Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | TARGA RESOURCES CORP. | |
Trading Symbol | TRGP | |
Entity Central Index Key | 0001389170 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 229,013,171 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Tax Identification Number | 20-3701075 | |
Entity File Number | 001-34991 | |
Entity Address, Address Line One | 811 Louisiana St | |
Entity Address, Address Line Two | Suite 2100 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 584-1000 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 275 | $ 331.1 | |
Trade receivables, net of allowances of $0.1 and $0.0 million at September 30, 2020 and December 31, 2019 | 609.8 | 855 | |
Inventories | 261.7 | 161.5 | |
Assets from risk management activities | 88.9 | 103.3 | |
Deposits | 110.1 | 35.4 | |
Held for sale assets | 62.2 | 137.7 | |
Other current assets | 36.7 | 34.3 | |
Total current assets | 1,444.4 | 1,658.3 | |
Property, plant and equipment, net | 12,292.8 | 14,548.5 | |
Intangible assets, net | 1,417.6 | 1,735 | |
Long-term assets from risk management activities | 79.5 | 35.5 | |
Investments in unconsolidated affiliates | 718.8 | 738.7 | |
Other long-term assets | 99 | 99.1 | |
Total assets | 16,052.1 | 18,815.1 | |
Current liabilities: | |||
Accounts payable | 617.7 | 954.8 | |
Accrued liabilities | 69.5 | 114.4 | |
Dividends payable | 125.9 | 122.6 | |
Interest payable | 95.3 | 125.7 | |
Accrued taxes | 85.9 | 62.4 | |
Liabilities from risk management activities | 121.1 | 104.1 | |
Current debt obligations | [1] | 261.9 | 382.2 |
Held for sale liabilities | 3.6 | 6.4 | |
Total current liabilities | 1,380.9 | 1,872.6 | |
Long-term debt | 7,652.2 | 7,440.2 | |
Long-term liabilities from risk management activities | 62.9 | 40.8 | |
Deferred income taxes, net | 131.1 | 434.2 | |
Other long-term liabilities | 307 | 305.6 | |
Contingencies (see Note 13) | 0 | 0 | |
Targa Resources Corp. stockholders' equity: | |||
Common stock value | 0.2 | 0.2 | |
Preferred stock ($0.001 par value, after designation of Series A Preferred Stock: 98,800,000 shares authorized, no shares issued and outstanding) | 0 | 0 | |
Additional paid-in capital | 4,911.7 | 5,221.2 | |
Retained earnings (deficit) | (1,927.1) | (339.6) | |
Accumulated other comprehensive income (loss) | (90.8) | 92.5 | |
Treasury stock, at cost (1,227,673 shares as of September 30, 2020 and 1,009,284 shares as of December 31, 2019) | (59) | (53.5) | |
Total Targa Resources Corp. stockholders' equity | 2,835 | 4,920.8 | |
Noncontrolling interests | 3,376.5 | 3,522.1 | |
Total owners' equity | 6,211.5 | 8,442.9 | |
Total liabilities, Series A Preferred Stock and owners' equity | 16,052.1 | 18,815.1 | |
Series A Preferred Stock [Member] | |||
Current liabilities: | |||
Series A Preferred 9.5% Stock, $1,000 per share liquidation preference, (1,200,000 shares authorized, 965,100 shares issued and outstanding), net of discount (see Note 7) | $ 306.5 | $ 278.8 | |
[1] | While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Trade receivables, allowances | $ 0.1 | $ 0 |
Targa Resources Corp. stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 234,745,594 | 233,852,810 |
Common stock, shares outstanding (in shares) | 233,517,921 | 232,843,526 |
Preferred stock, par value (in dollar per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 98,800,000 | 98,800,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 1,227,673 | 1,009,284 |
Series A Preferred Stock [Member] | ||
LIABILITIES, SERIES A PREFERRED STOCK AND OWNERS' EQUITY | ||
Preferred Series A Liquidation Stock Percentage | 9.50% | 9.50% |
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | $ 1,000 |
Preferred Stock, Shares Authorized | 1,200,000 | 1,200,000 |
Preferred Stock, Shares Issued | 965,100 | 965,100 |
Preferred Stock, Shares Outstanding | 965,100 | 965,100 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Total revenues | $ 2,115.1 | $ 1,902.5 | $ 5,687.5 | $ 6,197.2 |
Costs and expenses: | ||||
Product purchases | 1,303.2 | 1,328.1 | 3,346.8 | 4,415.7 |
Operating expenses | 181.9 | 200.2 | 565.1 | 600.8 |
Depreciation and amortization expense | 203.7 | 244.3 | 647.3 | 718.9 |
General and administrative expense | 58.6 | 69.9 | 180.6 | 223.5 |
Impairment of long-lived assets | 2,442.8 | |||
Other operating (income) expense | 72.2 | 18.4 | 73.8 | 21.7 |
Income (loss) from operations | 295.5 | 41.6 | (1,568.9) | 216.6 |
Other income (expense): | ||||
Interest expense, net | (97.7) | (89.1) | (292.4) | (241.8) |
Equity earnings (loss) | 18.6 | 10 | 54.1 | 15.9 |
Gain (loss) from financing activities | (13.7) | 47.4 | (1.4) | |
Gain (loss) from sale of equity-method investment | 65.8 | 65.8 | ||
Change in contingent considerations | (8.8) | |||
Other, net | 1.4 | 2.2 | ||
Income (loss) before income taxes | 204.1 | 28.3 | (1,757.6) | 46.3 |
Income tax (expense) benefit | (31.9) | 3.8 | 286.6 | 10 |
Net income (loss) | 172.2 | 32.1 | (1,471) | 56.3 |
Less: Net income (loss) attributable to noncontrolling interests | 102.9 | 79.4 | 116.5 | 152.7 |
Net income (loss) attributable to Targa Resources Corp. | 69.3 | (47.3) | (1,587.5) | (96.4) |
Dividends on Series A Preferred Stock | 22.9 | 22.9 | 68.8 | 68.8 |
Deemed dividends on Series A Preferred Stock | 9.5 | 8.4 | 27.7 | 24.4 |
Net income (loss) attributable to common shareholders | $ 36.9 | $ (78.6) | $ (1,684) | $ (189.6) |
Net income (loss) per common share - basic | $ 0.16 | $ (0.34) | $ (7.22) | $ (0.82) |
Net income (loss) per common share - diluted | $ 0.16 | $ (0.34) | $ (7.22) | $ (0.82) |
Weighted average shares outstanding - basic | 233.4 | 232.7 | 233.2 | 232.4 |
Weighted average shares outstanding - diluted | 233.8 | 232.7 | 233.2 | 232.4 |
Sales of Commodities [Member] | ||||
Revenues: | ||||
Total revenues | $ 1,840.8 | $ 1,594.2 | $ 4,900.8 | $ 5,254.8 |
Fees from Midstream Services [Member] | ||||
Revenues: | ||||
Total revenues | $ 274.3 | $ 308.3 | $ 786.7 | $ 942.4 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income (loss) | $ 172.2 | $ 32.1 | $ (1,471) | $ 56.3 |
Commodity hedging contracts: | ||||
Other comprehensive income (loss), pre-tax | (147.9) | 76.7 | (242) | 61.7 |
Other comprehensive income (loss), related income tax | 35.5 | (18.8) | 58.7 | (15.1) |
Other comprehensive income (loss), after tax | (112.4) | 57.9 | (183.3) | 46.6 |
Comprehensive income (loss) | 59.8 | 90 | (1,654.3) | 102.9 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 102.9 | 79.4 | 116.5 | 152.7 |
Comprehensive income (loss) attributable to Targa Resources Corp. | (43.1) | 10.6 | (1,770.8) | (49.8) |
Commodity Contracts [Member] | ||||
Commodity hedging contracts: | ||||
Change in fair value, pre-tax | (128.7) | 118.2 | (102.6) | 167.8 |
Change in fair value, related income tax | 31.7 | (28.8) | 23.5 | (40.7) |
Change in fair value, after tax | (97) | 89.4 | (79.1) | 127.1 |
Settlements reclassified to revenues, pre-tax | (19.2) | (41.5) | (139.4) | (106.1) |
Settlements reclassified to revenues, related income tax | 3.8 | 10 | 35.2 | 25.6 |
Settlements reclassified to revenues, after tax | $ (15.4) | $ (31.5) | $ (104.2) | $ (80.5) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN OWNERS' EQUITY AND SERIES A PREFERRED STOCK (Unaudited) - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Shares [Member] | Noncontrolling Interests [Member] | Series A Preferred Stock [Member] |
Balance at Dec. 31, 2018 | $ 7,470.8 | $ 0.2 | $ 6,154.9 | $ (130.4) | $ 94.3 | $ (39.6) | $ 1,391.4 | |
Balance (in shares) at Dec. 31, 2018 | 231,791 | 666 | ||||||
Series A Preferred Stock at Dec. 31, 2018 | $ 245.7 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Compensation on equity grants | 49 | 49 | ||||||
Distribution equivalent rights | (10.5) | (10.5) | ||||||
Shares issued under compensation program (in shares) | 1,327 | |||||||
Shares and units tendered for tax withholding obligations | (13.5) | $ (13.5) | ||||||
Shares and units tendered for tax withholding obligations (in shares) | (335) | 335 | ||||||
Series A Preferred Stock dividends | ||||||||
Preferred stock dividends | (68.8) | (68.8) | ||||||
Dividends in excess of retained earnings | (68.8) | 68.8 | ||||||
Deemed dividends - accretion of beneficial conversion feature | (24.4) | (24.4) | 24.4 | |||||
Common stock dividends | ||||||||
Common stock dividends | (634.8) | (634.8) | ||||||
Dividends in excess of retained earnings | (634.8) | 634.8 | ||||||
Distributions to noncontrolling interests | (181.1) | (181.1) | ||||||
Contributions from noncontrolling interests | 518.8 | 518.8 | ||||||
Sale of ownership interests in subsidiaries, net | 1,611.5 | (8.2) | 1,619.7 | |||||
Other comprehensive income (loss) | 46.6 | 46.6 | ||||||
Net income (loss) | 56.3 | (96.4) | 152.7 | |||||
Balance at Sep. 30, 2019 | 8,819.9 | $ 0.2 | 5,457.2 | (226.8) | 140.9 | $ (53.1) | 3,501.5 | |
Balance (in shares) at Sep. 30, 2019 | 232,783 | 1,001 | ||||||
Series A Preferred Stock at Sep. 30, 2019 | 270.1 | |||||||
Balance at Jun. 30, 2019 | 8,939.1 | $ 0.2 | 5,687.8 | (179.5) | 83 | $ (49.2) | 3,396.8 | |
Balance (in shares) at Jun. 30, 2019 | 232,476 | 896 | ||||||
Series A Preferred Stock at Jun. 30, 2019 | 261.7 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Compensation on equity grants | 16.1 | 16.1 | ||||||
Distribution equivalent rights | (3.7) | (3.7) | ||||||
Shares issued under compensation program (in shares) | 412 | |||||||
Shares and units tendered for tax withholding obligations | (3.9) | $ (3.9) | ||||||
Shares and units tendered for tax withholding obligations (in shares) | (105) | 105 | ||||||
Series A Preferred Stock dividends | ||||||||
Preferred stock dividends | (22.9) | (22.9) | ||||||
Dividends in excess of retained earnings | (22.9) | 22.9 | ||||||
Deemed dividends - accretion of beneficial conversion feature | (8.4) | (8.4) | 8.4 | |||||
Common stock dividends | ||||||||
Common stock dividends | (211.7) | (211.7) | ||||||
Dividends in excess of retained earnings | (211.7) | 211.7 | ||||||
Distributions to noncontrolling interests | (90) | (90) | ||||||
Contributions from noncontrolling interests | 115.3 | 115.3 | ||||||
Other comprehensive income (loss) | 57.9 | 57.9 | ||||||
Net income (loss) | 32.1 | (47.3) | 79.4 | |||||
Balance at Sep. 30, 2019 | 8,819.9 | $ 0.2 | 5,457.2 | (226.8) | 140.9 | $ (53.1) | 3,501.5 | |
Balance (in shares) at Sep. 30, 2019 | 232,783 | 1,001 | ||||||
Series A Preferred Stock at Sep. 30, 2019 | 270.1 | |||||||
Balance at Dec. 31, 2019 | 8,442.9 | $ 0.2 | 5,221.2 | (339.6) | 92.5 | $ (53.5) | 3,522.1 | |
Balance (in shares) at Dec. 31, 2019 | 232,844 | 1,010 | ||||||
Series A Preferred Stock at Dec. 31, 2019 | 278.8 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Compensation on equity grants | 49.5 | 49.5 | ||||||
Distribution equivalent rights | (3.5) | (3.5) | ||||||
Shares issued under compensation program (in shares) | 892 | |||||||
Shares and units tendered for tax withholding obligations | (5.5) | $ (5.5) | ||||||
Shares and units tendered for tax withholding obligations (in shares) | (218) | 218 | ||||||
Series A Preferred Stock dividends | ||||||||
Preferred stock dividends | (68.8) | (68.8) | ||||||
Dividends in excess of retained earnings | (68.8) | 68.8 | ||||||
Deemed dividends - accretion of beneficial conversion feature | (27.7) | (27.7) | 27.7 | |||||
Common stock dividends | ||||||||
Common stock dividends | (259) | (259) | ||||||
Dividends in excess of retained earnings | (259) | 259 | ||||||
Distributions to noncontrolling interests | (322.9) | (322.9) | ||||||
Contributions from noncontrolling interests | 33.3 | 33.3 | ||||||
Non-cash allocation to noncontrolling interests | 27.5 | 27.5 | ||||||
Other comprehensive income (loss) | (183.3) | (183.3) | ||||||
Net income (loss) | (1,471) | (1,587.5) | 116.5 | |||||
Balance at Sep. 30, 2020 | 6,211.5 | $ 0.2 | 4,911.7 | (1,927.1) | (90.8) | $ (59) | 3,376.5 | |
Balance (in shares) at Sep. 30, 2020 | 233,518 | 1,228 | ||||||
Series A Preferred Stock at Sep. 30, 2020 | 306.5 | |||||||
Balance at Jun. 30, 2020 | 6,269.1 | $ 0.2 | 4,949.1 | (1,996.4) | 21.6 | $ (56.9) | 3,351.5 | |
Balance (in shares) at Jun. 30, 2020 | 233,177 | 1,116 | ||||||
Series A Preferred Stock at Jun. 30, 2020 | 297 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Compensation on equity grants | 16.4 | 16.4 | ||||||
Distribution equivalent rights | 1.9 | 1.9 | ||||||
Shares issued under compensation program (in shares) | 453 | |||||||
Shares and units tendered for tax withholding obligations | (2.1) | $ (2.1) | ||||||
Shares and units tendered for tax withholding obligations (in shares) | (112) | 112 | ||||||
Series A Preferred Stock dividends | ||||||||
Preferred stock dividends | (22.9) | (22.9) | ||||||
Dividends in excess of retained earnings | (22.9) | 22.9 | ||||||
Deemed dividends - accretion of beneficial conversion feature | (9.5) | (9.5) | 9.5 | |||||
Common stock dividends | ||||||||
Common stock dividends | (23.3) | (23.3) | ||||||
Dividends in excess of retained earnings | (23.3) | 23.3 | ||||||
Distributions to noncontrolling interests | (113.1) | (113.1) | ||||||
Contributions from noncontrolling interests | 7.7 | 7.7 | ||||||
Non-cash allocation to noncontrolling interests | 27.5 | 27.5 | ||||||
Other comprehensive income (loss) | (112.4) | (112.4) | ||||||
Net income (loss) | 172.2 | 69.3 | 102.9 | |||||
Balance at Sep. 30, 2020 | $ 6,211.5 | $ 0.2 | $ 4,911.7 | $ (1,927.1) | $ (90.8) | $ (59) | $ 3,376.5 | |
Balance (in shares) at Sep. 30, 2020 | 233,518 | 1,228 | ||||||
Series A Preferred Stock at Sep. 30, 2020 | $ 306.5 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN OWNERS' EQUITY AND SERIES A PREFERRED STOCK (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||
Preferred stock dividends, per share | $ 23.75 | $ 23.75 | $ 71.25 | $ 71.25 |
Common stock dividends, per share | $ 0.10 | $ 0.91 | $ 1.11 | $ 2.73 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Cash flows from operating activities | |||
Net income (loss) | $ (1,471) | $ 56.3 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Amortization in interest expense | 8.5 | 7.6 | |
Compensation on equity grants | 49.5 | 49 | |
Depreciation and amortization expense | 647.3 | 718.9 | |
Impairment of long-lived assets | 2,442.8 | ||
Accretion of asset retirement obligations | 2.6 | 3.7 | |
Deferred income tax expense (benefit) | (269.8) | (10) | |
Equity (earnings) loss of unconsolidated affiliates | (54.1) | (15.9) | |
Distributions of earnings received from unconsolidated affiliates | 65.5 | 26 | |
Risk management activities | (214.2) | 100.8 | |
(Gain) loss on sale or disposition of business and assets | [1] | 58 | 3.6 |
Write-downs of assets | [2] | 13.5 | 17.9 |
(Gain) loss from financing activities | (47.4) | 1.4 | |
(Gain) loss from sale of equity-method investment | (65.8) | ||
Change in contingent considerations | 8.8 | ||
Changes in operating assets and liabilities, net of business acquisitions: | |||
Receivables and other assets | 168.7 | 98.4 | |
Inventories | (115.8) | (89.7) | |
Accounts payable, accrued liabilities and other liabilities | (158) | (4.2) | |
Interest payable | (30.4) | 12.2 | |
Net cash provided by operating activities | 1,095.7 | 919 | |
Cash flows from investing activities | |||
Outlays for property, plant and equipment | (803.1) | (2,434.1) | |
Proceeds from sale of business and assets | 135.9 | 2.7 | |
Investments in unconsolidated affiliates | (2.2) | (243.7) | |
Proceeds from sale of equity-method investment | 70.3 | ||
Return of capital from unconsolidated affiliates | 10.7 | 1.1 | |
Other, net | 4.7 | (16.3) | |
Net cash used in investing activities | (654) | (2,620) | |
Debt obligations: | |||
Proceeds from borrowings under credit facilities | 1,460 | 2,630 | |
Repayments of credit facilities | (1,360) | (2,500) | |
Proceeds from borrowings under accounts receivable securitization facility | 476.4 | 770 | |
Repayments of accounts receivable securitization facility | (596.4) | (804) | |
Proceeds from issuance of senior notes | 1,000 | 1,500 | |
Redemption of senior notes | (831) | (749.4) | |
Principal payments of finance leases | (9.3) | (8.5) | |
Costs incurred in connection with financing arrangements | (9.6) | (25.2) | |
Payment of contingent consideration | (317.1) | ||
Repurchase of shares and units under compensation plans | (5.5) | (13.5) | |
Sale of ownership interests in subsidiaries | 1,619.7 | ||
Contributions from noncontrolling interests | 33.3 | 518.8 | |
Distributions to noncontrolling interests | (310.6) | (98.9) | |
Distributions to Partnership unitholders | (8.4) | (8.4) | |
Dividends paid to common and Series A preferred shareholders | (336.7) | (718.3) | |
Net cash provided by (used in) financing activities | (497.8) | 1,795.2 | |
Net change in cash and cash equivalents | (56.1) | 94.2 | |
Cash and cash equivalents, beginning of period | 331.1 | 232.1 | |
Cash and cash equivalents, end of period | $ 275 | $ 326.3 | |
[1] | In October 2020, we recognized a loss of $58.3 million for the three and nine months ended September 30, 2020 to reduce the carrying value of our assets in Channelview, Texas in connection with the October 2020 Sale. See Note 4 – Property, Plant and Equipment and Intangible Assets for further details. | ||
[2] | Related to the write-down of certain assets to their recoverable amounts |
Organization and Operations
Organization and Operations | 9 Months Ended |
Sep. 30, 2020 | |
Organization [Abstract] | |
Organization and Operations | Note 1 — Organization and Operations Our Organization Targa Resources Corp. (“TRC”) is a publicly traded Delaware corporation formed in October 2005. Our common stock is listed on the New York Stock Exchange under the symbol “TRGP.” In this Quarterly Report, unless the context requires otherwise, references to “we,” “us,” “our,” “the Company” or “Targa” are intended to mean our consolidated business and operations. TRC controls the general partner of and owns all of the outstanding common units representing limited partner interests in Targa Resources Partners LP, referred to herein as the “Partnership” or “TRP.” Our Operations The Company is primarily engaged in the business of: • gathering, compressing, treating, processing, transporting and purchasing and selling natural gas; • transporting, storing, fractionating, treating and purchasing and selling NGLs and NGL products, including services to LPG exporters; and • gathering, storing, terminaling and purchasing and selling crude oil. See Note 18 – Segment Information for certain financial information regarding our business segments. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 2 — Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by GAAP. Therefore, this information should be read in conjunction with our consolidated financial statements and notes contained in our Annual Report. The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results of the interim periods reported. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts in prior periods have been reclassified to conform to the current year presentation. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 3 — Significant Accounting Policies The accounting policies that we follow are set forth in Note 3 – Significant Accounting Policies of the Notes to Consolidated Financial Statements in our Annual Report. Other than the updates noted below, there were no significant updates or revisions to our accounting policies during the nine months ended September 30, 2020. Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted Convertible Debt and Equity Instruments In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Recently adopted accounting pronouncements Measurement of Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The amendments require entities to consider historical information, current conditions, and supportable forecasts to estimate expected credit losses, which may result in earlier recognition of losses. The amendments were effective for us on January 1, 2020 and were adopted by applying the modified retrospective transition approach. The adoption did not result in a cumulative effect adjustment to retained earnings on January 1, 2020. As a result of our adoption, see Accounting Policy Updates – Allowance for Doubtful Accounts below. Accounting Policy Updates Allowance for Doubtful Accounts Estimated losses on accounts receivable are provided through an allowance for doubtful accounts. We estimate the allowance for doubtful accounts through various procedures, including extensive review of our trade receivable balances by counterparty, assessing economic events and conditions, our historical experience with counterparties, the counterparty’s financial condition and the amount and age of past due accounts. We continuously evaluate our ability to collect amounts owed to us. Receivables are considered past due if full payment is not received by the contractual due date. These procedures also include performing account reconciliations, dispute resolution and payment confirmation. We may involve our legal counsel to pursue the recovery of defaulted trade receivables. As the financial condition of any counterparty changes, circumstances develop or additional information becomes available, adjustments to our allowance may be required. |
Property, Plant and Equipment a
Property, Plant and Equipment and Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment And Intangible Assets [Abstract] | |
Property, Plant and Equipment and Intangible Assets | Note 4 — Property, Plant and Equipment and Intangible Assets September 30, 2020 December 31, 2019 Estimated Useful Lives (In Years) Gathering systems $ 9,125.2 $ 8,976.8 5 to 20 Processing and fractionation facilities 6,138.3 5,143.0 5 to 25 Terminaling and storage facilities 1,514.8 1,495.5 5 to 25 Transportation assets 2,422.6 2,292.4 10 to 50 Other property, plant and equipment 123.9 184.1 3 to 50 Land 160.7 159.7 — Construction in progress 697.5 1,576.5 — Finance lease right-of-use assets 51.3 48.8 Property, plant and equipment 20,234.3 19,876.8 Accumulated depreciation, amortization and impairment (7,941.5 ) (5,328.3 ) Property, plant and equipment, net $ 12,292.8 $ 14,548.5 Intangible assets $ 2,643.5 $ 2,643.5 10 to 20 Accumulated amortization and impairment (1,225.9 ) (908.5 ) Intangible assets, net $ 1,417.6 $ 1,735.0 During the preparation of the Company's first quarter 2019 consolidated financial statements, the Company identified an error related to depreciation expense on certain assets that should have been placed in-service during 2018. The Company does not believe this error is material to its previously issued historical consolidated financial statements for any of the periods impacted and accordingly, has not adjusted the historical financial statements. The Company recorded the cumulative impact of a one-time $12.5 million overstatement of depreciation expense during the first quarter of 2019. During the three and nine months ended September 30, 2020, depreciation expense was $168.5 million and $538.5 million, respectively. During the three and nine months ended September 30, 2019, depreciation expense was $201.4 million and $590.1 million, respectively. Asset Impairments We review and evaluate our long-lived assets, including intangible assets, for impairment when events or changes in circumstances indicate that the related carrying amount of such assets may not be recoverable, and changes to our estimates could have an impact on our assessment of asset recoverability . During the nine months ended September 30, 2020, global commodity prices declined due to factors that significantly impacted both demand and supply. As the COVID-19 pandemic spread, causing travel and other restrictions to be implemented globally, the demand for commodities declined. Additionally, the supply shock late in the first quarter from certain major oil producing nations increasing production also significantly contributed to the sharp drop in commodity prices. While these major oil and gas producing countries subsequently agreed to collectively decrease production and global economies are beginning to re-open, these events, combined with the outbreak of the COVID-19 pandemic, contributed to volatility and depressed commodity prices. The drop in commodity prices resulted in prompt reactions from some domestic producers, including significantly reducing capital budgets and resultant drilling activity and shutting-in production. Commodity prices remain weak relative to historical levels and have remained volatile as uncertainty around global commodity supply and demand continues due to the COVID-19 pandemic. In the first quarter of 2020, we determined that indicators of impairment existed for certain asset groups reported primarily within our Gathering and Processing segment. For each asset group for which undiscounted future net cash flows were not sufficient to recover the net book value, fair value was determined through use of discounted estimated cash flows to measure the impairment loss. The estimated cash flows used to assess recoverability of our long-lived assets and measure fair value of our asset groups are derived from current business plans, which are developed using near-term price and volume projections reflective of the current environment and management's projections for long-term average prices and volumes. In addition to near and long-term price assumptions, other key assumptions include volume projections, operating costs, timing of incurring such costs and the use of an appropriate discount rate. We believe our estimates and models used to determine fair value are similar to what a market participant would use. The fair value measurement of our long-lived assets was based, in part, on significant inputs not observable in the market (as discussed above) and thus represents a Level 3 measurement. The significant unobservable inputs used include discount rates and terminal value exit multiples. We utilized a weighted average discount rate of 14.0% when deriving the fair value of the asset groups impaired during the first quarter of 2020. The weighted average discount rate and exit multiples reflect management’s best estimate of inputs a market participant would utilize. In the first quarter of 2020, we recorded non-cash pre-tax impairments of $2,442.8 million primarily associated with the partial impairment of gas processing facilities and gathering systems associated with our Mid-Continent operations and full impairment of our Coastal operations - all of which are in our Gathering and Processing segment. Our first quarter impairment assessment forecasted further decline in natural gas production across the Mid-Continent and Gulf of Mexico. The carrying value adjustments are included in Impairment of long-lived assets in our Consolidated Statements of Operations. There were no indicators of impairment identified during the second or third quarters of 2020. Intangible Assets Intangible assets consist of customer contracts and customer relationships acquired in prior business combinations. The fair value of these acquired intangible assets were determined at the date of acquisition based on the present values of estimated future cash flows. Amortization expense attributable to these assets is recorded over the periods in which we benefit from services provided to customers. As a result of the triggering events and analysis described above, in the first quarter of 2020, we The estimated annual amortization expense for intangible assets is approximately $144.0 million, $130.9 million, $122.7 million, $117.5 million and $113.7 million for each of the years 2020 through 2024, respectively. The changes in our intangible assets are as follows: Balance at December 31, 2019 $ 1,735.0 Impairment (208.6 ) Amortization (108.8 ) Balance at September 30, 2020 $ 1,417.6 Assets and L iabilities H eld for S ale In October 2020, we executed agreements to sell our assets in Channelview, Texas for approximately $58 million (the “October 2020 Sale”). As of September 30, 2020, we classified our assets as held for sale and measured the fair value of the disposal group using the expected sales price under a contract with a third party (an input within Level 3 of the fair value hierarchy). We recognized a loss of $58.3 million included within other operating (income) expense in our Consolidated Statements of Operations for the three and nine months ended September 30, 2020 to reduce the carrying value of our assets to their recoverable amounts. The sale closed in October 2020, and we used the proceeds for general corporate purposes. The sale of the assets is included in our Logistics and Transportation segment and does not qualify for reporting as a discontinued operation, as its divestiture did not represent a strategic shift that would have a major effect on our operations or financial results. The adjusted carrying amounts of the assets and liabilities held for sale as of September 30, 2020 are as follows: September 30, 2020 Current assets: Property, plant and equipment, net of accumulated depreciation and estimated loss on sale $ 61.0 Other current assets 1.2 Total assets held for sale $ 62.2 Current liabilities: Accounts payable and accrued liabilities $ 1.0 Other long-term obligations 2.6 Total liabilities held for sale $ 3.6 |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Note 5 — Debt Obligations September 30, 2020 December 31, 2019 Current: Obligations of the Partnership: (1) Accounts receivable securitization facility, due April 2021 $ 250.0 $ 370.0 Finance lease liabilities 11.9 12.2 Current debt obligations 261.9 382.2 Long-term: TRC obligations: TRC Senior secured revolving credit facility, variable rate, due June 2023 435.0 435.0 Obligations of the Partnership: (1) Senior secured revolving credit facility, variable rate, due June 2023 100.0 — Senior unsecured notes: 5¼% fixed rate, due May 2023 559.6 559.6 4¼% fixed rate, due November 2023 583.9 583.9 6¾% fixed rate, due March 2024 — 580.1 5⅛% fixed rate, due February 2025 481.0 500.0 5⅞% fixed rate, due April 2026 963.2 1,000.0 5⅜% fixed rate, due February 2027 468.1 500.0 6½% fixed rate, due July 2027 705.2 750.0 5% fixed rate, due January 2028 700.3 750.0 6⅞% fixed rate, due January 2029 679.3 750.0 5½% fixed rate, due March 2030 949.6 1,000.0 4⅞% fixed rate, due February 2031 1,000.0 — TPL notes, 4¾% fixed rate, due November 2021 6.5 6.5 TPL notes, 5⅞% fixed rate, due August 2023 48.1 48.1 Unamortized premium 0.2 0.3 7,680.0 7,463.5 Debt issuance costs, net of amortization (48.5 ) (49.1 ) Finance lease liabilities 20.7 25.8 Long-term debt 7,652.2 7,440.2 Total debt obligations $ 7,914.1 $ 7,822.4 Irrevocable standby letters of credit: Letters of credit outstanding under the TRC Senior secured credit facility (3) $ — $ — Letters of credit outstanding under the Partnership senior secured revolving credit facility (4) 35.3 88.2 $ 35.3 $ 88.2 (1) While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. (2) As of September 30, 2020, the Partnership had $250.0 million of qualifying receivables under its $250.0 million accounts receivable securitization facility (“Securitization Facility”), resulting in zero availability. During the second quarter of 2020, the Partnership amended the Securitization Facility to decrease the facility size from $400.0 million to $250.0 million to more closely align with our expectations for borrowing needs given commodity prices and to extend the facility termination date to April 21, 2021. (3) As of September 30, 2020, availability under TRC’s $670.0 million senior secured revolving credit facility (“TRC Revolver”) was $235.0 million. (4) As of September 30, 2020, availability under the Partnership’s $2.2 billion senior secured revolving credit facility (“TRP Revolver”) was $2,064.7 million. (5) “TPL” refers to Targa Pipeline Partners LP. The following table shows the range of interest rates and weighted average interest rate incurred on variable-rate debt obligations during the nine months ended September 30, 2020: Range of Interest Rates Incurred Weighted Average Interest Rate Incurred TRC Revolver 1.9% - 3.5% 2.5% TRP Revolver 1.9% - 6.0% 2.3% Partnership's Securitization Facility 1.5% - 2.7% 2.0% Compliance with Debt Covenants As of September 30, 2020, we were in compliance with the covenants contained in our various debt agreements. Senior Unsecured Notes Issuance In August 2020, the Partnership issued $1.0 billion aggregate principal amount of 4⅞ 4⅞ 6¾ 6¾ Debt Extinguishments and Repurchases Concurrent with the August 2020 Offering, the Partnership commenced the Tender Offer to purchase for cash, subject to certain terms and conditions, any and all of our outstanding 6¾ Subsequent to the closing of the Tender Offer in August 2020, the Partnership redeemed the 6¾ Debt Repurchases The following table summarizes the Partnership’s senior note repurchases for the nine months ended September 30, 2020: Debt Repurchased Book Value Payment Gain (Loss) Write-off of Debt Issuance Costs Net Gain 5⅛% Senior Notes due 2025 $ 19.0 $ (14.6 ) $ 4.4 $ (0.1 ) $ 4.3 5⅞% Senior Notes due 2026 36.8 (29.7 ) 7.1 (0.2 ) 6.9 5⅜% Senior Notes due 2027 31.9 (26.6 ) 5.3 (0.2 ) 5.1 6½% Senior Notes due 2027 44.8 (35.5 ) 9.3 (0.4 ) 8.9 5% Senior Notes due 2028 49.7 (38.0 ) 11.7 (0.4 ) 11.3 6⅞% Senior Notes due 2029 70.7 (55.2 ) 15.5 (0.6 ) 14.9 5½% Senior Notes due 2030 50.4 (40.2 ) 10.2 (0.5 ) 9.7 6¾% Senior Notes due 2024 580.1 (591.2 ) (11.1 ) (2.6 ) (13.7 ) $ 883.4 $ (831.0 ) $ 52.4 $ (5.0 ) $ 47.4 We or the Partnership may retire or purchase various series of the Partnership’s outstanding debt through cash purchases and/or exchanges for other debt, in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. Contractual Obligations The following table summarizes payment obligations for debt instruments after giving effect to the debt repurchases detailed above: Payments Due By Period Less Than More Than Total 1 Year 1-3 Years 3-5 Years 5 Years (in millions) Long-term debt obligations (1) $ 7,679.8 $ - $ 1,149.2 $ 1,064.9 $ 5,465.7 Interest on debt obligations (2) 2,754.7 411.3 807.1 657.6 878.7 $ 10,434.5 $ 411.3 $ 1,956.3 $ 1,722.5 $ 6,344.4 (1) Represents scheduled future maturities of consolidated debt obligations for the periods indicated. (2) Represents interest expense on debt obligations based on both fixed debt interest rates and prevailing September 30, 2020 rates for floating debt. Subsequent Event On November 2, 2020, the Partnership redeemed the $559.6 million remaining balance of its 5¼ |
Other Long-term Liabilities
Other Long-term Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Noncurrent [Abstract] | |
Other Long-term Liabilities | Note 6 — Other Long-term Liabilities Other long-term liabilities are comprised of deferred revenue, asset retirement obligations and operating lease liabilities. Deferred Revenue We have certain long-term contractual arrangements for which we have received consideration that we are not yet able to recognize as revenue. The resulting deferred revenue will be recognized once all conditions for revenue recognition have been met. Deferred revenue as of September 30, 2020 and December 31, 2019, was $169.4 million and $172.0 million, respectively, which includes $129.0 million of payments received from Vitol Americas Corp. (“Vitol”) (formerly known as Noble Americas Corp.), a subsidiary of Vitol US Holding Co., in 2016, 2017, and 2018 as part of an agreement (the “Splitter Agreement”) related to the construction and operation of a crude oil and condensate splitter. In December 2018, Vitol elected to terminate the Splitter Agreement. The Splitter Agreement provides that the first three annual payments are ours if Vitol elects to terminate, which Vitol disputes. The timing of revenue recognition related to the Splitter Agreement deferred revenue is dependent on the outcome of current litigation with Vitol. Deferred revenue also includes nonmonetary consideration received in a 2015 amendment to a gas gathering and processing agreement and consideration received for other construction activities of facilities connected to our systems. See Part II—Item 1. Legal Proceedings for further details on the related litigation. |
Preferred Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Preferred Stock | Note 7 — Preferred Stock Preferred Stock Dividends As of September 30, 2020, we have accrued cumulative preferred dividends of $22.9 million on our Series A Preferred Stock (“Series A Preferred”), which will be paid on November 13, 2020. During the three and nine months ended September 30, 2020, we paid $22.9 million and $68.8 million of dividends to preferred shareholders, and recorded deemed dividends of $9.5 million and $27.7 million attributable to accretion of the preferred discount resulting from beneficial conversion feature accounting. Such accretion is included in the book value of the Series A Preferred. |
Common Stock and Related Matter
Common Stock and Related Matters | 9 Months Ended |
Sep. 30, 2020 | |
Class Of Stock Disclosures [Abstract] | |
Common Stock and Related Matters | Note 8 — Common Stock and Related Matters Common Stock Dividends The following table details the dividends declared and/or paid by us to common shareholders for the nine months ended September 30, 2020: Three Months Ended Date Paid or To Be Paid Total Common Dividends Declared Amount of Common Dividends Paid or To Be Paid Accrued Dividends (1) Dividends Declared per Share of Common Stock (In millions, except per share amounts) September 30, 2020 November 16, 2020 $ 23.8 $ 23.3 $ 0.5 $ 0.10000 June 30, 2020 August 17, 2020 23.7 23.3 0.4 0.10000 March 31, 2020 May 15, 2020 23.7 23.3 0.4 0.10000 December 31, 2019 February 18, 2020 216.0 212.0 4.0 0.91000 (1) Represents accrued dividends on restricted stock and restricted stock units that are payable upon vesting. Subsequent Event In October 2020, our Board of Directors approved a share repurchase program (the “Share Repurchase Program”) for the repurchase of up to $500 million of our outstanding common stock. As of November 2, 2020, we have repurchased 4,505,507 shares at a weighted average price of $16.33 for a total net cost of $73.6 million. There is approximately $426 million remaining under the Share Repurchase Program. We may discontinue the Share Repurchase Program at any time and are not obligated to repurchase any specific dollar amount or number of shares. |
Partnership Units and Related M
Partnership Units and Related Matters | 9 Months Ended |
Sep. 30, 2020 | |
Partners Capital [Abstract] | |
Partnership Units and Related Matters | Note 9 — Partnership Units and Related Matters Distributions We are entitled to receive all Partnership distributions from available cash on the Partnership’s common units after payment of preferred unit distributions each quarter. The following table details the distributions declared and paid by the Partnership for the nine months ended September 30, 2020: Three Months Ended Date Paid or To Be Paid Total Distributions Distributions to Targa Resources Corp. September 30, 2020 November 13, 2020 $ 51.7 $ 48.9 June 30, 2020 August 13, 2020 51.7 48.9 March 31, 2020 May 13, 2020 53.1 50.3 December 31, 2019 February 13, 2020 241.9 239.1 Contributions All capital contributions to the Partnership continue to be allocated 98% to the limited partner and 2% to the general partner; however, no units will be issued for those contributions. For the nine months ended September 30, 2020, we made a total of $50.0 million in contributions to the Partnership. Preferred Units The Partnership’s issued and outstanding Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (the “Preferred Units”) rank senior to the Partnership’s common units with respect to the distribution rights. Distributions on the Partnership’s 5,000,000 Preferred Units are cumulative from the date of original issue in October 2015 and are payable monthly in arrears on the 15th day of each month of each year, when, as and if declared by the board of directors of the Partnership’s general partner. Distributions on the Preferred Units are payable out of amounts legally available at a rate equal to 9.0% per annum. On and after November 1, 2020, distributions on the Preferred Units will accumulate at an annual floating rate equal to the one-month LIBOR plus a spread of 7.71%. The Partnership paid $2.8 million and $8.4 million of distributions to the holders of Preferred Units (“Preferred Unitholders”) for the three and nine months ended September 30, 2020. The Preferred Units are reported as noncontrolling interests in our financial statements. Subsequent Event In October 2020, the board of directors of the general partner of the Partnership declared a cash distribution of $0.1875 per Preferred Unit, resulting in approximately $0.9 million in distributions that will be paid on November 16, 2020. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Note 1 0 — Earnings per Common Share The following table sets forth a reconciliation of net income and weighted average shares outstanding (in millions) used in computing basic and diluted net income per common share: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income (loss) attributable to Targa Resources Corp. $ 69.3 $ (47.3 ) $ (1,587.5 ) $ (96.4 ) Less: Dividends on preferred stock 32.4 31.3 96.5 93.2 Net income (loss) attributable to common shareholders for basic earnings per share $ 36.9 $ (78.6 ) $ (1,684.0 ) $ (189.6 ) Weighted average shares outstanding 233.4 232.7 233.2 232.4 Dilutive effect of unvested stock awards (1) 0.4 — — — Weighted average shares outstanding – diluted 233.8 232.7 233.2 232.4 Net income (loss) available per common share - basic and diluted $ 0.16 $ (0.34 ) $ (7.22 ) $ (0.82 ) (1) For the three months ended September 30, 2020, on a weighted average basis, 2.3 million unvested restricted stock awards, 0.5 million unvested performance stock units and 46.5 million Series A Preferred Stock were antidilutive, and accordingly, were excluded from the diluted earnings per common share calculation. For all other periods presented above, all unvested restricted stock awards, unvested performance stock units, and Series A Preferred Stock were antidilutive because a net loss existed for those respective periods. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 11 — Derivative Instruments and Hedging Activities The primary purposes of our commodity risk management activities are to manage our exposure to commodity price risk and reduce volatility in our operating cash flow due to fluctuations in commodity prices. We have entered into derivative instruments to hedge the commodity price risks associated with a portion of our expected (i) natural gas, NGL, and condensate equity volumes in our Gathering and Processing operations that result from percent-of-proceeds processing arrangements, (ii) future commodity purchases and sales in our Logistics and Transportation segment and (iii) natural gas transportation basis risk in our Logistics and Transportation segment. The hedge positions associated with (i) and (ii) above will move favorably in periods of falling commodity prices and unfavorably in periods of rising commodity prices and are designated as cash flow hedges for accounting purposes. The hedges generally match the NGL product composition and the NGL delivery points of our physical equity volumes. Our natural gas hedges are a mixture of specific gas delivery points and Henry Hub. The NGL hedges may be transacted as specific NGL hedges or as baskets of ethane, propane, normal butane, isobutane and natural gasoline based upon our expected equity NGL composition. We believe this approach avoids uncorrelated risks resulting from employing hedges on crude oil or other petroleum products as “proxy” hedges of NGL prices. Our natural gas and NGL hedges are settled using published index prices for delivery at various locations. We hedge a portion of our condensate equity volumes using crude oil hedges that are based on the NYMEX futures contracts for West Texas Intermediate light, sweet crude, which approximates the prices received for condensate. This exposes us to a market differential risk if the NYMEX futures do not move in exact parity with the sales price of our underlying condensate equity volumes. We also enter into derivative instruments to help manage other short-term commodity-related business risks. We have not designated these derivatives as hedges and record changes in fair value and cash settlements to revenues. At September 30, 2020, the notional volumes of our commodity derivative contracts were: Commodity Instrument Unit 2020 2021 2022 2023 2024 2025 Natural Gas Swaps MMBtu/d 168,317 166,216 90,600 33,350 - - Natural Gas Basis Swaps MMBtu/d 445,084 471,168 295,390 250,000 90,000 5,000 NGL Swaps Bbl/d 30,909 29,261 16,848 2,627 - - NGL Futures Bbl/d 52,685 25,526 - - - - Condensate Swaps Bbl/d 5,190 4,872 2,125 515 - - Our derivative contracts are subject to netting arrangements that permit our contracting subsidiaries to net cash settle offsetting asset and liability positions with the same counterparty within the same Targa entity. We record derivative assets and liabilities on our Consolidated Balance Sheets on a gross basis, without considering the effect of master netting arrangements. The following schedules reflect the fair value of our derivative instruments and their location on our Consolidated Balance Sheets as well as pro forma reporting assuming that we reported derivatives subject to master netting agreements on a net basis: Fair Value as of September 30, 2020 Fair Value as of December 31, 2019 Balance Sheet Derivative Derivative Derivative Derivative Location Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Commodity contracts Current $ 58.4 $ 116.1 $ 102.1 $ 11.6 Long-term 14.0 62.8 33.7 6.4 Total derivatives designated as hedging instruments $ 72.4 $ 178.9 $ 135.8 $ 18.0 Derivatives not designated as hedging instruments Commodity contracts Current $ 30.5 $ 5.0 $ 1.2 $ 92.5 Long-term 65.5 0.1 1.8 34.4 Total derivatives not designated as hedging instruments $ 96.0 $ 5.1 $ 3.0 $ 126.9 Total current position $ 88.9 $ 121.1 $ 103.3 $ 104.1 Total long-term position 79.5 62.9 35.5 40.8 Total derivatives $ 168.4 $ 184.0 $ 138.8 $ 144.9 The pro forma impact of reporting derivatives on our Consolidated Balance Sheets on a net basis is as follows: Gross Presentation Pro Forma Net Presentation September 30, 2020 Asset Liability Collateral Asset Liability Current Position Counterparties with offsetting positions or collateral $ 80.3 $ (121.1 ) $ 60.1 $ 31.5 $ (12.2 ) Counterparties without offsetting positions - assets 8.6 - - 8.6 - Counterparties without offsetting positions - liabilities - - - - - 88.9 (121.1 ) 60.1 40.1 (12.2 ) Long Term Position Counterparties with offsetting positions or collateral 63.4 (62.6 ) - 26.3 (25.5 ) Counterparties without offsetting positions - assets 16.1 - - 16.1 - Counterparties without offsetting positions - liabilities - (0.3 ) - - (0.3 ) 79.5 (62.9 ) - 42.4 (25.8 ) Total Derivatives Counterparties with offsetting positions or collateral 143.7 (183.7 ) 60.1 57.8 (37.7 ) Counterparties without offsetting positions - assets 24.7 - - 24.7 - Counterparties without offsetting positions - liabilities - (0.3 ) - - (0.3 ) $ 168.4 $ (184.0 ) $ 60.1 $ 82.5 $ (38.0 ) Gross Presentation Pro Forma Net Presentation December 31, 2019 Asset Liability Collateral Asset Liability Current Position Counterparties with offsetting positions or collateral $ 99.8 $ (85.0 ) $ (4.9 ) $ 56.0 $ (46.1 ) Counterparties without offsetting positions - assets 3.5 - - 3.5 - Counterparties without offsetting positions - liabilities - (19.1 ) - - (19.1 ) 103.3 (104.1 ) (4.9 ) 59.5 (65.2 ) Long Term Position Counterparties with offsetting positions or collateral 33.3 (40.5 ) - 18.1 (25.3 ) Counterparties without offsetting positions - assets 2.2 - - 2.2 - Counterparties without offsetting positions - liabilities - (0.3 ) - - (0.3 ) 35.5 (40.8 ) - 20.3 (25.6 ) Total Derivatives Counterparties with offsetting positions or collateral 133.1 (125.5 ) (4.9 ) 74.1 (71.4 ) Counterparties without offsetting positions - assets 5.7 - - 5.7 - Counterparties without offsetting positions - liabilities - (19.4 ) - - (19.4 ) $ 138.8 $ (144.9 ) $ (4.9 ) $ 79.8 $ (90.8 ) Our payment obligations in connection with a majority of these hedging transactions are secured by a first priority lien in the collateral securing the TRP Revolver that ranks equal in right of payment with liens granted in favor of the Partnership’s senior secured lenders. Some of our hedges are futures contracts executed through brokers that clear the hedges through an exchange. We maintain a margin deposit with the brokers in an amount sufficient enough to cover the fair value of our open futures positions. The margin deposit is considered collateral, which is located within Deposits on our Consolidated Balance Sheets and is not offset against the fair value of our derivative instruments. The fair value of our derivative instruments, depending on the type of instrument, was determined by the use of present value methods or standard option valuation models with assumptions about commodity prices based on those observed in underlying markets. The estimated fair value of our derivative instruments was a net liability of $15.6 million as of September 30, 2020. The estimated fair value is net of an adjustment for credit risk based on the default probabilities as indicated by market quotes for the counterparties’ credit default swap rates. The credit risk adjustment was immaterial for all periods presented. Our futures contracts that are cleared through an exchange are margined daily and do not require any credit adjustment. The following tables reflect amounts recorded in Other comprehensive income (“OCI”) and amounts reclassified from OCI to revenue for the periods indicated: Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) Derivatives in Cash Flow Three Months Ended September 30, Nine Months Ended September 30, Hedging Relationships 2020 2019 2020 2019 Commodity contracts $ (128.7 ) $ 118.2 $ (102.6 ) $ 167.8 Gain (Loss) Reclassified from OCI into Income (Effective Portion) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2020 2019 2020 2019 Revenues $ 19.2 $ 41.5 $ 139.4 $ 106.1 Based on valuations as of September 30, 2020, we expect to reclassify commodity hedge-related deferred losses of $(106.0) million included in accumulated other comprehensive income into earnings before income taxes through the end of 2023, with $(57.2) million of losses to be reclassified over the next twelve months. Our consolidated earnings are also affected by the use of the mark-to-market method of accounting for derivative instruments that do not qualify for hedge accounting or that have not been designated as hedges. The changes in fair value of these instruments are recorded on the balance sheet and through earnings rather than being deferred until the anticipated transaction settles. The use of mark-to-market accounting for financial instruments can cause non-cash earnings volatility due to changes in the underlying commodity price indices. For the three and nine months ended September 30, 2020, the unrealized mark-to-market gains are primarily attributable to favorable movements in natural gas forward basis prices, as compared to our hedged positions. Location of Gain Gain (Loss) Recognized in Income on Derivatives Derivatives Not Designated Recognized in Income on Three Months Ended September 30, Nine Months Ended September 30, as Hedging Instruments Derivatives 2020 2019 2020 2019 Commodity contracts Revenue $ 90.0 $ (103.3 ) $ 197.9 $ (113.8 ) See Note 12 – Fair Value Measurements and Note 18 – Segment Information for additional disclosures related to derivative instruments and hedging activities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 1 2 — Fair V alue Measurements Under GAAP, our Consolidated Balance Sheets reflect a mixture of measurement methods for financial assets and liabilities (“financial instruments”). Derivative financial instruments and contingent consideration related to business acquisitions are reported at fair value on our Consolidated Balance Sheets. Other financial instruments are reported at historical cost or amortized cost on our Consolidated Balance Sheets. The following are additional qualitative and quantitative disclosures regarding fair value measurements of financial instruments. Fair Value of Derivative Financial Instruments Our derivative instruments consist of financially settled commodity swaps, futures, option contracts and fixed-price forward commodity contracts with certain counterparties. We determine the fair value of our derivative contracts using present value methods or standard option valuation models with assumptions about commodity prices based on those observed in underlying markets. We have consistently applied these valuation techniques in all periods presented and we believe we have obtained the most accurate information available for the types of derivative contracts we hold. The fair values of our derivative instruments are sensitive to changes in forward pricing on natural gas, NGLs and crude oil. The financial position of these derivatives at September 30, 2020, a net liability position of $15.6 million, reflects the present value, adjusted for counterparty credit risk, of the amount we expect to receive or pay in the future on our derivative contracts. If forward pricing on natural gas, NGLs and crude oil were to increase by 10%, the result would be a fair value reflecting a net liability of $(136.8) million. If forward pricing on natural gas, NGLs and crude oil were to decrease by 10%, the result would be a fair value reflecting a net asset of $106.1 million. Fair Value of Other Financial Instruments Due to their cash or near-cash nature, the carrying value of other financial instruments included in working capital (i.e., cash and cash equivalents, accounts receivable, accounts payable) approximates their fair value. Long-term debt is primarily the other financial instrument for which carrying value could vary significantly from fair value. • The TRC Revolver, TRP Revolver, and the Partnership’s Securitization Facility are based on carrying value, which approximates fair value as their interest rates are based on prevailing market rates; and • The Partnership’s senior unsecured notes are based on quoted market prices derived from trades of the debt. Contingent consideration liabilities related to business acquisitions are carried at fair value until the end of the related earn-out period. Fair Value Hierarchy We categorize the inputs to the fair value measurements of financial assets and liabilities at each balance sheet reporting date using a three-tier fair value hierarchy that prioritizes the significant inputs used in measuring fair value: • Level 1 – observable inputs such as quoted prices in active markets; • Level 2 – inputs other than quoted prices in active markets that we can directly or indirectly observe to the extent that the markets are liquid for the relevant settlement periods; and • Level 3 – unobservable inputs in which little or no market data exists, therefore we must develop our own assumptions. The following table shows a breakdown by fair value hierarchy category for (1) financial instruments measurements included on our Consolidated Balance Sheets at fair value and (2) supplemental fair value disclosures for other financial instruments: September 30, 2020 Carrying Fair Value Value Total Level 1 Level 2 Level 3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: Assets from commodity derivative contracts (1) $ 168.4 $ 168.4 $ — $ 168.4 $ — Liabilities from commodity derivative contracts (1) 184.0 184.0 — 183.7 0.3 TPL contingent consideration (2) 2.3 2.3 — — 2.3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 275.0 275.0 — — — TRC Revolver 435.0 435.0 — 435.0 — TRP Revolver 100.0 100.0 — 100.0 — Partnership's Senior unsecured notes 7,145.0 7,206.0 — 7,206.0 — Partnership's Securitization Facility 250.0 250.0 — 250.0 — December 31, 2019 Carrying Fair Value Value Total Level 1 Level 2 Level 3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: Assets from commodity derivative contracts (1) $ 136.5 $ 136.5 $ — $ 136.2 $ 0.3 Liabilities from commodity derivative contracts (1) 142.6 142.6 — 142.0 0.6 TPL contingent consideration (2) 2.3 2.3 — — 2.3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 331.1 331.1 — — — TRC Revolver 435.0 435.0 — 435.0 — TRP Revolver — — — — — Partnership's Senior unsecured notes 7,028.5 7,376.9 — 7,376.9 — Partnership's Securitization Facility 370.0 370.0 — 370.0 — (1) The fair value of derivative contracts in this table is presented on a different basis than the Consolidated Balance Sheets presentation as disclosed in Note 11 –Derivative Instruments and Hedging Activities. The above fair values reflect the total value of each derivative contract taken as a whole, whereas the Consolidated Balance Sheets presentation is based on the individual maturity dates of estimated future settlements. As such, an individual contract could have both an asset and liability position when segregated into its current and long-term portions for Consolidated Balance Sheets classification purposes. (2) We have a contingent consideration liability for TPL’s previous acquisition of a gas gathering system and related assets, which is carried at fair value. Additional Information Regarding Level 3 Fair Value Measurements Included on Our Consolidated Balance Sheets We reported certain of our swaps and option contracts at fair value using Level 3 inputs due to such derivatives not having observable market prices or implied volatilities for substantially the full term of the derivative asset or liability. For valuations that include both observable and unobservable inputs, if the unobservable input is determined to be significant to the overall inputs, the entire valuation is categorized in Level 3. This includes derivatives valued using indicative price quotations whose contract length extends into unobservable periods. The fair value of these swaps is determined using a discounted cash flow valuation technique based on a forward commodity basis curve. For these derivatives, the primary input to the valuation model is the forward commodity basis curve, which is based on observable or public data sources and extrapolated when observable prices are not available. The significant unobservable inputs used in the fair value measurements of our Level 3 derivatives were (i) the forward natural gas liquids pricing curves, for which a significant portion of the derivative’s term is beyond available forward pricing and (ii) implied volatilities, which are unobservable as a result of inactive natural gas liquids options trading. The change in the fair value of Level 3 derivatives associated with a 10% change in the forward basis curve where prices are not observable was immaterial. As of September 30, 2020, we had three commodity swap and option contracts categorized as Level 3. The fair value of the TPL contingent consideration was determined using a probability-based model measuring the likelihood of meeting certain volumetric measures. The inputs are not observable; therefore, the entire valuation of the contingent consideration is categorized in Level 3. The following table summarizes the changes in fair value of our financial instruments classified as Level 3 in the fair value hierarchy: Commodity Derivative Contracts Contingent Asset/(Liability) Consideration Balance, December 31, 2019 $ (0.3 ) $ (2.3 ) New Level 3 derivative instruments (0.5 ) — Transfers out of Level 3 (1) 0.3 — Unrealized gain/(loss) included in OCI 0.2 — Balance, September 30, 2020 $ (0.3 ) $ (2.3 ) (1) Transfers relate to long-term over-the-counter swaps for NGL products for which observable market prices became available for substantially their full term. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Nonfinancial assets and liabilities, such as long-lived assets, are measured at fair value on a nonrecurring basis upon impairment. In the first quarter of 2020, we recorded non-cash pre-tax impairments of $2,442.8 million. The impairment charge is primarily associated with the partial impairment of gas processing facilities and gathering systems associated with our Mid-Continent operations and full impairment of our Coastal operations. For disclosures related to valuation techniques, see Note 4 – Property, Plant and Equipment and Intangible Assets. The techniques described above may produce a fair value calculation that may not be indicative or reflective of future fair values. Furthermore, while we believe our valuation techniques are appropriate and consistent with other market participants, the use of different techniques or assumptions to determine fair value of certain financial and nonfinancial assets and liabilities could result in a different fair value measurement at the reporting date. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Loss Contingency [Abstract] | |
Contingencies | Note 13 — Contingencies Legal Proceedings We and the Partnership are parties to various legal, administrative and regulatory proceedings that have arisen in the ordinary course of our business. We and the Partnership are also parties to various proceedings with governmental environmental agencies, including but not limited to the U.S. Environmental Protection Agency, Texas Commission on Environmental Quality, Oklahoma Department of Environmental Quality, New Mexico Environment Department, Louisiana Department of Environmental Quality and North Dakota Department of Environmental Quality, which assert monetary sanctions for alleged violations of environmental regulations, including air emissions, discharges into the environment and reporting deficiencies, related to events that have arisen at certain of our facilities in the ordinary course of our business. See Part II—Item 1. Legal Proceedings for further details. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | Note 14 — Revenue Fixed consideration allocated to remaining performance obligations The following table presents the estimated minimum revenue related to unsatisfied performance obligations at the end of the reporting period, and is comprised of fixed consideration primarily attributable to contracts with minimum volume commitments, for which a guaranteed amount of revenue can be calculated. These contracts are comprised primarily of gathering and processing, fractionation, export, terminaling and storage agreements, with remaining contract terms ranging from 1 to 19 years. 2020 2021 2022 and after Fixed consideration to be recognized as of September 30, 2020 $ 140.7 $ 518.1 $ 2,858.8 Based on the optional exemptions we elected to apply, the amounts presented in the table above exclude remaining performance obligations for (i) variable consideration for which the allocation exception is met and (ii) contracts with an original expected duration of one year or less. For disclosures related to disaggregated revenue, see Note 18 – Segment Information. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15 — Income Taxes The Company records income taxes using an estimated annual effective tax rate (“ETR”) and recognizes specific events discretely as they occur. We have concluded that the annual ETR is a reliable estimate considering recent economic and financial market effects of decreased commodity prices and demand destruction due to the COVID-19 pandemic. We regularly evaluate the realizable tax benefits of deferred tax assets and record a valuation allowance, if required, based on an estimate of the amount of deferred tax assets that we believe does not meet the more-likely-than-not criteria of being realized. We established a valuation allowance against our deferred tax assets during the nine months ended September 30, 2020, primarily due to the tax consequences of the impairment of long-lived assets. See Note 4 – Property Plant and Equipment and Intangible Assets. The Company recognized the valuation allowance as an ordinary item in its estimated annual ETR. After the valuation allowance, we have a net deferred tax liability of $131.1 million. We will continue to evaluate the sufficiency of the valuation allowance based on current and expected earnings and other factors and adjust accordingly. The valuation allowance decreased by approximately $15.5 million from June 30, 2020. |
Other Operating (Income) Expens
Other Operating (Income) Expense | 9 Months Ended |
Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Expense | Note 16 — Other Operating (Income) Expense Other operating (income) expense is comprised of the following: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Gain) loss on sale of disposition of business and assets (1) $ 58.0 $ 0.5 $ 58.0 $ 3.6 Write-down of assets (2) 13.5 17.9 13.5 17.9 Other 0.7 — 2.3 0.2 $ 72.2 $ 18.4 $ 73.8 $ 21.7 (1) In October 2020, we recognized a loss of $58.3 million for the three and nine months ended September 30, 2020 to reduce the carrying value of our assets in Channelview, Texas in connection with the October 2020 Sale. See Note 4 – Property, Plant and Equipment and Intangible Assets for further details. (2) Related to the write-down of certain assets to their recoverable amounts |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note 17 — Supplemental Cash Flow Information Nine Months Ended September 30, 2020 2019 Cash: Interest paid, net of capitalized interest (1) $ 315.9 $ 228.4 Income taxes (received), net of payments (44.4 ) 0.3 Non-cash investing activities: Impact of capital expenditure accruals on property, plant and equipment, net (194.7 ) (150.9 ) Transfers from materials and supplies inventory to property, plant and equipment 1.9 21.7 Non-cash financing activities: Changes in accrued distributions to noncontrolling interests 3.9 73.8 (1) Interest capitalized on major projects was $31.1 million and $50.5 million for the nine months ended September 30, 2020 and 2019. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Note 18 — Segment Information We operate in two primary segments: (i) Gathering and Processing, and (ii) Logistics and Transportation (also referred to as the Downstream Business). Our reportable segments include operating segments that have been aggregated based on the nature of the products and services provided. Our 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 purchase and sale, gathering and terminaling. 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. Our Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling and marketing of NGLs and NGL products, including services to LPG exporters; and certain natural gas supply and marketing activities in support of our other businesses. The Logistics and Transportation segment also includes the Grand Prix NGL pipeline (“Grand Prix”), as well as our equity interest in Gulf Coast Express Pipeline LLC (“GCX”), a natural gas pipeline transporting volumes from West Texas to the Gulf Coast. Grand Prix connects our gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with our downstream facilities in Mont Belvieu, Texas. The associated assets are generally connected to and supplied in part by our Gathering and Processing segment and, except for pipelines and smaller terminals, are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana. Other contains the mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. Elimination of inter-segment transactions are reflected in the corporate and eliminations column. Reportable segment information is shown in the following tables: Three Months Ended September 30, 2020 Gathering and Processing Logistics and Transportation Other Corporate and Eliminations Total Revenues Sales of commodities $ 135.7 $ 1,616.5 $ 88.6 $ — $ 1,840.8 Fees from midstream services 126.2 148.1 — — 274.3 261.9 1,764.6 88.6 — 2,115.1 Intersegment revenues Sales of commodities 611.9 37.4 — (649.3 ) — Fees from midstream services 1.7 8.5 — (10.2 ) — 613.6 45.9 — (659.5 ) — Revenues $ 875.5 $ 1,810.5 $ 88.6 $ (659.5 ) $ 2,115.1 Operating margin $ 261.0 $ 280.4 $ 88.6 $ — $ 630.0 Other financial information: Total assets (1) $ 8,929.4 $ 6,841.2 $ 78.2 $ 203.3 $ 16,052.1 Goodwill $ 45.2 $ — $ — $ — $ 45.2 Capital expenditures $ 63.6 $ 69.0 $ — $ 4.0 $ 136.6 (1) Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. Three Months Ended September 30, 2019 Gathering and Processing Logistics and Transportation Other Corporate and Eliminations Total Revenues Sales of commodities $ 292.3 $ 1,403.1 $ (101.2 ) $ — $ 1,594.2 Fees from midstream services 173.0 135.3 — — 308.3 465.3 1,538.4 (101.2 ) — 1,902.5 Intersegment revenues Sales of commodities 534.0 34.9 — (568.9 ) — Fees from midstream services 1.9 7.4 — (9.3 ) — 535.9 42.3 — (578.2 ) — Revenues $ 1,001.2 $ 1,580.7 $ (101.2 ) $ (578.2 ) $ 1,902.5 Operating margin $ 246.5 $ 228.9 $ (101.2 ) $ — $ 374.2 Other financial information: Total assets (1) $ 12,326.5 $ 6,475.0 $ 2.9 $ 114.1 $ 18,918.5 Goodwill $ 46.6 $ — $ — $ — $ 46.6 Capital expenditures $ 230.3 $ 301.2 $ — $ 10.8 $ 542.3 (1) Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. Nine Months Ended September 30, 2020 Gathering and Processing Logistics and Transportation Other Corporate and Eliminations Total Revenues Sales of commodities $ 512.9 $ 4,172.0 $ 215.9 $ — $ 4,900.8 Fees from midstream services 354.5 432.2 — — 786.7 867.4 4,604.2 215.9 — 5,687.5 Intersegment revenues Sales of commodities 1,444.3 140.1 — (1,584.4 ) — Fees from midstream services 4.9 23.8 — (28.7 ) — 1,449.2 163.9 — (1,613.1 ) — Revenues $ 2,316.6 $ 4,768.1 $ 215.9 $ (1,613.1 ) $ 5,687.5 Operating margin $ 753.7 $ 806.0 $ 215.9 $ — $ 1,775.6 Other financial information: Total assets (1) $ 8,929.4 $ 6,841.2 $ 78.2 $ 203.3 $ 16,052.1 Goodwill $ 45.2 $ — $ — $ — $ 45.2 Capital expenditures $ 218.0 $ 375.5 $ — $ 16.8 $ 610.3 (1) Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. Nine Months Ended September 30, 2019 Gathering and Processing Logistics and Transportation Other Corporate and Eliminations Total Revenues Sales of commodities $ 847.4 $ 4,508.5 $ (101.1 ) $ — $ 5,254.8 Fees from midstream services 549.1 393.3 — — 942.4 1,396.5 4,901.8 (101.1 ) — 6,197.2 Intersegment revenues Sales of commodities 1,896.5 117.0 — (2,013.5 ) — Fees from midstream services 5.3 20.1 — (25.4 ) — 1,901.8 137.1 — (2,038.9 ) — Revenues $ 3,298.3 $ 5,038.9 $ (101.1 ) $ (2,038.9 ) $ 6,197.2 Operating margin $ 716.8 $ 565.0 $ (101.1 ) $ — $ 1,180.7 Other financial information: Total assets (1) $ 12,326.5 $ 6,475.0 $ 2.9 $ 114.1 $ 18,918.5 Goodwill $ 46.6 $ — $ — $ — $ 46.6 Capital expenditures $ 1,068.7 $ 1,197.5 $ — $ 38.7 $ 2,304.9 (1) Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. The following table shows our consolidated revenues disaggregated by product and service for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Sales of commodities: Revenue recognized from contracts with customers: Natural gas $ 351.1 $ 305.3 $ 893.9 $ 934.2 NGL 1,312.9 1,160.5 3,382.0 3,752.4 Condensate and crude oil 54.4 178.7 217.8 488.4 Petroleum products 13.2 11.5 69.8 87.5 1,731.6 1,656.0 4,563.5 5,262.5 Non-customer revenue: Derivative activities - Hedge 19.2 41.5 139.4 106.1 Derivative activities - Non-hedge (1) 90.0 (103.3 ) 197.9 (113.8 ) 109.2 (61.8 ) 337.3 (7.7 ) Total sales of commodities 1,840.8 1,594.2 4,900.8 5,254.8 Fees from midstream services: Revenue recognized from contracts with customers: Gathering and processing 123.7 171.6 347.1 543.7 NGL transportation, fractionation and services 43.8 45.8 116.7 122.0 Storage, terminaling and export 96.6 84.6 285.5 254.7 Other 10.2 6.3 37.4 22.0 Total fees from midstream services 274.3 308.3 786.7 942.4 Total revenues $ 2,115.1 $ 1,902.5 $ 5,687.5 $ 6,197.2 (1) Represents derivative activities that are not designated as hedging instruments under ASC 815. The following table shows a reconciliation of reportable segment operating margin to income (loss) before income taxes for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Reconciliation of reportable segment operating margin to income (loss) before income taxes: Gathering and Processing operating margin $ 261.0 $ 246.5 $ 753.7 $ 716.8 Logistics and Transportation operating margin 280.4 228.9 806.0 565.0 Other operating margin 88.6 (101.2 ) 215.9 (101.1 ) Depreciation and amortization expense (203.7 ) (244.3 ) (647.3 ) (718.9 ) General and administrative expense (58.6 ) (69.9 ) (180.6 ) (223.5 ) Impairment of long-lived assets — — (2,442.8 ) — Interest expense, net (97.7 ) (89.1 ) (292.4 ) (241.8 ) Equity earnings (loss) 18.6 10.0 54.1 15.9 Gain (loss) on sale or disposition of business and assets (58.0 ) (0.5 ) (58.0 ) (3.6 ) Write-down of assets (13.5 ) (17.9 ) (13.5 ) (17.9 ) Gain (loss) from financing activities (13.7 ) — 47.4 (1.4 ) Gain (loss) from sale of equity-method investment — 65.8 — 65.8 Change in contingent considerations — — — (8.8 ) Other, net 0.7 — (0.1 ) (0.2 ) Income (loss) before income taxes $ 204.1 $ 28.3 $ (1,757.6 ) $ 46.3 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted Convertible Debt and Equity Instruments In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Recently adopted accounting pronouncements Measurement of Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The amendments require entities to consider historical information, current conditions, and supportable forecasts to estimate expected credit losses, which may result in earlier recognition of losses. The amendments were effective for us on January 1, 2020 and were adopted by applying the modified retrospective transition approach. The adoption did not result in a cumulative effect adjustment to retained earnings on January 1, 2020. As a result of our adoption, see Accounting Policy Updates – Allowance for Doubtful Accounts below. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Estimated losses on accounts receivable are provided through an allowance for doubtful accounts. We estimate the allowance for doubtful accounts through various procedures, including extensive review of our trade receivable balances by counterparty, assessing economic events and conditions, our historical experience with counterparties, the counterparty’s financial condition and the amount and age of past due accounts. We continuously evaluate our ability to collect amounts owed to us. Receivables are considered past due if full payment is not received by the contractual due date. These procedures also include performing account reconciliations, dispute resolution and payment confirmation. We may involve our legal counsel to pursue the recovery of defaulted trade receivables. As the financial condition of any counterparty changes, circumstances develop or additional information becomes available, adjustments to our allowance may be required. |
Property, Plant and Equipment_2
Property, Plant and Equipment and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment And Intangible Assets [Abstract] | |
Property Plant and Equipment and Intangible Assets | September 30, 2020 December 31, 2019 Estimated Useful Lives (In Years) Gathering systems $ 9,125.2 $ 8,976.8 5 to 20 Processing and fractionation facilities 6,138.3 5,143.0 5 to 25 Terminaling and storage facilities 1,514.8 1,495.5 5 to 25 Transportation assets 2,422.6 2,292.4 10 to 50 Other property, plant and equipment 123.9 184.1 3 to 50 Land 160.7 159.7 — Construction in progress 697.5 1,576.5 — Finance lease right-of-use assets 51.3 48.8 Property, plant and equipment 20,234.3 19,876.8 Accumulated depreciation, amortization and impairment (7,941.5 ) (5,328.3 ) Property, plant and equipment, net $ 12,292.8 $ 14,548.5 Intangible assets $ 2,643.5 $ 2,643.5 10 to 20 Accumulated amortization and impairment (1,225.9 ) (908.5 ) Intangible assets, net $ 1,417.6 $ 1,735.0 |
Schedule of Changes in Intangible Assets | The changes in our intangible assets are as follows: Balance at December 31, 2019 $ 1,735.0 Impairment (208.6 ) Amortization (108.8 ) Balance at September 30, 2020 $ 1,417.6 |
Schedule of Carrying Amounts of Assets and Liabilities Held for Sale | The adjusted carrying amounts of the assets and liabilities held for sale as of September 30, 2020 are as follows: September 30, 2020 Current assets: Property, plant and equipment, net of accumulated depreciation and estimated loss on sale $ 61.0 Other current assets 1.2 Total assets held for sale $ 62.2 Current liabilities: Accounts payable and accrued liabilities $ 1.0 Other long-term obligations 2.6 Total liabilities held for sale $ 3.6 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | September 30, 2020 December 31, 2019 Current: Obligations of the Partnership: (1) Accounts receivable securitization facility, due April 2021 $ 250.0 $ 370.0 Finance lease liabilities 11.9 12.2 Current debt obligations 261.9 382.2 Long-term: TRC obligations: TRC Senior secured revolving credit facility, variable rate, due June 2023 435.0 435.0 Obligations of the Partnership: (1) Senior secured revolving credit facility, variable rate, due June 2023 100.0 — Senior unsecured notes: 5¼% fixed rate, due May 2023 559.6 559.6 4¼% fixed rate, due November 2023 583.9 583.9 6¾% fixed rate, due March 2024 — 580.1 5⅛% fixed rate, due February 2025 481.0 500.0 5⅞% fixed rate, due April 2026 963.2 1,000.0 5⅜% fixed rate, due February 2027 468.1 500.0 6½% fixed rate, due July 2027 705.2 750.0 5% fixed rate, due January 2028 700.3 750.0 6⅞% fixed rate, due January 2029 679.3 750.0 5½% fixed rate, due March 2030 949.6 1,000.0 4⅞% fixed rate, due February 2031 1,000.0 — TPL notes, 4¾% fixed rate, due November 2021 6.5 6.5 TPL notes, 5⅞% fixed rate, due August 2023 48.1 48.1 Unamortized premium 0.2 0.3 7,680.0 7,463.5 Debt issuance costs, net of amortization (48.5 ) (49.1 ) Finance lease liabilities 20.7 25.8 Long-term debt 7,652.2 7,440.2 Total debt obligations $ 7,914.1 $ 7,822.4 Irrevocable standby letters of credit: Letters of credit outstanding under the TRC Senior secured credit facility (3) $ — $ — Letters of credit outstanding under the Partnership senior secured revolving credit facility (4) 35.3 88.2 $ 35.3 $ 88.2 (1) While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. (2) As of September 30, 2020, the Partnership had $250.0 million of qualifying receivables under its $250.0 million accounts receivable securitization facility (“Securitization Facility”), resulting in zero availability. During the second quarter of 2020, the Partnership amended the Securitization Facility to decrease the facility size from $400.0 million to $250.0 million to more closely align with our expectations for borrowing needs given commodity prices and to extend the facility termination date to April 21, 2021. (3) As of September 30, 2020, availability under TRC’s $670.0 million senior secured revolving credit facility (“TRC Revolver”) was $235.0 million. (4) As of September 30, 2020, availability under the Partnership’s $2.2 billion senior secured revolving credit facility (“TRP Revolver”) was $2,064.7 million. (5) “TPL” refers to Targa Pipeline Partners LP. |
Range of Interest Rates and Weighted Average Interest Rate Incurred on Variable Rate Debt Obligations | The following table shows the range of interest rates and weighted average interest rate incurred on variable-rate debt obligations during the nine months ended September 30, 2020: Range of Interest Rates Incurred Weighted Average Interest Rate Incurred TRC Revolver 1.9% - 3.5% 2.5% TRP Revolver 1.9% - 6.0% 2.3% Partnership's Securitization Facility 1.5% - 2.7% 2.0% |
Summary of Partnership’s Senior Note Repurchases | The following table summarizes the Partnership’s senior note repurchases for the nine months ended September 30, 2020: Debt Repurchased Book Value Payment Gain (Loss) Write-off of Debt Issuance Costs Net Gain 5⅛% Senior Notes due 2025 $ 19.0 $ (14.6 ) $ 4.4 $ (0.1 ) $ 4.3 5⅞% Senior Notes due 2026 36.8 (29.7 ) 7.1 (0.2 ) 6.9 5⅜% Senior Notes due 2027 31.9 (26.6 ) 5.3 (0.2 ) 5.1 6½% Senior Notes due 2027 44.8 (35.5 ) 9.3 (0.4 ) 8.9 5% Senior Notes due 2028 49.7 (38.0 ) 11.7 (0.4 ) 11.3 6⅞% Senior Notes due 2029 70.7 (55.2 ) 15.5 (0.6 ) 14.9 5½% Senior Notes due 2030 50.4 (40.2 ) 10.2 (0.5 ) 9.7 6¾% Senior Notes due 2024 580.1 (591.2 ) (11.1 ) (2.6 ) (13.7 ) $ 883.4 $ (831.0 ) $ 52.4 $ (5.0 ) $ 47.4 |
Summary of Payment Obligations for Debt Instruments | The following table summarizes payment obligations for debt instruments after giving effect to the debt repurchases detailed above: Payments Due By Period Less Than More Than Total 1 Year 1-3 Years 3-5 Years 5 Years (in millions) Long-term debt obligations (1) $ 7,679.8 $ - $ 1,149.2 $ 1,064.9 $ 5,465.7 Interest on debt obligations (2) 2,754.7 411.3 807.1 657.6 878.7 $ 10,434.5 $ 411.3 $ 1,956.3 $ 1,722.5 $ 6,344.4 (1) Represents scheduled future maturities of consolidated debt obligations for the periods indicated. (2) Represents interest expense on debt obligations based on both fixed debt interest rates and prevailing September 30, 2020 rates for floating debt. |
Common Stock and Related Matt_2
Common Stock and Related Matters (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Class Of Stock Disclosures [Abstract] | |
Dividends Declared and/or Paid | The following table details the dividends declared and/or paid by us to common shareholders for the nine months ended September 30, 2020: Three Months Ended Date Paid or To Be Paid Total Common Dividends Declared Amount of Common Dividends Paid or To Be Paid Accrued Dividends (1) Dividends Declared per Share of Common Stock (In millions, except per share amounts) September 30, 2020 November 16, 2020 $ 23.8 $ 23.3 $ 0.5 $ 0.10000 June 30, 2020 August 17, 2020 23.7 23.3 0.4 0.10000 March 31, 2020 May 15, 2020 23.7 23.3 0.4 0.10000 December 31, 2019 February 18, 2020 216.0 212.0 4.0 0.91000 (1) Represents accrued dividends on restricted stock and restricted stock units that are payable upon vesting. |
Partnership Units and Related_2
Partnership Units and Related Matters (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Partners Capital [Abstract] | |
Schedule of Distributions | The following table details the distributions declared and paid by the Partnership for the nine months ended September 30, 2020: Three Months Ended Date Paid or To Be Paid Total Distributions Distributions to Targa Resources Corp. September 30, 2020 November 13, 2020 $ 51.7 $ 48.9 June 30, 2020 August 13, 2020 51.7 48.9 March 31, 2020 May 13, 2020 53.1 50.3 December 31, 2019 February 13, 2020 241.9 239.1 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income and Weighted Average Shares Outstanding Used in Computing Basic and Diluted Net Income Per Common Share | The following table sets forth a reconciliation of net income and weighted average shares outstanding (in millions) used in computing basic and diluted net income per common share: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income (loss) attributable to Targa Resources Corp. $ 69.3 $ (47.3 ) $ (1,587.5 ) $ (96.4 ) Less: Dividends on preferred stock 32.4 31.3 96.5 93.2 Net income (loss) attributable to common shareholders for basic earnings per share $ 36.9 $ (78.6 ) $ (1,684.0 ) $ (189.6 ) Weighted average shares outstanding 233.4 232.7 233.2 232.4 Dilutive effect of unvested stock awards (1) 0.4 — — — Weighted average shares outstanding – diluted 233.8 232.7 233.2 232.4 Net income (loss) available per common share - basic and diluted $ 0.16 $ (0.34 ) $ (7.22 ) $ (0.82 ) (1) For the three months ended September 30, 2020, on a weighted average basis, 2.3 million unvested restricted stock awards, 0.5 million unvested performance stock units and 46.5 million Series A Preferred Stock were antidilutive, and accordingly, were excluded from the diluted earnings per common share calculation. For all other periods presented above, all unvested restricted stock awards, unvested performance stock units, and Series A Preferred Stock were antidilutive because a net loss existed for those respective periods. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Notional Volume of Commodity Hedges | At September 30, 2020, the notional volumes of our commodity derivative contracts were: Commodity Instrument Unit 2020 2021 2022 2023 2024 2025 Natural Gas Swaps MMBtu/d 168,317 166,216 90,600 33,350 - - Natural Gas Basis Swaps MMBtu/d 445,084 471,168 295,390 250,000 90,000 5,000 NGL Swaps Bbl/d 30,909 29,261 16,848 2,627 - - NGL Futures Bbl/d 52,685 25,526 - - - - Condensate Swaps Bbl/d 5,190 4,872 2,125 515 - - |
Fair Values of Derivative Instruments | The following schedules reflect the fair value of our derivative instruments and their location on our Consolidated Balance Sheets as well as pro forma reporting assuming that we reported derivatives subject to master netting agreements on a net basis: Fair Value as of September 30, 2020 Fair Value as of December 31, 2019 Balance Sheet Derivative Derivative Derivative Derivative Location Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Commodity contracts Current $ 58.4 $ 116.1 $ 102.1 $ 11.6 Long-term 14.0 62.8 33.7 6.4 Total derivatives designated as hedging instruments $ 72.4 $ 178.9 $ 135.8 $ 18.0 Derivatives not designated as hedging instruments Commodity contracts Current $ 30.5 $ 5.0 $ 1.2 $ 92.5 Long-term 65.5 0.1 1.8 34.4 Total derivatives not designated as hedging instruments $ 96.0 $ 5.1 $ 3.0 $ 126.9 Total current position $ 88.9 $ 121.1 $ 103.3 $ 104.1 Total long-term position 79.5 62.9 35.5 40.8 Total derivatives $ 168.4 $ 184.0 $ 138.8 $ 144.9 |
Pro Forma Impact of Derivatives Net in Consolidated Balance Sheet | The pro forma impact of reporting derivatives on our Consolidated Balance Sheets on a net basis is as follows: Gross Presentation Pro Forma Net Presentation September 30, 2020 Asset Liability Collateral Asset Liability Current Position Counterparties with offsetting positions or collateral $ 80.3 $ (121.1 ) $ 60.1 $ 31.5 $ (12.2 ) Counterparties without offsetting positions - assets 8.6 - - 8.6 - Counterparties without offsetting positions - liabilities - - - - - 88.9 (121.1 ) 60.1 40.1 (12.2 ) Long Term Position Counterparties with offsetting positions or collateral 63.4 (62.6 ) - 26.3 (25.5 ) Counterparties without offsetting positions - assets 16.1 - - 16.1 - Counterparties without offsetting positions - liabilities - (0.3 ) - - (0.3 ) 79.5 (62.9 ) - 42.4 (25.8 ) Total Derivatives Counterparties with offsetting positions or collateral 143.7 (183.7 ) 60.1 57.8 (37.7 ) Counterparties without offsetting positions - assets 24.7 - - 24.7 - Counterparties without offsetting positions - liabilities - (0.3 ) - - (0.3 ) $ 168.4 $ (184.0 ) $ 60.1 $ 82.5 $ (38.0 ) Gross Presentation Pro Forma Net Presentation December 31, 2019 Asset Liability Collateral Asset Liability Current Position Counterparties with offsetting positions or collateral $ 99.8 $ (85.0 ) $ (4.9 ) $ 56.0 $ (46.1 ) Counterparties without offsetting positions - assets 3.5 - - 3.5 - Counterparties without offsetting positions - liabilities - (19.1 ) - - (19.1 ) 103.3 (104.1 ) (4.9 ) 59.5 (65.2 ) Long Term Position Counterparties with offsetting positions or collateral 33.3 (40.5 ) - 18.1 (25.3 ) Counterparties without offsetting positions - assets 2.2 - - 2.2 - Counterparties without offsetting positions - liabilities - (0.3 ) - - (0.3 ) 35.5 (40.8 ) - 20.3 (25.6 ) Total Derivatives Counterparties with offsetting positions or collateral 133.1 (125.5 ) (4.9 ) 74.1 (71.4 ) Counterparties without offsetting positions - assets 5.7 - - 5.7 - Counterparties without offsetting positions - liabilities - (19.4 ) - - (19.4 ) $ 138.8 $ (144.9 ) $ (4.9 ) $ 79.8 $ (90.8 ) |
Amounts Recorded in Other Comprehensive Income OCI and Amounts Reclassified from OCI to Revenue | The following tables reflect amounts recorded in Other comprehensive income (“OCI”) and amounts reclassified from OCI to revenue for the periods indicated: Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) Derivatives in Cash Flow Three Months Ended September 30, Nine Months Ended September 30, Hedging Relationships 2020 2019 2020 2019 Commodity contracts $ (128.7 ) $ 118.2 $ (102.6 ) $ 167.8 Gain (Loss) Reclassified from OCI into Income (Effective Portion) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2020 2019 2020 2019 Revenues $ 19.2 $ 41.5 $ 139.4 $ 106.1 |
Gain (Loss) Recognized in Income on Derivatives | For the three and nine months ended September 30, 2020, the unrealized mark-to-market gains are primarily attributable to favorable movements in natural gas forward basis prices, as compared to our hedged positions. Location of Gain Gain (Loss) Recognized in Income on Derivatives Derivatives Not Designated Recognized in Income on Three Months Ended September 30, Nine Months Ended September 30, as Hedging Instruments Derivatives 2020 2019 2020 2019 Commodity contracts Revenue $ 90.0 $ (103.3 ) $ 197.9 $ (113.8 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Breakdown by Fair Value Hierarchy Category for Financial Instruments Included in Consolidated Balance Sheets | The following table shows a breakdown by fair value hierarchy category for (1) financial instruments measurements included on our Consolidated Balance Sheets at fair value and (2) supplemental fair value disclosures for other financial instruments: September 30, 2020 Carrying Fair Value Value Total Level 1 Level 2 Level 3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: Assets from commodity derivative contracts (1) $ 168.4 $ 168.4 $ — $ 168.4 $ — Liabilities from commodity derivative contracts (1) 184.0 184.0 — 183.7 0.3 TPL contingent consideration (2) 2.3 2.3 — — 2.3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 275.0 275.0 — — — TRC Revolver 435.0 435.0 — 435.0 — TRP Revolver 100.0 100.0 — 100.0 — Partnership's Senior unsecured notes 7,145.0 7,206.0 — 7,206.0 — Partnership's Securitization Facility 250.0 250.0 — 250.0 — December 31, 2019 Carrying Fair Value Value Total Level 1 Level 2 Level 3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: Assets from commodity derivative contracts (1) $ 136.5 $ 136.5 $ — $ 136.2 $ 0.3 Liabilities from commodity derivative contracts (1) 142.6 142.6 — 142.0 0.6 TPL contingent consideration (2) 2.3 2.3 — — 2.3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 331.1 331.1 — — — TRC Revolver 435.0 435.0 — 435.0 — TRP Revolver — — — — — Partnership's Senior unsecured notes 7,028.5 7,376.9 — 7,376.9 — Partnership's Securitization Facility 370.0 370.0 — 370.0 — (1) The fair value of derivative contracts in this table is presented on a different basis than the Consolidated Balance Sheets presentation as disclosed in Note 11 –Derivative Instruments and Hedging Activities. The above fair values reflect the total value of each derivative contract taken as a whole, whereas the Consolidated Balance Sheets presentation is based on the individual maturity dates of estimated future settlements. As such, an individual contract could have both an asset and liability position when segregated into its current and long-term portions for Consolidated Balance Sheets classification purposes. (2) We have a contingent consideration liability for TPL’s previous acquisition of a gas gathering system and related assets, which is carried at fair value. |
Reconciliation of Changes in Fair Value of Financial Instruments Classified as Level 3 | The following table summarizes the changes in fair value of our financial instruments classified as Level 3 in the fair value hierarchy: Commodity Derivative Contracts Contingent Asset/(Liability) Consideration Balance, December 31, 2019 $ (0.3 ) $ (2.3 ) New Level 3 derivative instruments (0.5 ) — Transfers out of Level 3 (1) 0.3 — Unrealized gain/(loss) included in OCI 0.2 — Balance, September 30, 2020 $ (0.3 ) $ (2.3 ) (1) Transfers relate to long-term over-the-counter swaps for NGL products for which observable market prices became available for substantially their full term. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Estimated Minimum Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations | The following table presents the estimated minimum revenue related to unsatisfied performance obligations at the end of the reporting period, and is comprised of fixed consideration primarily attributable to contracts with minimum volume commitments, for which a guaranteed amount of revenue can be calculated. These contracts are comprised primarily of gathering and processing, fractionation, export, terminaling and storage agreements, with remaining contract terms ranging from 1 to 19 years. 2020 2021 2022 and after Fixed consideration to be recognized as of September 30, 2020 $ 140.7 $ 518.1 $ 2,858.8 |
Other Operating (Income) Expe_2
Other Operating (Income) Expense (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Expense | Other operating (income) expense is comprised of the following: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Gain) loss on sale of disposition of business and assets (1) $ 58.0 $ 0.5 $ 58.0 $ 3.6 Write-down of assets (2) 13.5 17.9 13.5 17.9 Other 0.7 — 2.3 0.2 $ 72.2 $ 18.4 $ 73.8 $ 21.7 (1) In October 2020, we recognized a loss of $58.3 million for the three and nine months ended September 30, 2020 to reduce the carrying value of our assets in Channelview, Texas in connection with the October 2020 Sale. See Note 4 – Property, Plant and Equipment and Intangible Assets for further details. (2) Related to the write-down of certain assets to their recoverable amounts |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Nine Months Ended September 30, 2020 2019 Cash: Interest paid, net of capitalized interest (1) $ 315.9 $ 228.4 Income taxes (received), net of payments (44.4 ) 0.3 Non-cash investing activities: Impact of capital expenditure accruals on property, plant and equipment, net (194.7 ) (150.9 ) Transfers from materials and supplies inventory to property, plant and equipment 1.9 21.7 Non-cash financing activities: Changes in accrued distributions to noncontrolling interests 3.9 73.8 (1) Interest capitalized on major projects was $31.1 million and $50.5 million for the nine months ended September 30, 2020 and 2019. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable segment information is shown in the following tables: Three Months Ended September 30, 2020 Gathering and Processing Logistics and Transportation Other Corporate and Eliminations Total Revenues Sales of commodities $ 135.7 $ 1,616.5 $ 88.6 $ — $ 1,840.8 Fees from midstream services 126.2 148.1 — — 274.3 261.9 1,764.6 88.6 — 2,115.1 Intersegment revenues Sales of commodities 611.9 37.4 — (649.3 ) — Fees from midstream services 1.7 8.5 — (10.2 ) — 613.6 45.9 — (659.5 ) — Revenues $ 875.5 $ 1,810.5 $ 88.6 $ (659.5 ) $ 2,115.1 Operating margin $ 261.0 $ 280.4 $ 88.6 $ — $ 630.0 Other financial information: Total assets (1) $ 8,929.4 $ 6,841.2 $ 78.2 $ 203.3 $ 16,052.1 Goodwill $ 45.2 $ — $ — $ — $ 45.2 Capital expenditures $ 63.6 $ 69.0 $ — $ 4.0 $ 136.6 (1) Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. Three Months Ended September 30, 2019 Gathering and Processing Logistics and Transportation Other Corporate and Eliminations Total Revenues Sales of commodities $ 292.3 $ 1,403.1 $ (101.2 ) $ — $ 1,594.2 Fees from midstream services 173.0 135.3 — — 308.3 465.3 1,538.4 (101.2 ) — 1,902.5 Intersegment revenues Sales of commodities 534.0 34.9 — (568.9 ) — Fees from midstream services 1.9 7.4 — (9.3 ) — 535.9 42.3 — (578.2 ) — Revenues $ 1,001.2 $ 1,580.7 $ (101.2 ) $ (578.2 ) $ 1,902.5 Operating margin $ 246.5 $ 228.9 $ (101.2 ) $ — $ 374.2 Other financial information: Total assets (1) $ 12,326.5 $ 6,475.0 $ 2.9 $ 114.1 $ 18,918.5 Goodwill $ 46.6 $ — $ — $ — $ 46.6 Capital expenditures $ 230.3 $ 301.2 $ — $ 10.8 $ 542.3 (1) Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. Nine Months Ended September 30, 2020 Gathering and Processing Logistics and Transportation Other Corporate and Eliminations Total Revenues Sales of commodities $ 512.9 $ 4,172.0 $ 215.9 $ — $ 4,900.8 Fees from midstream services 354.5 432.2 — — 786.7 867.4 4,604.2 215.9 — 5,687.5 Intersegment revenues Sales of commodities 1,444.3 140.1 — (1,584.4 ) — Fees from midstream services 4.9 23.8 — (28.7 ) — 1,449.2 163.9 — (1,613.1 ) — Revenues $ 2,316.6 $ 4,768.1 $ 215.9 $ (1,613.1 ) $ 5,687.5 Operating margin $ 753.7 $ 806.0 $ 215.9 $ — $ 1,775.6 Other financial information: Total assets (1) $ 8,929.4 $ 6,841.2 $ 78.2 $ 203.3 $ 16,052.1 Goodwill $ 45.2 $ — $ — $ — $ 45.2 Capital expenditures $ 218.0 $ 375.5 $ — $ 16.8 $ 610.3 (1) Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. Nine Months Ended September 30, 2019 Gathering and Processing Logistics and Transportation Other Corporate and Eliminations Total Revenues Sales of commodities $ 847.4 $ 4,508.5 $ (101.1 ) $ — $ 5,254.8 Fees from midstream services 549.1 393.3 — — 942.4 1,396.5 4,901.8 (101.1 ) — 6,197.2 Intersegment revenues Sales of commodities 1,896.5 117.0 — (2,013.5 ) — Fees from midstream services 5.3 20.1 — (25.4 ) — 1,901.8 137.1 — (2,038.9 ) — Revenues $ 3,298.3 $ 5,038.9 $ (101.1 ) $ (2,038.9 ) $ 6,197.2 Operating margin $ 716.8 $ 565.0 $ (101.1 ) $ — $ 1,180.7 Other financial information: Total assets (1) $ 12,326.5 $ 6,475.0 $ 2.9 $ 114.1 $ 18,918.5 Goodwill $ 46.6 $ — $ — $ — $ 46.6 Capital expenditures $ 1,068.7 $ 1,197.5 $ — $ 38.7 $ 2,304.9 (1) Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. |
Revenues Disaggregated by Product and Service | The following table shows our consolidated revenues disaggregated by product and service for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Sales of commodities: Revenue recognized from contracts with customers: Natural gas $ 351.1 $ 305.3 $ 893.9 $ 934.2 NGL 1,312.9 1,160.5 3,382.0 3,752.4 Condensate and crude oil 54.4 178.7 217.8 488.4 Petroleum products 13.2 11.5 69.8 87.5 1,731.6 1,656.0 4,563.5 5,262.5 Non-customer revenue: Derivative activities - Hedge 19.2 41.5 139.4 106.1 Derivative activities - Non-hedge (1) 90.0 (103.3 ) 197.9 (113.8 ) 109.2 (61.8 ) 337.3 (7.7 ) Total sales of commodities 1,840.8 1,594.2 4,900.8 5,254.8 Fees from midstream services: Revenue recognized from contracts with customers: Gathering and processing 123.7 171.6 347.1 543.7 NGL transportation, fractionation and services 43.8 45.8 116.7 122.0 Storage, terminaling and export 96.6 84.6 285.5 254.7 Other 10.2 6.3 37.4 22.0 Total fees from midstream services 274.3 308.3 786.7 942.4 Total revenues $ 2,115.1 $ 1,902.5 $ 5,687.5 $ 6,197.2 (1) Represents derivative activities that are not designated as hedging instruments under ASC 815. |
Reconciliation of Reportable Segment Operating Margin to Income (Loss) Before Income Taxes | The following table shows a reconciliation of reportable segment operating margin to income (loss) before income taxes for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Reconciliation of reportable segment operating margin to income (loss) before income taxes: Gathering and Processing operating margin $ 261.0 $ 246.5 $ 753.7 $ 716.8 Logistics and Transportation operating margin 280.4 228.9 806.0 565.0 Other operating margin 88.6 (101.2 ) 215.9 (101.1 ) Depreciation and amortization expense (203.7 ) (244.3 ) (647.3 ) (718.9 ) General and administrative expense (58.6 ) (69.9 ) (180.6 ) (223.5 ) Impairment of long-lived assets — — (2,442.8 ) — Interest expense, net (97.7 ) (89.1 ) (292.4 ) (241.8 ) Equity earnings (loss) 18.6 10.0 54.1 15.9 Gain (loss) on sale or disposition of business and assets (58.0 ) (0.5 ) (58.0 ) (3.6 ) Write-down of assets (13.5 ) (17.9 ) (13.5 ) (17.9 ) Gain (loss) from financing activities (13.7 ) — 47.4 (1.4 ) Gain (loss) from sale of equity-method investment — 65.8 — 65.8 Change in contingent considerations — — — (8.8 ) Other, net 0.7 — (0.1 ) (0.2 ) Income (loss) before income taxes $ 204.1 $ 28.3 $ (1,757.6 ) $ 46.3 |
Property, Plant and Equipment_3
Property, Plant and Equipment and Intangible Assets - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 20,234.3 | $ 19,876.8 |
Accumulated depreciation, amortization and impairment | (7,941.5) | (5,328.3) |
Property, plant and equipment, net | 12,292.8 | 14,548.5 |
Intangible assets | 2,643.5 | 2,643.5 |
Accumulated amortization and impairment | (1,225.9) | (908.5) |
Intangible assets, net | $ 1,417.6 | 1,735 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 20 years | |
Gathering Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 9,125.2 | 8,976.8 |
Gathering Systems [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Gathering Systems [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 20 years | |
Processing and Fractionation Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 6,138.3 | 5,143 |
Processing and Fractionation Facilities [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Processing and Fractionation Facilities [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Terminaling and Storage Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 1,514.8 | 1,495.5 |
Terminaling and Storage Facilities [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Terminaling and Storage Facilities [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Transportation Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 2,422.6 | 2,292.4 |
Transportation Assets [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Transportation Assets [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 50 years | |
Other Property, Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 123.9 | 184.1 |
Other Property, Plant and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Other Property, Plant and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 50 years | |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 160.7 | 159.7 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 697.5 | 1,576.5 |
Finance Lease Right-of-Use Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 51.3 | $ 48.8 |
Property, Plant and Equipment_4
Property, Plant and Equipment and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Oct. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Property, Plant and Equipment [Line Items] | ||||||||
Depreciation expense | $ 168.5 | $ 201.4 | $ 538.5 | $ 590.1 | ||||
Weighted average discount rate percentage | 14.00% | |||||||
Non-cash pre-tax impairments | $ 2,442.8 | 2,442.8 | ||||||
Estimated amortization expense for intangible assets [Abstract] | ||||||||
2020 | 144 | 144 | ||||||
2021 | 130.9 | 130.9 | ||||||
2022 | 122.7 | 122.7 | ||||||
2023 | 117.5 | 117.5 | ||||||
2024 | 113.7 | 113.7 | ||||||
Proceeds from sale of assets | 135.9 | 2.7 | ||||||
(Gain) loss on sale or disposition of business and assets | [1] | 58 | $ 0.5 | 58 | $ 3.6 | |||
Channelview, Texas [Member] | ||||||||
Estimated amortization expense for intangible assets [Abstract] | ||||||||
(Gain) loss on sale or disposition of business and assets | 58.3 | 58.3 | ||||||
Channelview, Texas [Member] | Other Operating (Income) Expense [Member] | ||||||||
Estimated amortization expense for intangible assets [Abstract] | ||||||||
(Gain) loss on sale or disposition of business and assets | $ 58.3 | $ 58.3 | ||||||
Channelview, Texas [Member] | Subsequent Event [Member] | ||||||||
Estimated amortization expense for intangible assets [Abstract] | ||||||||
Proceeds from sale of assets | $ 58 | |||||||
Restatement Adjustment [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Depreciation expense | $ 12.5 | |||||||
[1] | In October 2020, we recognized a loss of $58.3 million for the three and nine months ended September 30, 2020 to reduce the carrying value of our assets in Channelview, Texas in connection with the October 2020 Sale. See Note 4 – Property, Plant and Equipment and Intangible Assets for further details. |
Property, Plant and Equipment_5
Property, Plant and Equipment and Intangible Assets - Schedule of Changes in Intangible Assets (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Finite Lived Intangible Assets Roll Forward | |
Beginning of period | $ 1,735 |
Impairment | (208.6) |
Amortization | (108.8) |
End of period | $ 1,417.6 |
Property, Plant and Equipment_6
Property, Plant and Equipment and Intangible Assets - Schedule of Carrying Amounts of Assets and Liabilities Held for Sale (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Property, plant and equipment, net of accumulated depreciation and estimated loss on sale | $ 61 | |
Other current assets | 1.2 | |
Total assets held for sale | 62.2 | $ 137.7 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 1 | |
Other long-term obligations | 2.6 | |
Total liabilities held for sale | $ 3.6 | $ 6.4 |
Debt Obligations - Summary Of D
Debt Obligations - Summary Of Debt Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Current Obligations of the Partnership [Abstract] | |||
Accounts receivable securitization facility, due April 2021 | [1],[2] | $ 250 | $ 370 |
Finance lease liabilities | [2] | 11.9 | 12.2 |
Current debt obligations | [2] | 261.9 | 382.2 |
Long-term [Abstract] | |||
Long-term debt including Unamortized premium(discount) and Debt issuance costs | 7,680 | 7,463.5 | |
Debt issuance costs, net of amortization | (48.5) | (49.1) | |
Finance lease liabilities | 20.7 | 25.8 | |
Long-term debt | 7,652.2 | 7,440.2 | |
Total debt obligations | 7,914.1 | 7,822.4 | |
Letters of credit outstanding | 35.3 | 88.2 | |
TRP Senior Secured Revolving Credit Facility due June 2023 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2],[3] | 100 | 0 |
Senior Unsecured Notes [Member] | Senior Unsecured 5 1/4% Notes due May 2023 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 559.6 | 559.6 |
Senior Unsecured Notes [Member] | Senior Unsecured 4 1/4% Notes due November 2023 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 583.9 | 583.9 |
Senior Unsecured Notes [Member] | Senior Unsecured 6 3/4% Notes due March 2024 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 0 | 580.1 |
Senior Unsecured Notes [Member] | Senior Unsecured 5 1/8% Notes due February 2025 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 481 | 500 |
Senior Unsecured Notes [Member] | Senior Unsecured 5 7/8% Notes due April 2026 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 963.2 | 1,000 |
Senior Unsecured Notes [Member] | Senior Unsecured 5 3/8% Notes due February 2027 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 468.1 | 500 |
Senior Unsecured Notes [Member] | Senior Unsecured 6½% Senior Notes due July 2027 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 705.2 | 750 |
Senior Unsecured Notes [Member] | Senior Unsecured 5% Notes due January 2028 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 700.3 | 750 |
Senior Unsecured Notes [Member] | Senior Unsecured of 6⅞% Senior Notes due January 2029 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 679.3 | 750 |
Senior Unsecured Notes [Member] | Senior Unsecured of 5½% Senior Notes due March 2030 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 949.6 | 1,000 |
Senior Unsecured Notes [Member] | Senior Unsecured of 4⅞% Senior Notes due February 2031 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 1,000 | 0 |
Senior Unsecured Notes [Member] | Targa Pipeline Partners LP [Member] | Senior Unsecured 4 3/4% Notes due November 2021 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2],[4] | 6.5 | 6.5 |
Senior Unsecured Notes [Member] | Targa Pipeline Partners LP [Member] | Senior Unsecured 5 7/8% Notes due August 2023 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2],[4] | 48.1 | 48.1 |
Unamortized premium | 0.2 | 0.3 | |
Secured Debt [Member] | TRC Senior Secured Revolving Credit Facility [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Letters of credit outstanding | [5] | 0 | 0 |
Revolving Credit Facility [Member] | TRC Senior Secured Revolving Credit Facility due June 2023 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [5] | 435 | 435 |
Revolving Credit Facility [Member] | TRP Senior Secured Revolving Credit Facility due June 2023 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Letters of credit outstanding | [3] | $ 35.3 | $ 88.2 |
[1] | As of September 30, 2020, the Partnership had $250.0 million of qualifying receivables under its $250.0 million accounts receivable securitization facility (“Securitization Facility”), resulting in zero availability. During the second quarter of 2020, the Partnership amended the Securitization Facility to decrease the facility size from $400.0 million to $250.0 million to more closely align with our expectations for borrowing needs given commodity prices and to extend the facility termination date to April 21, 2021. | ||
[2] | While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. | ||
[3] | As of September 30, 2020, availability under the Partnership’s $2.2 billion senior secured revolving credit facility (“TRP Revolver”) was $2,064.7 million | ||
[4] | “TPL” refers to Targa Pipeline Partners LP. | ||
[5] | As of September 30, 2020, availability under TRC’s $670.0 million senior secured revolving credit facility (“TRC Revolver”) was $235.0 million. |
Debt Obligations - Summary Of_2
Debt Obligations - Summary Of Debt Obligations (Parenthetical) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 01, 2020 | Aug. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | ||||||||
Proceeds from borrowings under accounts receivable securitization facility | $ 476,400,000 | $ 770,000,000 | ||||||
Accounts receivable securitization facility | [1],[2] | 250,000,000 | $ 370,000,000 | |||||
Accounts Receivable Securitization Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Apr. 21, 2021 | |||||||
Proceeds from borrowings under accounts receivable securitization facility | 250,000,000 | |||||||
Accounts receivable securitization facility | 250,000,000 | |||||||
Remaining borrowing capacity | $ 0 | |||||||
Maximum borrowing capacity | $ 250,000,000 | $ 400,000,000 | ||||||
Revolving Credit Facility [Member] | TRC Senior Secured Revolving Credit Facility due June 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Jun. 30, 2023 | |||||||
Remaining borrowing capacity | $ 235,000,000 | |||||||
Maximum borrowing capacity | $ 670,000,000 | |||||||
Senior Unsecured Notes [Member] | Senior Unsecured 6 3/4% Notes due March 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on fixed rate debt | 6.75% | 6.75% | ||||||
Senior Unsecured Notes [Member] | Senior Unsecured of 4⅞% Senior Notes due February 2031 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on fixed rate debt | 4.875% | |||||||
Senior Unsecured Notes [Member] | Targa Pipeline Partners LP [Member] | Senior Unsecured 4 3/4% Notes due November 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Nov. 30, 2021 | |||||||
Interest rate on fixed rate debt | 4.75% | |||||||
Senior Unsecured Notes [Member] | Targa Pipeline Partners LP [Member] | Senior Unsecured 5 7/8% Notes due August 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Aug. 31, 2023 | |||||||
Interest rate on fixed rate debt | 5.875% | |||||||
Targa Resources Partners LP [Member] | Accounts Receivable Securitization Facility [Member] | Accounts Receivable Securitization Facility Due December 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Apr. 30, 2021 | |||||||
Targa Resources Partners LP [Member] | Revolving Credit Facility [Member] | TRP Senior Secured Revolving Credit Facility due June 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Jun. 30, 2023 | |||||||
Remaining borrowing capacity | $ 2,064,700,000 | |||||||
Maximum borrowing capacity | $ 2,200,000,000 | |||||||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5 7/8% Notes due April 2026 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Apr. 30, 2026 | |||||||
Interest rate on fixed rate debt | 5.875% | |||||||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5 1/4% Notes due May 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | May 31, 2023 | |||||||
Interest rate on fixed rate debt | 5.25% | |||||||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5% Notes due January 2028 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Jan. 31, 2028 | |||||||
Interest rate on fixed rate debt | 5.00% | |||||||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 4 1/4% Notes due November 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Nov. 30, 2023 | |||||||
Interest rate on fixed rate debt | 4.25% | |||||||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6½% Senior Notes due July 2027 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Jul. 31, 2027 | |||||||
Interest rate on fixed rate debt | 6.50% | |||||||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 3/4% Notes due March 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Mar. 31, 2024 | |||||||
Interest rate on fixed rate debt | 6.75% | |||||||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5 1/8% Notes due February 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Feb. 28, 2025 | |||||||
Interest rate on fixed rate debt | 5.125% | |||||||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured of 6⅞% Senior Notes due January 2029 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Jan. 31, 2029 | |||||||
Interest rate on fixed rate debt | 6.875% | |||||||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5 3/8% Notes due February 2027 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Feb. 28, 2027 | |||||||
Interest rate on fixed rate debt | 5.375% | |||||||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured of 5½% Senior Notes due March 2030 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Mar. 31, 2030 | |||||||
Interest rate on fixed rate debt | 5.50% | |||||||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured of 4⅞% Senior Notes due February 2031 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Feb. 28, 2031 | |||||||
Interest rate on fixed rate debt | 4.875% | |||||||
[1] | As of September 30, 2020, the Partnership had $250.0 million of qualifying receivables under its $250.0 million accounts receivable securitization facility (“Securitization Facility”), resulting in zero availability. During the second quarter of 2020, the Partnership amended the Securitization Facility to decrease the facility size from $400.0 million to $250.0 million to more closely align with our expectations for borrowing needs given commodity prices and to extend the facility termination date to April 21, 2021. | |||||||
[2] | While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. |
Debt Obligations - Range of Int
Debt Obligations - Range of Interest Rates and Weighted Average Interest Rate Incurred on Variable Rate Debt Obligations (Details) | Sep. 30, 2020 |
TRC Revolver [Member] | |
Debt Instrument [Line Items] | |
Weighted average interest rate incurred | 2.50% |
TRP Revolver [Member] | |
Debt Instrument [Line Items] | |
Weighted average interest rate incurred | 2.30% |
Targa Resources Partners LP [Member] | Securitization Facility [Member] | |
Debt Instrument [Line Items] | |
Weighted average interest rate incurred | 2.00% |
Minimum [Member] | TRC Revolver [Member] | |
Debt Instrument [Line Items] | |
Range of interest rates incurred | 1.90% |
Minimum [Member] | TRP Revolver [Member] | |
Debt Instrument [Line Items] | |
Range of interest rates incurred | 1.90% |
Minimum [Member] | Targa Resources Partners LP [Member] | Securitization Facility [Member] | |
Debt Instrument [Line Items] | |
Range of interest rates incurred | 1.50% |
Maximum [Member] | TRC Revolver [Member] | |
Debt Instrument [Line Items] | |
Range of interest rates incurred | 3.50% |
Maximum [Member] | TRP Revolver [Member] | |
Debt Instrument [Line Items] | |
Range of interest rates incurred | 6.00% |
Maximum [Member] | Targa Resources Partners LP [Member] | Securitization Facility [Member] | |
Debt Instrument [Line Items] | |
Range of interest rates incurred | 2.70% |
Debt Obligations - Senior Unsec
Debt Obligations - Senior Unsecured Notes Issuances - Additional Information (Details) - Senior Unsecured Notes [Member] - USD ($) $ in Millions | 1 Months Ended | |
Aug. 31, 2020 | Sep. 01, 2020 | |
Senior Unsecured of 4⅞% Senior Notes due February 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount issued | $ 1,000 | |
Interest rate on fixed rate debt | 4.875% | |
Net proceeds from private placement of notes | $ 991 | |
Senior Unsecured 6 3/4% Notes due March 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate on fixed rate debt | 6.75% | 6.75% |
Debt Obligations - Debt Extingu
Debt Obligations - Debt Extinguishments and Repurchases - Additional Information (Details) - USD ($) $ in Millions | Sep. 01, 2020 | Sep. 30, 2020 | Aug. 31, 2020 |
Debt Instrument [Line Items] | |||
Write-off debt issuance cost | $ 5 | ||
Senior Unsecured 6 3/4% Notes due March 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of notes redeemed | $ 318 | $ 262.1 | |
Loss due to debt extinguishments | 13.7 | ||
Premium Paid | 11.1 | ||
Write-off debt issuance cost | $ 2.6 | ||
Senior Unsecured 6 3/4% Notes due March 2024 [Member] | Senior Unsecured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on fixed rate debt | 6.75% | 6.75% |
Debt Obligations - Summary of P
Debt Obligations - Summary of Partnership's Senior Note Repurchases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | |||
Debt Repurchased, Book Value | $ 883.4 | $ 883.4 | |
Debt Repurchased, Payment | (831) | (831) | |
Debt Repurchased, Gain (Loss) | 52.4 | ||
Debt Repurchased, Write-off of Debt Issuance Costs | (5) | ||
Debt Repurchased, Net Gain | (13.7) | 47.4 | $ (1.4) |
5⅛% Senior Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Repurchased, Book Value | 19 | 19 | |
Debt Repurchased, Payment | (14.6) | (14.6) | |
Debt Repurchased, Gain (Loss) | 4.4 | ||
Debt Repurchased, Write-off of Debt Issuance Costs | (0.1) | ||
Debt Repurchased, Net Gain | 4.3 | ||
5⅞% Senior Notes due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Repurchased, Book Value | 36.8 | 36.8 | |
Debt Repurchased, Payment | (29.7) | (29.7) | |
Debt Repurchased, Gain (Loss) | 7.1 | ||
Debt Repurchased, Write-off of Debt Issuance Costs | (0.2) | ||
Debt Repurchased, Net Gain | 6.9 | ||
5⅜% Senior Notes due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Repurchased, Book Value | 31.9 | 31.9 | |
Debt Repurchased, Payment | (26.6) | (26.6) | |
Debt Repurchased, Gain (Loss) | 5.3 | ||
Debt Repurchased, Write-off of Debt Issuance Costs | (0.2) | ||
Debt Repurchased, Net Gain | 5.1 | ||
6½% Senior Notes due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Repurchased, Book Value | 44.8 | 44.8 | |
Debt Repurchased, Payment | (35.5) | (35.5) | |
Debt Repurchased, Gain (Loss) | 9.3 | ||
Debt Repurchased, Write-off of Debt Issuance Costs | (0.4) | ||
Debt Repurchased, Net Gain | 8.9 | ||
5% Senior Notes due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Repurchased, Book Value | 49.7 | 49.7 | |
Debt Repurchased, Payment | (38) | (38) | |
Debt Repurchased, Gain (Loss) | 11.7 | ||
Debt Repurchased, Write-off of Debt Issuance Costs | (0.4) | ||
Debt Repurchased, Net Gain | 11.3 | ||
6⅞% Senior Notes due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Repurchased, Book Value | 70.7 | 70.7 | |
Debt Repurchased, Payment | (55.2) | (55.2) | |
Debt Repurchased, Gain (Loss) | 15.5 | ||
Debt Repurchased, Write-off of Debt Issuance Costs | (0.6) | ||
Debt Repurchased, Net Gain | 14.9 | ||
5½% Senior Notes due 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Repurchased, Book Value | 50.4 | 50.4 | |
Debt Repurchased, Payment | (40.2) | (40.2) | |
Debt Repurchased, Gain (Loss) | 10.2 | ||
Debt Repurchased, Write-off of Debt Issuance Costs | (0.5) | ||
Debt Repurchased, Net Gain | 9.7 | ||
6¾% Senior Notes due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Repurchased, Book Value | 580.1 | 580.1 | |
Debt Repurchased, Payment | $ (591.2) | (591.2) | |
Debt Repurchased, Gain (Loss) | (11.1) | ||
Debt Repurchased, Write-off of Debt Issuance Costs | (2.6) | ||
Debt Repurchased, Net Gain | $ (13.7) |
Debt Obligations - Summary of_3
Debt Obligations - Summary of Payment Obligations for Debt Instruments (Details) $ in Millions | Sep. 30, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Total | $ 10,434.5 | |
Less Than 1 Year | 411.3 | |
1-3 Years | 1,956.3 | |
3-5 Years | 1,722.5 | |
More Than 5 Years | 6,344.4 | |
Long Term Debt Obligation [Member] | ||
Debt Instrument [Line Items] | ||
Total | 7,679.8 | [1] |
1-3 Years | 1,149.2 | [1] |
3-5 Years | 1,064.9 | [1] |
More Than 5 Years | 5,465.7 | [1] |
Interest On Debt Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total | 2,754.7 | [2] |
Less Than 1 Year | 411.3 | [2] |
1-3 Years | 807.1 | [2] |
3-5 Years | 657.6 | [2] |
More Than 5 Years | $ 878.7 | [2] |
[1] | Represents scheduled future maturities of consolidated debt obligations for the periods indicated. | |
[2] | Represents interest expense on debt obligations based on both fixed debt interest rates and prevailing September 30, 2020 rates for floating debt. |
Debt Obligations - Subsequent E
Debt Obligations - Subsequent Event - Additional Information (Details) - Subsequent Event [Member] - Senior Unsecured 5 1/4% Notes due May 2023 [Member] $ in Millions | Nov. 02, 2020USD ($) |
Debt Instrument [Line Items] | |
Face amount of notes redeemed | $ 559.6 |
Senior Unsecured Notes [Member] | |
Debt Instrument [Line Items] | |
Interest rate on fixed rate debt | 5.25% |
Other Long-term Liabilities - D
Other Long-term Liabilities - Deferred Revenue (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Deferred Revenue and Other [Abstract] | ||
Deferred revenue | $ 169.4 | $ 172 |
Channelview Splitter [Member] | ||
Deferred Revenue and Other [Abstract] | ||
Deferred revenue | $ 129 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity [Abstract] | ||||
Accrued cumulative preferred dividend | $ 22.9 | $ 22.9 | ||
Preferred stock dividend paid | 22.9 | $ 68.8 | ||
Accrued preferred dividends payable date | Nov. 13, 2020 | |||
Deemed dividends on Series A Preferred Stock | $ 9.5 | $ 8.4 | $ 27.7 | $ 24.4 |
Common Stock and Related Matt_3
Common Stock and Related Matters - Dividends Declared And Or Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Dividends Payable [Line Items] | ||||||
Accrued preferred dividends payable date | Nov. 13, 2020 | |||||
Accrued Dividends | $ 125.9 | $ 125.9 | $ 122.6 | |||
Dividends Declared per Share of Common Stock | $ 0.10 | $ 0.91 | $ 1.11 | $ 2.73 | ||
Dividend Declared, Q3 2020 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Accrued preferred dividends payable date | Nov. 16, 2020 | |||||
Total Common Dividends Declared | $ 23.8 | |||||
Amount of Common Dividends Paid or To Be Paid | 23.3 | |||||
Accrued Dividends | [1] | $ 0.5 | $ 0.5 | |||
Dividends Declared per Share of Common Stock | $ 0.10000 | |||||
Dividend Declared, Q2 2020 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Accrued preferred dividends payable date | Aug. 17, 2020 | |||||
Total Common Dividends Declared | $ 23.7 | |||||
Amount of Common Dividends Paid or To Be Paid | 23.3 | |||||
Accrued Dividends | [1] | 0.4 | $ 0.4 | |||
Dividends Declared per Share of Common Stock | $ 0.10000 | |||||
Dividend Declared, Q1 2020 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Accrued preferred dividends payable date | May 15, 2020 | |||||
Total Common Dividends Declared | $ 23.7 | |||||
Amount of Common Dividends Paid or To Be Paid | 23.3 | |||||
Accrued Dividends | [1] | 0.4 | $ 0.4 | |||
Dividends Declared per Share of Common Stock | $ 0.10000 | |||||
Dividend Declared, Q4 2019 [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Accrued preferred dividends payable date | Feb. 18, 2020 | |||||
Total Common Dividends Declared | $ 216 | |||||
Amount of Common Dividends Paid or To Be Paid | 212 | |||||
Accrued Dividends | [1] | $ 4 | $ 4 | |||
Dividends Declared per Share of Common Stock | $ 0.91000 | |||||
[1] | Represents accrued dividends on restricted stock and restricted stock units that are payable upon vesting. |
Common Stock and Related Matt_4
Common Stock and Related Matters - Additional Information (Details) - Subsequent Event [Member] - USD ($) | Nov. 02, 2020 | Oct. 31, 2020 |
Securities Financing Transaction [Line Items] | ||
Number of shares repurchased | 4,505,507 | |
Weighted average price | $ 16.33 | |
Total net cost | $ 73,600,000 | |
Remaining authorized share repurchase amount | $ 426,000,000 | |
Maximum [Member] | ||
Securities Financing Transaction [Line Items] | ||
Authorized repurchase amount of outstanding common stock | $ 500,000,000 |
Partnership Units and Related_3
Partnership Units and Related Matters - Summary of Distributions Declared and Paid by the Partnership (Details) - Distributions Paid [Member] - USD ($) $ in Millions | 3 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Distributions Made To Members Or Limited Partners [Abstract] | ||||
Distributions payable date | Nov. 13, 2020 | Aug. 13, 2020 | May 13, 2020 | Feb. 13, 2020 |
Total Distributions | $ 51.7 | $ 51.7 | $ 53.1 | $ 241.9 |
Distributions to Targa Resources Corp. | $ 48.9 | $ 48.9 | $ 50.3 | $ 239.1 |
Partnership Units and Related_4
Partnership Units and Related Matters - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2015 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Limited Partners Capital Account [Line Items] | |||||
Capital contributions to partnership | $ 50 | ||||
Preferred unit, issued | 5,000,000 | ||||
Distributions from partnership | 8.4 | $ 8.4 | |||
Subsequent Event [Member] | |||||
Limited Partners Capital Account [Line Items] | |||||
Distributions declaration month | 2020-10 | ||||
Distribution declared | $ 0.1875 | ||||
Distributions from partnership | $ 0.9 | ||||
Distributions payable date | Nov. 16, 2020 | ||||
Series A Preferred Units due November 1, 2020 [Member] | London Interbank Offered Rate (LIBOR) | |||||
Limited Partners Capital Account [Line Items] | |||||
Percentage of variable interest rate for distribution on preferred units upon maturity | 7.71% | ||||
Series A Preferred Units [Member] | |||||
Limited Partners Capital Account [Line Items] | |||||
Preferred unit, dividend interest rate | 9.00% | ||||
Series A Cumulative Redeemable Perpetual Preferred Units [Member] | |||||
Limited Partners Capital Account [Line Items] | |||||
Distribution to preferred unitholders | $ 2.8 | $ 8.4 | |||
Holders of Limited Partner Interests [Member] | |||||
Limited Partners Capital Account [Line Items] | |||||
Limited partner capital contribution allocation percentage | 98.00% | ||||
Targa Resources Genaral Partner LLC [Member] | |||||
Limited Partners Capital Account [Line Items] | |||||
General partner capital contribution allocation percentage | 2.00% |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Earnings Per Share [Abstract] | |||||
Net income (loss) attributable to Targa Resources Corp. | $ 69.3 | $ (47.3) | $ (1,587.5) | $ (96.4) | |
Less: Dividends on preferred stock | 32.4 | 31.3 | 96.5 | 93.2 | |
Net income (loss) attributable to common shareholders | $ 36.9 | $ (78.6) | $ (1,684) | $ (189.6) | |
Weighted average shares outstanding - basic (in shares) | 233,400,000 | 232,700,000 | 233,200,000 | 232,400,000 | |
Dilutive effect of unvested stock awards | [1] | 0.4 | |||
Weighted average shares outstanding - diluted (in shares) | 233,800,000 | 232,700,000 | 233,200,000 | 232,400,000 | |
Net income (loss) available per common share - basic and diluted(in dollars per share) | $ 0.16 | $ (0.34) | $ (7.22) | $ (0.82) | |
[1] | For the three months ended September 30, 2020, on a weighted average basis, 2.3 million unvested restricted stock awards, 0.5 million unvested performance stock units and 46.5 million Series A Preferred Stock were antidilutive, and accordingly, were excluded from the diluted earnings per common share calculation. For all other periods presented above, all unvested restricted stock awards, unvested performance stock units, and Series A Preferred Stock were antidilutive because a net loss existed for those respective periods. |
Earnings per Common Share (Pare
Earnings per Common Share (Parenthetical) (Details) shares in Millions | 3 Months Ended |
Sep. 30, 2020shares | |
Unvested Restricted Stock Awards [Member] | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive shares excluded from the determination of diluted earnings per share (in shares) | 2.3 |
Unvested Performance Stock Units [Member] | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive shares excluded from the determination of diluted earnings per share (in shares) | 0.5 |
Series A Preferred Stock [Member] | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive shares excluded from the determination of diluted earnings per share (in shares) | 46.5 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Notional Volumes Of The Partnership's Commodity Derivative Contracts (Details) - Targa Resources Partners LP [Member] | 9 Months Ended |
Sep. 30, 2020MMBTUbbl | |
Swaps [Member] | Year 2020 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 168,317 |
Swaps [Member] | Year 2020 [Member] | NGL [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 30,909 |
Swaps [Member] | Year 2021 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 166,216 |
Swaps [Member] | Year 2021 [Member] | NGL [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 29,261 |
Swaps [Member] | Year 2022 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 90,600 |
Swaps [Member] | Year 2022 [Member] | NGL [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 16,848 |
Swaps [Member] | Year 2023 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 33,350 |
Swaps [Member] | Year 2023 [Member] | NGL [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 2,627 |
Swaps [Member] | Year 2024 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 |
Swaps [Member] | Year 2024 [Member] | NGL [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Swaps [Member] | Year 2025 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 |
Swaps [Member] | Year 2025 [Member] | NGL [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Basis Swaps [Member] | Year 2020 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 445,084 |
Basis Swaps [Member] | Year 2021 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 471,168 |
Basis Swaps [Member] | Year 2022 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 295,390 |
Basis Swaps [Member] | Year 2023 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 250,000 |
Basis Swaps [Member] | Year 2024 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 90,000 |
Basis Swaps [Member] | Year 2025 [Member] | Natural Gas [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 5,000 |
Future [Member] | Year 2020 [Member] | NGL [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 52,685 |
Future [Member] | Year 2021 [Member] | NGL [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 25,526 |
Future [Member] | Year 2022 [Member] | NGL [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Future [Member] | Year 2023 [Member] | NGL [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Future [Member] | Year 2024 [Member] | NGL [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Future [Member] | Year 2025 [Member] | NGL [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Options [Member] | Year 2020 [Member] | Condensate [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 5,190 |
Options [Member] | Year 2021 [Member] | Condensate [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 4,872 |
Options [Member] | Year 2022 [Member] | Condensate [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 2,125 |
Options [Member] | Year 2023 [Member] | Condensate [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 515 |
Options [Member] | Year 2024 [Member] | Condensate [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Options [Member] | Year 2025 [Member] | Condensate [Member] | |
Derivative [Line Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities, Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 168.4 | $ 138.8 |
Derivative assets | 88.9 | 103.3 |
Derivative assets | 79.5 | 35.5 |
Derivative liabilities | (184) | (144.9) |
Derivative liabilities | (121.1) | (104.1) |
Derivative liabilities | (62.9) | (40.8) |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 72.4 | 135.8 |
Derivative liabilities | (178.9) | (18) |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 58.4 | 102.1 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-Term Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 14 | 33.7 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | (116.1) | (11.6) |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-term Position [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | (62.8) | (6.4) |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 96 | 3 |
Derivative liabilities | (5.1) | (126.9) |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 30.5 | 1.2 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-Term Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 65.5 | 1.8 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | (5) | (92.5) |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-term Position [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ (0.1) | $ (34.4) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Pro Forma Impact Of Offsetting Assets (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Asset [Abstract] | ||
Gross asset | $ 168.4 | $ 138.8 |
Gross asset | 168.4 | 138.8 |
Pro forma net presentation, asset, total | 82.5 | 79.8 |
Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 143.7 | 133.1 |
Pro forma net presentation, asset | 57.8 | 74.1 |
Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 24.7 | 5.7 |
Pro forma net presentation, asset, total | 24.7 | 5.7 |
Current Assets from Risk Management Activities [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 88.9 | 103.3 |
Pro forma net presentation, asset, current | 40.1 | 59.5 |
Current Assets from Risk Management Activities [Member] | Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 80.3 | 99.8 |
Pro forma net presentation, asset | 31.5 | 56 |
Current Assets from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 8.6 | 3.5 |
Pro forma net presentation, asset, current | 8.6 | 3.5 |
Long-Term Assets from Risk Management Activities [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 79.5 | 35.5 |
Pro forma net presentation, asset, noncurrent | 42.4 | 20.3 |
Long-Term Assets from Risk Management Activities [Member] | Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 63.4 | 33.3 |
Pro forma net presentation, asset | 26.3 | 18.1 |
Long-Term Assets from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 16.1 | 2.2 |
Pro forma net presentation, asset, noncurrent | $ 16.1 | $ 2.2 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Pro Forma Impact Of Offsetting Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Liability [Abstract] | ||
Gross liability | $ (184) | $ (144.9) |
Pro forma net presentation, liability, total | (38) | (90.8) |
Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (183.7) | (125.5) |
Pro forma net presentation, liability, total | (37.7) | (71.4) |
Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (0.3) | (19.4) |
Pro forma net presentation, liability, total | (0.3) | (19.4) |
Current Liabilities from Risk Management Activities [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (121.1) | (104.1) |
Pro forma net presentation, liability, current | (12.2) | (65.2) |
Current Liabilities from Risk Management Activities [Member] | Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (121.1) | (85) |
Pro forma net presentation, liability, current | (12.2) | (46.1) |
Current Liabilities from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (19.1) | |
Pro forma net presentation, liability, current | (19.1) | |
Long-Term Liabilities from Risk Management Activities [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (62.9) | (40.8) |
Pro forma net presentation, liability, noncurrent | (25.8) | (25.6) |
Long-Term Liabilities from Risk Management Activities [Member] | Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (62.6) | (40.5) |
Pro forma net presentation, liability, noncurrent | (25.5) | (25.3) |
Long-Term Liabilities from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (0.3) | (0.3) |
Pro forma net presentation, liability, noncurrent | $ (0.3) | $ (0.3) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities, Pro Forma Impact - Offsetting Collateral (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Asset [Abstract] | ||
Gross collateral | $ 60.1 | $ (4.9) |
Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Asset [Abstract] | ||
Gross collateral | 60.1 | (4.9) |
Current Assets from Risk Management Activities [Member] | ||
Derivative Asset [Abstract] | ||
Gross collateral | 60.1 | (4.9) |
Current Assets from Risk Management Activities [Member] | Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Asset [Abstract] | ||
Gross collateral | $ 60.1 | $ (4.9) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions | Sep. 30, 2020USD ($) |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Estimated fair value of derivative instruments, net liability | $ 15.6 |
Amount expected to reclassify commodity hedge related deferred losses to earnings before income taxes | (106) |
Amount of deferred losses to be reclassified into earnings before income taxes over next twelve months | $ (57.2) |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities - Amounts Included in OCI, Income and AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from OCI into income (effective portion) | $ 19.2 | $ 41.5 | $ 139.4 | $ 106.1 |
Commodity Contracts [Member] | Revenues [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income on derivatives | 90 | (103.3) | 197.9 | (113.8) |
Cash Flow Hedging [Member] | Commodity Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in OCI on derivatives (effective portion) | $ (128.7) | $ 118.2 | $ (102.6) | $ 167.8 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($)Swap | |
Fair Value Disclosures [Abstract] | ||
Estimated fair value of derivative instruments, net liability | $ 15.6 | |
Derivative fair value of net liability if commodity price increases by 10 percent | (136.8) | |
Derivative fair value of net asset if commodity price decreases by 10 percent | $ 106.1 | |
Number of natural gas basis swaps categorized as Level 3 | Swap | 3 | |
Non-cash pre-tax impairments | $ 2,442.8 |
Fair Value Measurements - Break
Fair Value Measurements - Breakdown by Fair Value Hierarchy Category for Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: | |||
Assets from commodity derivative contracts | $ 82.5 | $ 79.8 | |
Liabilities from commodity derivative contracts | 38 | 90.8 | |
Carrying Value [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: | |||
Assets from commodity derivative contracts | [1] | 168.4 | 136.5 |
Liabilities from commodity derivative contracts | [1] | 184 | 142.6 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Cash and cash equivalents | 275 | 331.1 | |
Carrying Value [Member] | TRC Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 435 | 435 | |
Carrying Value [Member] | TRP Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 100 | 0 | |
Carrying Value [Member] | Partnership's Securitization Facility [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 250 | 370 | |
Carrying Value [Member] | Senior Unsecured Notes [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 7,145 | 7,028.5 | |
Fair Value [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: | |||
Assets from commodity derivative contracts | [1] | 168.4 | 136.5 |
Liabilities from commodity derivative contracts | [1] | 184 | 142.6 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Cash and cash equivalents | 275 | 331.1 | |
Fair Value [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: | |||
Assets from commodity derivative contracts | [1] | 0 | 0 |
Liabilities from commodity derivative contracts | [1] | 0 | 0 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Cash and cash equivalents | 0 | 0 | |
Fair Value [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: | |||
Assets from commodity derivative contracts | [1] | 168.4 | 136.2 |
Liabilities from commodity derivative contracts | [1] | 183.7 | 142 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Cash and cash equivalents | 0 | 0 | |
Fair Value [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: | |||
Assets from commodity derivative contracts | [1] | 0 | 0.3 |
Liabilities from commodity derivative contracts | [1] | 0.3 | 0.6 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Cash and cash equivalents | 0 | 0 | |
Fair Value [Member] | TRC Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 435 | 435 | |
Fair Value [Member] | TRC Revolver [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | TRC Revolver [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 435 | 435 | |
Fair Value [Member] | TRC Revolver [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | TRP Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 100 | 0 | |
Fair Value [Member] | TRP Revolver [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | TRP Revolver [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 100 | 0 | |
Fair Value [Member] | TRP Revolver [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Partnership's Securitization Facility [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 250 | 370 | |
Fair Value [Member] | Partnership's Securitization Facility [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Partnership's Securitization Facility [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 250 | 370 | |
Fair Value [Member] | Partnership's Securitization Facility [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 7,206 | 7,376.9 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 7,206 | 7,376.9 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: | |||
Long-term debt | 0 | 0 | |
Targa Pipeline Partners LP [Member] | Carrying Value [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: | |||
Additional cash paid in potential earn-out payment | [2] | 2.3 | 2.3 |
Targa Pipeline Partners LP [Member] | Fair Value [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: | |||
Additional cash paid in potential earn-out payment | [2] | 2.3 | 2.3 |
Targa Pipeline Partners LP [Member] | Fair Value [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: | |||
Additional cash paid in potential earn-out payment | [2] | 0 | 0 |
Targa Pipeline Partners LP [Member] | Fair Value [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: | |||
Additional cash paid in potential earn-out payment | [2] | 0 | 0 |
Targa Pipeline Partners LP [Member] | Fair Value [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: | |||
Additional cash paid in potential earn-out payment | [2] | $ 2.3 | $ 2.3 |
[1] | The fair value of derivative contracts in this table is presented on a different basis than the Consolidated Balance Sheets presentation as disclosed in Note 11 –Derivative Instruments and Hedging Activities. The above fair values reflect the total value of each derivative contract taken as a whole, whereas the Consolidated Balance Sheets presentation is based on the individual maturity dates of estimated future settlements. As such, an individual contract could have both an asset and liability position when segregated into its current and long-term portions for Consolidated Balance Sheets classification purposes. | ||
[2] | We have a contingent consideration liability for TPL’s previous acquisition of a gas gathering system and related assets, which is carried at fair value. |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Fair Value of Financial Instruments Classified as Level 3 (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($) | ||
Contingent Consideration [Member] | ||
Changes in fair value of financial instruments classified as Level 3 in fair value hierarchy [Roll Forward] | ||
Balance, beginning of period | $ (2.3) | |
New Level 3 derivative instruments | 0 | |
Transfers out of Level 3 | 0 | [1] |
Unrealized gain/(loss) included in OCI | 0 | |
Balance, end of period | (2.3) | |
Commodity Derivative Contracts Asset/(Liability) [Member] | ||
Changes in fair value of financial instruments classified as Level 3 in fair value hierarchy [Roll Forward] | ||
Balance, beginning of period | (0.3) | |
New Level 3 derivative instruments | (0.5) | |
Transfers out of Level 3 | 0.3 | [1] |
Unrealized gain/(loss) included in OCI | 0.2 | |
Balance, end of period | $ (0.3) | |
[1] | Transfers relate to long-term over-the-counter swaps for NGL products for which observable market prices became available for substantially their full term. |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01 | Sep. 30, 2020 |
Minimum [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining duration of contracts | 1 year |
Maximum [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining duration of contracts | 19 years |
Revenue - Estimated Minimum Rev
Revenue - Estimated Minimum Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Details) - Fixed Price Contract [Member] $ in Millions | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Fixed consideration to be recognized | $ 140.7 |
Remaining duration of contracts | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Fixed consideration to be recognized | $ 518.1 |
Remaining duration of contracts | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Fixed consideration to be recognized | $ 2,858.8 |
Remaining duration of contracts |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Income Tax Disclosure [Abstract] | |
Net deferred tax liability | $ 131.1 |
Decrease in valuation allowance | $ 15.5 |
Other Operating (Income) Expe_3
Other Operating (Income) Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Other Income And Expenses [Abstract] | |||||
(Gain) loss on sale or disposition of business and assets | [1] | $ 58 | $ 0.5 | $ 58 | $ 3.6 |
Write-downs of assets | [2] | 13.5 | 17.9 | 13.5 | 17.9 |
Other | 0.7 | 2.3 | 0.2 | ||
Total other operating (income) expense | $ 72.2 | $ 18.4 | $ 73.8 | $ 21.7 | |
[1] | In October 2020, we recognized a loss of $58.3 million for the three and nine months ended September 30, 2020 to reduce the carrying value of our assets in Channelview, Texas in connection with the October 2020 Sale. See Note 4 – Property, Plant and Equipment and Intangible Assets for further details. | ||||
[2] | Related to the write-down of certain assets to their recoverable amounts |
Other Operating (Income) Expe_4
Other Operating (Income) Expense (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Other Operating Income Expense [Line Items] | |||||
(Gain) loss on sale or disposition of business and assets | [1] | $ 58 | $ 0.5 | $ 58 | $ 3.6 |
Channelview, Texas [Member] | |||||
Other Operating Income Expense [Line Items] | |||||
(Gain) loss on sale or disposition of business and assets | $ 58.3 | $ 58.3 | |||
[1] | In October 2020, we recognized a loss of $58.3 million for the three and nine months ended September 30, 2020 to reduce the carrying value of our assets in Channelview, Texas in connection with the October 2020 Sale. See Note 4 – Property, Plant and Equipment and Intangible Assets for further details. |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Cash: | |||
Interest paid, net of capitalized interest | [1] | $ 315.9 | $ 228.4 |
Income taxes (received), net of payments | (44.4) | 0.3 | |
Non-cash investing activities: | |||
Transfers from materials and supplies inventory to property, plant and equipment | 1.9 | 21.7 | |
Non-cash financing activities: | |||
Changes in accrued distributions to noncontrolling interests | 3.9 | 73.8 | |
Retained Earnings [Member] | |||
Non-cash investing activities: | |||
Impact of capital expenditure accruals on property, plant and equipment, net | $ (194.7) | $ (150.9) | |
[1] | Interest capitalized on major projects was $31.1 million and $50.5 million for the nine months ended September 30, 2020 and 2019. |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Parenthetical) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest capitalized on major projects | $ 31.1 | $ 50.5 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Revenues
Segment Information - Revenues and Operating Margin (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Revenues | $ 2,115.1 | $ 1,902.5 | $ 5,687.5 | $ 6,197.2 |
Operating margin | 630 | 374.2 | 1,775.6 | 1,180.7 |
Sales of Commodities [Member] | ||||
Revenues: | ||||
Revenues | 1,840.8 | 1,594.2 | 4,900.8 | 5,254.8 |
Fees from Midstream Services [Member] | ||||
Revenues: | ||||
Revenues | 274.3 | 308.3 | 786.7 | 942.4 |
Gathering and Processing [Member] | ||||
Revenues: | ||||
Revenues | 875.5 | 1,001.2 | 2,316.6 | 3,298.3 |
Operating margin | 261 | 246.5 | 753.7 | 716.8 |
Logistics and Transportation [Member] | ||||
Revenues: | ||||
Revenues | 1,810.5 | 1,580.7 | 4,768.1 | 5,038.9 |
Operating margin | 280.4 | 228.9 | 806 | 565 |
Other [Member] | ||||
Revenues: | ||||
Revenues | 88.6 | (101.2) | 215.9 | (101.1) |
Operating margin | 88.6 | (101.2) | 215.9 | (101.1) |
Corporate and Eliminations [Member] | ||||
Revenues: | ||||
Revenues | (659.5) | (578.2) | (1,613.1) | (2,038.9) |
Operating Segments [Member] | ||||
Revenues: | ||||
Revenues | 2,115.1 | 1,902.5 | 5,687.5 | 6,197.2 |
Operating Segments [Member] | Sales of Commodities [Member] | ||||
Revenues: | ||||
Revenues | 1,840.8 | 1,594.2 | 4,900.8 | 5,254.8 |
Operating Segments [Member] | Fees from Midstream Services [Member] | ||||
Revenues: | ||||
Revenues | 274.3 | 308.3 | 786.7 | 942.4 |
Operating Segments [Member] | Gathering and Processing [Member] | ||||
Revenues: | ||||
Revenues | 261.9 | 465.3 | 867.4 | 1,396.5 |
Operating Segments [Member] | Gathering and Processing [Member] | Sales of Commodities [Member] | ||||
Revenues: | ||||
Revenues | 135.7 | 292.3 | 512.9 | 847.4 |
Operating Segments [Member] | Gathering and Processing [Member] | Fees from Midstream Services [Member] | ||||
Revenues: | ||||
Revenues | 126.2 | 173 | 354.5 | 549.1 |
Operating Segments [Member] | Logistics and Transportation [Member] | ||||
Revenues: | ||||
Revenues | 1,764.6 | 1,538.4 | 4,604.2 | 4,901.8 |
Operating Segments [Member] | Logistics and Transportation [Member] | Sales of Commodities [Member] | ||||
Revenues: | ||||
Revenues | 1,616.5 | 1,403.1 | 4,172 | 4,508.5 |
Operating Segments [Member] | Logistics and Transportation [Member] | Fees from Midstream Services [Member] | ||||
Revenues: | ||||
Revenues | 148.1 | 135.3 | 432.2 | 393.3 |
Operating Segments [Member] | Other [Member] | ||||
Revenues: | ||||
Revenues | 88.6 | (101.2) | 215.9 | (101.1) |
Operating Segments [Member] | Other [Member] | Sales of Commodities [Member] | ||||
Revenues: | ||||
Revenues | 88.6 | (101.2) | 215.9 | (101.1) |
Intersegment Eliminations [Member] | Gathering and Processing [Member] | ||||
Revenues: | ||||
Revenues | 613.6 | 535.9 | 1,449.2 | 1,901.8 |
Intersegment Eliminations [Member] | Gathering and Processing [Member] | Sales of Commodities [Member] | ||||
Revenues: | ||||
Revenues | 611.9 | 534 | 1,444.3 | 1,896.5 |
Intersegment Eliminations [Member] | Gathering and Processing [Member] | Fees from Midstream Services [Member] | ||||
Revenues: | ||||
Revenues | 1.7 | 1.9 | 4.9 | 5.3 |
Intersegment Eliminations [Member] | Logistics and Transportation [Member] | ||||
Revenues: | ||||
Revenues | 45.9 | 42.3 | 163.9 | 137.1 |
Intersegment Eliminations [Member] | Logistics and Transportation [Member] | Sales of Commodities [Member] | ||||
Revenues: | ||||
Revenues | 37.4 | 34.9 | 140.1 | 117 |
Intersegment Eliminations [Member] | Logistics and Transportation [Member] | Fees from Midstream Services [Member] | ||||
Revenues: | ||||
Revenues | 8.5 | 7.4 | 23.8 | 20.1 |
Intersegment Eliminations [Member] | Corporate and Eliminations [Member] | ||||
Revenues: | ||||
Revenues | (659.5) | (578.2) | (1,613.1) | (2,038.9) |
Intersegment Eliminations [Member] | Corporate and Eliminations [Member] | Sales of Commodities [Member] | ||||
Revenues: | ||||
Revenues | (649.3) | (568.9) | (1,584.4) | (2,013.5) |
Intersegment Eliminations [Member] | Corporate and Eliminations [Member] | Fees from Midstream Services [Member] | ||||
Revenues: | ||||
Revenues | $ (10.2) | $ (9.3) | $ (28.7) | $ (25.4) |
Segment Information - Other Fin
Segment Information - Other Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Other financial information [Abstract] | ||||||
Total assets | $ 16,052.1 | $ 16,052.1 | $ 18,815.1 | |||
Operating Segments [Member] | ||||||
Other financial information [Abstract] | ||||||
Total assets | [1] | 16,052.1 | $ 18,918.5 | 16,052.1 | $ 18,918.5 | |
Goodwill | 45.2 | 46.6 | 45.2 | 46.6 | ||
Capital expenditures | 136.6 | 542.3 | 610.3 | 2,304.9 | ||
Operating Segments [Member] | Gathering and Processing [Member] | ||||||
Other financial information [Abstract] | ||||||
Total assets | [1] | 8,929.4 | 12,326.5 | 8,929.4 | 12,326.5 | |
Goodwill | 45.2 | 46.6 | 45.2 | 46.6 | ||
Capital expenditures | 63.6 | 230.3 | 218 | 1,068.7 | ||
Operating Segments [Member] | Logistics and Transportation [Member] | ||||||
Other financial information [Abstract] | ||||||
Total assets | [1] | 6,841.2 | 6,475 | 6,841.2 | 6,475 | |
Capital expenditures | 69 | 301.2 | 375.5 | 1,197.5 | ||
Operating Segments [Member] | Other [Member] | ||||||
Other financial information [Abstract] | ||||||
Total assets | [1] | 78.2 | 2.9 | 78.2 | 2.9 | |
Operating Segments [Member] | Corporate and Eliminations [Member] | ||||||
Other financial information [Abstract] | ||||||
Total assets | [1] | 203.3 | 114.1 | 203.3 | 114.1 | |
Capital expenditures | $ 4 | $ 10.8 | $ 16.8 | $ 38.7 | ||
[1] | Assets in the Corporate and Eliminations column primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. |
Segment Information - Summary o
Segment Information - Summary of Consolidated Revenues Disaggregated by Product and Service (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenue from External Customer [Line Items] | |||||
Revenue recognized | $ 1,731.6 | $ 1,656 | $ 4,563.5 | $ 5,262.5 | |
Non-customer revenue | 109.2 | (61.8) | 337.3 | (7.7) | |
Total revenues | 2,115.1 | 1,902.5 | 5,687.5 | 6,197.2 | |
Derivative Activities - Hedge [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Non-customer revenue | 19.2 | 41.5 | 139.4 | 106.1 | |
Derivative Activities - Non-hedge [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Non-customer revenue | [1] | 90 | (103.3) | 197.9 | (113.8) |
Natural Gas [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenue recognized | 351.1 | 305.3 | 893.9 | 934.2 | |
NGL [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenue recognized | 1,312.9 | 1,160.5 | 3,382 | 3,752.4 | |
Condensate and Crude Oil [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenue recognized | 54.4 | 178.7 | 217.8 | 488.4 | |
Petroleum Products [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenue recognized | 13.2 | 11.5 | 69.8 | 87.5 | |
Gathering and Processing [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenue recognized | 123.7 | 171.6 | 347.1 | 543.7 | |
Sales of Commodities [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Total revenues | 1,840.8 | 1,594.2 | 4,900.8 | 5,254.8 | |
Other [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenue recognized | 10.2 | 6.3 | 37.4 | 22 | |
NGL Transportation, Fractionation and Services [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenue recognized | 43.8 | 45.8 | 116.7 | 122 | |
Storage Terminaling and Export [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenue recognized | 96.6 | 84.6 | 285.5 | 254.7 | |
Fees from Midstream Services [Member] | |||||
Revenue from External Customer [Line Items] | |||||
Revenue recognized | 274.3 | 308.3 | 786.7 | 942.4 | |
Total revenues | $ 274.3 | $ 308.3 | $ 786.7 | $ 942.4 | |
[1] | Represents derivative activities that are not designated as hedging instruments under ASC 815. |
Segment Information - Reconcili
Segment Information - Reconciliation of Reportable Segment Operating Margin to Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Reconciliation of reportable segment operating margin to income (loss) before income taxes: | ||||||
Operating margin | $ 630 | $ 374.2 | $ 1,775.6 | $ 1,180.7 | ||
Depreciation and amortization expense | (203.7) | (244.3) | (647.3) | (718.9) | ||
General and administrative expense | (58.6) | (69.9) | (180.6) | (223.5) | ||
Impairment of long-lived assets | $ (2,442.8) | (2,442.8) | ||||
Interest expense, net | (97.7) | (89.1) | (292.4) | (241.8) | ||
Equity earnings (loss) | 18.6 | 10 | 54.1 | 15.9 | ||
Gain (loss) on sale or disposition of business and assets | [1] | (58) | (0.5) | (58) | (3.6) | |
Write-down of assets | [2] | (13.5) | (17.9) | (13.5) | (17.9) | |
Gain (loss) from financing activities | (13.7) | 47.4 | (1.4) | |||
Gain (loss) from sale of equity-method investment | 65.8 | 65.8 | ||||
Change in contingent considerations | (8.8) | |||||
Other, net | 0.7 | (0.1) | (0.2) | |||
Income (loss) before income taxes | 204.1 | 28.3 | (1,757.6) | 46.3 | ||
Gathering and Processing [Member] | ||||||
Reconciliation of reportable segment operating margin to income (loss) before income taxes: | ||||||
Operating margin | 261 | 246.5 | 753.7 | 716.8 | ||
Logistics and Transportation [Member] | ||||||
Reconciliation of reportable segment operating margin to income (loss) before income taxes: | ||||||
Operating margin | 280.4 | 228.9 | 806 | 565 | ||
Other [Member] | ||||||
Reconciliation of reportable segment operating margin to income (loss) before income taxes: | ||||||
Operating margin | $ 88.6 | $ (101.2) | $ 215.9 | $ (101.1) | ||
[1] | In October 2020, we recognized a loss of $58.3 million for the three and nine months ended September 30, 2020 to reduce the carrying value of our assets in Channelview, Texas in connection with the October 2020 Sale. See Note 4 – Property, Plant and Equipment and Intangible Assets for further details. | |||||
[2] | Related to the write-down of certain assets to their recoverable amounts |