Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Targa Resources Partners LP | |
Trading Symbol | NGLS | |
Entity Central Index Key | 1,379,661 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Limited Partner Interest [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 243,520,639 | |
General Partner Units [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 4,969,807 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 129.9 | $ 135.4 |
Trade receivables, net of allowances of $0.1 million | 546.2 | 514.8 |
Inventories | 150.3 | 141 |
Assets from risk management activities | 34.8 | 92.2 |
Other current assets | 16.4 | 10 |
Total current assets | 877.6 | 893.4 |
Property, plant and equipment | 12,347.7 | 11,928.2 |
Accumulated depreciation | (2,667.6) | (2,225.6) |
Property, plant and equipment, net | 9,680.1 | 9,702.6 |
Intangible assets, net | 1,693 | 1,810.1 |
Goodwill, net | 393 | 417 |
Long-term assets from risk management activities | 12.4 | 34.9 |
Investments in unconsolidated affiliates | 246.9 | 258.9 |
Other long-term assets | 5.2 | 9.9 |
Total assets | 12,908.2 | 13,126.8 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 657.5 | 635.8 |
Accounts payable to Targa Resources Corp. | 41.8 | 30.1 |
Liabilities from risk management activities | 13 | 5.2 |
Accounts receivable securitization facility | 225 | 219.3 |
Total current liabilities | 937.3 | 890.4 |
Long-term debt | 4,297.1 | 5,125.7 |
Long-term liabilities from risk management activities | 17.6 | 2.4 |
Deferred income taxes, net | 27.1 | 27.2 |
Other long-term liabilities | 151.6 | 178.2 |
Contingencies (see Note 15) | ||
Owners' equity: | ||
Series A preferred limited partners (5,000,000 and 5,000,000 units issued and 5,000,000 and 5,000,000 outstanding as of September 30, 2016 and December 31, 2015) | 120.6 | 120.6 |
Common limited partners (243,520,639 and 185,083,420 units issued and 243,520,639 and 184,870,693 outstanding as of September 30, 2016 and December 31, 2015) | 5,178.6 | 4,550.4 |
General partner (4,969,807 and 3,772,871 units issued and 4,969,807 and 3,772,871 outstanding as of September 30, 2016 and December 31, 2015) | 1,733.1 | 1,735.3 |
Accumulated other comprehensive income (loss) | (4.3) | 86.8 |
Treasury units at cost (0 units and 212,727 units as of September 30, 2016 and December 31, 2015) | (10.3) | |
Partners' Capital | 7,028 | 6,482.8 |
Noncontrolling interests in subsidiaries | 449.5 | 420.1 |
Total owners' equity | 7,477.5 | 6,902.9 |
Total liabilities and owners' equity | $ 12,908.2 | $ 13,126.8 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Trade receivables, allowances | $ 0.1 | $ 0.1 |
Owners' equity: | ||
Series A preferred limited partners units outstanding (in units) | 5,000,000 | |
Common limited partners units issued (in units) | 243,520,639 | 185,083,420 |
Common limited partners units outstanding (in units) | 243,520,639 | 184,870,693 |
General partner units issued (in units) | 4,969,807 | 3,772,871 |
General partner units outstanding (in units) | 4,969,807 | 3,772,871 |
Treasury units (in units) | 0 | 212,727 |
Series A Preferred Limited Partner Units [Member] | ||
Owners' equity: | ||
Series A preferred limited partners units issued (in units) | 5,000,000 | 5,000,000 |
Series A preferred limited partners units outstanding (in units) | 5,000,000 | 5,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Sales of commodities | $ 1,398.7 | $ 1,321.3 | $ 3,882.9 | $ 4,119.6 |
Fees from midstream services | 253.6 | 310.8 | 795.5 | 891.6 |
Total revenues | 1,652.3 | 1,632.1 | 4,678.4 | 5,011.2 |
Costs and expenses: | ||||
Product purchases | 1,222.7 | 1,163.3 | 3,378.9 | 3,650 |
Operating expenses | 143 | 142.7 | 413.9 | 409.5 |
Depreciation and amortization expenses | 184 | 165.8 | 563.6 | 448.3 |
General and administrative expenses | 44 | 42.9 | 132.3 | 130.1 |
Goodwill impairment | 0 | 0 | 24 | 0 |
Other operating (income) expense | 4.9 | 0.1 | 6.1 | 0.6 |
Income from operations | 53.7 | 117.3 | 159.6 | 372.7 |
Other income (expense): | ||||
Interest expense, net | (57.9) | (61.6) | (171.2) | (171.1) |
Equity earnings (loss) | (2.2) | (1.6) | (11.4) | (1.1) |
Gain (loss) from financing activities | 0 | (0.5) | 21.4 | (0.5) |
Other | 1.3 | (0.7) | 1.1 | (15.2) |
Income (loss) before income taxes | (5.1) | 52.9 | (0.5) | 184.8 |
Income tax (expense) benefit | (1) | 0.4 | 0 | (0.4) |
Net income (loss) | (6.1) | 53.3 | (0.5) | 184.4 |
Less: Net income attributable to noncontrolling interests | 4.7 | 4.8 | 13.5 | 17.3 |
Net income (loss) attributable to Targa Resources Partners LP | (10.8) | 48.5 | (14) | 167.1 |
Net income attributable to preferred limited partners | 2.8 | 0 | 8.4 | 0 |
Net income attributable to general partner | 29 | 44.9 | 68.2 | 132 |
Net income (loss) attributable to common limited partners | $ (42.6) | $ 3.6 | $ (90.6) | $ 35.1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (6.1) | $ 53.3 | $ (0.5) | $ 184.4 |
Commodity hedging contracts: | ||||
Change in fair value | 12.9 | 50.7 | (40.5) | 77.6 |
Settlements reclassified to revenues | (8.1) | (24.5) | (50.6) | (59.3) |
Other comprehensive income (loss) | 4.8 | 26.2 | (91.1) | 18.3 |
Comprehensive income (loss) | (1.3) | 79.5 | (91.6) | 202.7 |
Less: Comprehensive income attributable to noncontrolling interests | 4.7 | 4.8 | 13.5 | 17.3 |
Comprehensive income (loss) attributable to Targa Resources Partners LP | $ (6) | $ 74.7 | $ (105.1) | $ 185.4 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN OWNERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Limited Partner Preferred [Member] | Limited Partners Common [Member] | General Partner Units [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Units [Member] | Receivables from Unit Issuances [Member] | Non-controlling Interests [Member] |
Balance at Dec. 31, 2014 | $ 2,688.4 | $ 0 | $ 2,384.1 | $ 78.6 | $ 60.3 | $ (4.8) | $ (1) | $ 171.2 |
Balance (in units) at Dec. 31, 2014 | 0 | 118,586 | 2,420 | 67 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Compensation on equity grants | 12.8 | $ 0 | $ 12.8 | $ 0 | 0 | $ 0 | 0 | 0 |
Compensation on equity grants (in units) | 0 | 0 | 0 | 0 | ||||
Distribution equivalent rights | (1.9) | $ 0 | $ (1.9) | $ 0 | 0 | $ 0 | 0 | 0 |
Issuance of common units under compensation program | 0 | $ 0 | $ 0 | $ 0 | 0 | $ 0 | 0 | 0 |
Issuance of common units under compensation program (in units) | 0 | 405 | 0 | 0 | ||||
Units tendered for tax withholding obligations | (5.2) | $ 0 | $ 0 | $ 0 | 0 | $ (5.2) | 0 | 0 |
Units tendered for tax withholding obligations (in units) | 0 | (135) | 0 | 135 | ||||
Equity offerings | 315.4 | $ 0 | $ 315.4 | $ 0 | 0 | $ 0 | 0 | 0 |
Equity offerings (in units) | 0 | 7,377 | 0 | 0 | ||||
Cancellation of treasury units | $ 0 | |||||||
Contributions from Targa Resources Corp. | 60.1 | $ 0 | $ 0 | $ 59.1 | 0 | $ 0 | 1 | 0 |
Contributions from Targa Resources Corp. (in units) | 0 | 0 | 1,352 | 0 | ||||
Acquisition of APL | 2,696.5 | $ 0 | $ 2,583.1 | $ 0 | 0 | $ 0 | 0 | 113.4 |
Acquisition of APL (in units) | 0 | 58,614 | 0 | |||||
Distributions to noncontrolling interests | (8.7) | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 | (8.7) |
Contribution from noncontrolling interests | 16.4 | 0 | 0 | 0 | 0 | 0 | 0 | 16.4 |
Targa contribution - Special General Partner Interest | 1,612.4 | 0 | 0 | 1,612.4 | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 18.3 | 0 | 0 | 0 | 18.3 | 0 | 0 | 0 |
Net income (loss) | 184.4 | 0 | 35.1 | 132 | 0 | 0 | 0 | 17.3 |
Distributions | (531.7) | 0 | (397.1) | (134.6) | 0 | 0 | 0 | 0 |
Balance at Sep. 30, 2015 | 7,057.2 | $ 0 | $ 4,931.5 | $ 1,747.5 | 78.6 | $ (10) | 0 | 309.6 |
Balance (in units) at Sep. 30, 2015 | 0 | 184,847 | 3,772 | 202 | ||||
Balance at Dec. 31, 2014 | 2,688.4 | $ 0 | $ 2,384.1 | $ 78.6 | 60.3 | $ (4.8) | (1) | 171.2 |
Balance (in units) at Dec. 31, 2014 | 0 | 118,586 | 2,420 | 67 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Other comprehensive income (loss) | 26.4 | |||||||
Balance at Dec. 31, 2015 | 6,902.9 | $ 120.6 | $ 4,550.4 | $ 1,735.3 | 86.8 | $ (10.3) | 0 | 420.1 |
Balance (in units) at Dec. 31, 2015 | 5,000 | 184,871 | 3,773 | 212 | ||||
Balance at Sep. 30, 2015 | 7,057.2 | $ 0 | $ 4,931.5 | $ 1,747.5 | 78.6 | $ (10) | 0 | 309.6 |
Balance (in units) at Sep. 30, 2015 | 0 | 184,847 | 3,772 | 202 | ||||
Balance at Dec. 31, 2015 | 6,902.9 | $ 120.6 | $ 4,550.4 | $ 1,735.3 | 86.8 | $ (10.3) | 0 | 420.1 |
Balance (in units) at Dec. 31, 2015 | 5,000 | 184,871 | 3,773 | 212 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Compensation on equity grants | 2.2 | $ 0 | $ 2.2 | $ 0 | 0 | $ 0 | 0 | 0 |
Compensation on equity grants (in units) | 0 | 0 | 0 | 0 | ||||
Distribution equivalent rights | (0.2) | $ 0 | $ (0.2) | $ 0 | 0 | $ 0 | 0 | 0 |
Issuance of common units under compensation program | $ 0 | $ 0 | $ 0 | 0 | $ 0 | 0 | 0 | |
Issuance of common units under compensation program (in units) | 0 | 30 | 0 | 0 | ||||
Units tendered for tax withholding obligations | (0.1) | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.1) | $ 0 | 0 |
Units tendered for tax withholding obligations (in units) | 0 | (1) | 0 | 1 | ||||
Cancellation of treasury units | $ (10.2) | $ (0.2) | $ 10.4 | |||||
Cancellation of treasury units (in units) | 0 | (213) | 0 | |||||
Contributions from Targa Resources Corp. | 1,191 | $ 0 | $ 1,167.2 | $ 23.8 | $ 0 | $ 0 | $ 0 | 0 |
Contributions from Targa Resources Corp. (in units) | 0 | 58,621 | 1,197 | 0 | ||||
Distributions to noncontrolling interests | (16.8) | $ 0 | $ 0 | $ 0 | 0 | $ 0 | 0 | (16.8) |
Contribution from noncontrolling interests | 32.7 | 0 | 0 | 0 | 0 | 0 | 0 | 32.7 |
Other comprehensive income (loss) | (91.1) | 0 | 0 | 0 | (91.1) | 0 | 0 | 0 |
Net income (loss) | (0.5) | 8.4 | (90.6) | 68.2 | 0 | 0 | 0 | 13.5 |
Distributions | (542.6) | (8.4) | (440.2) | (94) | 0 | 0 | 0 | 0 |
Balance at Sep. 30, 2016 | $ 7,477.5 | $ 120.6 | $ 5,178.6 | $ 1,733.1 | $ (4.3) | $ 0 | $ 0 | $ 449.5 |
Balance (in units) at Sep. 30, 2016 | 5,000 | 243,521 | 4,970 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net income (loss) | $ (0.5) | $ 184.4 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization in interest expense | 9.8 | 9.3 |
Compensation on equity grants | 2.2 | 12.8 |
Depreciation and amortization expense | 563.6 | 448.3 |
Goodwill impairment | 24 | 0 |
Accretion of asset retirement obligations | 3.5 | 3.9 |
Change in redemption value of mandatorily redeemable preferred interest | (18.8) | 0 |
Deferred income tax expense (benefit) | 0 | (0.3) |
Equity (earnings) loss of unconsolidated affiliates | 11.4 | 1.1 |
Distributions of earnings received from unconsolidated affiliates | 1.8 | 10.1 |
Risk management activities | 11.7 | 53.2 |
(Gain) loss on sale or disposition of assets | 5.7 | (0.2) |
(Gain) loss from financing activities | (21.4) | 0.5 |
Changes in operating assets and liabilities, net of business acquisitions: | ||
Receivables and other assets | (28.3) | 126.7 |
Inventories | (27.8) | 31.2 |
Accounts payable and other liabilities | 31.8 | (143.2) |
Net cash provided by operating activities | 568.7 | 737.8 |
Cash flows from investing activities | ||
Outlays for property, plant and equipment | (425) | (625.3) |
Outlays for business acquisition, net of cash acquired | 0 | (828.7) |
Investment in unconsolidated affiliates | (4.6) | (6.6) |
Return of capital from unconsolidated affiliates | 3.4 | 1.1 |
Other, net | 4.2 | (3) |
Net cash used in investing activities | (422) | (1,462.5) |
Debt obligations: | ||
Proceeds from borrowings under credit facility | 1,110 | 1,646 |
Repayments of credit facility | (1,390) | (1,211) |
Proceeds from borrowings under accounts receivable securitization facility | 121.4 | 275.5 |
Repayments of accounts receivable securitization facility | (115.7) | (322.8) |
Proceeds from issuance of senior notes | 0 | 1,700 |
Open market purchases of senior notes | (534.3) | 0 |
Redemption of APL senior notes | 0 | (1,168.8) |
Costs incurred in connection with financing arrangements | (7.5) | (20.7) |
Proceeds from sale of common and preferred units | 0 | 318.6 |
Repurchase of common units under compensation plans | (0.1) | (5.2) |
Contributions from General Partner | 23.8 | 60.1 |
Contributions from TRC | 1,167.2 | 0 |
Contributions from noncontrolling interests | 32.7 | 16.4 |
Distributions to unitholders | (542.6) | (531.7) |
Payments of distribution equivalent rights | (0.3) | (2.5) |
Distributions to noncontrolling interests | (16.8) | (8.7) |
Net cash provided by (used in) financing activities | (152.2) | 745.2 |
Net change in cash and cash equivalents | (5.5) | 20.5 |
Cash and cash equivalents, beginning of period | 135.4 | 72.3 |
Cash and cash equivalents, end of period | $ 129.9 | $ 92.8 |
Organization and Operations
Organization and Operations | 9 Months Ended |
Sep. 30, 2016 | |
Limited Liability Company Or Limited Partnership Business Organization And Operations [Abstract] | |
Organization and Operations | Note 1 — Organization and Operations Our Organization Targa Resources Partners LP is a Delaware limited partnership formed in October 2006 by our parent, Targa Resources Corp. (“Targa” or “TRC” or the “Company” or “Parent”). In this Quarterly Report, unless the context requires otherwise, references to “we,” “us,” “our” or the “Partnership” are intended to mean the business and operations of Targa Resources Partners LP and its consolidated subsidiaries. On February 17, 2016, TRC completed the previously announced transactions contemplated by the Agreement and Plan of Merger (the “TRC/TRP Merger Agreement”, and such transaction, the “TRC/TRP Merger”), by and among us, Targa Resources GP LLC (our “general partner” or “TRP GP”), TRC and Spartan Merger Sub LLC, a subsidiary of TRC (“Merger Sub”), pursuant to which TRC acquired indirectly all of our outstanding common units that TRC and its subsidiaries did not already own. Upon the terms and conditions set forth in the Merger Agreement, Merger Sub merged with and into TRP (the “TRC/TRP Merger”), with TRP continuing as the surviving entity and as a subsidiary of TRC. As a result of the TRC/TRP Merger, TRC owns all of our outstanding common units. At the effective time of the TRC/TRP Merger, each outstanding TRP common unit not owned by TRC or its subsidiaries was converted into the right to receive 0.62 shares of common stock of TRC, par value $0.001 per share (“TRC shares”). No fractional TRC shares were issued in the TRC/TRP Merger, and TRP common unitholders, instead received cash in lieu of fractional TRC shares. Pursuant to the TRC/TRP Merger Agreement, TRC has agreed to cause our common units to be delisted from the New York Stock Exchange (“NYSE”) and deregistered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As a result of the completion of the TRC/TRP Merger, our common units are no longer publicly traded. The 5,000,000 9.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (the “Preferred Units”) remain outstanding as limited partner interests in us and continue to trade on the NYSE under the symbol “NGLS PRA.” Subsequent Event On October 19, 2016, we executed the Third Amended and Restated Agreement of Limited Partnership of Targa Resources Partners LP (the “Third A&R Partnership Agreement”), which will be effective as of December 1, 2016. The Third A&R Partnership Agreement amendments include among other things (i) eliminating the IDRs held by the general partner, and related distribution and allocation provisions, (ii) eliminating the Special GP Interest (as defined in the Third A&R Partnership Agreement) held by the general partner, (iii) providing the ability to declare monthly distributions in addition to quarterly distributions, (iv) modifying certain provisions relating to distributions from available cash, (v) eliminating the Class B Unit (as defined in the Third A&R Partnership Agreement) provisions and (vi) changes to the Third A&R Partnership Agreement to reflect the passage of time and to remove provisions that are no longer applicable. Our Operations We are engaged in the business of: • gathering, compressing, treating, processing and selling natural gas; • storing, fractionating, treating, transporting and selling NGLs and NGL products, including services to LPG exporters; • gathering, storing and terminaling crude oil; and • storing, terminaling and selling refined petroleum products. Areas of gathering and processing operations include the Permian Basin in West Texas and Southeast New Mexico; the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma and South Central Kansas; the Williston Basin in North Dakota and in the onshore and near offshore regions of the Louisiana Gulf Coast and the Gulf of Mexico. Our logistics and marketing assets are predominately located in Mont Belvieu and Galena Park, TX, Lake Charles, LA, and Tacoma, WA. See Note 17 – Segment Information for certain financial information for our business segments. The employees supporting our operations are employed by Targa. Our consolidated financial statements include the direct costs of Targa employees deployed to our operating segments, as well as an allocation of costs associated with our usage of Targa’s centralized general and administrative services. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 2 — Basis of Presentation We have prepared these unaudited consolidated financial statements in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. While we derived the year-end balance sheet data from audited financial statements, this interim report does not include all disclosures required by GAAP for annual periods. These unaudited consolidated financial statements and other information included in this Quarterly Report should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report. The unaudited consolidated financial statements for the three and nine months ended September 30, 2016 and 2015, include all adjustments that we believe are necessary for a fair statement of the results for interim periods. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts in prior periods may have been reclassified to conform to the current year presentation. Our financial results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the full year. As described in Note 4 – Business Acquisitions, the February 27, 2015 Atlas mergers involved two separate legal transactions involving different groups of equity holders. For GAAP reporting purposes, these two mergers are viewed as a single integrated transaction. As such, the financial effects of the Targa consideration related to the ATLS merger have been reflected in these financial statements. As further described in Note 4 – Business Acquisitions, our partnership agreement (the “Partnership Agreement”) was amended to provide for the issuance of the Special GP Interest in us equal to the tax basis of the APL GP Interests acquired in the ATLS merger totaling $1.6 billion. The Special GP Interest is not entitled to current distributions or allocations of net income or loss, and has no voting rights or other rights except for the limited right to receive deductions attributable to the contribution of APL GP and the right to distributions in liquidation. Revisions of Previously Reported Activity in our Consolidated Statements of Comprehensive Income (Loss) During the first quarter of 2016 we concluded that activity related to our commodity hedge contracts was not reported properly in our Consolidated Statements of Comprehensive Income (Loss) during 2015. The errors resulted in misstatements of the statement caption “Change in fair value” and equal offsetting misstatements of the caption “Settlements reclassified to revenues.” Related income tax effects were also misstated. We concluded that these misstatements were not material to any of the periods affected, as reported “Total Other Comprehensive Income” is unchanged. However, we have revised previous Consolidated Statements of Comprehensive Income (Loss) reported during 2015 to properly reflect changes in fair value and settlements reclassified to revenues. There is no impact on previously reported net income, total comprehensive income, cash flows, financial position or other profitability measures. The following table displays the impact of these revisions to activity reported in our Consolidated Statements of Comprehensive Income (Loss) during the three and nine months ended September 30, 2015 and the year ended December 31, 2015. Three Months Ended September 30, 2015 September 30, 2015 As Reported As Corrected Commodity hedging contracts: Change in fair value $ 42.9 $ 50.7 Settlements reclassified to revenues (16.7 ) (24.5 ) Other comprehensive income (loss) $ 26.2 $ 26.2 Nine Months Ended Year Ended September 30, 2015 September 30, 2015 December 31, 2015 December 31, 2015 As Reported As Corrected As Reported As Corrected Commodity hedging contracts: Change in fair value $ 59.4 $ 77.6 $ 81.2 $ 112.7 Settlements reclassified to revenues (41.1 ) (59.3 ) (54.8 ) (86.3 ) Other comprehensive income (loss) $ 18.3 $ 18.3 $ 26.4 $ 26.4 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 3 — Significant Accounting Policies Accounting Policy Updates 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 on Form 10-K. There were no significant updates or revisions to our policies during the nine months ended September 30, 2016, except as noted below. Recent Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Other Assets and Deferred Costs – Contracts with Customers With the issuance in August 2015 of ASU 2015-14 , Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients We expect to adopt these updates in their entirety on January 1, 2018, and are continuing to evaluate the impact on our revenue recognition practices. Consolidation In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) We expect to adopt the amendments in the first quarter of 2019 and are currently evaluating the impacts of the amendments to our consolidated financial statements and accounting practices for leases. Share-Based Compensation In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Cash Flow Classification In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) Recognition of Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Acquisitions | Note 4 – Business Acquisitions 2015 Acquisition Atlas Mergers On February 27, 2015, Targa completed the transactions contemplated by the Agreement and Plan of Merger, dated as of October 13, 2014 (the “ATLS Merger Agreement”), by and among (i) Targa, Targa GP Merger Sub LLC, a Delaware limited liability company and a wholly owned subsidiary of Targa (“GP Merger Sub”), Atlas Energy L.P., a Delaware limited partnership (“ATLS”) and Atlas Energy GP, LLC, a Delaware limited liability company and the general partner of ATLS (“ATLS GP”), and (ii) Targa and the Partnership completed the transactions contemplated by the Agreement and Plan of Merger (the “APL Merger Agreement” and, together with the ATLS Merger Agreement, the “Atlas Merger Agreements”) by and among Targa, the Partnership, the Partnership’s general partner, Trident MLP Merger Sub LLC, a Delaware limited liability company and a wholly owned subsidiary of the Partnership (“MLP Merger Sub”), ATLS, Atlas Pipeline Partners L.P., a Delaware limited partnership (“APL”) and Atlas Pipeline Partners GP, LLC, a Delaware limited liability company and the general partner of APL (“APL GP”). Pursuant to the terms and conditions set forth in the ATLS Merger Agreement, GP Merger Sub merged (the “ATLS merger”) with and into ATLS, with ATLS continuing as the surviving entity and as a subsidiary of Targa. Pursuant to the terms and conditions set forth in the APL Merger Agreement, MLP Merger Sub merged (the “APL merger” and, together with the ATLS merger, the “Atlas mergers”) with and into APL, with APL continuing as the surviving entity and as a subsidiary of the Partnership. While the Atlas mergers were two separate legal transactions, for GAAP reporting purposes, they are viewed as a single integrated transaction. As such, the financial effects of the ATLS Merger Consideration (as defined below) paid by Targa have been reflected in these financial statements. In connection with the Atlas mergers, APL changed its name to “Targa Pipeline Partners LP,” which we refer to as TPL, and ATLS changed its name to “Targa Energy LP.” In addition, prior to the completion of the Atlas mergers, ATLS, pursuant to a separation and distribution agreement entered into by and among ATLS, ATLS GP and Atlas Energy Group, LLC, a Delaware limited liability company (“AEG”), on February 27, 2015, (i) transferred its assets and liabilities other than those related to its “Atlas Pipeline Partners” segment, to AEG and (ii) effected a pro rata distribution to the ATLS unitholders of AEG common units representing a 100% interest in AEG (collectively, the “Spin-Off” and, together with the Atlas mergers, the “Atlas Transactions”). On February 27, 2015, the Partnership Agreement was amended to provide for the issuance of a special general partner interest in the Partnership (the “Special GP Interest”) representing the contribution to the Partnership of the APL GP interest acquired in the ATLS merger totaling $1.6 billion, which is reflected within General partner equity on the Consolidated Balance Sheets. The Special GP Interest is not entitled to current distributions or allocations of net income or loss, and has no voting rights or other rights except for the limited right to receive deductions attributable to the contribution of APL GP and the right to distributions in liquidation. We acquired all of the outstanding units of APL for a total purchase price of approximately $5.3 billion (including $1.8 billion of acquired debt and all other assumed liabilities). Of the $1.8 billion of debt acquired and other liabilities assumed, approximately $1.2 billion of the acquired debt was tendered and settled upon the closing of the Atlas mergers via our January 2015 cash tender offers. These tender offers were in connection with, and conditioned upon, the consummation of the merger with APL. The merger with APL, however, was not conditioned on the consummation of the tender offers. On that same date, Targa acquired ATLS for a total purchase price of approximately $1.6 billion (including all assumed liabilities). Pursuant to the APL Merger Agreement, our general partner entered into an amendment to our Partnership Agreement, which we refer to as the IDR Giveback Amendment, in order to reduce aggregate distributions to TRC, as the holder of the Partnership’s incentive distribution rights (“IDRs”) TPL is a provider of natural gas gathering, processing and treating services primarily in the Anadarko, Arkoma and Permian Basins located in the southwestern and mid-continent regions of the United States and in the Eagle Ford Shale in South Texas. The Atlas mergers added TPL’s Woodford/SCOOP, Mississippi Lime, Eagle Ford and additional Permian assets to the Partnership’s existing operations. In total, TPL added 2,053 MMcf/d of processing capacity and 12,220 miles of additional pipeline. The operating results of TPL are reported in our Gathering and Processing segment. The APL merger was a unit-for-unit transaction with an exchange ratio of 0.5846 of our common units (the “APL Unit Consideration”) and $1.26 in cash for each APL common unit (the “APL Cash Consideration” and, with the APL Unit Consideration, the “APL Merger Consideration”), a $128.0 million total cash payment, of which $0.6 million was expensed at the acquisition date as the cash payment representing accelerated vesting of a portion of retained employees’ APL phantom awards. We issued 58,614,157 of our common units and awarded 629,231 replacement phantom unit awards with a combined value of approximately $2.6 billion as consideration for the APL merger (based on the $43.82 closing market price of a common unit on the NYSE on February 27, 2015). The cash component of the APL merger also included $701.4 million for the mandatory repayment and extinguishment at closing of the APL Senior Secured Revolving Credit Facility that was to mature in May 2017 (the “APL Revolver”), $28.8 million of payments related to change of control and $6.4 million of cash paid in lieu of unit issuances in connection with settlement of APL equity awards for AEG employees. In March 2015, Targa contributed $52.4 million to us to maintain its 2% general partner interest. In addition, pursuant to the APL Merger Agreement, APL exercised its right under the certificate of designations of the APL 8.25% Class E cumulative redeemable perpetual preferred units (“Class E Preferred Units”) to redeem the APL Class E Preferred Units immediately prior to the effective time of the APL merger. The ATLS merger was a stock-for-unit transaction with an exchange ratio of 0.1809 of Targa common stock, par value $0.001 per share (the “ATLS Stock Consideration”), and $9.12 in cash for each ATLS common unit (the ATLS Cash Consideration” and, with the ATLS Stock Consideration, the “ATLS Merger Consideration”), (a $514.7 million total cash payment). Targa issued 10,126,532 of its common shares and awarded 81,740 replacement restricted stock units with a combined value of approximately $1.0 billion for the ATLS merger (based on the $99.58 closing market price of a TRC common share on the NYSE on February 27, 2015). The cash component of the ATLS merger also included approximately $149.2 million of payments related to change of control and cash settlements of equity awards, $88.0 million for repayment of a portion of ATLS outstanding indebtedness and $11.0 million for reimbursement of certain transaction expenses. Approximately $4.5 million of the one-time cash payments and cash settlements of equity awards, which represent accelerated vesting of a portion of retained employees’ ATLS phantom units, were expensed at the acquisition date. ATLS owned, directly and indirectly, 5,754,253 APL common units immediately prior to closing. Targa’s acquisition of ATLS resulted in Targa acquiring these common units (converted to 3,363,935 of our common units) valued at approximately $147.4 million (based on the $43.82 closing market price of our common units on the NYSE on February 27, 2015) and the right to receive the units’ one-time cash payment of approximately $7.3 million, which reduced the consolidated purchase price by approximately $154.7 million. All outstanding ATLS equity awards, whether vested or unvested, were adjusted in connection with the Spin-Off on the terms and conditions set forth in an Employee Matters Agreement entered into by ATLS, ATLS GP and AEG on February 27, 2015. Following the Spin-Off-related adjustment and at the effective time of the ATLS merger, each outstanding ATLS option and ATLS phantom unit award, whether vested or unvested, held by a person who became an employee of AEG became fully vested (to the extent not vested) and was cancelled and converted into the right to receive the ATLS Merger Consideration in respect of each ATLS common unit underlying the ATLS option or phantom unit award (in the case of options, net of the applicable exercise price). Each outstanding vested ATLS option held by an employee of APL who became an employee of Targa in connection with the Atlas Transactions (a “Midstream Employee”) was cancelled and converted into the right to receive the ATLS Merger Consideration in respect of each ATLS common unit underlying the vested ATLS option, net of the applicable exercise price. Each outstanding unvested ATLS option and each outstanding ATLS phantom unit award held by a Midstream Employee was cancelled and converted into the right to receive (1) the ATLS Cash Consideration in respect of each ATLS common unit underlying such ATLS option or phantom unit award and (2) a TRC restricted stock unit award with respect to a number of shares of TRC Common Stock equal to the product of the ATLS Stock Consideration multiplied by the number of ATLS common units underlying such ATLS option or phantom unit award (in the case of options, net of the applicable exercise price). In connection with the APL merger, each outstanding APL phantom unit award held by an employee of AEG became fully vested and was cancelled and converted into the right to receive the APL Merger Consideration in respect of each APL common unit underlying the APL phantom unit award. Each outstanding APL phantom unit award held by a Midstream Employee was cancelled and converted into the right to receive (1) the APL Cash Consideration in respect of each APL common unit underlying such APL phantom unit award and (2) a Partnership phantom unit award with respect to a number of our common units equal to the product of the APL Unit Consideration multiplied by the number of APL common units underlying such APL phantom unit award. The acquired business contributed revenues of $1,065.7 million and a net loss of $1.0 million to us for the period from February 27, 2015 to September 30, 2015, and is reported in our Gathering and Processing segment. As of September 30, 2015, we had incurred $19.3 million of acquisition-related costs. These expenses are included in other expense in our Consolidated Statements of Operations for the nine months ended September 30, 2015. As of September 30, 2016, cumulative acquisition-related costs totaled $19.4 million. Pro Forma Impact of Atlas Mergers on Consolidated Statement of Operations The following summarized unaudited pro forma Consolidated Statement of Operations information for the nine months ended September 30, 2015 assumes that our acquisition of APL and Targa’s acquisition of ATLS had occurred as of January 1, 2014. We prepared the following summarized unaudited pro forma financial results for comparative purposes only. The summarized unaudited pro forma financial results may not be indicative of the results that would have occurred if we had completed the APL merger as of January 1, 2014, or that the results that will be attained in the future. Amounts presented below are in millions: September 30, 2015 Pro Forma Revenues $ 5,299.9 Net income 181.6 The pro forma consolidated results of operations amounts have been calculated after applying our accounting policies, and making adjustments to: • Reflect the change in amortization expense resulting from the difference between the historical balances of APL’s intangible assets, net, and the fair value of intangible assets acquired. • Reflect the change in depreciation expense resulting from the difference between the historical balances of APL’s property, plant and equipment, net, and the fair value of property, plant and equipment acquired. • Reflect the change in interest expense resulting from our financing activities directly related to the Atlas mergers as compared to APL’s historical interest expense. • Reflect the changes in stock-based compensation expense related to the fair value of the unvested portion of replacement Partnership Long Term Incentive Plan (“LTIP”) awards that were issued in connection with the acquisition to APL phantom unitholders who continue to provide service as Targa employees following the completion of the APL merger. • Remove the results of operations attributable to the February 2015 transfer to Atlas Resource Partners, L.P. of 100% of APL’s interest in gas gathering assets located in the Appalachian Basin of Tennessee. • Exclude $19.3 million of acquisition-related costs incurred as of September 30, 2015 from pro forma net income for the nine months ended September 30, 2015. • Reflect the change in APL’s revenues and product purchases to report plant sales of Y-grade at contractual net values to conform to our accounting policy. The following table summarizes the consideration transferred to acquire ATLS and APL, which are viewed together as a single integrated transaction for GAAP reporting purposes: Fair Cash paid, net of cash acquired (1) $ 745.7 Common shares of TRC 1,008.5 Replacement restricted stock units awarded (3) 5.2 Less: value of APL common units owned by ATLS (147.4 ) Total $ 1,612.0 Fair Value of Consideration Transferred by Targa for APL: Cash paid, net of cash acquired (2) $ 828.7 Common units of TRP 2,568.5 Replacement phantom units awarded (3) 15.0 Total $ 3,412.2 Total fair value of consideration transferred $ 5,024.2 (1) Targa acquired $5.5 million of cash. (2) We acquired $35.3 million of cash. (3) The fair value of consideration transferred in the form of replacement restricted stock unit awards and replacement phantom unit awards represent the allocation of the fair value of the awards to the pre-combination service period. The fair value of the awards associated with the post-combination service period will be recognized over the remaining service period of the award. Our final fair value determination related to the Atlas mergers was as follows: Fair value determination: February Trade and other current receivables, net $ 181.1 Other current assets 24.4 Assets from risk management activities 102.1 Property, plant and equipment 4,616.9 Investments in unconsolidated affiliates 214.5 Intangible assets 1,354.9 Other long-term assets 5.5 Current liabilities (258.8 ) Long-term debt (1,573.3 ) Deferred income tax liabilities, net (13.6 ) Other long-term liabilities (119.1 ) Total identifiable net assets 4,534.6 Noncontrolling interest in subsidiaries (216.9 ) Current liabilities retained by Targa (0.5 ) Goodwill 707.0 Total fair value of consideration transferred $ 5,024.2 During the three months ended June 30, 2015, we recorded measurement-period adjustments to our acquisition date fair values due to the refinement of our valuation models, assumptions and inputs. As a result, the Consolidated Statement of Operations for the three months ended March 31, 2015 was retrospectively adjusted for the impact of measurement-period adjustments to property, plant and equipment, intangible assets, and investments in unconsolidated affiliates. These adjustments resulted in a decrease in depreciation and amortization expense of $1.0 million, and an increase in equity earnings of $0.3 million from the amounts previously reported in our Form 10-Q for the quarter ended March 31, 2015. During the three months ended September 30, 2015, we recorded additional measurement-period adjustments to our acquisition date fair values due to the refinement of our valuation models, assumptions and inputs. In accordance with ASU 2015-16, we recognized these measurement-period adjustments in the third quarter of 2015, with the effect on the Consolidated Statements of Operations resulting from the change to the provisional amounts calculated as if the acquisition had been completed at February 27, 2015. During the three months ended September 30, 2015, the acquisition date fair value of property, plant and equipment increased by $9.9 million, investments in unconsolidated affiliates increased by $5.5 million, intangible assets decreased by $5.0 million, current liabilities increased by $2.4 million, other assets decreased by $1.0 million, and other current assets decreased by $0.6 million, which resulted in a decrease in goodwill of $6.4 million. These adjustments resulted in increased revenues of $0.6 million, a reduction of operating expenses of $1.9 million, depreciation and amortization expense of $0.1 million and equity losses of $0.1 million recorded in the three months ended September 30, 2015, which, under the prior accounting standard, would have been reflected in previous reporting periods. During the three months ended December 31, 2015, we recorded additional measurement-period adjustments to our acquisition date fair values due to the refinement of our valuation models, assumptions and inputs, as well as adjustments to previously reported preliminary fair values as a result of our review procedures over the development and application of inputs, assumptions and calculations used in cash-flow based fair value measurements associated with business combinations not operating as designed (as previously disclosed in our 2015 Annual Report on Form 10-K). We recognized these adjustments in the fourth quarter of 2015, with the effect on the Consolidated Statements of Operations resulting from the change to the provisional amounts calculated as if the acquisition had been completed at February 27, 2015. During the three months ended December 31, 2015, the acquisition date fair value of intangible assets increased $155.9 million, noncontrolling interest in subsidiaries increased $103.5 million, other long-term liabilities increased $110.1 million, property, plant and equipment decreased by $86.2 million, investments in unconsolidated affiliates decreased by $5.2 million, deferred tax liabilities increased by $5.0 million, current liabilities increased by $1.3 million, other assets decreased by $0.1 million and other current assets decreased by $0.1 million, which resulted in an increase in goodwill of $155.6 million. These adjustments resulted in depreciation and amortization expenses of $2.0 million, a net decrease to interest expense of $26.2 million, equity earnings of $0.2 million, and a reduction of general and administrative expenses of $0.4 million, recorded in the three months ended December 31, 2015, which, under the prior accounting standard, would have been reflected in previous reporting periods. The valuation of the acquired assets and liabilities was prepared using fair value methods and assumptions including projections of future production volumes and cash flows, benchmark analysis of comparable public companies, expectations regarding customer contracts and relationships, and other management estimates. The fair value measurements of assets acquired and liabilities assumed are based on inputs that are not observable in the market and therefore represent Level 3 inputs, as defined in Note 13 – Fair Value Measurements. These inputs require significant judgments and estimates at the time of valuation. The excess of the purchase price over the fair value of net assets acquired was approximately $707.0 million which was recorded as goodwill. The determination of goodwill is attributable to the workforce of the acquired business and the expected synergies with us and Targa. The goodwill is amortizable for tax purposes. The fair value of assets acquired included trade receivables of $178.1 million. The gross amount due under contracts was $178.1 million, all of which was expected to be collectible. The fair value of assets acquired included other receivables of $3.0 million reported in current receivables and $4.5 million reported in other long-term assets related to a contractual settlement with a counterparty. Mandatorily Redeemable Preferred Interests Other long-term liabilities acquired included $109.3 million related to mandatorily redeemable preferred interests held by our partner in two joint ventures (see Note 10 – Other Long-Term Liabilities). Contingent Consideration A liability arising from the contingent consideration for APL’s previous acquisition of a gas gathering system and related assets has been recognized at fair value. APL agreed to pay up to an additional $6.0 million if certain volumes are achieved on the acquired gathering system within a specified time period. The fair value of the remaining contingent payment is recorded within other long term liabilities on our Consolidated Balance Sheets. The range of the undiscounted amount that we could pay related to the remaining contingent payment is between $0.0 and $6.0 million. We finalized our acquisition analysis and modeling of this contingent liability during the three months ended June 30, 2015, which resulted in an acquisition date fair value of $4.2 million. Subsequent changes in the fair value of this liability are included in earnings. Replacement Phantom Units In connection with the Atlas mergers, we awarded replacement phantom units in accordance with and as required by the Atlas Merger Agreements to those APL employees who became Targa employees after the acquisition. The vesting dates and terms remained unchanged from the existing APL awards, and vest over the remaining terms of the awards, which are either 25% per year over the original four year term or 33% per year over the original three year term. Each replacement phantom unit will entitle the grantee to common stock of TRC on the vesting date and is an equity-settled award. The replacement phantom units include distribution equivalent rights (“DERs”). When we declare and pay cash distributions, the holders of replacement phantom units are entitled within 60 days to receive cash payment of DERs in an amount equal to the cash distributions the holders would have received if they were the holders of record on the record date of the number of our common units related to the replacement phantom units. The fair value of the replacement phantom units was based on the closing price of our units at the close of trading on February 27, 2015. The fair value was allocated between the pre-acquisition and post-acquisition periods to determine the amount to be treated as purchase consideration and compensation expense, respectively. Compensation cost will be recognized in general and administrative expense over the remaining service period of each award. Goodwill We recognized goodwill at a fair value of approximately $707.0 million associated with the Atlas mergers as of the acquisition date on February 27, 2015. Goodwill has been attributed to the WestTX, SouthTX and SouthOK reporting units in our Gathering and Processing segment. As a result, any level of decrease in the forecasted cash flows from the date of acquisition would likely result in the fair value of the reporting unit to fall below the carrying value of the reporting unit, and could result in an impairment of that reporting unit’s goodwill. As described in Note 3 – Significant Accounting Policies, we evaluate goodwill for impairment at least annually on November 30, or more frequently if we believe necessary based on events or changes in circumstances. As of December 31, 2015, we had not completed our November 30, 2015 impairment assessment. Based on the results of that preliminary evaluation, we recorded a provisional goodwill impairment of $290.0 million during the fourth quarter of 2015. The provisional goodwill impairment reduced the carrying value of goodwill to $417.0 million on our Consolidated Balance Sheets as of December 31, 2015. During the first quarter of 2016, we finalized our evaluation of goodwill for impairment and recorded additional impairment expense of $24.0 million in our Consolidated Statement of Operations and reduced the carrying value of goodwill to $393.0 million on our Consolidated Balance Sheets. The impairment of goodwill is primarily due to the effects of lower commodity prices, and a higher cost of capital for companies in our industry compared to conditions in February 2015 when we acquired Atlas. Our evaluation as of November 30, 2015 utilized the income approach (a discounted cash flow analysis (“DCF”)) to estimate the fair values of our reporting units. The future cash flows for our reporting units are based on our estimates, at that time, of future revenues, income from operations and other factors, such as working capital and capital expenditures. We take into account current and expected industry and market conditions, commodity pricing and volumetric forecasts in the basins in which the reporting units operate. The discount rates used in our DCF analysis are based on a weighted average cost of capital determined from relevant market comparisons. Changes in the gross amounts of our goodwill are as follows: WestTX SouthTX SouthOK Total Balance at January 1, 2015 $ — $ — $ — $ — Acquisition, February 27, 2015 364.5 160.3 182.2 707.0 Provisional Impairment (recorded 4Q 2015) (37.6 ) (70.2 ) (182.2 ) (290.0 ) Balance at December 31, 2015 326.9 90.1 — 417.0 Additional Impairment (recorded 1Q 2016) (14.4 ) (9.6 ) — (24.0 ) Balance at September 30, 2016 $ 312.5 $ 80.5 $ — $ 393.0 The sustained decrease and uncertain outlook in commodity prices and volumes have adversely impacted our customers and their future capital and operating plans. A continued or prolonged period of lower commodity prices could result in further deterioration of reporting unit fair values and potential further impairment charges related to goodwill and property, plant and equipment. There were no impairment triggers identified or further impairment charges recognized in the third quarter of 2016. Subsequent Event On October 31, 2016, we executed a Membership Interest Sale and Purchase Agreement with Chevron U.S.A. Inc. to acquire their 37% membership interest in Versado Gas Processors, L.L.C. (“Versado”). Targa held a 63% controlling interest in Versado prior to this transaction and consolidated Versado. As we continue to control Versado, the change in our ownership interest will be accounted for as an equity transaction and no gain or loss will be recognized in our Consolidated Statements of Operations as a result. See Note 15 – Contingencies. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 — Inventories September 30, 2016 December 31, 2015 Commodities $ 139.3 $ 128.3 Materials and supplies 11.0 12.7 $ 150.3 $ 141.0 |
Property, Plant and Equipment a
Property, Plant and Equipment and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment And Intangible Assets [Abstract] | |
Property, Plant and Equipment and Intangible Assets | Note 6 — Property, Plant and Equipment and Intangible Assets September 30, 2016 December 31, 2015 Estimated Useful Lives (In Years) Gathering systems $ 6,447.1 $ 6,304.5 5 to 20 Processing and fractionation facilities 3,305.5 2,988.5 5 to 25 Terminaling and storage facilities 1,194.5 1,115.0 5 to 25 Transportation assets 452.1 454.0 10 to 25 Other property, plant and equipment 232.0 220.9 3 to 25 Land 120.5 108.8 — Construction in progress 596.0 736.5 — Property, plant and equipment 12,347.7 11,928.2 Accumulated depreciation (2,667.6 ) (2,225.6 ) Property, plant and equipment, net $ 9,680.1 $ 9,702.6 Intangible assets $ 2,036.6 $ 2,036.6 20 Accumulated amortization (343.6 ) (226.5 ) Intangible assets, net $ 1,693.0 $ 1,810.1 Intangible assets consist of customer contracts and customer relationships acquired in the Atlas mergers in 2015 and our Badlands business acquisition in 2012. The fair values of these acquired intangible assets were determined at the date of acquisition based on the present values of estimated future cash flows. Key valuation assumptions include probability of contracts under negotiation, renewals of existing contracts, economic incentives to retain customers, past and future volumes, current and future capacity of the gathering system, pricing volatility and the discount rate. The fair values of intangible assets acquired in the Atlas mergers have been recorded at a fair value of $1,354.9 million and are being amortized over a 20 year life using the straight-line method, as a reliably determinable pattern of amortization could not be identified. Amortization expense attributable to our intangible assets related to the Badlands acquisition is recorded using a method that closely reflects the cash flow pattern underlying their intangible asset valuation over a 20 year life. The changes in our intangible assets are as follows: Balance at December 31, 2015 $ 1,810.1 Amortization (117.1 ) Balance at September 30, 2016 $ 1,693.0 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Note 7 — Investments in Unconsolidated Affiliates Our unconsolidated investments consist of a 38.8% non-operated ownership interest in Gulf Coast Fractionators LP (“GCF”) and three non-operated joint ventures in South Texas acquired in the Atlas mergers in 2015: 75% interest in T2 LaSalle; 50% interest in T2 Eagle Ford; and 50% interest in T2 EF Cogen (together the “T2 Joint Ventures”). The T2 Joint Ventures were formed to provide services for the benefit of the joint interest owners. The T2 Joint Ventures have capacity lease agreements with the joint interest owners, which cover the costs of operations of the T2 Joint Ventures. The terms of these joint venture agreements do not afford us the degree of control required for consolidating them in our consolidated financial statements, but do afford us the significant influence required to employ the equity method of accounting. Our maximum exposure to loss as a result of our involvement with the T2 Joint Ventures includes our equity investment, any additional capital contribution commitments, and our share of any operating expenses incurred by the T2 Joint Ventures. The following table shows the activity related to our investments in unconsolidated affiliates: GCF T2 LaSalle T2 Eagle Ford T2 EF Cogen Total Balance at December 31, 2015 $ 49.5 $ 63.6 $ 123.8 $ 22.0 $ 258.9 Equity earnings (loss) 1.8 (3.8 ) (6.8 ) (2.6 ) (11.4 ) Cash distributions (1) (4.4 ) — — (0.8 ) (5.2 ) Cash calls for expansion projects — 0.1 4.5 — 4.6 Balance at September 30, 2016 $ 46.9 $ 59.9 $ 121.5 $ 18.6 $ 246.9 (1) Includes $3.4 million in distributions received from GCF and the T2 Joint Ventures in excess of our share of cumulative earnings for the nine months ended September 30, 2016. Such excess distributions are considered a return of capital and disclosed in cash flows from investing activities in the Consolidated Statements of Cash Flows. The recorded value of the T2 Joint Ventures is based on fair values at the date of acquisition which results in an excess fair value of $36.7 million over the book value of the joint venture capital accounts as of September 30, 2016. This basis difference is attributable to depreciable tangible assets and is being amortized over the estimated useful lives of the underlying assets of 20 years on a straight-line basis and is included as a component of equity earnings. See Note 4 – Business Acquisitions for further information regarding the fair value determinations related to the Atlas mergers. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 8 — Accounts Payable and Accrued Liabilities September 30, 2016 December 31, 2015 Commodities $ 441.1 $ 385.3 Other goods and services 90.1 141.3 Interest 63.3 80.3 Compensation and benefits — 0.4 Income and other taxes 49.5 10.4 Other 13.5 18.1 $ 657.5 $ 635.8 Accounts payable and accrued liabilities includes $23.4 million and $34.0 million of liabilities to creditors to whom we have issued checks that remain outstanding as of September 30, 2016 and December 31, 2015. |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Note 9 — Debt Obligations September 30, 2016 December 31, 2015 Current: Accounts receivable securitization facility, due December 2016 $ 225.0 $ 219.3 Long-term: Senior secured revolving credit facility, variable rate, due October 2017 (1) - 280.0 Senior unsecured notes: 5% fixed rate, due January 2018 733.6 1,100.0 4 ⅛ 749.4 800.0 6 ⅝ 309.9 342.1 Unamortized premium 3.9 5.0 6 ⅞ 478.6 483.6 Unamortized discount (19.3 ) (22.1 ) 6 ⅜ 278.7 300.0 5 ¼ 559.6 583.7 4¼% fixed rate, due November 2023 583.9 623.5 6¾% fixed rate, due March 2024 580.1 600.0 APL notes, 6 ⅝ 12.9 12.9 Unamortized premium 0.1 0.2 APL notes, 4¾% fixed rate, due November 2021 (2) 6.5 6.5 APL notes, 5⅞% fixed rate, due August 2023 (2) 48.1 48.1 Unamortized premium 0.5 0.5 4,326.5 5,164.0 Debt issuance costs (29.4 ) (38.3 ) Total long-term debt 4,297.1 5,125.7 Total debt $ 4,522.1 $ 5,345.0 Irrevocable standby letters of credit outstanding $ 13.5 $ 12.9 (1) As of September 30, 2016, availability under our $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1,586.5 million. In October 2016, the TRP Revolver was amended. See “Subsequent Events – TRP Revolver Amendment.” (2) APL notes are not guaranteed by us. The following table shows the range of interest rates and weighted average interest rate incurred on our variable-rate debt obligations during the nine months ended September 30, 2016: Range of Interest Rates Incurred Weighted Average Interest Rate Incurred TRP Revolver 2.4% - 4.8% 2.6% Accounts receivable securitization facility 1.2% - 1.3% 1.2% Compliance with Debt Covenants As of September 30, 2016, we were in compliance with the covenants contained in our various debt agreements. Debt Repurchases During the nine months ended September 30, 2016, we repurchased on the open market a portion of our outstanding senior notes (the “Senior Notes”) as follows: Debt Repurchased Book Value Payment Gain/(Loss) Write-off of Debt Issuance Costs Net Gain/(Loss) 5¼% Senior Notes $ 24.1 $ (20.1 ) $ 4.0 $ (0.2 ) $ 3.8 4¼% Senior Notes 39.5 (31.8 ) 7.7 (0.3 ) 7.4 6⅞% Senior Notes 4.8 (4.3 ) 0.5 (0.1 ) 0.4 6⅝% Senior Notes 32.6 (29.5 ) 3.1 - 3.1 6⅜% Senior Notes 21.3 (18.7 ) 2.6 (0.2 ) 2.4 6¾% Senior Notes 19.9 (17.5 ) 2.4 (0.2 ) 2.2 5% Senior Notes 366.4 (368.2 ) (1.8 ) (2.1 ) (3.9 ) 4⅛% Senior Notes 50.6 (44.2 ) 6.4 (0.4 ) 6.0 $ 559.2 $ (534.3 ) $ 24.9 $ (3.5 ) $ 21.4 We may retire or purchase various series of our 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. See “Subsequent Events – Issuance of Senior Notes and Concurrent Senior Notes Tender Offers” and “Subsequent Events – Note Redemptions.” The following table shows the contractually scheduled maturities of our Senior Notes as of September 30, 2016, for five consecutive years, and in total thereafter: Scheduled Maturities of Debt Total Remainder of 2016 2017 2018 2019 2020 After 2020 (in millions) Senior notes $ 4,341.3 $ - $ - $ 733.6 $ 749.4 $ 322.8 $ 2,535.5 Subsequent Events Issuance of Senior Notes and Concurrent Senior Notes Tender Offers In October 2016, we issued $500.0 million of 5⅛% 5⅜% Senior Concurrently with the October 2016 Offering, we commenced tender offers (the “Tender Offers”) to purchase for cash, subject to certain conditions, up to specified aggregate maximum purchase amounts of our 5% Senior Notes due January 2018 (the “5% Notes”), 6 ⅝ ⅝ ⅞ ⅞ ⅝ The results of the Tender Offers, which closed in October 2016, were : Senior Notes Outstanding Note Balance Prior to Tender Offers Amount Tendered Premium Paid Accrued Interest Paid Total Tender Offer Payments Note Balance After Tender Offers 5% Senior Notes $ 733.6 $ 483.1 $ 16.9 $ 5.4 $ 505.4 $ 250.5 6⅝% Senior Notes 309.9 281.7 10.5 0.3 292.5 28.2 6⅞% Senior Notes 478.6 373.5 14.4 4.6 392.5 105.1 $ 1,522.1 $ 1,138.3 $ 41.8 $ 10.3 $ 1,190.4 $ 383.8 As a result of the Tender Offers, we will record during the fourth quarter of 2016 a loss due to debt extinguishment of approximately $59.2 million comprised of the $41.8 million premium paid, the write-off of $5.8 million of debt issuance costs, $15.1 million of debt discounts and $3.5 million of debt premiums. Note Redemptions Subsequent to the closing of the Tender Offers in October 2016, we issued notices of full redemption (the “Note Redemptions”) to the trustees and noteholders of the 6⅝% Notes ⅞ 6⅝% Notes and the 6⅝% ⅞ TRP Revolver Amendment In October 2016, we entered into the Second Amendment and Restatement Agreement (the “Restatement”) to effectuate the Third Amended and Restated Credit Agreement (the “TRP Credit Agreement”). The TRP Credit Agreement amended and restated the TRP Revolver to extend the maturity date from October 2017 to October 2020. The available commitments under the TRP Revolver of $1.6 billion remained unchanged while our ability to request additional commitments increased from up to $300.0 million to up to $500.0 million. The TRP Revolver continues to bear interest costs that are dependent on our ratio of consolidated funded indebtedness to consolidated adjusted EBITDA, and the covenants also remained substantially the same. The TRP Credit Agreement designates TPL and certain of its subsidiaries as “Restricted Subsidiaries” and provides for certain changes to occur upon our receiving an investment grade credit rating from Moody’s or S&P, including the release of the security interests in all collateral at our request. As a result of the TRP Credit Agreement, during the fourth quarter of 2016, we will record a partial write-off of $0.9 million of debt issuance costs associated with the TRP Revolver as a result of a change in syndicate members under the TRP Revolver. The remaining deferred debt issuance costs associated with the TRP Revolver along with debt issuance costs incurred with this amendment will be amortized on a straight-line basis over the life of the TRP Revolver. Subsequent to entering into the TRP Credit Agreement, we executed supplemental indentures relating to all of our outstanding series of Senior Notes to designate TPL and those subsidiaries as Restricted Subsidiaries under the TRP Credit Agreement as guarantors of such Senior Notes. |
Other Long-term Liabilities
Other Long-term Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities Noncurrent [Abstract] | |
Other Long-term Liabilities | Note 10 — Other Long-term Liabilities Other long-term liabilities are comprised of the following obligations: September 30, 2016 December 31, 2015 Asset retirement obligations $ 64.2 $ 69.9 Mandatorily redeemable preferred interests 64.2 82.9 Deferred revenue and other 23.2 25.4 Total long-term liabilities $ 151.6 $ 178.2 Asset Retirement Obligations Our asset retirement obligations (“ARO”) primarily relate to certain gas gathering pipelines and processing facilities, and are included in our Consolidated Balance Sheets as a component of other long-term liabilities. The changes in our ARO are as follows: Balance at December 31, 2015 $ 69.9 Change in cash flow estimate (9.2 ) Accretion expense 3.5 Balance at September 30, 2016 $ 64.2 Mandatorily Redeemable Preferred Interests Our consolidated financial statements include our interest in two joint ventures that, separately, own a 100% interest in the WestOK natural gas gathering and processing system and a 72.8% undivided interest in the WestTX natural gas gathering and processing system. Our partner in the joint ventures holds preferred interests in each joint venture that are redeemable: (i) at our or our partner’s election, on or after July 27, 2022; and (ii) mandatorily, in July 2037. For reporting purposes under GAAP, an estimate of our partner’s interest in each joint venture is required to be recorded as if the redemption had occurred on the reporting date. Because redemption will not be required until at least 2022, the actual value of our partner’s allocable share of each joint venture’s assets at the time of redemption may differ from our estimate of redemption value as of September 30, 2016. The following table shows the changes attributable to mandatorily redeemable preferred interests: Balance at December 31, 2015 $ 82.9 Income attributable to mandatorily redeemable preferred interests 0.1 Change in estimated redemption value included in interest expense (18.8 ) Balance at September 30, 2016 $ 64.2 |
Partnership Units and Related M
Partnership Units and Related Matters | 9 Months Ended |
Sep. 30, 2016 | |
Partners Capital [Abstract] | |
Partnership Units and Related Matters | Note 11 — Partnership Units and Related Matters TRC/TRP Merger On February 17, 2016, TRC completed the TRC/TRP Merger, indirectly acquiring all of the outstanding common units not already owned by TRC and its subsidiaries. As a result of the TRC/TRP Merger, TRC owns all of our outstanding common units. At the effective time of the TRC/TRP Merger, each outstanding TRP common unit not owned by TRC or its subsidiaries was converted into the right to receive 0.62 shares of TRC shares. No fractional TRC shares were issued in the TRC/TRP Merger, and TRP common unitholders, instead received cash in lieu of fractional TRC shares. Pursuant to the TRC/TRP Merger Agreement, our common units were delisted from the NYSE and deregistered under the Exchange Act and our common units are no longer publicly traded. Our 5,000,000 Preferred Units remain outstanding as preferred limited partner interests in us and continue to trade on the NYSE. Preferred Units Distributions on our 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 our general partner. Distributions on our 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 our Preferred Units will accumulate at an annual floating rate equal to the one-month LIBOR plus a spread of 7.71%. The Preferred Units will, with respect to anticipated monthly distributions, rank: • senior to our common units and to each other class or series of Partnership interests or other equity securities established after the original issue date of the Preferred Units that is not expressly made senior to or pari passu with the Preferred Units as to the payment of distributions; • pari passu with any class or series of Partnership interests or other equity securities established after the original issue date of the Preferred Units that is not expressly made senior or subordinated to the Preferred Units as to the payment of distributions; • junior to all of our existing and future indebtedness (including (i) indebtedness outstanding under the TRP Revolver, (ii) our senior notes and (iii) indebtedness outstanding under our accounts receivable securitization facility (the “Securitization Facility”) and other liabilities with respect to assets available to satisfy claims against us; and • junior to each other class or series of Partnership interests or other equity securities established after the original issue date of the Preferred Units that is expressly made senior to the Preferred Units as to the payment of distributions. At any time on or after November 1, 2020, we may redeem the Preferred Units, in whole or in part, from any source of funds legally available for such purpose, by paying $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of redemption, whether or not declared. In addition, we (or a third party with our prior written consent) may redeem the Preferred Units following certain changes of control, as described in our Partnership Agreement. If we do not (or a third party with our prior written consent does not) exercise this option, then the holders of the Preferred Units (“Preferred Unitholders”) have the option to convert the Preferred Units into a number of common units per Preferred Unit as set forth in our Partnership Agreement. If we exercise (or a third party with our prior written consent exercises) our redemption rights relating to any Preferred Units, the holders of those Preferred Units will not have the conversion right described above with respect to the Preferred Units called for redemption. Holders of Preferred Units have no voting rights except for certain exceptions set forth in our Partnership Agreement. We paid $8.4 million of distributions to Preferred Unitholders during the nine months ended September 30, 2016. We have accrued distributions to our Preferred Unitholders of $0.9 million for the nine months ended September 30, 2016. On October 17, 2016, the board of directors of our general partner declared a monthly cash distribution of $0.1875 per Preferred Unit for October 2016. This distribution will be paid on November 15, 2016. Issuances of Common Units During the nine months ended September 30, 2016, Targa made capital contributions to us of $1,191.0 million. Related to these capital contributions, we issued to Targa 58,621,036 common units, and Targa issued general partner units of 1,196,346 to maintain its 2% general partner interest. Targa Resource Partners Long Term Incentive Plan The TRC/TRP Merger did not trigger the acceleration of any time-based vesting of any of our outstanding long-term equity incentive compensation awards under the Targa Resource Partners Long-Term Incentive Plan. Upon completion of the TRC/TRP Merger, on February 17, 2016, Targa assumed, adopted and amended the Targa Resource Partners Long-Term Incentive Plan (“TRP LTIP”), and has changed the name of the plan to the Targa Resources Corp. Equity Compensation Plan (the “Plan”). All outstanding performance unit awards previously granted under the TRP LTIP, were converted and restated into comparable awards based on Targa’s common shares. Specifically, each outstanding performance unit award was converted and restated, effective as of the effective time of the TRC/TRP Merger, into an award to acquire, pursuant to the same time-based vesting schedule and forfeiture and termination provisions, a comparable number of Targa common shares determined by multiplying the number of performance units subject to each award by the exchange ratio in the TRC/TRP Merger (0.62), rounded down to the nearest whole share. The performance factor has been eliminated as it was based on the performance of our common units versus peer MLPs. All amounts previously credited as distribution equivalent rights under any outstanding performance unit award continue to remain so credited and will be payable on the payment date set forth in the applicable award agreement, subject to the same time-based vesting schedule previously included in the performance unit award, but without application of any performance factor. Cash-Settled Performance Units Targa Resources Long-Term Incentive Plan Equity-Settled Performance Units Replacement Phantom Units 2015 2014 2013 Before conversion 675,745 349,451 192,390 119,900 139,700 After conversion 418,903 216,561 119,178 74,248 86,538 The conversion on February 17, 2016 of outstanding equity-settled performance units and replacement phantom units outstanding to equity-settled restricted stock units and replacement phantom shares was considered modification of awards under ASC 718, Accounting for Stock-Based Compensation The conversion on February 17, 2016 of outstanding cash-settled performance units outstanding to cash-settled restricted stock units was considered modification of awards under ASC 718. The incremental change in fair value between the original grant date fair value and the fair value as of February 17, 2016 resulted in recognition of additional compensation costs during the first quarter of $4.8 million. The remaining compensation cost will be recognized in general and administrative expense over the remaining service period of each award. Distributions In accordance with the Partnership Agreement, the Partnership must distribute all of its available cash, as defined in the Partnership Agreement, and as determined by the general partner, to Preferred Unitholders monthly and to common unitholders of record within 45 days after the end of each quarter. As a result of the TRC/TRP Merger, TRC is entitled to receive all available Partnership distributions after payment of preferred distributions each quarter. The following details the distributions declared or paid by the Partnership, net of the IDR Giveback, during 2016: • On February 9, 2016, total distributions declared for the three months ended December 31, 2015 of $200.4 million were paid, of which $61.4 million was paid to TRC. • On May 12, 2016, distributions declared for the three months ended March 31, 2016 of $154.8 million were paid to TRC. • On August 11, 2016, distributions declared for the three months ended June 30, 2016 of $178.9 million were paid to TRC. • On October 19, 2016, distributions of $191.9 million were declared for the three months ended September 30, 2016, which will be paid to TRC on November 11, 2016. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 12 — Derivative Instruments and Hedging Activities The primary purpose of our commodity risk management activities is to manage our exposure to commodity price risk and reduce volatility in our operating cash flow due to fluctuations in commodity prices. We have hedged the commodity prices associated with a portion of our expected (i) natural gas equity volumes in our Gathering and Processing segment and (ii) NGL and condensate equity volumes predominately in our Gathering and Processing segment that result from percent-of-proceeds processing arrangements. These hedge positions will move favorably in periods of falling commodity prices and unfavorably in periods of rising commodity prices. We have designated these derivative contracts 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 necessarily 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. As part of the Atlas mergers, outstanding APL derivative contracts with a fair value of $102.1 million as of the acquisition date were novated to us and included in the acquisition date fair value of assets acquired. Derivative settlements of $67.9 million and $20.9 million related to these novated contracts were received during the year ended December 31, 2015 and the nine months ended September 30, 2016. These settlements The "off-market" nature of these acquired derivatives can introduce a degree of ineffectiveness for accounting purposes due to an embedded financing element representing the amount that would be paid or received as of the acquisition date to settle the derivative contract. The resulting ineffectiveness can either potentially disqualify the derivative contract in its entirety for hedge accounting or alternatively affect the amount of unrealized gains or losses on qualifying derivatives that can be deferred from inclusion in periodic net income. Additionally, for the three and nine months ended September 30, 2016, we recorded $0.3 million and $0.5 million of ineffectiveness losses related to otherwise qualifying APL derivatives, which are primarily natural gas swaps. At September 30, 2016, the notional volumes of our commodity derivative contracts were: Commodity Instrument Unit 2016 2017 2018 2019 Natural Gas Swaps MMBtu/d 134,436 92,448 68,800 29,683 Natural Gas Basis Swaps MMBtu/d 95,979 58,026 - - Natural Gas Options MMBtu/d 22,900 22,900 9,486 - NGL Swaps Bbl/d 5,073 3,875 2,678 1,779 NGL Futures Bbl/d 85,887 50,889 5,000 - NGL Options Bbl/d 920 1,468 1,676 - Condensate Swaps Bbl/d 2,770 1,850 1,350 223 Condensate Options Bbl/d 790 1,380 691 590 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. 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 values of our derivative instruments and their location in 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, 2016 Fair Value as of December 31, 2015 Balance Sheet Derivative Derivative Derivative Derivative Location Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Commodity contracts Current $ 34.7 $ 12.8 $ 92.1 $ 2.1 Long-term 12.4 17.6 34.9 2.4 Total derivatives designated as hedging instruments $ 47.1 $ 30.4 $ 127.0 $ 4.5 Derivatives not designated as hedging instruments Commodity contracts Current $ 0.1 $ 0.2 $ 0.1 $ 3.1 Total derivatives not designated as hedging instruments $ 0.1 $ 0.2 $ 0.1 $ 3.1 Total current position $ 34.8 $ 13.0 $ 92.2 $ 5.2 Total long-term position 12.4 17.6 34.9 2.4 Total derivatives $ 47.2 $ 30.6 $ 127.1 $ 7.6 The pro forma impact of reporting derivatives in our Consolidated Balance Sheets on a net basis is as follows: Gross Presentation Pro forma net presentation September 30, 2016 Asset Liability Asset Liability Current Position Counterparties with offsetting positions $ 34.1 $ 12.1 $ 22.0 $ - Counterparties without offsetting positions - assets 0.7 - 0.7 - Counterparties without offsetting positions - liabilities - 0.9 - 0.9 34.8 13.0 22.7 0.9 Long Term Position Counterparties with offsetting positions 12.4 14.6 - 2.2 Counterparties without offsetting positions - assets - - - - Counterparties without offsetting positions - liabilities - 3.0 - 3.0 12.4 17.6 - 5.2 Total Derivatives Counterparties with offsetting positions 46.5 26.7 22.0 2.2 Counterparties without offsetting positions - assets 0.7 - 0.7 - Counterparties without offsetting positions - liabilities - 3.9 - 3.9 $ 47.2 $ 30.6 $ 22.7 $ 6.1 Gross Presentation Pro forma net presentation December 31, 2015 Asset Liability Asset Liability Current Position Counterparties with offsetting positions $ 86.9 $ 5.2 $ 81.7 $ - Counterparties without offsetting positions - assets 5.3 - 5.3 - Counterparties without offsetting positions - liabilities - - - - 92.2 5.2 87.0 - Long Term Position Counterparties with offsetting positions 34.2 2.4 31.8 - Counterparties without offsetting positions - assets 0.7 - 0.7 - Counterparties without offsetting positions - liabilities - - - - 34.9 2.4 32.5 - Total Derivatives Counterparties with offsetting positions 121.1 7.6 113.5 - Counterparties without offsetting positions - assets 6.0 - 6.0 - Counterparties without offsetting positions - liabilities - - - - $ 127.1 $ 7.6 $ 119.5 $ - Our payment obligations in connection with a majority of these hedging transactions are secured by a first priority lien in the collateral securing the Partnership’s senior secured indebtedness that ranks equal in right of payment with liens granted in favor of its senior secured lenders. Some of our hedges are futures contracts executed through a broker that clears the hedges through an exchange. On a daily basis, our cash balance with the broker is used to offset the fair value of our open futures positions. The net of our cash on deposit and open futures positions is located within other current assets on our Consolidated Balance Sheets as a broker receivable. 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 asset of $16.6 million as of September 30, 2016. The estimated fair value is net of an adjustment for credit risk based on the default probabilities by year 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 settled 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 and expense 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 2016 2015 2016 2015 Commodity contracts $ 12.9 $ 50.7 $ (40.5 ) $ 77.6 Gain (Loss) Reclassified from OCI into Income (Effective Portion) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2016 2015 2016 2015 Revenues $ 8.1 $ 24.5 $ 50.6 $ 59.3 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. 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 2016 2015 2016 2015 Commodity contracts Revenue $ (0.3 ) $ (4.0 ) $ 1.3 $ (0.9 ) The following table shows the deferred gains (losses) included in accumulated OCI, which will be reclassified into earnings through the end of 2019 based on valuations as of the balance sheet date: September 30, 2016 December 31, 2015 Commodity hedges, before tax (1) $ 9.2 $ 86.7 (1) Includes deferred net gains of $3.2 million as of September 30, 2016 related to contracts that will be settled and reclassified to revenue over the next 12 months. See Note 13 – Fair Value Measurements for additional disclosures related to derivative instruments and hedging activities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13 — Fair Value 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 in our Consolidated Balance Sheets. Other financial instruments are reported at historical cost or amortized cost in 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, 2016, a net asset position of $16.6 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 $27.7 million, ignoring an adjustment for counterparty credit risk. 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 $61.4 million, ignoring an adjustment for counterparty credit risk. 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. We determined the supplemental fair value disclosures for our long-term debt as follows: • The TRP Revolver and the Securitization Facility are based on carrying value, which approximates fair value as their interest rates are based on prevailing market rates; and • Senior unsecured notes are based on quoted market prices derived from trades of the debt. We have a contingent consideration liability for APL’s previous acquisition of a gas gathering system and related assets, which is carried at fair value (see Note 4 – Business Acquisitions). 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 in our Consolidated Balance Sheets at fair value and (2) supplemental fair value disclosures for other financial instruments: September 30, 2016 Fair Value Carrying 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) $ 46.3 $ 46.3 $ — $ 44.0 $ 2.3 Liabilities from commodity derivative contracts (1) 29.7 29.7 — 27.3 2.4 TPL contingent consideration (2) 2.7 2.7 — — 2.7 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 129.9 129.9 — — — TRP Revolver — — — — — Senior unsecured notes 4,326.5 4,447.8 — 4,447.8 — Accounts receivable securitization facility 225.0 225.0 — 225.0 — December 31, 2015 Fair Value Carrying 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) $ 127.1 $ 127.1 $ — $ 123.1 $ 4.0 Liabilities from commodity derivative contracts (1) 7.6 7.6 — 7.3 0.3 TPL contingent consideration (2) 3.0 3.0 — — 3.0 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 135.4 135.4 — — — TRP Revolver 280.0 280.0 — 280.0 — Senior unsecured notes 4,884.0 4,192.0 — 4,192.0 — Accounts receivable securitization facility 219.3 219.3 — 219.3 — (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 12 – 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) See Note 4 – Business Acquisitions. Additional Information Regarding Level 3 Fair Value Measurements Included in 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 implied volatilities or market prices 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. As of September 30, 2016, we had 21 commodity swap and option contracts categorized as Level 3. The significant unobservable inputs used in the fair value measurements of our Level 3 derivatives are (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 is immaterial. The fair value of the contingent consideration was determined using a probability-based model measuring the likelihood of meeting certain volumetric measures. These probability-based inputs are not observable; therefore, the entire valuation of the contingent consideration is categorized in Level 3. Changes in the fair value of this liability are included in Other Income on the Consolidated Statements of Operations. 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) Liability Balance, December 31, 2015 $ 3.7 $ (3.0 ) Change in fair value of TPL contingent consideration - 0.3 New Level 3 instruments 1.0 - Settlements included in Revenue (1.0 ) - Unrealized gain/(loss) included in OCI (3.8 ) - Balance, September 30, 2016 $ (0.1 ) $ (2.7 ) For the nine months ended September 30, 2016, we had no transfers of financial instruments out of Level 3 and into Level 2. Historically, transfers relate to long-term over-the-counter swaps for natural gas and NGL products with deliveries for which observable market prices were available. |
Related Party Transactions - Ta
Related Party Transactions - Targa | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions - Targa | Note 14 — Related Party Transactions - Targa Relationship with Targa We do not have any employees. Targa provides operational, general and administrative and other services to us associated with our existing assets and assets acquired from third parties. Targa performs centralized corporate functions for us, such as legal, accounting, treasury, insurance, risk management, health, safety and environmental, information technology, human resources, credit, payroll, internal audit, taxes, engineering and marketing. Our Partnership Agreement governs the reimbursement of costs incurred by Targa on behalf of us. Targa charges us for all the direct costs of the employees assigned to our operations, as well as all general and administrative support costs other than (1) costs attributable to Targa’s status as a separate reporting company and (2) costs of Targa providing management and support services to certain unaffiliated spun-off entities. We generally reimburse Targa monthly for cost allocations to the extent that Targa has made a cash outlay. The following table summarizes transactions with Targa. Management believes these transactions are executed on terms that are fair and reasonable. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Targa billings of payroll and related costs included in operating expense $ 42.6 $ 41.4 $ 125.0 $ 118.3 Targa allocation of general and administrative expense 40.1 39.4 117.7 118.3 Cash distributions to Targa based on IDR and unit ownership 178.9 61.4 395.1 172.0 Cash contributions from Targa for issuance of common units 210.7 — 1,167.2 — Cash contributions from Targa to maintain its 2% general partner ownership 4.3 1.4 23.8 60.1 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Loss Contingency [Abstract] | |
Contingencies | Note 15 - Contingencies Legal Proceedings Litigation related to TRC/TRP Merger On December 16, 2015, two purported unitholders of TRP (the “State Court Plaintiffs”) filed a putative class action and derivative lawsuit challenging the TRC/TRP Merger against TRC, TRP (as a nominal defendant), TRP GP, the members of the board of TRP GP (the “TRP GP Board”) and Merger Sub (collectively, the “State Court Defendants”). This lawsuit is styled Leslie Blumberg et al. v. TRC Resources Corp., et al. th The State Court Plaintiffs allege several causes of action challenging the TRC/TRP Merger. Generally, the State Court Plaintiffs allege that (i) the members of the TRP GP Board breached express and/or implied duties under the Partnership Agreement and (ii) TRC, TRP GP, and Merger Sub aided and abetted in these alleged breaches of duties. The State Court Plaintiffs further allege, in general, that (a) the premium offered to TRP’s unitholders was inadequate, (b) the TRC/TRP Merger did not include a collar to protect TRP unitholders from decreases in TRC’s stock price, (c) the TRP GP Board agreed to contractual terms that allegedly may have dissuaded other potential acquirers from seeking to acquire TRP (including the “no-solicitation,” “matching rights,” and “termination fee” provisions), (d) the process leading up to the TRC/TRP Merger was unfair, (e) the TRP GP Board had conflicts of interest due to TRC’s control of TRP GP, (f) the TRP GP Conflicts Committee’s financial advisor was conflicted and conducted flawed analyses, and (g) the joint proxy statement/prospectus filed in connection with the TRC/TRP Merger (the “Proxy”) failed to disclose allegedly material information concerning, among other things, (i) the TRC and TRP projections included in the Proxy, and (ii) the analyses conducted by the TRP GP Conflicts Committee’s financial advisor in connection with the TRC/TRP Merger. Based on these allegations, the State Court Plaintiffs seek damages and attorneys’ fees. On February 26 and 29, 2016, the State Court Defendants filed general denials and asserted affirmative defenses. On August 26, 2016, the State Court Defendants filed Special Exceptions and a Motion for Summary Judgment seeking to have the State Court Lawsuit dismissed in its entirety with prejudice. The Special Exceptions and Motion for Summary Judgment are pending before the Court. The State Court Defendants cannot predict the outcome of this or any other lawsuits that might be filed subsequent to the date of the filing of this report, nor can the State Court Defendants predict the amount of time and expense that will be required to resolve such litigation. The State Court Defendants believe the State Court Lawsuit is without merit and intend to defend vigorously against this lawsuit and any other actions that challenge the TRC/TRP Merger. Environmental Proceedings On June 18, 2015, the New Mexico Environment Department’s Air Quality Bureau issued a Notice of Violation to Targa Midstream Services LLC for alleged violations of air emissions regulations related to emissions events that occurred at the Monument Gas Plant between June 2014 and December 2014. The Monument Gas Plant is owned and operated by Versado Gas Processors, L.L.C., which was a joint venture in which we owned a 63% interest and Targa Midstream Services LLC served as operator until October 31, 2016, when we acquired the remaining 37% membership interest from Chevron U.S.A Inc. The Partnership is in discussions with the New Mexico Environment Department to resolve the alleged violations. The Partnership anticipates that this matter could result in a monetary sanction in excess of $100,000 but less than $300,000. We are also a party to various legal, administrative and regulatory proceedings that have arisen in the ordinary course of our business. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note 16 — Supplemental Cash Flow Information Nine Months Ended September 30, 2016 2015 Cash: Interest paid, net of capitalized interest (1) $ 197.1 $ 147.6 Income taxes paid, net of refunds 1.2 4.1 Non-cash investing activities: Deadstock commodity inventory transferred to property, plant and equipment $ 16.9 $ 1.2 Impact of capital expenditure accruals on property, plant and equipment (0.5 ) (57.2 ) Transfers from materials and supplies inventory to property, plant and equipment 1.9 2.9 Change in ARO liability and property, plant and equipment due to revised cash flow estimate (9.2 ) 3.8 Non-cash financing activities: Debt additions and retirements related to exchange of TRP 6⅝% Notes for APL 6⅝% Notes $ — $ 342.1 Cancellation of treasury units (10.4 ) — Accrued distributions on unvested equity awards under share compensation arrangements 0.2 1.1 Receivables from equity issuances — — Non-cash balance sheet movements related to the Atlas Merger (See Note 4 - Business Acquisitions): Non-cash merger consideration - common units and replacement equity awards $ — $ 2,583.5 Special GP Interest — 1,612.4 Current liabilities retained by Targa — (0.4 ) Net non-cash balance sheet movements excluded from consolidated statements of cash flows — 4,195.5 Net cash merger consideration included in investing activities — 828.7 Total fair value of consideration transferred $ — $ 5,024.2 (1) Interest capitalized on major projects was $7.2 million and $9.1 million for the nine months ended September 30, 2016 and 2015. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Note 17 — Segment Information We operate in two primary segments (previously referred to as divisions): (i) Gathering and Processing, and (ii) Logistics and Marketing (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. Concurrent with the completion of the TRC/TRP Merger in the first quarter of 2016, management reevaluated our reportable segments and determined that our previously disclosed divisions are the appropriate level of aggregation for our reportable segments. The increase in activity within Field Gathering and Processing due to the Atlas mergers coupled with the decline in activity in our Gulf Coast region makes the disaggregation of Field Gathering and Processing and Coastal Gathering and Processing no longer warranted. Management also determined that further disaggregation of our Logistics and Marketing segment is no longer appropriate due to the integrated nature of the operations within our Downstream Business 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 gathering and terminaling. The Gathering and Processing segment's assets are located in the Permian Basin of West Texas and Southeast New Mexico; the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma and South Central Kansas; the Williston Basin in North Dakota and in the onshore and near offshore regions of the Louisiana Gulf Coast and the Gulf of Mexico. Our Logistics and Marketing segment includes all the activities necessary to convert mixed NGLs into NGL products and provides certain value added services such as storing, terminaling, distributing and marketing of NGLs, the storage and terminaling of refined petroleum products and crude oil and certain natural gas supply and marketing activities in support of our other businesses including services to LPG exporters. It also includes certain natural gas supply and marketing activities in support of our other operations, as well as transporting natural gas and NGLs. Logistics and Marketing operations are generally connected to and supplied in part by our Gathering and Processing segments and are predominantly located in Mont Belvieu and Galena Park, Texas, Lake Charles, Louisiana and Tacoma, Washington. Other contains the results (including any hedge ineffectiveness) of commodity derivative activities included in operating margin. and 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, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 172.2 $ 1,215.3 $ 11.2 $ — $ 1,398.7 Fees from midstream services 120.6 133.0 — — 253.6 292.8 1,348.3 11.2 — 1,652.3 Intersegment revenues Sales of commodities 574.8 76.3 — (651.1 ) — Fees from midstream services 1.9 6.6 — (8.5 ) — 576.7 82.9 — (659.6 ) — Revenues $ 869.5 $ 1,431.2 $ 11.2 $ (659.6 ) $ 1,652.3 Operating margin $ 149.4 $ 126.0 $ 11.2 $ — $ 286.6 Other financial information: Total assets (1) $ 10,047.3 $ 2,737.5 $ 47.2 $ 76.2 $ 12,908.2 Goodwill $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 97.1 $ 36.2 $ — $ 1.3 $ 134.6 (1) Corporate assets at the segment level primarily include tax-related assets, cash and prepaids. Three Months Ended September 30, 2015 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 470.3 $ 829.2 $ 21.8 $ — $ 1,321.3 Fees from midstream services 117.3 193.5 — — 310.8 587.6 1,022.7 21.8 — 1,632.1 Intersegment revenues Sales of commodities 253.4 48.9 — (302.3 ) — Fees from midstream services 2.4 4.1 — (6.5 ) — 255.8 53.0 — (308.8 ) — Revenues $ 843.4 $ 1,075.7 $ 21.8 $ (308.8 ) $ 1,632.1 Operating margin $ 140.5 $ 163.8 $ 21.8 $ — $ 326.1 Other financial information: Total assets (1) $ 10,649.5 $ 2,447.3 $ 137.6 $ 48.5 $ 13,282.9 Goodwill $ 551.4 $ — $ — $ — $ 551.4 Capital expenditures $ 115.1 $ 68.4 $ — $ 2.7 $ 186.2 (1) Corporate assets at the segment level primarily include tax-related assets, cash and prepaids. Nine Months Ended September 30, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 441.3 $ 3,384.7 $ 56.9 $ — $ 3,882.9 Fees from midstream services 360.9 434.6 — — 795.5 802.2 3,819.3 56.9 — 4,678.4 Intersegment revenues Sales of commodities 1,455.8 176.3 — (1,632.1 ) — Fees from midstream services 5.8 15.1 — (20.9 ) — 1,461.6 191.4 — (1,653.0 ) — Revenues $ 2,263.8 $ 4,010.7 $ 56.9 $ (1,653.0 ) $ 4,678.4 Operating margin $ 404.1 $ 424.6 $ 56.9 $ — $ 885.6 Other financial information: Total assets (1) $ 10,047.3 $ 2,737.5 $ 47.2 $ 76.2 $ 12,908.2 Goodwill $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 271.3 $ 151.9 $ — $ 3.3 $ 426.5 (1) Corporate assets at the segment level primarily include tax related assets, cash and prepaids. Nine Months Ended September 30, 2015 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 1,177.5 $ 2,881.4 $ 60.7 $ — $ 4,119.6 Fees from midstream services 302.9 588.7 — — 891.6 1,480.4 3,470.1 60.7 — 5,011.2 Intersegment revenues Sales of commodities 802.1 152.3 — (954.4 ) — Fees from midstream services 6.3 13.7 — (20.0 ) — 808.4 166.0 — (974.4 ) — Revenues $ 2,288.8 $ 3,636.1 $ 60.7 $ (974.4 ) $ 5,011.2 Operating margin $ 372.0 $ 519.0 $ 60.7 $ — $ 951.7 Other financial information: Total assets (1) $ 10,649.5 $ 2,447.3 $ 137.6 $ 48.5 $ 13,282.9 Goodwill $ 551.4 $ — $ — $ — $ 551.4 Capital expenditures $ 356.6 $ 209.4 $ — $ 5.0 $ 571.0 Business acquisition $ 5,024.2 $ — $ — $ — $ 5,024.2 (1) Corporate assets at the segment level primarily include tax related assets, cash and prepaids. The following table shows our consolidated revenues by product and service for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Sales of commodities: Natural gas $ 465.6 $ 456.1 $ 1,102.0 $ 1,201.6 NGL 866.7 772.2 2,575.8 2,656.9 Condensate 35.0 40.4 96.2 113.1 Petroleum products 20.2 30.8 52.0 87.3 Derivative activities 11.2 21.8 56.9 60.7 1,398.7 1,321.3 3,882.9 4,119.6 Fees from midstream services: Fractionating and treating 33.2 55.7 94.8 160.1 Storage, terminaling, transportation and export 89.7 126.8 316.3 384.6 Gathering and processing 110.9 106.6 329.9 280.7 Other 19.8 21.7 54.5 66.2 253.6 310.8 795.5 891.6 Total revenues $ 1,652.3 $ 1,632.1 $ 4,678.4 $ 5,011.2 The following table shows a reconciliation of operating margin to net income (loss) for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Reconciliation of operating margin to net income (loss): Operating margin $ 286.6 $ 326.1 $ 885.6 $ 951.7 Depreciation and amortization expenses (184.0 ) (165.8 ) (563.6 ) (448.3 ) General and administrative expenses (44.0 ) (42.9 ) (132.3 ) (130.1 ) Goodwill impairment — — (24.0 ) — Interest expense, net (57.9 ) (61.6 ) (171.2 ) (171.1 ) Other, net (5.8 ) (2.9 ) 5.0 (17.4 ) Income tax (expense) benefit (1.0 ) 0.4 — (0.4 ) Net income (loss) $ (6.1 ) $ 53.3 $ (0.5 ) $ 184.4 |
Significant Accounting Polici25
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policy Updates | Accounting Policy Updates 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 on Form 10-K. There were no significant updates or revisions to our policies during the nine months ended September 30, 2016, except as noted below. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Other Assets and Deferred Costs – Contracts with Customers With the issuance in August 2015 of ASU 2015-14 , Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients We expect to adopt these updates in their entirety on January 1, 2018, and are continuing to evaluate the impact on our revenue recognition practices. Consolidation In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) We expect to adopt the amendments in the first quarter of 2019 and are currently evaluating the impacts of the amendments to our consolidated financial statements and accounting practices for leases. Share-Based Compensation In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Cash Flow Classification In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) Recognition of Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory |
Impact of Revisions to Activity
Impact of Revisions to Activity Reported in Consolidated Statements of Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Impact of Revisions to Activity Reported in Consolidated Statements of Comprehensive Income (Loss) | The following table displays the impact of these revisions to activity reported in our Consolidated Statements of Comprehensive Income (Loss) during the three and nine months ended September 30, 2015 and the year ended December 31, 2015. Three Months Ended September 30, 2015 September 30, 2015 As Reported As Corrected Commodity hedging contracts: Change in fair value $ 42.9 $ 50.7 Settlements reclassified to revenues (16.7 ) (24.5 ) Other comprehensive income (loss) $ 26.2 $ 26.2 Nine Months Ended Year Ended September 30, 2015 September 30, 2015 December 31, 2015 December 31, 2015 As Reported As Corrected As Reported As Corrected Commodity hedging contracts: Change in fair value $ 59.4 $ 77.6 $ 81.2 $ 112.7 Settlements reclassified to revenues (41.1 ) (59.3 ) (54.8 ) (86.3 ) Other comprehensive income (loss) $ 18.3 $ 18.3 $ 26.4 $ 26.4 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Pro Forma Consolidated Results of Operations | Pro Forma Impact of Atlas Mergers on Consolidated Statement of Operations The following summarized unaudited pro forma Consolidated Statement of Operations information for the nine months ended September 30, 2015 assumes that our acquisition of APL and Targa’s acquisition of ATLS had occurred as of January 1, 2014. We prepared the following summarized unaudited pro forma financial results for comparative purposes only. The summarized unaudited pro forma financial results may not be indicative of the results that would have occurred if we had completed the APL merger as of January 1, 2014, or that the results that will be attained in the future. Amounts presented below are in millions: September 30, 2015 Pro Forma Revenues $ 5,299.9 Net income 181.6 |
Consideration Transferred to Acquire ATLS and APL | The following table summarizes the consideration transferred to acquire ATLS and APL, which are viewed together as a single integrated transaction for GAAP reporting purposes: Fair Cash paid, net of cash acquired (1) $ 745.7 Common shares of TRC 1,008.5 Replacement restricted stock units awarded (3) 5.2 Less: value of APL common units owned by ATLS (147.4 ) Total $ 1,612.0 Fair Value of Consideration Transferred by Targa for APL: Cash paid, net of cash acquired (2) $ 828.7 Common units of TRP 2,568.5 Replacement phantom units awarded (3) 15.0 Total $ 3,412.2 Total fair value of consideration transferred $ 5,024.2 (1) Targa acquired $5.5 million of cash. (2) We acquired $35.3 million of cash. (3) The fair value of consideration transferred in the form of replacement restricted stock unit awards and replacement phantom unit awards represent the allocation of the fair value of the awards to the pre-combination service period. The fair value of the awards associated with the post-combination service period will be recognized over the remaining service period of the award. |
Fair Value Determination Related to the Atlas Mergers | Our final fair value determination related to the Atlas mergers was as follows: Fair value determination: February Trade and other current receivables, net $ 181.1 Other current assets 24.4 Assets from risk management activities 102.1 Property, plant and equipment 4,616.9 Investments in unconsolidated affiliates 214.5 Intangible assets 1,354.9 Other long-term assets 5.5 Current liabilities (258.8 ) Long-term debt (1,573.3 ) Deferred income tax liabilities, net (13.6 ) Other long-term liabilities (119.1 ) Total identifiable net assets 4,534.6 Noncontrolling interest in subsidiaries (216.9 ) Current liabilities retained by Targa (0.5 ) Goodwill 707.0 Total fair value of consideration transferred $ 5,024.2 |
Changes in Gross Amounts of Goodwill | Changes in the gross amounts of our goodwill are as follows: WestTX SouthTX SouthOK Total Balance at January 1, 2015 $ — $ — $ — $ — Acquisition, February 27, 2015 364.5 160.3 182.2 707.0 Provisional Impairment (recorded 4Q 2015) (37.6 ) (70.2 ) (182.2 ) (290.0 ) Balance at December 31, 2015 326.9 90.1 — 417.0 Additional Impairment (recorded 1Q 2016) (14.4 ) (9.6 ) — (24.0 ) Balance at September 30, 2016 $ 312.5 $ 80.5 $ — $ 393.0 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | September 30, 2016 December 31, 2015 Commodities $ 139.3 $ 128.3 Materials and supplies 11.0 12.7 $ 150.3 $ 141.0 |
Property, Plant and Equipment29
Property, Plant and Equipment and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property Plant And Equipment And Intangible Assets [Abstract] | |
Property, Plant and Equipment and Intangible Assets | September 30, 2016 December 31, 2015 Estimated Useful Lives (In Years) Gathering systems $ 6,447.1 $ 6,304.5 5 to 20 Processing and fractionation facilities 3,305.5 2,988.5 5 to 25 Terminaling and storage facilities 1,194.5 1,115.0 5 to 25 Transportation assets 452.1 454.0 10 to 25 Other property, plant and equipment 232.0 220.9 3 to 25 Land 120.5 108.8 — Construction in progress 596.0 736.5 — Property, plant and equipment 12,347.7 11,928.2 Accumulated depreciation (2,667.6 ) (2,225.6 ) Property, plant and equipment, net $ 9,680.1 $ 9,702.6 Intangible assets $ 2,036.6 $ 2,036.6 20 Accumulated amortization (343.6 ) (226.5 ) Intangible assets, net $ 1,693.0 $ 1,810.1 |
Schedule of Changes in Intangible Assets | The fair values of intangible assets acquired in the Atlas mergers have been recorded at a fair value of $1,354.9 million and are being amortized over a 20 year life using the straight-line method, as a reliably determinable pattern of amortization could not be identified. Amortization expense attributable to our intangible assets related to the Badlands acquisition is recorded using a method that closely reflects the cash flow pattern underlying their intangible asset valuation over a 20 year life. The changes in our intangible assets are as follows: Balance at December 31, 2015 $ 1,810.1 Amortization (117.1 ) Balance at September 30, 2016 $ 1,693.0 |
Investments in Unconsolidated30
Investments in Unconsolidated Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Activity Related to Partnership's Investment in Unconsolidated Affiliate | The following table shows the activity related to our investments in unconsolidated affiliates: GCF T2 LaSalle T2 Eagle Ford T2 EF Cogen Total Balance at December 31, 2015 $ 49.5 $ 63.6 $ 123.8 $ 22.0 $ 258.9 Equity earnings (loss) 1.8 (3.8 ) (6.8 ) (2.6 ) (11.4 ) Cash distributions (1) (4.4 ) — — (0.8 ) (5.2 ) Cash calls for expansion projects — 0.1 4.5 — 4.6 Balance at September 30, 2016 $ 46.9 $ 59.9 $ 121.5 $ 18.6 $ 246.9 (1) Includes $3.4 million in distributions received from GCF and the T2 Joint Ventures in excess of our share of cumulative earnings for the nine months ended September 30, 2016. Such excess distributions are considered a return of capital and disclosed in cash flows from investing activities in the Consolidated Statements of Cash Flows. |
Accounts Payable and Accrued 31
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | September 30, 2016 December 31, 2015 Commodities $ 441.1 $ 385.3 Other goods and services 90.1 141.3 Interest 63.3 80.3 Compensation and benefits — 0.4 Income and other taxes 49.5 10.4 Other 13.5 18.1 $ 657.5 $ 635.8 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | September 30, 2016 December 31, 2015 Current: Accounts receivable securitization facility, due December 2016 $ 225.0 $ 219.3 Long-term: Senior secured revolving credit facility, variable rate, due October 2017 (1) - 280.0 Senior unsecured notes: 5% fixed rate, due January 2018 733.6 1,100.0 4 ⅛ 749.4 800.0 6 ⅝ 309.9 342.1 Unamortized premium 3.9 5.0 6 ⅞ 478.6 483.6 Unamortized discount (19.3 ) (22.1 ) 6 ⅜ 278.7 300.0 5 ¼ 559.6 583.7 4¼% fixed rate, due November 2023 583.9 623.5 6¾% fixed rate, due March 2024 580.1 600.0 APL notes, 6 ⅝ 12.9 12.9 Unamortized premium 0.1 0.2 APL notes, 4¾% fixed rate, due November 2021 (2) 6.5 6.5 APL notes, 5⅞% fixed rate, due August 2023 (2) 48.1 48.1 Unamortized premium 0.5 0.5 4,326.5 5,164.0 Debt issuance costs (29.4 ) (38.3 ) Total long-term debt 4,297.1 5,125.7 Total debt $ 4,522.1 $ 5,345.0 Irrevocable standby letters of credit outstanding $ 13.5 $ 12.9 (1) As of September 30, 2016, availability under our $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1,586.5 million. In October 2016, the TRP Revolver was amended. See “Subsequent Events – TRP Revolver Amendment.” (2) APL notes are not guaranteed by us. |
Interest Rates Incurred on Variable-Rate Debt Obligations | The following table shows the range of interest rates and weighted average interest rate incurred on our variable-rate debt obligations during the nine months ended September 30, 2016: Range of Interest Rates Incurred Weighted Average Interest Rate Incurred TRP Revolver 2.4% - 4.8% 2.6% Accounts receivable securitization facility 1.2% - 1.3% 1.2% |
Summary of Debt Repurchased on Open Market Portion of Outstanding Senior Notes | During the nine months ended September 30, 2016, we repurchased on the open market a portion of our outstanding senior notes (the “Senior Notes”) as follows: Debt Repurchased Book Value Payment Gain/(Loss) Write-off of Debt Issuance Costs Net Gain/(Loss) 5¼% Senior Notes $ 24.1 $ (20.1 ) $ 4.0 $ (0.2 ) $ 3.8 4¼% Senior Notes 39.5 (31.8 ) 7.7 (0.3 ) 7.4 6⅞% Senior Notes 4.8 (4.3 ) 0.5 (0.1 ) 0.4 6⅝% Senior Notes 32.6 (29.5 ) 3.1 - 3.1 6⅜% Senior Notes 21.3 (18.7 ) 2.6 (0.2 ) 2.4 6¾% Senior Notes 19.9 (17.5 ) 2.4 (0.2 ) 2.2 5% Senior Notes 366.4 (368.2 ) (1.8 ) (2.1 ) (3.9 ) 4⅛% Senior Notes 50.6 (44.2 ) 6.4 (0.4 ) 6.0 $ 559.2 $ (534.3 ) $ 24.9 $ (3.5 ) $ 21.4 |
Schedule of Contractual Maturities of Senior Notes | The following table shows the contractually scheduled maturities of our Senior Notes as of September 30, 2016, for five consecutive years, and in total thereafter: Scheduled Maturities of Debt Total Remainder of 2016 2017 2018 2019 2020 After 2020 (in millions) Senior notes $ 4,341.3 $ - $ - $ 733.6 $ 749.4 $ 322.8 $ 2,535.5 |
Schedule of Concurrent Senior Notes Tender Offers | The results of the Tender Offers, which closed in October 2016, were : Senior Notes Outstanding Note Balance Prior to Tender Offers Amount Tendered Premium Paid Accrued Interest Paid Total Tender Offer Payments Note Balance After Tender Offers 5% Senior Notes $ 733.6 $ 483.1 $ 16.9 $ 5.4 $ 505.4 $ 250.5 6⅝% Senior Notes 309.9 281.7 10.5 0.3 292.5 28.2 6⅞% Senior Notes 478.6 373.5 14.4 4.6 392.5 105.1 $ 1,522.1 $ 1,138.3 $ 41.8 $ 10.3 $ 1,190.4 $ 383.8 |
Other Long-term Liabilities (Ta
Other Long-term Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities Noncurrent [Abstract] | |
Other Long-term Liabilities | Other long-term liabilities are comprised of the following obligations: September 30, 2016 December 31, 2015 Asset retirement obligations $ 64.2 $ 69.9 Mandatorily redeemable preferred interests 64.2 82.9 Deferred revenue and other 23.2 25.4 Total long-term liabilities $ 151.6 $ 178.2 |
Changes in Aggregate Asset Retirement Obligations | The changes in our ARO are as follows Balance at December 31, 2015 $ 69.9 Change in cash flow estimate (9.2 ) Accretion expense 3.5 Balance at September 30, 2016 $ 64.2 |
Schedule of Changes in Long-term Liability Attributable to Mandatorily Redeemable Preferred Interests | The following table shows the changes attributable to mandatorily redeemable preferred interests: Balance at December 31, 2015 $ 82.9 Income attributable to mandatorily redeemable preferred interests 0.1 Change in estimated redemption value included in interest expense (18.8 ) Balance at September 30, 2016 $ 64.2 |
Partnership Units and Related34
Partnership Units and Related Matters (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Partners Capital [Abstract] | |
Long-Term Incentive Plan | Cash-Settled Performance Units Targa Resources Long-Term Incentive Plan Equity-Settled Performance Units Replacement Phantom Units 2015 2014 2013 Before conversion 675,745 349,451 192,390 119,900 139,700 After conversion 418,903 216,561 119,178 74,248 86,538 |
Derivative Instruments and He35
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Notional Volume of Commodity Hedges | At September 30, 2016, the notional volumes of our commodity derivative contracts were: Commodity Instrument Unit 2016 2017 2018 2019 Natural Gas Swaps MMBtu/d 134,436 92,448 68,800 29,683 Natural Gas Basis Swaps MMBtu/d 95,979 58,026 - - Natural Gas Options MMBtu/d 22,900 22,900 9,486 - NGL Swaps Bbl/d 5,073 3,875 2,678 1,779 NGL Futures Bbl/d 85,887 50,889 5,000 - NGL Options Bbl/d 920 1,468 1,676 - Condensate Swaps Bbl/d 2,770 1,850 1,350 223 Condensate Options Bbl/d 790 1,380 691 590 |
Fair Values of Derivative Instruments | The following schedules reflect the fair values of our derivative instruments and their location in 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, 2016 Fair Value as of December 31, 2015 Balance Sheet Derivative Derivative Derivative Derivative Location Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Commodity contracts Current $ 34.7 $ 12.8 $ 92.1 $ 2.1 Long-term 12.4 17.6 34.9 2.4 Total derivatives designated as hedging instruments $ 47.1 $ 30.4 $ 127.0 $ 4.5 Derivatives not designated as hedging instruments Commodity contracts Current $ 0.1 $ 0.2 $ 0.1 $ 3.1 Total derivatives not designated as hedging instruments $ 0.1 $ 0.2 $ 0.1 $ 3.1 Total current position $ 34.8 $ 13.0 $ 92.2 $ 5.2 Total long-term position 12.4 17.6 34.9 2.4 Total derivatives $ 47.2 $ 30.6 $ 127.1 $ 7.6 |
Pro Forma Impact of Derivatives Net in Consolidated Balance Sheet | The pro forma impact of reporting derivatives in our Consolidated Balance Sheets on a net basis is as follows: Gross Presentation Pro forma net presentation September 30, 2016 Asset Liability Asset Liability Current Position Counterparties with offsetting positions $ 34.1 $ 12.1 $ 22.0 $ - Counterparties without offsetting positions - assets 0.7 - 0.7 - Counterparties without offsetting positions - liabilities - 0.9 - 0.9 34.8 13.0 22.7 0.9 Long Term Position Counterparties with offsetting positions 12.4 14.6 - 2.2 Counterparties without offsetting positions - assets - - - - Counterparties without offsetting positions - liabilities - 3.0 - 3.0 12.4 17.6 - 5.2 Total Derivatives Counterparties with offsetting positions 46.5 26.7 22.0 2.2 Counterparties without offsetting positions - assets 0.7 - 0.7 - Counterparties without offsetting positions - liabilities - 3.9 - 3.9 $ 47.2 $ 30.6 $ 22.7 $ 6.1 Gross Presentation Pro forma net presentation December 31, 2015 Asset Liability Asset Liability Current Position Counterparties with offsetting positions $ 86.9 $ 5.2 $ 81.7 $ - Counterparties without offsetting positions - assets 5.3 - 5.3 - Counterparties without offsetting positions - liabilities - - - - 92.2 5.2 87.0 - Long Term Position Counterparties with offsetting positions 34.2 2.4 31.8 - Counterparties without offsetting positions - assets 0.7 - 0.7 - Counterparties without offsetting positions - liabilities - - - - 34.9 2.4 32.5 - Total Derivatives Counterparties with offsetting positions 121.1 7.6 113.5 - Counterparties without offsetting positions - assets 6.0 - 6.0 - Counterparties without offsetting positions - liabilities - - - - $ 127.1 $ 7.6 $ 119.5 $ - |
Amounts Recorded in OCI and Amounts Reclassified from OCI to Revenue and Expense | The following tables reflect amounts recorded in Other Comprehensive Income (“OCI”) and amounts reclassified from OCI to revenue and expense 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 2016 2015 2016 2015 Commodity contracts $ 12.9 $ 50.7 $ (40.5 ) $ 77.6 Gain (Loss) Reclassified from OCI into Income (Effective Portion) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2016 2015 2016 2015 Revenues $ 8.1 $ 24.5 $ 50.6 $ 59.3 |
Gain (Loss) Recognized in Income on Derivatives | 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. 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 2016 2015 2016 2015 Commodity contracts Revenue $ (0.3 ) $ (4.0 ) $ 1.3 $ (0.9 ) |
Deferred Gains (Losses) Included in Accumulated OCI | The following table shows the deferred gains (losses) included in accumulated OCI, which will be reclassified into earnings through the end of 2019 based on valuations as of the balance sheet date: September 30, 2016 December 31, 2015 Commodity hedges, before tax (1) $ 9.2 $ 86.7 (1) Includes deferred net gains of $3.2 million as of September 30, 2016 related to contracts that will be settled and reclassified to revenue over the next 12 months |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following table shows a breakdown by fair value hierarchy category for (1) financial instruments measurements included in our Consolidated Balance Sheets at fair value and (2) supplemental fair value disclosures for other financial instruments: September 30, 2016 Fair Value Carrying 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) $ 46.3 $ 46.3 $ — $ 44.0 $ 2.3 Liabilities from commodity derivative contracts (1) 29.7 29.7 — 27.3 2.4 TPL contingent consideration (2) 2.7 2.7 — — 2.7 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 129.9 129.9 — — — TRP Revolver — — — — — Senior unsecured notes 4,326.5 4,447.8 — 4,447.8 — Accounts receivable securitization facility 225.0 225.0 — 225.0 — December 31, 2015 Fair Value Carrying 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) $ 127.1 $ 127.1 $ — $ 123.1 $ 4.0 Liabilities from commodity derivative contracts (1) 7.6 7.6 — 7.3 0.3 TPL contingent consideration (2) 3.0 3.0 — — 3.0 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 135.4 135.4 — — — TRP Revolver 280.0 280.0 — 280.0 — Senior unsecured notes 4,884.0 4,192.0 — 4,192.0 — Accounts receivable securitization facility 219.3 219.3 — 219.3 — (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 12 – 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) See Note 4 – Business Acquisitions. |
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) Liability Balance, December 31, 2015 $ 3.7 $ (3.0 ) Change in fair value of TPL contingent consideration - 0.3 New Level 3 instruments 1.0 - Settlements included in Revenue (1.0 ) - Unrealized gain/(loss) included in OCI (3.8 ) - Balance, September 30, 2016 $ (0.1 ) $ (2.7 ) |
Related Party Transactions - 37
Related Party Transactions - Targa (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Summary of Transactions with Affiliates | The following table summarizes transactions with Targa. Management believes these transactions are executed on terms that are fair and reasonable. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Targa billings of payroll and related costs included in operating expense $ 42.6 $ 41.4 $ 125.0 $ 118.3 Targa allocation of general and administrative expense 40.1 39.4 117.7 118.3 Cash distributions to Targa based on IDR and unit ownership 178.9 61.4 395.1 172.0 Cash contributions from Targa for issuance of common units 210.7 — 1,167.2 — Cash contributions from Targa to maintain its 2% general partner ownership 4.3 1.4 23.8 60.1 |
Supplemental Cash Flow Inform38
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Nine Months Ended September 30, 2016 2015 Cash: Interest paid, net of capitalized interest (1) $ 197.1 $ 147.6 Income taxes paid, net of refunds 1.2 4.1 Non-cash investing activities: Deadstock commodity inventory transferred to property, plant and equipment $ 16.9 $ 1.2 Impact of capital expenditure accruals on property, plant and equipment (0.5 ) (57.2 ) Transfers from materials and supplies inventory to property, plant and equipment 1.9 2.9 Change in ARO liability and property, plant and equipment due to revised cash flow estimate (9.2 ) 3.8 Non-cash financing activities: Debt additions and retirements related to exchange of TRP 6⅝% Notes for APL 6⅝% Notes $ — $ 342.1 Cancellation of treasury units (10.4 ) — Accrued distributions on unvested equity awards under share compensation arrangements 0.2 1.1 Receivables from equity issuances — — Non-cash balance sheet movements related to the Atlas Merger (See Note 4 - Business Acquisitions): Non-cash merger consideration - common units and replacement equity awards $ — $ 2,583.5 Special GP Interest — 1,612.4 Current liabilities retained by Targa — (0.4 ) Net non-cash balance sheet movements excluded from consolidated statements of cash flows — 4,195.5 Net cash merger consideration included in investing activities — 828.7 Total fair value of consideration transferred $ — $ 5,024.2 (1) Interest capitalized on major projects was $7.2 million and $9.1 million for the nine months ended September 30, 2016 and 2015. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Information by Segment | Reportable segment information is shown in the following tables: Three Months Ended September 30, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 172.2 $ 1,215.3 $ 11.2 $ — $ 1,398.7 Fees from midstream services 120.6 133.0 — — 253.6 292.8 1,348.3 11.2 — 1,652.3 Intersegment revenues Sales of commodities 574.8 76.3 — (651.1 ) — Fees from midstream services 1.9 6.6 — (8.5 ) — 576.7 82.9 — (659.6 ) — Revenues $ 869.5 $ 1,431.2 $ 11.2 $ (659.6 ) $ 1,652.3 Operating margin $ 149.4 $ 126.0 $ 11.2 $ — $ 286.6 Other financial information: Total assets (1) $ 10,047.3 $ 2,737.5 $ 47.2 $ 76.2 $ 12,908.2 Goodwill $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 97.1 $ 36.2 $ — $ 1.3 $ 134.6 (1) Corporate assets at the segment level primarily include tax-related assets, cash and prepaids. Three Months Ended September 30, 2015 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 470.3 $ 829.2 $ 21.8 $ — $ 1,321.3 Fees from midstream services 117.3 193.5 — — 310.8 587.6 1,022.7 21.8 — 1,632.1 Intersegment revenues Sales of commodities 253.4 48.9 — (302.3 ) — Fees from midstream services 2.4 4.1 — (6.5 ) — 255.8 53.0 — (308.8 ) — Revenues $ 843.4 $ 1,075.7 $ 21.8 $ (308.8 ) $ 1,632.1 Operating margin $ 140.5 $ 163.8 $ 21.8 $ — $ 326.1 Other financial information: Total assets (1) $ 10,649.5 $ 2,447.3 $ 137.6 $ 48.5 $ 13,282.9 Goodwill $ 551.4 $ — $ — $ — $ 551.4 Capital expenditures $ 115.1 $ 68.4 $ — $ 2.7 $ 186.2 (1) Corporate assets at the segment level primarily include tax-related assets, cash and prepaids. Nine Months Ended September 30, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 441.3 $ 3,384.7 $ 56.9 $ — $ 3,882.9 Fees from midstream services 360.9 434.6 — — 795.5 802.2 3,819.3 56.9 — 4,678.4 Intersegment revenues Sales of commodities 1,455.8 176.3 — (1,632.1 ) — Fees from midstream services 5.8 15.1 — (20.9 ) — 1,461.6 191.4 — (1,653.0 ) — Revenues $ 2,263.8 $ 4,010.7 $ 56.9 $ (1,653.0 ) $ 4,678.4 Operating margin $ 404.1 $ 424.6 $ 56.9 $ — $ 885.6 Other financial information: Total assets (1) $ 10,047.3 $ 2,737.5 $ 47.2 $ 76.2 $ 12,908.2 Goodwill $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 271.3 $ 151.9 $ — $ 3.3 $ 426.5 (1) Corporate assets at the segment level primarily include tax related assets, cash and prepaids. Nine Months Ended September 30, 2015 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 1,177.5 $ 2,881.4 $ 60.7 $ — $ 4,119.6 Fees from midstream services 302.9 588.7 — — 891.6 1,480.4 3,470.1 60.7 — 5,011.2 Intersegment revenues Sales of commodities 802.1 152.3 — (954.4 ) — Fees from midstream services 6.3 13.7 — (20.0 ) — 808.4 166.0 — (974.4 ) — Revenues $ 2,288.8 $ 3,636.1 $ 60.7 $ (974.4 ) $ 5,011.2 Operating margin $ 372.0 $ 519.0 $ 60.7 $ — $ 951.7 Other financial information: Total assets (1) $ 10,649.5 $ 2,447.3 $ 137.6 $ 48.5 $ 13,282.9 Goodwill $ 551.4 $ — $ — $ — $ 551.4 Capital expenditures $ 356.6 $ 209.4 $ — $ 5.0 $ 571.0 Business acquisition $ 5,024.2 $ — $ — $ — $ 5,024.2 (1) Corporate assets at the segment level primarily include tax related assets, cash and prepaids. |
Revenues by Product and Service | The following table shows our consolidated revenues by product and service for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Sales of commodities: Natural gas $ 465.6 $ 456.1 $ 1,102.0 $ 1,201.6 NGL 866.7 772.2 2,575.8 2,656.9 Condensate 35.0 40.4 96.2 113.1 Petroleum products 20.2 30.8 52.0 87.3 Derivative activities 11.2 21.8 56.9 60.7 1,398.7 1,321.3 3,882.9 4,119.6 Fees from midstream services: Fractionating and treating 33.2 55.7 94.8 160.1 Storage, terminaling, transportation and export 89.7 126.8 316.3 384.6 Gathering and processing 110.9 106.6 329.9 280.7 Other 19.8 21.7 54.5 66.2 253.6 310.8 795.5 891.6 Total revenues $ 1,652.3 $ 1,632.1 $ 4,678.4 $ 5,011.2 |
Reconciliation of Operating Margin to Net Income (Loss) | The following table shows a reconciliation of operating margin to net income (loss) for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Reconciliation of operating margin to net income (loss): Operating margin $ 286.6 $ 326.1 $ 885.6 $ 951.7 Depreciation and amortization expenses (184.0 ) (165.8 ) (563.6 ) (448.3 ) General and administrative expenses (44.0 ) (42.9 ) (132.3 ) (130.1 ) Goodwill impairment — — (24.0 ) — Interest expense, net (57.9 ) (61.6 ) (171.2 ) (171.1 ) Other, net (5.8 ) (2.9 ) 5.0 (17.4 ) Income tax (expense) benefit (1.0 ) 0.4 — (0.4 ) Net income (loss) $ (6.1 ) $ 53.3 $ (0.5 ) $ 184.4 |
Organization and Operations (De
Organization and Operations (Details) | Feb. 17, 2016$ / shares | Sep. 30, 2016shares | Dec. 31, 2015shares |
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Conversion ratio in stock-for-unit transaction | 0.62 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||
Series A Cumulative Redeemable Perpetual Preferred Units [Member] | |||
Subsidiary Of Limited Liability Company Or Limited Partnership [Line Items] | |||
Preferred units issued (in units) | shares | 5,000,000 | 5,000,000 | |
Preferred units dividend percentage | 9.00% |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Billions | Feb. 27, 2015USD ($)Transaction |
Business Acquisition [Line Items] | |
Number of legal transactions involved in mergers | Transaction | 2 |
Atlas Energy [Member] | |
Business Acquisition [Line Items] | |
Total general partner interest acquired | $ | $ 1.6 |
Impact of Revisions to Activi42
Impact of Revisions to Activity Reported in Consolidated Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Commodity hedging contracts: | |||||
Change in fair value | $ 12.9 | $ 50.7 | $ (40.5) | $ 77.6 | $ 112.7 |
Settlements reclassified to revenues | (8.1) | (24.5) | (50.6) | (59.3) | (86.3) |
Other comprehensive income (loss) | $ 4.8 | 26.2 | $ (91.1) | 18.3 | 26.4 |
Scenario, Previously Reported | |||||
Commodity hedging contracts: | |||||
Change in fair value | 42.9 | 59.4 | 81.2 | ||
Settlements reclassified to revenues | (16.7) | (41.1) | (54.8) | ||
Other comprehensive income (loss) | $ 26.2 | $ 18.3 | $ 26.4 |
Significant Accounting Polici43
Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2016 | |
Accounting Policies [Abstract] | ||
Reclassification of unamortized debt issuance costs | $ 38.3 | |
Unamortized debt issuance costs | $ 29.4 |
Business Acquisitions (Details)
Business Acquisitions (Details) | Feb. 27, 2015USD ($)Transaction$ / sharesshares | Mar. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)MMcf / dmi | Sep. 30, 2015USD ($) | Oct. 31, 2016 | Feb. 17, 2016$ / shares |
Business Acquisition [Line Items] | |||||||
Number of legal transactions involved in mergers | Transaction | 2 | ||||||
Common units par value (in dollars per share) | $ / shares | $ 0.001 | ||||||
Acquisition-related expenses | $ 19,400,000 | $ 19,300,000 | |||||
Revenues from acquired business | $ 1,065,700,000 | ||||||
Net loss from acquired business | $ (1,000,000) | ||||||
Targa Pipeline Partners LP [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Processing capacity | MMcf / d | 2,053 | ||||||
Length of additional pipelines | mi | 12,220 | ||||||
Versado Gas Processors L L C | |||||||
Business Acquisition [Line Items] | |||||||
Ownership interest in joint venture | 63.00% | ||||||
Versado Gas Processors L L C | Subsequent Event [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Additional interest ownership percentage to be acquired | 37.00% | ||||||
Atlas Energy [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total general partner interest acquired | $ 1,600,000,000 | ||||||
Cash payment related to one-time cash payments and cash settlements of equity awards | 7,300,000 | ||||||
Reduction in purchase price | (154,700,000) | ||||||
Atlas Energy [Member] | Common Units [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Common units acquired | 147,400,000 | ||||||
Atlas Energy [Member] | Phantom Unit Awards [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash payment related to one-time cash payments and cash settlements of equity awards | $ 4,500,000 | ||||||
Atlas Energy [Member] | Targa Pipeline Partners LP [Member] | Common Units [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total distribution of common shares (in shares) | shares | 3,363,935 | ||||||
Atlas Energy [Member] | Targa Resources Corp [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of interest in common units | 100.00% | ||||||
Total general partner interest acquired | $ 1,600,000,000 | ||||||
Distribution of common units/shares for each common unit (in shares) | shares | 0.1809 | ||||||
Cash payment (in dollars per common unit) | $ / shares | $ 9.12 | ||||||
Cash payments related to acquisition | $ 514,700,000 | ||||||
Common units acquired | $ 1,000,000,000 | ||||||
Closing market price of common share (in dollars per share) | $ / shares | $ 99.58 | ||||||
Common units par value (in dollars per share) | $ / shares | $ 0.001 | ||||||
Acquisition-related expenses | $ 11,000,000 | ||||||
Atlas Energy [Member] | Targa Resources Corp [Member] | Common Units [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total distribution of common shares (in shares) | shares | 10,126,532 | ||||||
Common units acquired | $ 147,400,000 | ||||||
Atlas Energy [Member] | Targa Resources Corp [Member] | Change Of Control Payments [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash payments related to acquisition | 149,200,000 | ||||||
Atlas Energy [Member] | Targa Resources Corp [Member] | Equity Award Settlements [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash payments related to acquisition | $ 88,000,000 | ||||||
Atlas Energy [Member] | Targa Resources Corp [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total distribution of common shares (in shares) | shares | 81,740 | ||||||
Atlas Pipeline Partners [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total general partner interest acquired | $ 5,300,000,000 | ||||||
Acquired debt and all other assumed liabilities included purchase consideration | 1,800,000,000 | ||||||
Payments for notes tendered and settled upon closing of merger | $ 1,200,000,000 | ||||||
Distribution of common units/shares for each common unit (in shares) | shares | 0.5846 | ||||||
Cash payment (in dollars per common unit) | $ / shares | $ 1.26 | ||||||
Common units acquired | $ 2,600,000,000 | ||||||
Closing market price of common share (in dollars per share) | $ / shares | $ 43.82 | ||||||
Cash paid in lieu of unit issuances | $ 6,400,000 | ||||||
Atlas Pipeline Partners [Member] | Class E Preferred Units [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of cumulative redeemable perpetual preferred units | 8.25% | ||||||
Atlas Pipeline Partners [Member] | Revolving Credit Facility [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash payments related to acquisition | $ 701,400,000 | ||||||
Atlas Pipeline Partners [Member] | Phantom Unit Awards [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash payment representing accelerated vesting of a portion of employees APL phantom awards | $ 600,000 | ||||||
Total distribution of common shares (in shares) | shares | 629,231 | ||||||
Atlas Pipeline Partners [Member] | Change Of Control Payments [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash payments related to acquisition | $ 28,800,000 | ||||||
Atlas Pipeline Partners [Member] | Common Unit Holders [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash payments related to acquisition | $ 128,000,000 | ||||||
Total distribution of common shares (in shares) | shares | 58,614,157 | ||||||
Atlas Pipeline Partners [Member] | Atlas Energy [Member] | Common Units [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Common units owned by parent prior to closing (in units) | shares | 5,754,253 | ||||||
Atlas Pipeline Partners [Member] | Distribution Rights Year 1 [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Reduction in incentive distribution | $ 9,375,000 | ||||||
Atlas Pipeline Partners [Member] | Distribution Rights Year 2 [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Reduction in incentive distribution | 6,250,000 | ||||||
Atlas Pipeline Partners [Member] | Distribution Rights Year 3 [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Reduction in incentive distribution | 2,500,000 | ||||||
Atlas Pipeline Partners [Member] | Distribution Rights Year 4 [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Reduction in incentive distribution | $ 1,250,000 | ||||||
Atlas Pipeline Partners [Member] | Targa Resources Corp [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Contribution made by Targa to general partner's interest | $ 52,400,000 | ||||||
Percentage of general partner's interest maintained | 2.00% |
Business Acquisitions, Pro form
Business Acquisitions, Pro forma Impact of Atlas Mergers on Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Pro forma consolidated results of operations [Abstract] | ||
Revenues | $ 5,299.9 | |
Net income | 181.6 | |
Acquisition-related costs | $ 19.4 | $ 19.3 |
Atlas Resource Partners, LP [Member] | ||
Pro forma consolidated results of operations [Abstract] | ||
Percentage of equity interest sold | 100.00% |
Business Acquisitions, Fair Val
Business Acquisitions, Fair Value of Consideration Transferred (Details) - USD ($) $ in Millions | Feb. 27, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value of Consideration Transferred by Targa [Abstract] | ||||
Cash paid, net of cash acquired | $ 0 | $ 828.7 | ||
Total fair value of consideration transferred | $ 5,024.2 | $ 5,024.2 | ||
Atlas Pipeline Partners [Member] | ||||
Fair Value of Consideration Transferred by Targa [Abstract] | ||||
Cash paid, net of cash acquired | [1] | 828.7 | ||
Less: value of APL common units owned by ATLS | (2,600) | |||
Total fair value of consideration transferred | 3,412.2 | |||
Cash acquired from acquisition | 35.3 | |||
Phantom Unit Awards [Member] | Atlas Pipeline Partners [Member] | ||||
Fair Value of Consideration Transferred by Targa [Abstract] | ||||
Common shares of TRC | [2] | 15 | ||
Targa Resources Corp [Member] | Atlas Energy [Member] | ||||
Fair Value of Consideration Transferred by Targa [Abstract] | ||||
Cash paid, net of cash acquired | [3] | 745.7 | ||
Less: value of APL common units owned by ATLS | (1,000) | |||
Total fair value of consideration transferred | 1,612 | |||
Cash acquired from acquisition | 5.5 | |||
Targa Resources Corp [Member] | Replacement Restricted Stock Units RSUs [Member] | Atlas Energy [Member] | ||||
Fair Value of Consideration Transferred by Targa [Abstract] | ||||
Common shares of TRC | [2] | 5.2 | ||
Common Stock [Member] | Targa Resources Corp [Member] | Atlas Energy [Member] | ||||
Fair Value of Consideration Transferred by Targa [Abstract] | ||||
Common shares of TRC | 1,008.5 | |||
Common Units [Member] | Atlas Energy [Member] | ||||
Fair Value of Consideration Transferred by Targa [Abstract] | ||||
Less: value of APL common units owned by ATLS | (147.4) | |||
Common Units [Member] | Atlas Pipeline Partners [Member] | ||||
Fair Value of Consideration Transferred by Targa [Abstract] | ||||
Common shares of TRC | 2,568.5 | |||
Common Units [Member] | Targa Resources Corp [Member] | Atlas Energy [Member] | ||||
Fair Value of Consideration Transferred by Targa [Abstract] | ||||
Less: value of APL common units owned by ATLS | $ (147.4) | |||
[1] | We acquired $35.3 million of cash. | |||
[2] | The fair value of consideration transferred in the form of replacement restricted stock unit awards and replacement phantom unit awards represent the allocation of the fair value of the awards to the pre-combination service period. The fair value of the awards associated with the post-combination service period will be recognized over the remaining service period of the award. | |||
[3] | Targa acquired $5.5 million of cash. |
Business Acquisitions, Final Fa
Business Acquisitions, Final Fair Value Determination (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | Feb. 27, 2015 | Dec. 31, 2014 | |
Fair value determination [Abstract] | |||||||||
Trade and other current receivables, net | $ 181.1 | ||||||||
Other current assets | 24.4 | ||||||||
Assets from risk management activities | 102.1 | ||||||||
Property, plant and equipment | 4,616.9 | ||||||||
Investments in unconsolidated affiliates | 214.5 | ||||||||
Intangible assets | 1,354.9 | ||||||||
Other long-term assets | 5.5 | ||||||||
Current liabilities | (258.8) | ||||||||
Long-term debt | (1,573.3) | ||||||||
Deferred income tax liabilities, net | (13.6) | ||||||||
Other long-term liabilities | (119.1) | ||||||||
Total identifiable net assets | 4,534.6 | ||||||||
Noncontrolling interest in subsidiaries | (216.9) | ||||||||
Current liabilities retained by Targa | (0.5) | ||||||||
Goodwill | $ 393 | $ 417 | $ 551.4 | $ 393 | $ 551.4 | $ 393 | 707 | $ 0 | |
Total fair value of consideration transferred | 5,024.2 | 5,024.2 | 5,024.2 | ||||||
Measurement-period adjustments to preliminary acquisition date fair values [Abstract] | |||||||||
Depreciation and amortization expense | 184 | 165.8 | 563.6 | 448.3 | |||||
Equity earnings (loss) | (2.2) | (1.6) | (11.4) | (1.1) | |||||
Revenues | 1,652.3 | 1,632.1 | 4,678.4 | 5,011.2 | |||||
Operating expenses | 143 | 142.7 | 413.9 | 409.5 | |||||
General and administrative expense | $ 44 | 42.9 | $ 132.3 | $ 130.1 | |||||
Trade receivables, fair value | 178.1 | ||||||||
Trade receivables, gross amount | 178.1 | ||||||||
Contractual receivables included in current receivables | 3 | ||||||||
Contractual receivables included in other long term assets | $ 4.5 | ||||||||
Measurement Period Adjustments [Member] | |||||||||
Measurement-period adjustments to preliminary acquisition date fair values [Abstract] | |||||||||
Depreciation and amortization expense | $ (1) | ||||||||
Equity earnings (loss) | $ 0.3 | ||||||||
Measurement Period Adjustments [Member] | Accounting Standards Update 2015-16 [Member] | |||||||||
Measurement-period adjustments to preliminary acquisition date fair values [Abstract] | |||||||||
Depreciation and amortization expense | 2 | (0.1) | |||||||
Equity earnings (loss) | (0.2) | (0.1) | |||||||
Property, plant and equipment | (86.2) | 9.9 | |||||||
Investments in unconsolidated affiliates | (5.2) | 5.5 | |||||||
Intangible assets | 155.9 | (5) | |||||||
Current liabilities | 1.3 | 2.4 | |||||||
Other long-term assets | (0.1) | (1) | |||||||
Other current assets | (0.1) | (0.6) | |||||||
Goodwill | 155.6 | (6.4) | |||||||
Revenues | 0.6 | ||||||||
Operating expenses | $ (1.9) | ||||||||
Noncontrolling interest in subsidiaries | 103.5 | ||||||||
Other long-term liabilities | 110.1 | ||||||||
Deferred tax liabilities | 5 | ||||||||
Interest Expense | (26.2) | ||||||||
General and administrative expense | $ (0.4) |
Business Acquisitions, Mandator
Business Acquisitions, Mandatorily Redeemable Preferred Interests (Details) - Mandatorily Redeemable Noncontrolling Interests [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)JointVenture | |
Redeemable Noncontrolling Interest [Line Items] | |
Number of joint ventures | JointVenture | 2 |
Acquired other long-term liabilities | $ | $ 109.3 |
Business Acquisitions, Continge
Business Acquisitions, Contingent Consideration and Replacement Phantom Units (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Jun. 30, 2015 | |
Replacement Phantom Units [Member] | ||
Business Acquisition [Line Items] | ||
Number of common units called by replacement equity unit (in shares) | 1 | |
Dividend payment period | 60 days | |
Replacement Phantom Units [Member] | Vesting Term One [Member] | ||
Business Acquisition [Line Items] | ||
Vesting percentage original term | 25.00% | |
Vesting period of original term | 4 years | |
Replacement Phantom Units [Member] | Vesting Term Two [Member] | ||
Business Acquisition [Line Items] | ||
Vesting percentage original term | 33.00% | |
Vesting period of original term | 3 years | |
Atlas Pipeline Partners [Member] | ||
Business Acquisition [Line Items] | ||
Contingent consideration additional amount | $ 6 | |
Contingent consideration liability lower range | 0 | |
Contingent consideration liability higher range | $ 6 | |
Contingent liability acquisition date fair value | $ 4.2 |
Business Acquisitions, Goodwill
Business Acquisitions, Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | |||||||
Beginning of period | $ 417 | $ 551.4 | $ 417 | $ 0 | $ 0 | ||
Acquisition | 707 | ||||||
Impairment | $ 0 | (290) | $ 0 | (24) | 0 | (290) | |
Additional Impairment | (24) | (24) | |||||
Goodwill | 393 | 393 | 417 | $ 551.4 | 393 | 551.4 | 417 |
WestTX [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Beginning of period | 326.9 | 326.9 | 0 | 0 | |||
Acquisition | 364.5 | ||||||
Impairment | (37.6) | ||||||
Additional Impairment | (14.4) | ||||||
Goodwill | 312.5 | 326.9 | 312.5 | 326.9 | |||
SouthTX [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Beginning of period | $ 90.1 | 90.1 | 0 | 0 | |||
Acquisition | 160.3 | ||||||
Impairment | (70.2) | ||||||
Additional Impairment | (9.6) | ||||||
Goodwill | $ 80.5 | $ 90.1 | $ 80.5 | 90.1 | |||
SouthOK [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Beginning of period | $ 0 | 0 | |||||
Acquisition | 182.2 | ||||||
Impairment | $ (182.2) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Commodities | $ 139.3 | $ 128.3 |
Materials and supplies | 11 | 12.7 |
Total inventory | $ 150.3 | $ 141 |
Property, Plant and Equipment52
Property, Plant and Equipment and Intangible Assets, Property, Plant and Equipment (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | $ 12,347.7 | $ 11,928.2 |
Accumulated depreciation | (2,667.6) | (2,225.6) |
Property, plant and equipment, net | 9,680.1 | 9,702.6 |
Intangible assets | 2,036.6 | 2,036.6 |
Accumulated amortization | (343.6) | (226.5) |
Intangible assets, net | $ 1,693 | 1,810.1 |
Estimated useful life | 20 years | |
Additions from acquisition | 1,354.9 | |
Badlands [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life | 20 years | |
Gathering Systems [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | $ 6,447.1 | 6,304.5 |
Gathering Systems [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Gathering Systems [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life | 20 years | |
Processing and Fractionation Facilities [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | $ 3,305.5 | 2,988.5 |
Processing and Fractionation Facilities [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Processing and Fractionation Facilities [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life | 25 years | |
Terminaling and Storage Facilities [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | $ 1,194.5 | 1,115 |
Terminaling and Storage Facilities [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Terminaling and Storage Facilities [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life | 25 years | |
Transportation Assets [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | $ 452.1 | 454 |
Transportation Assets [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Transportation Assets [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life | 25 years | |
Other Property, Plant and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | $ 232 | 220.9 |
Other Property, Plant and Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Other Property, Plant and Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful life | 25 years | |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | $ 120.5 | 108.8 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, plant and equipment | $ 596 | $ 736.5 |
Property, Plant and Equipment53
Property, Plant and Equipment and Intangible Assets, Schedule of Changes in Intangible Assets(Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Intangible Assets, net [Roll Forward] | |
Balance at December 31, 2015 | $ 1,810.1 |
Amortization | (117.1) |
Balance at September 30, 2016 | $ 1,693 |
Investments in Unconsolidated54
Investments in Unconsolidated Affiliates (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)JointVenture | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)JointVenture | Sep. 30, 2015USD ($) | ||
Schedule Of Equity Method Investments [Line Items] | |||||
Balance at beginning of period | $ 258.9 | ||||
Equity earnings (loss) | $ (2.2) | $ (1.6) | (11.4) | $ (1.1) | |
Cash distributions | [1] | (5.2) | |||
Cash calls for expansion projects | 4.6 | ||||
Balance at end of period | $ 246.9 | 246.9 | |||
Return of capital from unconsolidated affiliate | $ 3.4 | $ 1.1 | |||
Gulf Coast Fractionators LP [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Ownership interest | 38.80% | 38.80% | |||
Balance at beginning of period | $ 49.5 | ||||
Equity earnings (loss) | 1.8 | ||||
Cash distributions | [1] | (4.4) | |||
Cash calls for expansion projects | 0 | ||||
Balance at end of period | $ 46.9 | $ 46.9 | |||
T2 Joint Ventures [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Number of non-operated joint ventures acquired in Atlas mergers | JointVenture | 3 | 3 | |||
Basis difference on preliminary fair values | $ 36.7 | $ 36.7 | |||
Preliminary estimated useful lives of the underlying assets | 20 years | ||||
T2 La Salle [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Ownership interest | 75.00% | 75.00% | |||
Balance at beginning of period | $ 63.6 | ||||
Equity earnings (loss) | (3.8) | ||||
Cash distributions | [1] | 0 | |||
Cash calls for expansion projects | 0.1 | ||||
Balance at end of period | $ 59.9 | $ 59.9 | |||
T2 Eagle Ford [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Ownership interest | 50.00% | 50.00% | |||
Balance at beginning of period | $ 123.8 | ||||
Equity earnings (loss) | (6.8) | ||||
Cash distributions | [1] | 0 | |||
Cash calls for expansion projects | 4.5 | ||||
Balance at end of period | $ 121.5 | $ 121.5 | |||
T2 EF Cogen [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Ownership interest | 50.00% | 50.00% | |||
Balance at beginning of period | $ 22 | ||||
Equity earnings (loss) | (2.6) | ||||
Cash distributions | [1] | (0.8) | |||
Cash calls for expansion projects | 0 | ||||
Balance at end of period | $ 18.6 | $ 18.6 | |||
[1] | Includes $3.4 million in distributions received from GCF and the T2 Joint Ventures in excess of our share of cumulative earnings for the nine months ended September 30, 2016. Such excess distributions are considered a return of capital and disclosed in cash flows from investing activities in the Consolidated Statements of Cash Flows. |
Accounts Payable and Accrued 55
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Components of accounts payable and accrued liabilities [Abstract] | ||
Commodities | $ 441.1 | $ 385.3 |
Other goods and services | 90.1 | 141.3 |
Interest | 63.3 | 80.3 |
Compensation and benefits | 0.4 | |
Income and other taxes | 49.5 | 10.4 |
Other | 13.5 | 18.1 |
Accounts payable and accrued liabilities | 657.5 | 635.8 |
Outstanding checks | $ 23.4 | $ 34 |
Debt Obligations (Details)
Debt Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Current: | |||
Accounts receivable securitization facility, due December 2016 | $ 225 | $ 219.3 | |
Long-term [Abstract] | |||
Long-term debt | 4,297.1 | 5,125.7 | |
Debt issuance costs | (29.4) | (38.3) | |
Total debt | 4,522.1 | 5,345 | |
Irrevocable standby letters of credit outstanding | 13.5 | 12.9 | |
Senior Unsecured Notes [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | 733.6 | 1,100 | |
Senior Unsecured Notes [Member] | Senior Unsecured 4 1/8% Notes due November 2019 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | 749.4 | 800 | |
Senior Unsecured Notes [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | 309.9 | 342.1 | |
Unamortized premium | 3.9 | 5 | |
Senior Unsecured Notes [Member] | Senior Unsecured 6 7/8% Notes due February 2021 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | 478.6 | 483.6 | |
Unamortized discount | (19.3) | (22.1) | |
Senior Unsecured Notes [Member] | Senior Unsecured 6 3/8% Notes due August 2022 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | 278.7 | 300 | |
Senior Unsecured Notes [Member] | Senior Unsecured 5 1/4% Notes due May 2023 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | 559.6 | 583.7 | |
Senior Unsecured Notes [Member] | Senior Unsecured 4 1/4% Notes due November 2023 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | 583.9 | 623.5 | |
Senior Unsecured Notes [Member] | Senior Unsecured 6 3/4% Notes due March 2024 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | 580.1 | 600 | |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners, L.P. Acquisition [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 12.9 | 12.9 |
Unamortized premium | 0.1 | 0.2 | |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners, L.P. Acquisition [Member] | Senior Unsecured 4 3/4% Notes due November 2021 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 6.5 | 6.5 |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners, L.P. Acquisition [Member] | Senior Unsecured 5 7/8% Notes due August 2023 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 48.1 | 48.1 |
Unamortized premium | 0.5 | 0.5 | |
Senior Secured and Unsecured Notes [Member] | |||
Long-term [Abstract] | |||
Long-term debt | 4,326.5 | 5,164 | |
Revolving Credit Facility [Member] | Senior Secured Revolving Credit Facility, Variable Rate, due October 2017 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [2] | 280 | |
Accounts Receivable Securitization Facility [Member] | Accounts Receivable Securitization Facility Due December 2016 [Member] | |||
Current: | |||
Accounts receivable securitization facility, due December 2016 | $ 225 | $ 219.3 | |
[1] | APL notes are not guaranteed by us. | ||
[2] | As of September 30, 2016, availability under our $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1,586.5 million. In October 2016, the TRP Revolver was amended. See “Subsequent Events – TRP Revolver Amendment.” |
Debt Obligations (Parenthetical
Debt Obligations (Parenthetical) (Details) | 9 Months Ended | |
Sep. 30, 2016USD ($) | ||
Accounts Receivable Securitization Facility Due December 2016 [Member] | Accounts Receivable Securitization Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Dec. 31, 2016 | |
Senior Unsecured 5% Notes due January 2018 [Member] | Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Jan. 15, 2018 | |
Interest rate on fixed rate debt | 5.00% | |
Senior Unsecured 4 1/8% Notes due November 2019 [Member] | Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Nov. 15, 2019 | |
Interest rate on fixed rate debt | 4.125% | |
Senior Unsecured 6 5/8% Notes due October 2020 [Member] | Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Oct. 1, 2020 | |
Interest rate on fixed rate debt | 6.625% | |
Senior Unsecured 6 5/8% Notes due October 2020 [Member] | Senior Unsecured Notes [Member] | Atlas Pipeline Partners, L.P. Acquisition [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Oct. 1, 2020 | [1] |
Interest rate on fixed rate debt | 6.625% | [1] |
Senior Unsecured 6 7/8% Notes due February 2021 [Member] | Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Feb. 1, 2021 | |
Interest rate on fixed rate debt | 6.875% | |
Senior Unsecured 6 3/8% Notes due August 2022 [Member] | Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Aug. 1, 2022 | |
Interest rate on fixed rate debt | 6.375% | |
Senior Unsecured 5 1/4% Notes due May 2023 [Member] | Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | May 1, 2023 | |
Interest rate on fixed rate debt | 5.25% | |
Senior Unsecured 4 1/4% Notes due November 2023 [Member] | Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Nov. 15, 2023 | |
Interest rate on fixed rate debt | 4.25% | |
Senior Unsecured 6 3/4% Notes due March 2024 [Member] | Senior Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Mar. 15, 2024 | |
Interest rate on fixed rate debt | 6.75% | |
Senior Unsecured 4 3/4% Notes due November 2021 [Member] | Senior Unsecured Notes [Member] | Atlas Pipeline Partners, L.P. Acquisition [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Nov. 15, 2021 | [1] |
Interest rate on fixed rate debt | 4.75% | [1] |
Senior Unsecured 5 7/8% Notes due August 2023 [Member] | Senior Unsecured Notes [Member] | Atlas Pipeline Partners, L.P. Acquisition [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | Aug. 1, 2023 | [1] |
Interest rate on fixed rate debt | 5.875% | [1] |
Revolving Credit Facility [Member] | Senior Secured Revolving Credit Facility, Variable Rate, due October 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,600,000,000 | |
Remaining borrowing capacity | $ 1,586,500,000 | |
Maturity date | Oct. 3, 2017 | [2] |
[1] | APL notes are not guaranteed by us. | |
[2] | As of September 30, 2016, availability under our $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1,586.5 million. In October 2016, the TRP Revolver was amended. See “Subsequent Events – TRP Revolver Amendment.” |
Debt Obligations, Interest Rate
Debt Obligations, Interest Rates on Variable-Rate Debt Obligations (Details) | Sep. 30, 2016 |
Accounts Receivable Securitization Facility [Member] | |
Range of interest rates and weighted average interest rate [Abstract] | |
Weighted average interest rate incurred | 1.20% |
Minimum [Member] | Accounts Receivable Securitization Facility [Member] | |
Range of interest rates and weighted average interest rate [Abstract] | |
Range of interest rates incurred | 1.20% |
Maximum [Member] | Accounts Receivable Securitization Facility [Member] | |
Range of interest rates and weighted average interest rate [Abstract] | |
Range of interest rates incurred | 1.30% |
TRP Revolver [Member] | |
Range of interest rates and weighted average interest rate [Abstract] | |
Weighted average interest rate incurred | 2.60% |
TRP Revolver [Member] | Minimum [Member] | |
Range of interest rates and weighted average interest rate [Abstract] | |
Range of interest rates incurred | 2.40% |
TRP Revolver [Member] | Maximum [Member] | |
Range of interest rates and weighted average interest rate [Abstract] | |
Range of interest rates incurred | 4.80% |
Debt Obligations, Summary of De
Debt Obligations, Summary of Debt Repurchased on Open Market Portion of Outstanding Senior Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Debt Repurchase, Book Value | $ 559.2 | $ 559.2 | ||
Debt Repurchase, Payment | (534.3) | (534.3) | ||
Gain/(Loss) on Debt Repurchase | 24.9 | |||
Debt Repurchase, Write-off of Debt Issuance Costs | (3.5) | |||
Net Gain (Loss) on Debt Repurchase | 0 | $ (0.5) | 21.4 | $ (0.5) |
5¼% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Repurchase, Book Value | 24.1 | 24.1 | ||
Debt Repurchase, Payment | (20.1) | (20.1) | ||
Gain/(Loss) on Debt Repurchase | 4 | |||
Debt Repurchase, Write-off of Debt Issuance Costs | (0.2) | |||
Net Gain (Loss) on Debt Repurchase | 3.8 | |||
4¼% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Repurchase, Book Value | 39.5 | 39.5 | ||
Debt Repurchase, Payment | (31.8) | (31.8) | ||
Gain/(Loss) on Debt Repurchase | 7.7 | |||
Debt Repurchase, Write-off of Debt Issuance Costs | (0.3) | |||
Net Gain (Loss) on Debt Repurchase | 7.4 | |||
6⅞% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Repurchase, Book Value | 4.8 | 4.8 | ||
Debt Repurchase, Payment | (4.3) | (4.3) | ||
Gain/(Loss) on Debt Repurchase | 0.5 | |||
Debt Repurchase, Write-off of Debt Issuance Costs | (0.1) | |||
Net Gain (Loss) on Debt Repurchase | 0.4 | |||
6⅝% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Repurchase, Book Value | 32.6 | 32.6 | ||
Debt Repurchase, Payment | (29.5) | (29.5) | ||
Gain/(Loss) on Debt Repurchase | 3.1 | |||
Net Gain (Loss) on Debt Repurchase | 3.1 | |||
6⅜% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Repurchase, Book Value | 21.3 | 21.3 | ||
Debt Repurchase, Payment | (18.7) | (18.7) | ||
Gain/(Loss) on Debt Repurchase | 2.6 | |||
Debt Repurchase, Write-off of Debt Issuance Costs | (0.2) | |||
Net Gain (Loss) on Debt Repurchase | 2.4 | |||
6¾% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Repurchase, Book Value | 19.9 | 19.9 | ||
Debt Repurchase, Payment | (17.5) | (17.5) | ||
Gain/(Loss) on Debt Repurchase | 2.4 | |||
Debt Repurchase, Write-off of Debt Issuance Costs | (0.2) | |||
Net Gain (Loss) on Debt Repurchase | 2.2 | |||
5% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Repurchase, Book Value | 366.4 | 366.4 | ||
Debt Repurchase, Payment | (368.2) | (368.2) | ||
Gain/(Loss) on Debt Repurchase | (1.8) | |||
Debt Repurchase, Write-off of Debt Issuance Costs | (2.1) | |||
Net Gain (Loss) on Debt Repurchase | (3.9) | |||
4⅛% Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Repurchase, Book Value | 50.6 | 50.6 | ||
Debt Repurchase, Payment | $ (44.2) | (44.2) | ||
Gain/(Loss) on Debt Repurchase | 6.4 | |||
Debt Repurchase, Write-off of Debt Issuance Costs | (0.4) | |||
Net Gain (Loss) on Debt Repurchase | $ 6 |
Debt Obligations, Schedule of C
Debt Obligations, Schedule of Contractual Maturities of Senior Notes (Details) - Senior Notes [Member] $ in Millions | Sep. 30, 2016USD ($) |
Contractual Obligation [Line Items] | |
Total | $ 4,341.3 |
Remainder of 2016 | 0 |
2,017 | 0 |
2,018 | 733.6 |
2,019 | 749.4 |
2,020 | 322.8 |
After 2,020 | $ 2,535.5 |
Debt Obligations, Issuance of S
Debt Obligations, Issuance of Senior Notes and Concurrent Senior Notes Tender Offers (Details) - USD ($) | 1 Months Ended | |||
Oct. 31, 2016 | Oct. 05, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Senior Notes [Member] | Subsequent Event [Member] | 5⅛% Senior Notes due February 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes issued | $ 500,000,000 | |||
Interest rate on fixed rate debt | 5.125% | |||
Maturity date | Feb. 28, 2025 | |||
Net proceeds from senior notes | $ 496,200,000 | |||
Senior Notes [Member] | Subsequent Event [Member] | 5⅜% Senior notes due February 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes issued | $ 500,000,000 | |||
Interest rate on fixed rate debt | 5.375% | |||
Maturity date | Feb. 28, 2027 | |||
Net proceeds from senior notes | $ 496,200,000 | |||
Concurrent Senior Notes with Offers Tender [Member] | ||||
Debt Instrument [Line Items] | ||||
Tender offers principal amount | $ 383,800,000 | $ 1,522,100,000 | ||
Concurrent Senior Notes with Offers Tender [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Tender offers principal amount | 250,500,000 | 733,600,000 | ||
Concurrent Senior Notes with Offers Tender [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Tender offers principal amount | 28,200,000 | 309,900,000 | ||
Concurrent Senior Notes with Offers Tender [Member] | Senior Unsecured 6 7/8% Notes due February 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Tender offers principal amount | $ 105,100,000 | $ 478,600,000 | ||
Concurrent Senior Notes with Offers Tender [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Tender offers principal amount | $ 1,000 | |||
Concurrent Senior Notes with Offers Tender [Member] | Subsequent Event [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on fixed rate debt | 5.00% | |||
Maturity date | Jan. 15, 2018 | |||
Concurrent Senior Notes with Offers Tender [Member] | Subsequent Event [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on fixed rate debt | 6.625% | |||
Maturity date | Oct. 1, 2020 | |||
Concurrent Senior Notes with Offers Tender [Member] | Subsequent Event [Member] | Senior Unsecured 6 7/8% Notes due February 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on fixed rate debt | 6.875% | |||
Maturity date | Feb. 1, 2021 |
Debt Obligations, Senior Notes
Debt Obligations, Senior Notes Tender Offers (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Debt Instrument [Line Items] | ||||
Accrued Interest Paid | [1] | $ 197.1 | $ 147.6 | |
Write off debt issuance cost | 3.5 | |||
Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 9.7 | |||
Write off of debt premiums | 0.5 | |||
Write off debt discounts | 4.2 | |||
Concurrent Senior Notes with Offers Tender [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Note Balance Prior to Tender Offers | 383.8 | 1,522.1 | ||
Amount Tendered | 1,138.3 | |||
Premium Paid | 41.8 | |||
Accrued Interest Paid | 10.3 | |||
Total Tender Offer Payments | 1,190.4 | |||
Note Balance After Tender Offers | 383.8 | |||
Concurrent Senior Notes with Offers Tender [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Premium Paid | 41.8 | |||
Loss on extinguishment of debt | 59.2 | |||
Write off debt issuance cost | 5.8 | |||
Write off of debt premiums | 15.1 | |||
Write off debt discounts | 3.5 | |||
Concurrent Senior Notes with Offers Tender [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Note Balance Prior to Tender Offers | 250.5 | 733.6 | ||
Amount Tendered | 483.1 | |||
Premium Paid | 16.9 | |||
Accrued Interest Paid | 5.4 | |||
Total Tender Offer Payments | 505.4 | |||
Note Balance After Tender Offers | 250.5 | |||
Concurrent Senior Notes with Offers Tender [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Note Balance Prior to Tender Offers | 28.2 | 309.9 | ||
Amount Tendered | 281.7 | |||
Premium Paid | 10.5 | |||
Accrued Interest Paid | 0.3 | |||
Total Tender Offer Payments | 292.5 | |||
Note Balance After Tender Offers | 28.2 | |||
Concurrent Senior Notes with Offers Tender [Member] | Senior Unsecured 6 7/8% Notes due February 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding Note Balance Prior to Tender Offers | $ 105.1 | 478.6 | ||
Amount Tendered | 373.5 | |||
Premium Paid | 14.4 | |||
Accrued Interest Paid | 4.6 | |||
Total Tender Offer Payments | 392.5 | |||
Note Balance After Tender Offers | $ 105.1 | |||
[1] | Interest capitalized on major projects was $7.2 million and $9.1 million for the nine months ended September 30, 2016 and 2015. |
Debt Obligations, Note Redempti
Debt Obligations, Note Redemptions (Details) - USD ($) $ in Millions | Nov. 15, 2016 | Oct. 31, 2016 | Dec. 31, 2016 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||||
Face amount of notes redeemed | $ 559.2 | |||
Write off debt issuance cost | $ 3.5 | |||
Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of notes redeemed | $ 146.2 | |||
Debt instrument redemption payment | $ 151.1 | |||
Loss on extinguishment of debt | $ 9.7 | |||
Write off of debt premiums | 0.5 | |||
Write off debt discounts | 4.2 | |||
Subsequent Event [Member] | Atlas Pipeline Partners [Member] | ||||
Debt Instrument [Line Items] | ||||
Write off debt issuance cost | $ 1.1 | |||
Senior Unsecured 6 5/8% Notes due October 2020 [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage of face value | 103.313% | |||
Senior Unsecured 6 5/8% Notes due October 2020 [Member] | Subsequent Event [Member] | Atlas Pipeline Partners [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage of face value | 103.313% | |||
Senior Unsecured 6 7/8% Notes due February 2021 [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price, percentage of face value | 103.438% |
Debt Obligations, TRP Revolver
Debt Obligations, TRP Revolver Amendment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2016 | Oct. 31, 2016 | |
Debt Instrument [Line Items] | |||
Write off debt issuance cost | $ 3,500,000 | ||
Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,600,000,000 | ||
Subsequent Event [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Additional commitment increase available upon request | 300,000,000 | ||
Subsequent Event [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Additional commitment increase available upon request | $ 500,000,000 | ||
TRP Revolver [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Write off debt issuance cost | $ 900,000 |
Other Long-term Liabilities (De
Other Long-term Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Other Liabilities Noncurrent [Abstract] | ||
Asset retirement obligations | $ 64.2 | $ 69.9 |
Mandatorily redeemable preferred interests | 64.2 | 82.9 |
Deferred revenue and other | 23.2 | 25.4 |
Total long-term liabilities | $ 151.6 | $ 178.2 |
Other Long-term Liabilities, As
Other Long-term Liabilities, Asset Retirement Obligations (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at December 31, 2015 | $ 69.9 | |
Change in cash flow estimate | (9.2) | $ 3.8 |
Accretion expense | 3.5 | $ 3.9 |
Balance at September 30, 2016 | $ 64.2 |
Other Long-term Liabilities, Ma
Other Long-term Liabilities, Mandatorily Redeemable Preferred Interests (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)JointVenture | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)JointVenture | Sep. 30, 2015USD ($) | Dec. 31, 2015JointVenture | |
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | |||||
Balance at December 31, 2015 | $ 82.9 | ||||
Income attributable to mandatorily redeemable preferred interests | $ 4.7 | $ 4.8 | 13.5 | $ 17.3 | |
Change in estimated redemption value included in interest expense | 18.8 | $ 0 | |||
Balance at September 30, 2016 | 64.2 | 64.2 | |||
Mandatorily Redeemable Preferred Interests [Member] | |||||
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | |||||
Number of joint ventures | JointVenture | 2 | ||||
Balance at December 31, 2015 | 82.9 | ||||
Income attributable to mandatorily redeemable preferred interests | 0.1 | ||||
Change in estimated redemption value included in interest expense | (18.8) | ||||
Balance at September 30, 2016 | $ 64.2 | $ 64.2 | |||
Mandatorily Redeemable Preferred Interests [Member] | Joint Ventures [Member] | |||||
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | |||||
Number of joint ventures | JointVenture | 2 | 2 | |||
Mandatorily Redeemable Preferred Interests [Member] | WestOK [Member] | |||||
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | |||||
Ownership interest | 100.00% | 100.00% | |||
Mandatorily Redeemable Preferred Interests [Member] | WestTX [Member] | |||||
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | |||||
Ownership interest | 72.80% | 72.80% |
Partnership Units and Related68
Partnership Units and Related Matters, Long Term Incentive Plan (Details) $ / shares in Units, $ in Millions | Feb. 27, 2016USD ($) | Feb. 17, 2016shares | Oct. 31, 2015 | Sep. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($)shares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($) |
Schedule Of Equity Method Investments [Line Items] | |||||||||
Conversion ratio in stock-for-unit transaction | 0.62 | ||||||||
Series A preferred limited partners units outstanding (in units) | 5,000,000 | 5,000,000 | |||||||
Distribution to preferred unitholders | $ | $ 8.4 | ||||||||
Accrued distributions of preferred unit | $ | 0.9 | ||||||||
Contributions from Targa Resources Corp. | $ | $ 1,191 | $ 60.1 | |||||||
Common limited partners units issued (in units) | 243,520,639 | 185,083,420 | 243,520,639 | ||||||
General partner units issued (in units) | 4,969,807 | 3,772,871 | 4,969,807 | ||||||
Total distributions to general and limited partners | $ | $ 542.6 | $ 531.7 | |||||||
Distributions Declared [Member] | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Total distributions to general and limited partners | $ | $ 200.4 | ||||||||
Date Paid or to be Paid | Feb. 9, 2016 | ||||||||
Equity-Settled Performance Units [Member] | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Compensation costs | $ | $ 3.9 | ||||||||
Phantom Unit Awards [Member] | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Outstanding shares | 349,451 | ||||||||
Converted outstanding shares | 216,561 | ||||||||
Cash-Settled Performance Units [Member] | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Compensation costs | $ | 4.8 | ||||||||
Partnership Long-term Incentive Plan [Member] | Equity-Settled Performance Units [Member] | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Outstanding shares | 675,745 | ||||||||
Converted outstanding shares | 418,903 | ||||||||
2015 Long Term Incentive Plan [Member] | Cash-Settled Performance Units [Member] | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Outstanding shares | 192,390 | ||||||||
Converted outstanding shares | 119,178 | ||||||||
2014 Long Term Incentive Plan [Member] | Cash-Settled Performance Units [Member] | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Outstanding shares | 119,900 | ||||||||
Converted outstanding shares | 74,248 | ||||||||
2013 Long Term Incentive Plan [Member] | Cash-Settled Performance Units [Member] | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Outstanding shares | 139,700 | ||||||||
Converted outstanding shares | 86,538 | ||||||||
TRC/TRP Merger | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Contributions from Targa Resources Corp. | $ | $ 1,191 | ||||||||
Common limited partners units issued (in units) | 58,621,036 | 58,621,036 | |||||||
General partner units issued (in units) | 1,196,346 | 1,196,346 | |||||||
Percentage of general partner's interest maintained | 2.00% | ||||||||
Date Paid or to be Paid | May 12, 2016 | ||||||||
Distributions to limited partners common | $ | $ 178.9 | $ 154.8 | |||||||
Date Paid or to be Paid | Oct. 19, 2016 | Aug. 11, 2016 | |||||||
Distributions declared to be paid | $ | $ 191.9 | ||||||||
Distributions declared to be paid, date | Nov. 11, 2016 | ||||||||
TRC/TRP Merger | Distributions Declared [Member] | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Total distributions to general and limited partners | $ | $ 61.4 | ||||||||
Series A Preferred Stock | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Preferred units dividend percentage | 9.00% | ||||||||
Preferred unit, redemption price (in dollars per share) | $ / shares | $ 25 | $ 25 | |||||||
Series A Preferred Units Due November12020 | London Interbank Offered Rate (LIBOR) | |||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||
Percentage of variable interest rate for distribution on preferred units upon maturity | 7.71% |
Partnership Units and Related69
Partnership Units and Related Matters, Distributions (Details) - $ / shares | Oct. 17, 2016 | Oct. 17, 2016 | Sep. 30, 2016 |
Partnership Equity [Abstract] | |||
Number of days from end of each quarter by when cash is distributed to unitholders | 45 days | ||
Preferred Stock [Member] | Subsequent Event [Member] | |||
Distributions declared and/or paid by the Partnership [Abstract] | |||
Date of declaration for cash distribution | Oct. 17, 2016 | ||
Cash distribution declared per unit (in dollars per share) | $ 0.1875 | ||
Payment date for cash distribution | Nov. 15, 2016 |
Derivative Instruments and He70
Derivative Instruments and Hedging Activities (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($)MMBTUbbl | Dec. 31, 2015USD ($) | Feb. 27, 2015USD ($) | |
Derivative [Line Items] | ||||
Fair value of derivative assets | $ | $ 102.1 | |||
Estimated fair value of derivative instruments, net asset | $ | $ 16.6 | $ 16.6 | ||
Swaps [Member] | Year 2016 [Member] | Condensate [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 2,770 | |||
Swaps [Member] | Year 2016 [Member] | Natural Gas [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 134,436 | |||
Swaps [Member] | Year 2016 [Member] | NGL [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 5,073 | |||
Swaps [Member] | Year 2017 [Member] | Condensate [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 1,850 | |||
Swaps [Member] | Year 2017 [Member] | Natural Gas [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 92,448 | |||
Swaps [Member] | Year 2017 [Member] | NGL [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 3,875 | |||
Swaps [Member] | Year 2018 [Member] | Condensate [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 1,350 | |||
Swaps [Member] | Year 2018 [Member] | Natural Gas [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 68,800 | |||
Swaps [Member] | Year 2018 [Member] | NGL [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 2,678 | |||
Swaps [Member] | Year 2019 [Member] | Condensate [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 223 | |||
Swaps [Member] | Year 2019 [Member] | Natural Gas [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 29,683 | |||
Swaps [Member] | Year 2019 [Member] | NGL [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 1,779 | |||
Basis Swaps [Member] | Year 2016 [Member] | Natural Gas [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 95,979 | |||
Basis Swaps [Member] | Year 2017 [Member] | Natural Gas [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 58,026 | |||
Basis Swaps [Member] | Year 2018 [Member] | Natural Gas [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 | |||
Basis Swaps [Member] | Year 2019 [Member] | Natural Gas [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 | |||
Options [Member] | Year 2016 [Member] | Condensate [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 790 | |||
Options [Member] | Year 2016 [Member] | Natural Gas [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 22,900 | |||
Options [Member] | Year 2016 [Member] | NGL [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 920 | |||
Options [Member] | Year 2017 [Member] | Condensate [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 1,380 | |||
Options [Member] | Year 2017 [Member] | Natural Gas [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 22,900 | |||
Options [Member] | Year 2017 [Member] | NGL [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 1,468 | |||
Options [Member] | Year 2018 [Member] | Condensate [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 691 | |||
Options [Member] | Year 2018 [Member] | Natural Gas [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 9,486 | |||
Options [Member] | Year 2018 [Member] | NGL [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 1,676 | |||
Options [Member] | Year 2019 [Member] | Condensate [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 590 | |||
Options [Member] | Year 2019 [Member] | Natural Gas [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 | |||
Options [Member] | Year 2019 [Member] | NGL [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 0 | |||
Future | Year 2016 [Member] | NGL [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 85,887 | |||
Future | Year 2017 [Member] | NGL [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 50,889 | |||
Future | Year 2018 [Member] | NGL [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 5,000 | |||
Future | Year 2019 [Member] | NGL [Member] | ||||
Derivative [Line Items] | ||||
Notional volumes of commodity hedges (in Bbl per day) | 0 | |||
Atlas Pipeline Partners [Member] | ||||
Derivative [Line Items] | ||||
Fair value of derivative assets | $ | $ 102.1 | |||
Fair value of derivative contracts received as component of derivative contract settlement | $ | $ 20.9 | $ 67.9 | ||
Ineffectiveness losses | $ | $ 0.3 | $ 0.5 |
Derivative Instruments and He71
Derivative Instruments and Hedging Activities, Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 47.2 | $ 127.1 |
Derivative liabilities | 30.6 | 7.6 |
Current Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 34.8 | 92.2 |
Long-term Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 12.4 | 34.9 |
Current Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 13 | 5.2 |
Long-term Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 17.6 | 2.4 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 47.1 | 127 |
Derivative liabilities | 30.4 | 4.5 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 34.7 | 92.1 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-term Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 12.4 | 34.9 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 12.8 | 2.1 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-term Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 17.6 | 2.4 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0.1 | 0.1 |
Derivative liabilities | 0.2 | 3.1 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0.1 | 0.1 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 0.2 | $ 3.1 |
Derivative Instruments and He72
Derivative Instruments and Hedging Activities, Pro Forma Impact - Offsetting Assets (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Asset [Abstract] | ||
Derivative assets | $ 47.2 | $ 127.1 |
Pro forma net presentation, asset, total | 22.7 | 119.5 |
Counterparties with Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 46.5 | 121.1 |
Pro forma net presentation, asset | 22 | 113.5 |
Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 0.7 | 6 |
Pro forma net presentation, asset | 0.7 | 6 |
Current Position [Member] | ||
Derivative Asset [Abstract] | ||
Derivative assets | 34.8 | 92.2 |
Pro forma net presentation, asset, current | 22.7 | 87 |
Current Position [Member] | Counterparties with Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 34.1 | 86.9 |
Pro forma net presentation, asset | 22 | 81.7 |
Current Position [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 0.7 | 5.3 |
Pro forma net presentation, asset | 0.7 | 5.3 |
Long-term Position [Member] | ||
Derivative Asset [Abstract] | ||
Derivative assets | 12.4 | 34.9 |
Pro forma net presentation, asset, noncurrent | 0 | 32.5 |
Long-term Position [Member] | Counterparties with Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 12.4 | 34.2 |
Pro forma net presentation, asset | 0 | 31.8 |
Long-term Position [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | $ 0 | $ 0.7 |
Derivative Instruments and He73
Derivative Instruments and Hedging Activities, Pro Forma Impact - Offsetting Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Liability [Abstract] | ||
Gross liability | $ 30.6 | $ 7.6 |
Pro forma net presentation, liability, total | 6.1 | |
Counterparties with Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 26.7 | 7.6 |
Pro forma net presentation, liability, total | 2.2 | |
Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 3.9 | |
Pro forma net presentation, liability, total | 3.9 | |
Current Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 13 | 5.2 |
Pro forma net presentation, liability, current | 0.9 | |
Current Position [Member] | Counterparties with Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 12.1 | 5.2 |
Current Position [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 0.9 | |
Pro forma net presentation, liability, current | 0.9 | |
Long-term Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 17.6 | 2.4 |
Pro forma net presentation, liability, noncurrent | 5.2 | |
Long-term Position [Member] | Counterparties with Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 14.6 | $ 2.4 |
Pro forma net presentation, liability, noncurrent | 2.2 | |
Long-term Position [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 3 | |
Pro forma net presentation, liability, noncurrent | $ 3 |
Derivative Instruments and He74
Derivative Instruments and Hedging Activities, Amounts Included in OCI, Income and AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net gains on commodity hedges recorded in OCI that are expected to be reclassified to revenue within twelve months | $ 3.2 | $ 3.2 | ||||
Revenues [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) Reclassified from OCI into Income (Effective Portion) | 8.1 | $ 24.5 | 50.6 | $ 59.3 | ||
Commodity Contracts [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Deferred gains (losses) included in accumulated OCI | [1] | 9.2 | $ 86.7 | |||
Commodity Contracts [Member] | Revenues [Member] | Not Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) Recognized in Income on Derivatives | (0.3) | (4) | 1.3 | (0.9) | ||
Cash Flow Hedging [Member] | Commodity Contracts [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 12.9 | $ 50.7 | $ (40.5) | $ 77.6 | ||
[1] | Includes deferred net gains of $3.2 million as of September 30, 2016 related to contracts that will be settled and reclassified to revenue over the next 12 months |
Fair Value Measurements, Breakd
Fair Value Measurements, Breakdown by Fair Value Hierarchy Category for Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivatives financial instruments, fair value, net | $ 16.6 | ||
Derivative fair value of net liability if commodity price increases by 10 percent | 27.7 | ||
Derivative fair value of net asset if commodity price decreases by 10 percent | 61.4 | ||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | 22.7 | $ 119.5 | |
Liabilities from commodity derivative contracts | 6.1 | ||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Accounts receivable securitization facility | 225 | 219.3 | |
Carrying Value [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 46.3 | 127.1 |
Liabilities from commodity derivative contracts | [1] | 29.7 | 7.6 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 129.9 | 135.4 | |
Accounts receivable securitization facility | 225 | 219.3 | |
Carrying Value [Member] | TRP Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 280 | ||
Carrying Value [Member] | Targa Pipeline Partners LP [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Contingent consideration | [2] | 2.7 | 3 |
Carrying Value [Member] | Senior Unsecured Notes [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 4,326.5 | 4,884 | |
Fair Value [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 46.3 | 127.1 |
Liabilities from commodity derivative contracts | [1] | 29.7 | 7.6 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 129.9 | 135.4 | |
Accounts receivable securitization facility | 225 | 219.3 | |
Fair Value [Member] | TRP Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 280 | ||
Fair Value [Member] | Targa Pipeline Partners LP [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Contingent consideration | [2] | 2.7 | 3 |
Fair Value [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 44 | 123.1 |
Liabilities from commodity derivative contracts | [1] | 27.3 | 7.3 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Accounts receivable securitization facility | 225 | 219.3 | |
Fair Value [Member] | Level 2 [Member] | TRP Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 280 | ||
Fair Value [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 2.3 | 4 |
Liabilities from commodity derivative contracts | [1] | 2.4 | 0.3 |
Fair Value [Member] | Level 3 [Member] | Targa Pipeline Partners LP [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Contingent consideration | [2] | 2.7 | 3 |
Fair Value [Member] | Senior Unsecured Notes [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 4,447.8 | 4,192 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | $ 4,447.8 | $ 4,192 | |
[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 12 – 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] | See Note 4 – Business Acquisitions. |
Fair Value Measurements, Change
Fair Value Measurements, Changes in Fair Value of Financial Instruments Classified as Level 3 (Details) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Transfers out of Level 3 | $ 0 |
Contingent Liability [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance, beginning of period | (3,000,000) |
Change in fair value of TPL contingent consideration | 300,000 |
Balance, end of period | (2,700,000) |
Commodity Contracts [Member] | |
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance, beginning of period | 3,700,000 |
New Level 3 instruments | 1,000,000 |
Settlements included in Revenue | (1,000,000) |
Unrealized gain/(loss) included in OCI | (3,800,000) |
Balance, end of period | $ (100,000) |
Related Party Transactions - 77
Related Party Transactions - Targa (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Summary of transactions with Targa [Abstract] | ||||
Cash contributions from Targa for issuance of common units | $ 1,167.2 | $ 0 | ||
Targa Resources Corp. [Member] | ||||
Summary of transactions with Targa [Abstract] | ||||
Targa billings of payroll and related costs included in operating expense | $ 42.6 | $ 41.4 | 125 | 118.3 |
Targa allocation of general and administrative expense | 40.1 | 39.4 | 117.7 | 118.3 |
Cash distributions to Targa based on IDR and unit ownership | 178.9 | 61.4 | 395.1 | 172 |
Cash contributions from Targa for issuance of common units | 210.7 | 0 | 1,167.2 | 0 |
Contributions from Targa Resources Corp | $ 4.3 | $ 1.4 | $ 23.8 | $ 60.1 |
Percentage of general partner's interest maintained | 2.00% |
Contingencies (Details)
Contingencies (Details) | Dec. 16, 2015Plaintiff | Jun. 18, 2015USD ($) | Oct. 31, 2016 | Sep. 30, 2016 |
Versado Gas Processors L L C | ||||
Loss Contingencies [Line Items] | ||||
Ownership interest in joint venture | 63.00% | |||
Subsequent Event [Member] | Versado Gas Processors L L C | ||||
Loss Contingencies [Line Items] | ||||
Additional interest ownership percentage to be acquired | 37.00% | |||
State Court Lawsuit [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | Plaintiff | 2 | |||
Environment Proceeding [Member] | Versado Gas Processors L L C | ||||
Loss Contingencies [Line Items] | ||||
Ownership interest in joint venture | 63.00% | |||
Environment Proceeding [Member] | Minimum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement amount | $ 100,000 | |||
Environment Proceeding [Member] | Maximum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement amount | $ 300,000 | |||
Environment Proceeding [Member] | Subsequent Event [Member] | Versado Gas Processors L L C | ||||
Loss Contingencies [Line Items] | ||||
Additional interest ownership percentage to be acquired | 37.00% |
Supplemental Cash Flow Inform79
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | Feb. 27, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash [Abstract] | ||||
Interest paid, net of capitalized interest | [1] | $ 197.1 | $ 147.6 | |
Income taxes paid, net of refunds | 1.2 | 4.1 | ||
Non-cash investing activities [Abstract] | ||||
Deadstock commodity inventory transferred to property, plant and equipment | 16.9 | 1.2 | ||
Impact of capital expenditure accruals on property, plant and equipment | (0.5) | (57.2) | ||
Transfers from materials and supplies inventory to property, plant and equipment | 1.9 | 2.9 | ||
Change in cash flow estimate | (9.2) | 3.8 | ||
Non-cash financing activities [Abstract] | ||||
Debt additions and retirements related to exchange of TRP 6⅝% Notes for APL 6⅝% Notes | 0 | 342.1 | ||
Accrued distributions on unvested equity awards under share compensation arrangements | 0.2 | 1.1 | ||
Receivables from equity issuances | 0 | 0 | ||
Non-cash balance sheet movements related to the Atlas Merger: (See Note 4 - Business Acquisitions) [Abstract] | ||||
Non-cash merger consideration - common units and replacement equity awards | 0 | 2,583.5 | ||
Special GP Interest | 0 | 1,612.4 | ||
Current liabilities retained by Targa | 0 | (0.4) | ||
Net non-cash balance sheet movements excluded from consolidated statements of cash flows | 0 | 4,195.5 | ||
Net cash merger consideration included in investing activities | 0 | 828.7 | ||
Total fair value of consideration transferred | 0 | 5,024.2 | ||
Interest capitalized on major projects | $ 7.2 | 9.1 | ||
Atlas Pipeline Partners [Member] | ||||
Non-cash balance sheet movements related to the Atlas Merger: (See Note 4 - Business Acquisitions) [Abstract] | ||||
Net cash merger consideration included in investing activities | [2] | $ 828.7 | ||
Senior Unsecured Notes [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | ||||
Non-cash balance sheet movements related to the Atlas Merger: (See Note 4 - Business Acquisitions) [Abstract] | ||||
Interest rate of partnership indebtedness percentage | 6.625% | |||
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | ||||
Non-cash balance sheet movements related to the Atlas Merger: (See Note 4 - Business Acquisitions) [Abstract] | ||||
Interest rate of partnership indebtedness percentage | [3] | 6.625% | ||
Treasury Units [Member] | ||||
Non-cash financing activities [Abstract] | ||||
Cancellation of treasury units | $ (10.4) | $ 0 | ||
[1] | Interest capitalized on major projects was $7.2 million and $9.1 million for the nine months ended September 30, 2016 and 2015. | |||
[2] | We acquired $35.3 million of cash. | |||
[3] | APL notes are not guaranteed by us. |
Segment Information, Revenues a
Segment Information, Revenues and Operating Margin (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Segment | Sep. 30, 2015USD ($) | Dec. 31, 2015Segment | |
Segment Reporting Information [Line Items] | |||||
Number of segments | Segment | 2 | ||||
Revenues [Abstract] | |||||
Sales of commodities | $ 1,398.7 | $ 1,321.3 | $ 3,882.9 | $ 4,119.6 | |
Fees from midstream services | 253.6 | 310.8 | 795.5 | 891.6 | |
Revenues | 1,652.3 | 1,632.1 | 4,678.4 | 5,011.2 | |
Operating margin | 286.6 | 326.1 | 885.6 | 951.7 | |
Operating Segments [Member] | |||||
Revenues [Abstract] | |||||
Sales of commodities | 1,398.7 | 1,321.3 | 3,882.9 | 4,119.6 | |
Fees from midstream services | 253.6 | 310.8 | 795.5 | 891.6 | |
Revenues | 1,652.3 | 1,632.1 | 4,678.4 | 5,011.2 | |
Gathering and Processing [Member] | |||||
Revenues [Abstract] | |||||
Revenues | 869.5 | 843.4 | 2,263.8 | 2,288.8 | |
Operating margin | 149.4 | 140.5 | 404.1 | 372 | |
Gathering and Processing [Member] | Operating Segments [Member] | |||||
Revenues [Abstract] | |||||
Sales of commodities | 172.2 | 470.3 | 441.3 | 1,177.5 | |
Fees from midstream services | 120.6 | 117.3 | 360.9 | 302.9 | |
Revenues | 292.8 | 587.6 | 802.2 | 1,480.4 | |
Gathering and Processing [Member] | Intersegment Eliminations [Member] | |||||
Revenues [Abstract] | |||||
Sales of commodities | 574.8 | 253.4 | 1,455.8 | 802.1 | |
Fees from midstream services | 1.9 | 2.4 | 5.8 | 6.3 | |
Revenues | 576.7 | 255.8 | 1,461.6 | 808.4 | |
Logistics and Marketing [Member] | |||||
Revenues [Abstract] | |||||
Revenues | 1,431.2 | 1,075.7 | 4,010.7 | 3,636.1 | |
Operating margin | 126 | 163.8 | 424.6 | 519 | |
Logistics and Marketing [Member] | Operating Segments [Member] | |||||
Revenues [Abstract] | |||||
Sales of commodities | 1,215.3 | 829.2 | 3,384.7 | 2,881.4 | |
Fees from midstream services | 133 | 193.5 | 434.6 | 588.7 | |
Revenues | 1,348.3 | 1,022.7 | 3,819.3 | 3,470.1 | |
Logistics and Marketing [Member] | Intersegment Eliminations [Member] | |||||
Revenues [Abstract] | |||||
Sales of commodities | 76.3 | 48.9 | 176.3 | 152.3 | |
Fees from midstream services | 6.6 | 4.1 | 15.1 | 13.7 | |
Revenues | 82.9 | 53 | 191.4 | 166 | |
Other [Member] | |||||
Revenues [Abstract] | |||||
Revenues | 11.2 | 21.8 | 56.9 | 60.7 | |
Operating margin | 11.2 | 21.8 | 56.9 | 60.7 | |
Other [Member] | Operating Segments [Member] | |||||
Revenues [Abstract] | |||||
Sales of commodities | 11.2 | 21.8 | 56.9 | 60.7 | |
Revenues | 11.2 | 21.8 | 56.9 | 60.7 | |
Corporate and Elimination [Member] | |||||
Revenues [Abstract] | |||||
Revenues | (659.6) | (308.8) | (1,653) | (974.4) | |
Corporate and Elimination [Member] | Intersegment Eliminations [Member] | |||||
Revenues [Abstract] | |||||
Sales of commodities | (651.1) | (302.3) | (1,632.1) | (954.4) | |
Fees from midstream services | (8.5) | (6.5) | (20.9) | (20) | |
Revenues | $ (659.6) | $ (308.8) | $ (1,653) | $ (974.4) | |
Scenario, Previously Reported | Gathering and Processing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Scenario, Previously Reported | Logistics and Marketing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Segment | 2 |
Segment Information, Other Fina
Segment Information, Other Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Feb. 27, 2015 | Dec. 31, 2014 | ||||
Other financial information [Abstract] | |||||||||||
Total assets | $ 12,908.2 | $ 13,282.9 | [1] | $ 12,908.2 | $ 13,282.9 | [1] | $ 13,126.8 | ||||
Goodwill | 393 | 551.4 | 393 | 551.4 | $ 393 | $ 417 | $ 707 | $ 0 | |||
Capital expenditures | 571 | ||||||||||
Business acquisition | 5,024.2 | 5,024.2 | $ 5,024.2 | ||||||||
Operating Segments [Member] | |||||||||||
Other financial information [Abstract] | |||||||||||
Total assets | [1] | 12,908.2 | 13,282.9 | 12,908.2 | 13,282.9 | ||||||
Goodwill | 393 | 551.4 | 393 | 551.4 | |||||||
Capital expenditures | 134.6 | 186.2 | 426.5 | ||||||||
Gathering and Processing [Member] | Operating Segments [Member] | |||||||||||
Other financial information [Abstract] | |||||||||||
Total assets | [1] | 10,047.3 | 10,649.5 | 10,047.3 | 10,649.5 | ||||||
Goodwill | 393 | 551.4 | 393 | 551.4 | |||||||
Capital expenditures | 97.1 | 115.1 | 271.3 | 356.6 | |||||||
Business acquisition | 5,024.2 | 5,024.2 | |||||||||
Logistics and Marketing [Member] | Operating Segments [Member] | |||||||||||
Other financial information [Abstract] | |||||||||||
Total assets | [1] | 2,737.5 | 2,447.3 | 2,737.5 | 2,447.3 | ||||||
Capital expenditures | 36.2 | 68.4 | 151.9 | ||||||||
Other [Member] | Operating Segments [Member] | |||||||||||
Other financial information [Abstract] | |||||||||||
Total assets | [1] | 47.2 | 137.6 | 47.2 | 137.6 | ||||||
Corporate and Elimination [Member] | |||||||||||
Other financial information [Abstract] | |||||||||||
Total assets | [1] | 48.5 | 48.5 | ||||||||
Capital expenditures | 5 | ||||||||||
Corporate and Elimination [Member] | Operating Segments [Member] | |||||||||||
Other financial information [Abstract] | |||||||||||
Total assets | [1] | 76.2 | 48.5 | 76.2 | 48.5 | ||||||
Capital expenditures | $ 1.3 | 2.7 | $ 3.3 | ||||||||
Other [Member] | Operating Segments [Member] | |||||||||||
Other financial information [Abstract] | |||||||||||
Total assets | [1] | $ 2,447.3 | 2,447.3 | ||||||||
Capital expenditures | $ 209.4 | ||||||||||
[1] | Corporate assets at the segment level primarily include tax-related assets, cash and prepaids. |
Segment Information, Revenues b
Segment Information, Revenues by Product and Service (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue from External Customer [Line Items] | ||||
Sales of commodities | $ 1,398.7 | $ 1,321.3 | $ 3,882.9 | $ 4,119.6 |
Fees from midstream services | 253.6 | 310.8 | 795.5 | 891.6 |
Total revenues | 1,652.3 | 1,632.1 | 4,678.4 | 5,011.2 |
Natural Gas [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 465.6 | 456.1 | 1,102 | 1,201.6 |
NGL [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 866.7 | 772.2 | 2,575.8 | 2,656.9 |
Condensate [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 35 | 40.4 | 96.2 | 113.1 |
Petroleum Products [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 20.2 | 30.8 | 52 | 87.3 |
Derivative Activities [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 11.2 | 21.8 | 56.9 | 60.7 |
Fractionating and Treating [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Fees from midstream services | 33.2 | 55.7 | 94.8 | 160.1 |
Storage, Terminaling, Transportation and Export [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Fees from midstream services | 89.7 | 126.8 | 316.3 | 384.6 |
Gathering and Processing [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Fees from midstream services | 110.9 | 106.6 | 329.9 | 280.7 |
Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Fees from midstream services | $ 19.8 | $ 21.7 | $ 54.5 | $ 66.2 |
Segment Information, Reconcilia
Segment Information, Reconciliation of Operating Margin to Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Reconciliation of operating margin to net income (loss) [Abstract] | ||||||
Operating margin | $ 286.6 | $ 326.1 | $ 885.6 | $ 951.7 | ||
Depreciation and amortization expenses | (184) | (165.8) | (563.6) | (448.3) | ||
General and administrative expenses | (44) | (42.9) | (132.3) | (130.1) | ||
Goodwill impairment | 0 | $ (290) | 0 | (24) | 0 | $ (290) |
Interest expense, net | (57.9) | (61.6) | (171.2) | (171.1) | ||
Other, net | (5.8) | (2.9) | 5 | (17.4) | ||
Income tax (expense) benefit | (1) | 0.4 | 0 | (0.4) | ||
Net income (loss) | $ (6.1) | $ 53.3 | $ (0.5) | $ 184.4 |