Targa Resources Partners LP and Targa Resources Corp. Report Second Quarter 2014 Financial Results, Update Outlook and Announce Management Changes

HOUSTON, Aug. 1, 2014 (GLOBE NEWSWIRE) -- Targa Resources Partners LP (NYSE:NGLS) ("Targa Resources Partners" or the "Partnership") and Targa Resources Corp. (NYSE:TRGP) ("TRC" or the "Company") today reported second quarter 2014 results. Second quarter 2014 net income attributable to Targa Resources Partners was $108.8 million compared to $26.3 million for the second quarter of 2013. Net income per diluted limited partner unit was $0.64 in the second quarter of 2014 compared to $0.01 for the second quarter of 2013. The Partnership reported earnings before interest, income taxes, depreciation and amortization and other non-cash items ("Adjusted EBITDA") of $226.4 million for the second quarter of 2014 compared to $126.5 million for the second quarter of 2013.

The Partnership's distributable cash flow for the second quarter 2014 of $175.3 million corresponds to distribution coverage of approximately 1.4 times the $125.7 million in total distributions to be paid on August 14, 2014 (see the section of this release entitled "Targa Resources Partners - Non-GAAP Financial Measures" for a discussion of Adjusted EBITDA, gross margin, operating margin and distributable cash flow, 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")).

"With another record-setting quarter across both Targa divisions, the strength of our results through the first and second quarters of 2014 is indicative of the continued substantial demand for services across our business footprint. Our 2014 EBITDA is now expected to exceed our record 2013 EBITDA by more than 45%, which is a significant step-change reflective of the success of our ongoing operations and of the growth projects that we brought online in 2013 and thus far in 2014," said Joe Bob Perkins, Chief Executive Officer of the general partner of the Partnership and of the Company.

On July 15, 2014, the Partnership announced a cash distribution for the second quarter 2014 of $0.7800 per common unit, or $3.12 per unit on an annualized basis, representing an increase of approximately 2% over the distribution for the first quarter 2014 and 9% over the distribution for the second quarter 2013. The cash distribution will be paid on August 14, 2014 on all outstanding common units to holders of record as of the close of business on July 28, 2014. The total distribution paid will be $125.7 million, with $79.4 million to the Partnership's third-party limited partners and $46.3 million to TRC for its ownership of common units, incentive distribution rights ("IDRs") and its 2% general partner interest in the Partnership.

Targa Resources Corp. - Second Quarter 2014 Financial Results

Targa Resources Corp., the parent of Targa Resources Partners, today reported its second quarter 2014 results. The Company, which as of June 30, 2014 owned a 2% general partner interest in the Partnership (held through its 100% ownership interest in the general partner of the Partnership), all of the IDRs and 12,945,659 common units of the Partnership, presents its results consolidated with those of the Partnership.

TRC reported net income available to common shareholders of $26.4 million for the second quarter 2014 compared to $15.0 million for the second quarter 2013. The net income per diluted common share was $0.63 in the second quarter of 2014 compared to $0.36 for the second quarter of 2013.

Second quarter 2014 distributions to be paid on August 14, 2014 by the Partnership to the Company will be $46.3 million, with $10.1 million, $33.7 million and $2.5 million paid with respect to common units, IDRs and general partner interests, respectively.

On July 15, 2014, TRC declared a quarterly dividend of $0.6900 per share of its common stock for the three months ended June 30, 2014, or $2.76 per share on an annualized basis, representing increases of approximately 7% over the previous quarter's dividend and 30% over the dividend for the second quarter of 2013. Total cash dividends of approximately $29.0 million will be paid August 15, 2014 on all outstanding common shares to holders of record as of the close of business on July 28, 2014.

The Company's distributable cash flow for the second quarter 2014 was $28.7 million compared to $29.2 million in total declared dividends for the quarter (see the section of this release entitled "Targa Resources Corp. - Non-GAAP Financial Measures" for a discussion of distributable cash flow and reconciliations of this measure to its most directly comparable financial measure calculated and presented in accordance with GAAP).

For detailed report visit link: http://ir.targaresources.com/trc/releasedetail.cfm?ReleaseID=863611

CONTACT: Contact investor relations by phone at (713) 584-1133.

         Jennifer Kneale

         Director - Finance

         Matthew Meloy

         Senior Vice President, Chief Financial Officer

         and Treasurer

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