HOUSTON — Targa Resources Partners reported a net profit of more than double last year’s third quarter as the midstream company saw more volume and fees from its natural gas liquid business.
Targa said profits rose to $128.3 million in the third quarter of 2014, compared to $59.7 million for the third quarter of 2013. The company reported a distributable cash flow for the recent period of $192.5 million compared to $110.8 million for the previous quarter.
Joe Bob Perkins, CEO of Targa, said in a statement the company had operated with “record operating margin in our predominately fee-based logistics and marketing division and with record operating margin and natural gas inlet volumes in our field gathering and processing segment.”
Houston-based Targa Resources Partners LP is structured as a tax-advantaged master limited partnership, where the majority of cash flow is passed along to investors in dividend-like payments. The company announced $130.9 million in total distributions to be paid on Nov. 14.
Targa’s logistics business — which stores, transports and processes natural gas liquids — saw gross margins rise from $70.5 million in the third quarter of 2013 to $118.6 million in the most recent quarter.
The most dramatic gain in the segment was Targa’s propane and butane exports, which averaged 205,900 barrels per day in the third quarter of 2014 compared to 55,200 barrels per day for the same period last year. The company said its international export expansion project became fully operational in the third quarter of 2014.
In October, Targa announced it would be greatly expanding its footprint by acquiring Atlas Pipeline and Atlas Energy in a complicated $5.9 billion deal.
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