset base, partially offset by the shortening of depreciable lives of certain assets that were idled in the second quarter of 2023 and subsequently shut down in the third quarter of 2023. The increase in interest expense, net, is due to recognition of cumulative interest on a 2024 legal ruling associated with the Splitter Agreement and higher borrowings, partially offset by an increase in capitalized interest. The decrease in income tax expense is primarily due to a decrease in pre-tax book income. The premium on repurchase of noncontrolling interests, net of tax is due to the Grand Prix Transaction in 2023. Review of Segment Performance The following discussion of segment performance includes inter-segment activities. The Company views segment operating margin and adjusted operating margin as important performance measures of the core profitability of its operations. These measures are key components of internal financial reporting and are reviewed for consistency and trend analysis. For a discussion of adjusted operating margin, see "Non-GAAP Financial Measures ― Adjusted 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 Transportation. Gathering and Processing Segment The Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment's assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and 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,                   2024     2023     2024 vs. 2023       (In millions, except operating statistics and price amounts)   Operating margin $ 556.4     $ 538.4     $ 18.0     3 % Operating expenses   188.1       181.4       6.7     4 % Adjusted operating margin $ 744.5     $ 719.8     $ 24.7     3 % Operating statistics (1):                             Plant natural gas inlet, ...