Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 02, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Targa Resources Corp. | |
Entity Central Index Key | 1,389,170 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 160,597,181 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 114.5 | $ 140.2 | |
Trade receivables, net of allowances of $0.1 million | 428.4 | 515.8 | |
Inventories | 61.7 | 141 | |
Assets from risk management activities | 82.4 | 92.2 | |
Other current assets | 28.9 | 30.8 | |
Total current assets | 715.9 | 920 | |
Property, plant and equipment | 12,114.6 | 11,935.1 | |
Accumulated depreciation | (2,380) | (2,232.4) | |
Property, plant and equipment, net | 9,734.6 | 9,702.7 | |
Intangible assets, net | 1,765.1 | 1,810.1 | |
Goodwill, net of impairment provisions | 393 | [1] | 417 |
Long-term assets from risk management activities | 25.2 | 34.9 | |
Investments in unconsolidated affiliates | 254.9 | 258.9 | |
Other long-term assets | 60.5 | 67.4 | |
Total assets | 12,949.2 | [2] | 13,211 |
Current liabilities: | |||
Accounts payable and accrued liabilities | 541 | 657.1 | |
Liabilities from risk management activities | 2 | 5.2 | |
Accounts receivable securitization facility | 150 | 219.3 | |
Total current liabilities | 693 | 881.6 | |
Long-term debt | 4,921.2 | 5,718.8 | |
Long-term liabilities from risk management activities | 7.9 | 2.4 | |
Deferred income taxes, net | 1,117 | 177.8 | |
Other long-term liabilities | $ 155.8 | $ 180.2 | |
Contingencies (see Note 17) | |||
Targa Resources Corp. stockholders' equity: | |||
Common stock value | $ 0.2 | $ 0.1 | |
Preferred stock ($0.001 par value, after designation of Preferred Series A Stock (above) 98,800,000 shares authorized, no shares issued and outstanding) | 0 | 0 | |
Additional paid-in capital | 5,321.5 | 1,457.4 | |
Retained earnings (deficit) | (2.7) | 26.9 | |
Accumulated other comprehensive income (loss) | 43 | 5.7 | |
Treasury stock, at cost (435,849 shares as of March 31, 2016 and 426,307 as of December 31, 2015) | (28.9) | (28.7) | |
Total Targa Resources Corp. stockholders' equity | 5,333.1 | 1,461.4 | |
Noncontrolling interests in subsidiaries | 547.6 | 4,788.8 | |
Total owners' equity | 5,880.7 | 6,250.2 | |
Total liabilities, Preferred Series A Stock and owners' equity | 12,949.2 | 13,211 | |
Series A Preferred Stock | |||
Current liabilities: | |||
Preferred Series A 9.5% Stock, $1,000 per share liquidation preference, (1,200,000 shares authorized, issued and outstanding 965,100 shares) | $ 173.6 | $ 0 | |
[1] | Total assets include goodwill. Goodwill has been attributed to our Gathering and Processing segment. | ||
[2] | Corporate assets at the Segment level primarily include tax-related assets, cash and prepaids. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Trade receivables, allowances | $ 0.1 | $ 0.1 |
Targa Resources Corp. stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 161,016,476 | 56,446,573 |
Common stock, shares outstanding (in shares) | 160,580,627 | 56,020,266 |
Preferred stock, par value (in dollar per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 98,800,000 | 98,800,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock, shares (in shares) | 435,849 | 426,307 |
Preferred Series A Nine Point Five Percentage Stock | ||
LIABILITIES, PREFERRED SERIES A STOCK AND OWNERS' EQUITY | ||
Preferred Series A Liquidation Stock Percentage | 9.50% | |
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | |
Preferred Stock, Shares Authorized | 1,200,000 | |
Preferred Stock, Shares Issued | 965,100 | |
Preferred Stock, Shares Outstanding | 965,100 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | ||
Sales of commodities | $ 1,171 | $ 1,402.2 |
Fees from midstream services | 271.4 | 277.5 |
Total revenues | 1,442.4 | 1,679.7 |
Costs and expenses: | ||
Product purchases | 1,011 | 1,258.6 |
Operating expenses | 132.1 | 121.1 |
Depreciation and amortization expenses | 193.5 | 118.6 |
General and administrative expenses | 45.3 | 42.6 |
Goodwill impairment | 24 | 0 |
Other operating (income) expense | 1 | 0.6 |
Total costs and expenses | 1,406.9 | 1,541.5 |
Income from operations | 35.5 | 138.2 |
Other income (expense): | ||
Interest expense, net | (52.9) | (54.1) |
Equity earnings (loss) | (4.8) | 1.9 |
Gain (loss) from financing activities | 24.7 | (9.1) |
Other | (0.1) | (26) |
Income (loss) before income taxes | 2.4 | 50.9 |
Total tax (expense) benefit | (3.1) | (15.2) |
Net income (loss): | (0.7) | 35.7 |
Less: Net income (loss) attributable to noncontrolling interests | 2 | 32.5 |
Net income (loss) attributable to Targa Resources Corp. | (2.7) | 3.2 |
Dividends on Series A preferred stock | 3.8 | |
Net income (loss) attributable to common shareholders | $ (6.5) | $ 3.2 |
Net income (loss) per common share - basic | $ (0.06) | $ 0.07 |
Net income (loss) per common share - diluted | $ (0.06) | $ 0.07 |
Weighted average shares outstanding - basic | 106.6 | 45.8 |
Weighted average shares outstanding - diluted | 106.6 | 45.9 |
Series A Preferred Stock | ||
Other income (expense): | ||
Dividends on Series A preferred stock | $ 3.8 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Comprehensive Income Net Of Tax [Abstract] | ||
Net income (loss) attributable to Targa Resources Corp. | $ (2.7) | $ 3.2 |
Commodity hedging contracts: | ||
Change in fair value, pre-tax | (17.1) | 2.3 |
Change in fair value, related income tax | 6.6 | (0.9) |
Change in fair value, after tax | (10.5) | 1.4 |
Settlements reclassified to revenues, pre-tax | (13) | (1.4) |
Settlements reclassified to revenues, related income tax | 5.1 | 0.5 |
Settlements reclassified to revenues, after tax | (7.9) | (0.9) |
Other comprehensive income (loss) attributable to Targa Resources Corp., pre-tax | (30.1) | 0.9 |
Other comprehensive income (loss) attributable to Targa Resources Corp., related income tax | 11.7 | (0.4) |
Other comprehensive income (loss) attributable to Targa Resources Corp., after tax | (18.4) | 0.5 |
Comprehensive income attributable to Targa Resources Corp. | (21.1) | 3.7 |
Net income (loss) attributable to noncontrolling interests | 2 | 32.5 |
Commodity hedging contracts: | ||
Change in fair value, pre-tax | 23.8 | 28 |
Change in fair value, related income tax | 0 | 0 |
Change in fair value, after tax | 23.8 | 28 |
Settlements reclassified to revenues, pre-tax | (11.2) | (11.8) |
Settlements reclassified to revenues, related income tax | 0 | 0 |
Settlements reclassified to revenues, after tax | (11.2) | (11.8) |
Other comprehensive income (loss) attributable to noncontrolling interests, pre-tax | 12.6 | 16.2 |
Other comprehensive income (loss) attributable to noncontrolling interests, related income tax | 0 | 0 |
Other comprehensive income (loss) attributable to noncontrolling interests, after tax | 12.6 | 16.2 |
Comprehensive income (loss) attributable to noncontrolling interests | 14.6 | 48.7 |
Total | ||
Net income (loss) | (0.7) | 35.7 |
Commodity hedging contracts: | ||
Change in fair value, pre-tax | 6.7 | 30.3 |
Change in fair value, related income tax | 6.6 | (0.9) |
Change in fair value, after tax | 13.3 | 29.4 |
Settlements reclassified to revenues, pre-tax | (24.2) | (13.2) |
Settlements reclassified to revenues, related income tax | 5.1 | 0.5 |
Settlements reclassified to revenues, after tax | (19.1) | (12.7) |
Other comprehensive income (loss) attributable to Targa Resources Corp., pre-tax | (17.5) | 17.1 |
Other comprehensive income (loss) attributable to Targa Resources Corp., related income tax | 11.7 | (0.4) |
Other comprehensive income (loss) attributable to Targa Resources Corp., after tax | (5.8) | 16.7 |
Total comprehensive income (loss) | $ (6.5) | $ 52.4 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN OWNERS' EQUITY AND PREFERRED SERIES A STOCK (Unaudited) - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Shares [Member] | Noncontrolling Interests [Member] | Series A Preferred Stock |
Balance at Dec. 31, 2014 | $ 2,539.5 | $ 0 | $ 164.9 | $ 25.5 | $ 4.8 | $ (25.4) | $ 2,369.7 | |
Balance (in shares) at Dec. 31, 2014 | 42,143 | 389 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Compensation on equity grants | 5.9 | $ 0 | 2.1 | 0 | 0 | $ 0 | 3.8 | |
Distribution equivalent rights | (0.2) | $ 0 | (0.2) | 0 | 0 | 0 | 0 | |
Shares issued under compensation program (in shares) | 31 | |||||||
Shares and units tendered for tax withholding obligations | (2.2) | $ 0 | 0 | 0 | 0 | $ (1.6) | (0.6) | |
Shares and units tendered for tax withholding obligations (in shares) | (17) | 17 | ||||||
Sale of Partnership limited partner interests | 53 | $ 0 | 0 | 0 | 0 | $ 0 | 53 | |
Receivables from Partnership unit offerings | (24.8) | 0 | (24.8) | 0 | 0 | 0 | 0 | |
Proceeds from equity issuances | 336.2 | $ 0 | 336.2 | 0 | 0 | 0 | 0 | |
Proceeds from equity issuances (in shares) | 3,738 | |||||||
Common stock dividends in excess of retained earnings | (7) | $ 0 | (7) | 0 | 0 | 0 | 0 | |
Distributions to noncontrolling interests | (88.6) | 0 | 0 | 0 | 0 | 0 | (88.6) | |
Contributions from noncontrolling interests | 3.4 | 0 | 0 | 0 | 0 | 0 | 3.4 | |
Noncontrolling interests in acquired subsidiaries | 113.4 | $ 0 | 0 | 0 | 0 | 0 | 113.4 | |
Common stock issued in ATLS merger (in shares) | 10,126 | |||||||
Dividends | (25.4) | $ 0 | 0 | (25.4) | 0 | 0 | 0 | |
Common stock issued in ATLS merger | 1,013.7 | 0.1 | 1,013.6 | 0 | 0 | 0 | 0 | |
Partnership units issued in APL merger | 2,435.7 | 0 | 0 | 0 | 0 | 0 | 2,435.7 | |
Other comprehensive income (loss) | 16.7 | 0 | 0 | 0 | 0.5 | 0 | 16.2 | |
Net income (loss) | 35.7 | 0 | 0 | 3.2 | 0 | 0 | 32.5 | |
Balance at Mar. 31, 2015 | 6,405 | $ 0.1 | 1,536 | 3.3 | 5.3 | $ (27) | 4,887.3 | |
Balance (in shares) at Mar. 31, 2015 | 56,021 | 406 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Contribution of APL GP interest to the Partnership | 0 | $ 0 | 0 | 0 | 0 | $ 0 | 0 | |
Impact of Partnership equity transactions | 0 | 0 | 51.2 | 0 | 0 | 0 | (51.2) | |
Balance at Dec. 31, 2014 | 2,539.5 | $ 0 | 164.9 | 25.5 | 4.8 | $ (25.4) | 2,369.7 | |
Balance (in shares) at Dec. 31, 2014 | 42,143 | 389 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Other comprehensive income (loss) | 25.8 | |||||||
Balance at Dec. 31, 2015 | 6,250.2 | $ 0.1 | 1,457.4 | 26.9 | 5.7 | $ (28.7) | 4,788.8 | |
Balance (in shares) at Dec. 31, 2015 | 56,020 | 426 | ||||||
Temporary Equity, Carrying Amount, Attributable to Parent at Dec. 31, 2015 | $ 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Compensation on equity grants | 8 | $ 0 | 5.8 | 0 | 0 | $ 0 | 2.2 | |
Compensation on equity grants (in shares) | 0 | 0 | ||||||
Distribution equivalent rights | (3.7) | $ 0 | (3.5) | 0 | 0 | $ 0 | (0.2) | |
Shares issued under compensation program (in shares) | 44 | |||||||
Shares and units tendered for tax withholding obligations | (0.3) | $ (0.2) | (0.1) | |||||
Shares and units tendered for tax withholding obligations (in shares) | (9) | 9 | ||||||
Issuance of preferred Series A and detachable warrants | 796.8 | $ 0 | 796.8 | 0 | 0 | $ 0 | 0 | |
Temporary Equity, Stock Issued During Period, Value, New Issues | 173.6 | |||||||
Preferred stock dividends | (3.8) | 0 | 0 | (3.8) | 0 | 0 | 0 | 0 |
Common stock dividends | (23.1) | 0 | 0 | (23.1) | 0 | 0 | 0 | |
Common stock dividends in excess of retained earnings | (28) | 0 | (28) | 0 | 0 | 0 | 0 | |
Distributions to noncontrolling interests | (143.8) | 0 | 0 | 0 | 0 | 0 | (143.8) | |
Contributions from noncontrolling interests | 6 | 0 | 0 | 0 | 0 | 0 | 6 | |
Noncontrolling interests in acquired subsidiaries | (971.1) | $ 0.1 | 3,093 | 0 | 55.7 | 0 | (4,119.9) | |
Acquisition of TRP noncontrolling common interests (in shares) | 104,526 | |||||||
Other comprehensive income (loss) | (5.8) | $ 0 | 0 | 0 | (18.4) | 0 | 12.6 | |
Net income (loss) | (0.7) | 0 | 0 | (2.7) | 0 | 0 | 2 | |
Balance at Mar. 31, 2016 | $ 5,880.7 | $ 0.2 | $ 5,321.5 | $ (2.7) | $ 43 | $ (28.9) | $ 547.6 | |
Balance (in shares) at Mar. 31, 2016 | 160,581 | 435 | ||||||
Temporary Equity, Carrying Amount, Attributable to Parent at Mar. 31, 2016 | $ 173.6 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | ||
Net income (loss) | $ (0.7) | $ 35.7 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization in interest expense | 4.2 | 3.2 |
Compensation on equity grants | 8 | 5.9 |
Depreciation and amortization expenses | 193.5 | 118.6 |
Goodwill impairment | 24 | 0 |
Accretion of asset retirement obligations | 1.2 | 1.3 |
Change in redemption value of mandatorily redeemable preferred interest | (18.5) | |
Deferred income tax expense (benefit) | 3.1 | 6.1 |
Equity (earnings) loss of unconsolidated affiliates | 4.8 | (1.9) |
Distributions received from unconsolidated affiliates | 2.2 | |
Risk management activities | 4.4 | 6.5 |
(Gain) loss on sale or disposition of assets | 0.9 | 0.7 |
(Gain) loss from financing activities | (24.7) | 9.1 |
Changes in operating assets and liabilities, net of business acquisitions: | ||
Receivables and other assets | 94.7 | 90.7 |
Inventory | 62.3 | 102.4 |
Accounts payable and other liabilities | (115.9) | (109.2) |
Net cash provided by operating activities | 241.3 | 271.3 |
Cash flows from investing activities | ||
Outlays for property, plant and equipment | (190.1) | (187.6) |
Outlays for business acquisitions, net of cash acquired | (1,574.4) | |
Return of capital from unconsolidated affiliates | 3.4 | 0.6 |
Other, net | (1.3) | (7.8) |
Net cash used in investing activities | (188) | (1,769.2) |
Debt obligations: | ||
Proceeds from borrowings under credit facilities | 532 | 1,456 |
Repayments of credit facilities | (977) | (258) |
Proceeds from accounts receivable securitization facility | 5.7 | 253.4 |
Repayments of accounts receivable securitization facility | (75) | (238.3) |
Proceeds from issuance of senior notes and term loan | 1,530 | |
Open market purchases of senior notes | (330.6) | |
Repayments on senior term loan | (188) | |
Redemption of APL senior notes | (1,168.8) | |
Costs incurred in connection with financing arrangements | (38.5) | (41.7) |
Proceeds from sale of Partnership common and preferred units | 28.2 | |
Repurchase of shares and units under compensation plans | (0.2) | (2.1) |
Contributions from noncontrolling interests | 6 | 3.4 |
Distributions to noncontrolling interests | (2.1) | (2.7) |
Payments of distribution equivalent rights | (0.3) | |
Proceeds from issuance of common stock | 336.2 | |
Proceeds from issuance of preferred stock and warrants | 994.1 | |
Distributions to Partnership unitholders | (141.7) | (85.9) |
Dividends to common shareholders | (51.4) | (32.4) |
Net cash provided by (used in) financing activities | (79) | 1,589.3 |
Net change in cash and cash equivalents | (25.7) | 91.4 |
Cash and cash equivalents, beginning of period | 140.2 | 81 |
Cash and cash equivalents, end of period | $ 114.5 | $ 172.4 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2016 | |
Organization [Abstract] | |
Organization | Note 1 — Organization Targa Resources Corp. (“TRC”) is a publicly traded Delaware corporation formed in October 2005. Our common stock is listed on the New York Stock Exchange under the symbol “TRGP.” In this Quarterly Report, unless the context requires otherwise, references to “we,” “us,” “our,” “the Company” or “Targa” are intended to mean our consolidated business and operations. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 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 months ended March 31, 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. 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; gathering, storing and terminaling crude oil; and storing, terminaling and selling refined petroleum products. See Note 20 – Segment Information for an analysis of our operations by business segment. Our financial results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the full year. One of our indirect subsidiaries is the sole general partner of Targa Resources Partners LP (“the Partnership” or “TRP”). Prior to February 17, 2016, our interests in the Partnership consisted of the following: · a 2% general partner interest, which we hold through our 100% ownership interest in the general partner of the Partnership; · all Incentive Distribution Rights (“IDRs”); · 16,309,594 common units representing limited partner interests in the Partnership (“common units”), representing an 8.8% limited partnership interest; and · a Special GP Interest representing retained tax benefits related to the contribution to the Partnership from us of the APL general partner interest acquired in the ATLS merger (see Note 4 – Business Acquisitions). On February 17, 2016, we completed the transactions contemplated by the Agreement and Plan of Merger (the “TRC/TRP Merger Agreement”), dated November 2, 2015, by and among us, the general partner of TRP, TRC and Spartan Merger Sub LLC, a subsidiary of us (“Merger Sub”) and we acquired indirectly all of the outstanding TRP common units that we and our subsidiaries did not already own. Upon the terms and conditions set forth in the TRC/TRP 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. At the effective time of the TRC/TRP Merger, each outstanding TRP common unit not owned by us or our subsidiaries was converted into the right to receive 0.62 shares of our common stock. We issued 104,525,775 shares of our common stock to third-party unitholders of the common units of the Partnership in exchange for all of the 168,590,009 outstanding common units of the Partnership that we previously did not own. No fractional shares were issued in the TRC/TRP Merger, and TRP common unitholders instead received cash in lieu of fractional shares. There were no changes to our other interests in the Partnership. TRP’s 5,000,000 9.0% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (the “Preferred Units”) remain outstanding after the TRC/TRP Merger. The Preferred Units are listed on the NYSE under “NGLS PRA” and are publicly traded. As we continue to control the Partnership, the change in our ownership interest as a result of the TRC/TRP Merger is accounted for as an equity transaction, which is reflected in our Consolidated Balance Sheet as a reduction of noncontrolling interests and a corresponding increase in common stock and additional paid in capital. The TRC/TRP Merger is a taxable exchange resulting in a book/tax difference in the basis of the underlying assets acquired (our investment in TRP). A deferred tax liability of approximately The equity interests in TRP (which are consolidated in our financial statements) that were owned by the public prior to February 17, 2016 are reflected within “Noncontrolling interests” in our accompanying Consolidated Balance Sheet as of March 31, 2016. The earnings recorded by TRP that were attributed to its common units held by the public prior to February 17, 2016 are reported as “Net income attributable to noncontrolling interests” in our accompanying March 31, 2016 Consolidated Statements of Operations. Revisions of Previously Reported Activity in our Statement of Changes in Comprehensive Income During the first quarter of 2016 we concluded that activity related to our commodity hedge contracts was not reported properly in our Statement of Changes in Other Comprehensive Income 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 Statements of Changes in Comprehensive Income 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 Statement of Changes in Other Comprehensive Income during 2015. Three Months Ended March 31, 2015 March 31, 2015 As Reported As Reported As Reported As Corrected As Corrected As Corrected Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Targa Resources Corp. Commodity hedging contracts: Change in fair value $ 1.8 $ (0.7 ) $ 1.1 $ 2.3 $ (0.9 ) $ 1.4 Settlements reclassified to revenues (0.9 ) 0.3 (0.6 ) (1.4 ) 0.5 (0.9 ) Other comprehensive income (loss) attributable to Targa Resources Corp. 0.9 (0.4 ) 0.5 0.9 (0.4 ) 0.5 Noncontrolling interests Commodity hedging contracts: Change in fair value 23.4 - 23.4 28.0 - 28.0 Settlements reclassified to revenues (7.2 ) - (7.2 ) (11.8 ) - (11.8 ) Other comprehensive income (loss) attributable to noncontrolling interests 16.2 - 16.2 16.2 - 16.2 Total Commodity hedging contracts: Change in fair value 25.2 (0.7 ) 24.5 30.3 (0.9 ) 29.4 Settlements reclassified to revenues (8.1 ) 0.3 (7.8 ) (13.2 ) 0.5 (12.7 ) Other comprehensive income (loss) $ 17.1 $ (0.4 ) $ 16.7 $ 17.1 $ (0.4 ) $ 16.7 Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 As Reported As Corrected As Reported As Corrected Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Targa Resources Corp. Commodity hedging contracts: Change in fair value $ (1.1 ) $ 0.4 $ (0.7 ) $ (0.5 ) $ 0.2 $ (0.3 ) $ 0.6 $ (0.2 ) $ 0.4 $ 2.0 $ (0.6 ) $ 1.4 Settlements reclassified to revenues (1.8 ) 0.7 (1.1 ) (2.4 ) 0.9 (1.5 ) (2.7 ) 1.0 (1.7 ) (4.1 ) 1.4 (2.7 ) Other comprehensive income (loss) attributable to Targa Resources Corp. (2.9 ) 1.1 (1.8 ) (2.9 ) 1.1 (1.8 ) (2.1 ) 0.8 (1.3 ) (2.1 ) 0.8 (1.3 ) Noncontrolling interests Commodity hedging contracts: Change in fair value (7.6 ) - (7.6 ) (3.1 ) - (3.1 ) 15.9 - 15.9 25.0 - 25.0 Settlements reclassified to revenues (14.5 ) - (14.5 ) (19.0 ) - (19.0 ) (21.7 ) - (21.7 ) (30.8 ) - (30.8 ) Other comprehensive income (loss) attributable to noncontrolling interests (22.1 ) - (22.1 ) (22.1 ) - (22.1 ) (5.8 ) - (5.8 ) (5.8 ) - (5.8 ) Total Commodity hedging contracts: Change in fair value (8.7 ) 0.4 (8.3 ) (3.6 ) 0.2 (3.4 ) 16.5 (0.2 ) 16.3 27.0 (0.6 ) 26.4 Settlements reclassified to revenues (16.3 ) 0.7 (15.6 ) (21.4 ) 0.9 (20.5 ) (24.4 ) 1.0 (23.4 ) (34.9 ) 1.4 (33.5 ) Other comprehensive income (loss) $ (25.0 ) $ 1.1 $ (23.9 ) $ (25.0 ) $ 1.1 $ (23.9 ) $ (7.9 ) 0.8 (7.1 ) (7.9 ) 0.8 (7.1 ) Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 As Reported As Corrected As Reported As Corrected Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Targa Resources Corp. Commodity hedging contracts: Change in fair value $ 4.6 $ (1.7 ) $ 2.9 $ 5.5 $ (2.0 ) $ 3.5 $ 5.2 $ (2.0 ) $ 3.2 $ 7.5 $ (2.9 ) $ 4.6 Settlements reclassified to revenues (1.8 ) 0.7 (1.1 ) (2.7 ) 1.0 (1.7 ) (4.5 ) 1.7 (2.8 ) (6.8 ) 2.6 (4.2 ) Other comprehensive income (loss) attributable to Targa Resources Corp. 2.8 (1.0 ) 1.8 2.8 (1.0 ) 1.8 0.7 (0.3 ) 0.4 0.7 (0.3 ) 0.4 Noncontrolling interests Commodity hedging contracts: Change in fair value 38.3 - 38.3 45.2 - 45.2 54.2 - 54.2 70.1 - 70.1 Settlements reclassified to revenues (14.9 ) - (14.9 ) (21.8 ) - (21.8 ) (36.6 ) - (36.6 ) (52.5 ) - (52.5 ) Other comprehensive income (loss) attributable to noncontrolling interests 23.4 - 23.4 23.4 - 23.4 17.6 - 17.6 17.6 - 17.6 Total Commodity hedging contracts: Change in fair value 42.9 (1.7 ) 41.2 50.7 (2.0 ) 48.7 59.4 (2.0 ) 57.4 77.6 (2.9 ) 74.7 Settlements reclassified to revenues (16.7 ) 0.7 (16.0 ) (24.5 ) 1.0 (23.5 ) (41.1 ) 1.7 (39.4 ) (59.3 ) 2.6 (56.7 ) Other comprehensive income (loss) $ 26.2 $ (1.0 ) $ 25.2 $ 26.2 $ (1.0 ) $ 25.2 $ 18.3 $ (0.3 ) $ 18.0 $ 18.3 $ (0.3 ) $ 18.0 2015 2015 As Reported As Corrected Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Targa Resources Corp. Commodity hedging contracts: Change in fair value $ 7.4 $ (2.8 ) $ 4.6 $ 11.0 $ (4.2 ) $ 6.8 Settlements reclassified to revenues (5.9 ) 2.2 (3.7 ) (9.5 ) 3.6 (5.9 ) Other comprehensive income (loss) attributable to Targa Resources Corp. 1.5 (0.6 ) 0.9 1.5 (0.6 ) 0.9 Noncontrolling interests Commodity hedging contracts: Change in fair value 73.8 - 73.8 101.7 - 101.7 Settlements reclassified to revenues (48.9 ) - (48.9 ) (76.8 ) - (76.8 ) Other comprehensive income (loss) attributable to noncontrolling interests 24.9 - 24.9 24.9 - 24.9 Total Commodity hedging contracts: Change in fair value 81.2 (2.8 ) 78.4 112.7 (4.2 ) 108.5 Settlements reclassified to revenues (54.8 ) 2.2 (52.6 ) (86.3 ) 3.6 (82.7 ) Other comprehensive income (loss) $ 26.4 $ (0.6 ) 25.8 26.4 (0.6 ) 25.8 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 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 three months ended March 31, 2016. Recent Accounting Pronouncements 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 February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs 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 financial statements and accounting practices for leases. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations These amendments are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2017, with early adoption permitted. We expect to adopt this guidance on January 1, 2018 and are continuing to evaluate the impact on our revenue recognition practices. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. An entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. We expect to adopt the amendments in the second quarter of 2016 and are currently evaluating the impacts of the amendments to our financial statements and accounting practices for stock compensation. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 31, 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”), 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, 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. 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’s partnership agreement (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. 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. The Partnership 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 the Partnership’s 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, we acquired ATLS for a total purchase price of approximately $1.6 billion (including all assumed liabilities). Pursuant to the APL Merger Agreement, Targa agreed to cause the general partner of the Partnership to amend the Partnership’s Partnership Agreement, which we refer to as the IDR Giveback Amendment, in order to reduce aggregate distributions to us, as the holder of the Partnership’s IDRs, by (a) $9,375,000 per quarter during the first four quarters following the APL merger, (b) $6,250,000 per quarter for the next four quarters, (c) $2,500,000 per quarter for the next four quarters and (d) $1,250,000 per quarter for the next four quarters, with the amount of such reductions to be distributed pro rata to the holders of the Partnership’s outstanding common units. 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 play 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 the Partnership’s 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. The Partnership issued 58,614,157 of its 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, we contributed $52.4 million to the Partnership to maintain our 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). We issued 10,126,532 of our 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. Our acquisition of ATLS resulted in us acquiring these common units (converted to 3,363,935 Partnership common units) valued at approximately $147.4 million (based on the $43.82 closing market price of a Partnership common unit 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 the Company 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 the Partnership’s 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 $160.6 million and net income of $3.4 million to the Company for the period from February 27, 2015 to March 31, 2015, and is reported in our Gathering and Processing segment. As of March 31, 2015, we had incurred $26.0 million of acquisition-related costs. These expenses are included in other expense in our Consolidated Statements of Operations for the three months ended March 31, 2015. As of March 31, 2016, cumulative acquisition-related costs totaled $27.3 million. Pro Forma Impact of Atlas Mergers on Consolidated Statements of Operations The following summarized unaudited pro forma Consolidated Statement of Operations information for the three months ended March 31, 2015 assumes that the Partnership’s acquisition of APL and our 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 these acquisitions as of January 1, 2014, or that the results that will be attained in the future. Amounts presented below are in millions. March 31, 2015 Pro Forma Revenues $ 1,994.0 Net income 18.0 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 with 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 which 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 $26.0 million of acquisition-related costs incurred as of March 31, 2015 from pro forma net income for the three months ended March 31, 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: Fair Value of Consideration Transferred: Cash paid, net of cash acquired (1): TRC $ 745.7 TRP 828.7 Common shares of TRC 1,008.5 Replacement restricted stock units awarded (2) 5.2 Common units of TRP 2,421.1 Replacement phantom units awarded (2) 15.0 Total $ 5,024.2 (1) Net of cash acquired of $40.8 million. (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. Our fair value determination related to the Atlas mergers was as follows. Fair value determination: February 27, 2015 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 (259.3 ) Long-term debt (1,573.3 ) Deferred income tax liabilities, net (13.6 ) Other long-term liabilities (119.1 ) Total identifiable net assets 4,534.1 Noncontrolling interest in subsidiaries (216.9 ) 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. We adopted the amendments to ASU-2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments 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 16 – 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. The goodwill is expected to be amortizable for tax purposes. The fair value of assets acquired includes trade receivables of $178.1 million. The gross amount due under contracts is $178.1 million, all of which is expected to be collectible. The fair value of assets acquired includes 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 includes $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. Any future change in the fair value of this liability will be included in earnings. Replacement Restricted Stock Units (“RSUs”) In connection with the ATLS merger, we awarded RSUs 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 ATLS awards, and will vest over the remaining terms of the awards, which are either 25% per year over the original four year term or 25% after the third year of the original term and 75% after the fourth year of the original term. Each RSU will entitle the grantee to one common share on the vesting date and is an equity-settled award. The RSUs include dividend equivalents. When we declare and pay cash dividends, the holders of RSUs will be entitled within 60 days to receive cash payment of dividend equivalents in an amount equal to the cash dividends the holders would have received if they were the holders of record on the record date of the number of our common shares related to the RSUs. The fair value of the RSUs was based on the closing price of our common shares 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 future compensation expense, respectively. Compensation cost will be recognized in general and administrative expense over the remaining service period of each award. Replacement Phantom Units In connection with the APL merger, the Partnership 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 will 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 one common unit on the vesting date and is an equity-settled award. The replacement phantom units include distribution equivalent rights (“DERs”). When the Partnership declares and pays cash distributions, the holders of replacement phantom units will be 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 the Partnership’s common units related to the replacement phantom units. The fair value of the replacement phantom units was based on the closing price of the Partnership’s 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 have 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 is 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 and impairment loss are as follows: WestTX SouthTX SouthOK Total Beginning of period January 1, 2015 $ — $ — $ — $ — Acquisition February 27, 2015 364.5 160.3 182.2 707.0 Provisional Impairment (37.6 ) (70.2 ) (182.2 ) (290.0 ) Goodwill December 31, 2015 326.9 90.1 — 417.0 Additional Impairment (14.4 ) (9.6 ) — (24.0 ) Goodwill March 31, 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. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 — Inventories March 31, 2016 December 31, 2015 Commodities $ 49.2 $ 128.3 Materials and supplies 12.5 12.7 $ 61.7 $ 141.0 |
Property, Plant and Equipment a
Property, Plant and Equipment and Intangible Assets | 3 Months Ended |
Mar. 31, 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 Property, Plant and Equipment March 31, 2016 December 31, 2015 Estimated Useful Lives (In Years) Gathering systems $ 6,357.8 $ 6,304.5 5 to 20 Processing and fractionation facilities 3,003.1 2,995.2 5 to 25 Terminaling and storage facilities 1,173.9 1,115.0 5 to 25 Transportation assets 454.7 454.0 10 to 25 Other property, plant and equipment 215.5 221.1 3 to 25 Land 108.8 108.8 — Construction in progress 800.8 736.5 — Property, plant and equipment 12,114.6 11,935.1 Accumulated depreciation (2,380.0 ) (2,232.4 ) Property, plant and equipment, net $ 9,734.6 $ 9,702.7 Intangible assets $ 2,036.6 $ 2,036.6 20 Accumulated amortization (271.5 ) (226.5 ) Intangible assets, net $ 1,765.1 $ 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. 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. March 31, 2016 December 31, 2015 Beginning of period $ 1,810.1 $ 591.9 Additions from acquisition — 1,354.9 Amortization (45.0 ) (136.7 ) Intangible assets, net $ 1,765.1 $ 1,810.1 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 3 Months Ended |
Mar. 31, 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 Co-Gen (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 Cogen Total December 31, 2015 $ 49.5 $ 63.6 $ 123.8 $ 22.0 $ 258.9 Equity earnings (loss) (1.0 ) (1.6 ) (1.3 ) (0.9 ) (4.8 ) Cash distributions (1) (3.0 ) — — (0.4 ) (3.4 ) Cash calls for expansion projects — — 4.2 — 4.2 March 31, 2016 $ 45.5 $ 62.0 $ 126.7 $ 20.7 $ 254.9 (1) Includes $3.4 million in distributions received from GCF and T2 Joint Ventures in excess of our share of cumulative earnings for the three months ended March 31, 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 $39.9 million over the book value of the joint venture capital accounts. 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 | 3 Months Ended |
Mar. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 8 — Accounts Payable and Accrued Liabilities March 31, 2016 December 31, 2015 Commodities $ 322.5 $ 385.2 Other goods and services 97.7 142.9 Interest 65.6 81.0 Compensation and benefits 16.5 16.0 Income and other taxes 19.1 13.4 Other 19.6 18.6 $ 541.0 $ 657.1 Accounts payable and accrued liabilities includes $24.3 million and $34.2 million of liabilities to creditors to whom we have issued checks that remain outstanding as of March 31, 2016 and December 31, 2015. |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Note 9 — Debt Obligations March 31, 2016 December 31, 2015 Current: Obligations of the Partnership Accounts receivable securitization facility, due December 2016 (1) $ 150.0 $ 219.3 Long-term: TRC obligations: TRC Senior secured revolving credit facility, variable rate, due February 2020 (2) 275.0 440.0 TRC Senior secured term loan, variable rate, due February 2022 160.0 160.0 Unamortized discount (2.5 ) (2.5 ) Obligations of the Partnership: (1) Senior secured revolving credit facility, variable rate, due October 2017 (3) - 280.0 Senior unsecured notes, 5% fixed rate, due January 2018 935.1 1,100.0 Senior unsecured notes, 4 ⅛ 749.4 800.0 Senior unsecured notes, 6 ⅝ 309.9 342.1 Unamortized premium 4.3 5.0 Senior unsecured notes, 6 ⅞ 478.6 483.6 Unamortized discount (20.9 ) (22.1 ) Senior unsecured notes, 6 ⅜ 278.7 300.0 Senior unsecured notes, 5 ¼ 559.6 583.7 Senior unsecured notes, 4¼% fixed rate, due November 2023 583.9 623.5 Senior unsecured notes, 6¾% fixed rate, due March 2024 580.1 600.0 Senior unsecured APL notes, 6 ⅝ 12.9 12.9 Unamortized premium 0.2 0.2 Senior unsecured APL notes, 4¾% fixed rate, due November 2021 (5) 6.5 6.5 Senior unsecured APL notes, 5⅞% fixed rate, due August 2023 (5) 48.1 48.1 Unamortized premium 0.5 0.5 4,959.4 5,761.5 Debt issuance costs (38.2 ) (42.7 ) Total long-term debt 4,921.2 5,718.8 Total debt $ 5,071.2 $ 5,938.1 Irrevocable standby letters of credit: Letters of credit outstanding under the TRC Senior secured credit facility (2) $ — $ — Letters of credit outstanding under the Partnership senior secured revolving credit facility (3) 12.2 12.9 $ 12.2 $ 12.9 (1) While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. (2) As of March 31, 2016, availability under TRC’s $670.0 million senior secured revolving credit facility was $395.0 million. (3) As of March 31, 2016, availability under the Partnership’s $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1.6 billion. (4) In May 2015, the Partnership exchanged TRP 6⅝% Senior Notes with the same economic terms to holders of the 6⅝% APL Notes that validly tendered such notes for exchange to us. (5) APL debt is not guaranteed by us or the Partnership. The following table shows the range of interest rates and weighted average interest rate incurred on variable-rate debt obligations during the three months ended March 31, 2016: Range of Interest Rates Incurred Weighted Average Interest Rate Incurred TRC senior secured revolving credit facility 2.3% - 4.5% 2.5% TRC senior secured term loan 5.75% 5.75% Partnership's senior secured revolving credit facility 2.6% - 4.8% 2.7% Partnership's accounts receivable securitization facility 1.2% 1.2% Compliance with Debt Covenants As of March 31, 2016, we were in compliance with the covenants contained in our various debt agreements. Debt Repurchases During the quarter ended March 31, 2016, the Partnership repurchased on the open market a portion of its outstanding Senior Notes as follows: Debt Issue Repurchased Book Value Payment Gain/Loss Write-off of Debt Issue 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 164.9 (164.5 ) 0.4 (1.0 ) (0.6 ) 4⅛% Senior Notes 50.6 (44.2 ) 6.4 (0.4 ) 6.0 $ 357.7 $ (330.6 ) $ 27.1 $ (2.4 ) $ 24.7 We or TRP may retire or purchase various series of TRP’s outstanding debt through cash purchases and/or exchanges for other debt, in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. Contractual Obligations The following summarizes payment obligations for debt instruments after giving effect to 2016 debt repurchases. Payments Due By Period Less Than More Than Total 1 Year 1-3 Years 3-5 Years 5 Years (in millions) Partnership Senior Unsecured Debt: Debt obligations (1) $ 4,542.8 $ - $ 935.1 $ 1,550.8 $ 2,056.9 Interest on debt obligations (2) 1,378.1 191.9 476.5 376.5 333.2 $ 5,920.9 $ 191.9 $ 1,411.6 $ 1,927.3 $ 2,390.1 (1) Represents scheduled future maturities of consolidated debt obligations for the periods indicated. (2) Represents interest expense on debt obligations based on both fixed debt interest rates and prevailing March 31, 2016 rates for floating debt. Subsequent Events In April 2016, the Partnership repurchased on the open market a portion of its outstanding 5% Senior Notes paying $96.4 million to repurchase $96.0 million of the outstanding balance of the 5% Senior Notes. |
Other Long-term Liabilities
Other Long-term Liabilities | 3 Months Ended |
Mar. 31, 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: March 31, 2016 December 31, 2015 Asset retirement obligations $ 62.5 $ 70.4 Mandatorily redeemable preferred interests 64.1 82.9 Deferred revenue and other 29.2 26.9 Total long-term liabilities $ 155.8 $ 180.2 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: March 31, 2016 Beginning of period $ 70.4 Change in cash flow estimate (9.1 ) Accretion expense 1.2 End of period $ 62.5 Mandatorily Redeemable Preferred Interests The following table shows the changes attributable to mandatorily redeemable preferred interests: March 31, 2016 Beginning of period $ 82.9 Income (loss) attributable to mandatorily redeemable preferred interests (0.3 ) Change in estimated redemption value (18.5 ) End of period $ 64.1 |
Preferred Stock
Preferred Stock | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Preferred Stock | Note 11 – Preferred Stock Preferred Stock and Detachable Warrants In the first quarter of 2016, TRC sold to investors in a private placement 965,100 shares of Series A preferred stock with detachable Series A Warrants exercisable into a maximum of 13,550,004 shares of our common stock and Series B Warrants exercisable into a maximum of 6,533,727 shares of our common stock for an aggregate net purchase price of $994.1 million in cash. The Series A preferred stock has a liquidation value of $1,000 per share and bears a cumulative 9.5% fixed dividend payable quarterly 45 days after the end of each fiscal quarter. The Company may, at the sole election of the Board of Directors, elect to pay dividends for any quarter with a paid-in-kind election (“PIK”) through December 31, 2017. Under the PIK election, unpaid dividends would be added to the liquidation preference and a commensurate amount of Series A and Series B warrants would be issued. The $177.1 million discount on the preferred stock created by the relative fair value allocation of proceeds, which is not subject to periodic accretion, would be reported as a deemed dividend in the event a redemption occurs. The preferred stock has no mandatory redemption date, but is redeemable at our election in year six for a 10% premium to the liquidation preference and for a 5% premium to the liquidation preference thereafter. If the preferred stock is not redeemed by year twelve, the holders have the right to convert into TRC common shares at $20.77, which represented a 10% premium over the ten day VWAP (volume weighted average price) prior to the February 18 signing date ($18.88). If the holders do not elect to convert their preferred shares into TRC common shares, Targa has a right after year twelve to force conversion, but only if the VWAP for the ten preceding trading days is greater than 120% of the conversion price. A change of control provision would lead to forced redemption if the preferred stock could not remain outstanding or be replaced with a “substantially equivalent security.” The change of control premium to the liquidation preference on the redemption is initially 25% in year one, scaling down five percentage points per year to 5% from year five forward. The preferred stock ranks senior to the common outstanding stock with respect to the payment of dividends and distributions in liquidation. The holders of preferred stock generally only have voting rights in certain circumstances, subject to certain exceptions, which include: · the issuance or the increase by the Company of any specific class or series of stock that is senior to the Series A preferred stock, · the issuance or the increase by any of the Company’s consolidated subsidiaries of any specific class or series of securities, · changes to the Certificates of Incorporation or Designations of the Series A Preferred Stock that would materially and adversely affect the preferred stock holder, · the issuance of stock on parity with the Series A preferred stock, subject to certain exceptions, if the Company has exceeded a stipulated fixed charge coverage ratio or an aggregate amount of net proceeds from all future issuances of Parity Stock, or would use the proceeds of such issuance to pay dividends, · the incurrence of indebtedness, other than indebtedness that complies with a stipulated fixed charge coverage ratio or under the TRC and TRP Credit Agreements (or replacement commercial bank facilities) in an aggregate amount up to $2.75 billion. In addition, observation right status as a Board Observer was granted to an investor with the right to attend full meetings of the Board of Directors (the “Board”) for TRC and to receive materials other members of the Board receive. Only in the event (i) we have not paid distributions with respect to two full quarters (whether or not consecutive) on the preferred shares or (ii) an event of default occurs with respect only to the financial covenants under the TRC and TRP Credit Agreements, will the investor have the right to turn the Board Observer into a member of the Board to serve until (x) all accrued and unpaid distributions on the preferred shares are paid or (y) there is no longer such an event of default, as applicable. The Series A preferred stock is a hybrid security and is viewed as a debt host for the purpose of evaluating embedded derivatives. Bifurcation of embedded derivatives is not required as the redemption provision is clearly and closely related to the preferred debt host and the conversion provisions qualify for a derivatives scope exception under ASC 815 – Derivatives and Hedging Distinguishing Liabilities from Equity, The detachable warrants have a seven year term and are exercisable beginning on September 16, 2016. They were issued in two series: Series A warrants exercisable into a maximum number of 13,550,004 shares of our common stock with an exercise price of $18.88 and 6,533,727 Series B warrants with an exercise price of $25.11. The warrants may be net settled in cash or shares at the Company’s option. The warrants qualify as freestanding financial instruments and meet the derivatives accounting scope exception ASC 815 because they are indexed to our equity. The portion of proceeds allocated to the Series A and Series B Warrants was recorded as additional paid-in capital. Under the terms of the Warrants Registration Rights Agreement we will cause a registration statement with respect to the common shares underlying the warrants to be declared effective by July 16, 2016 (the “Effective Date”) and would pay liquidated damages in the event we fail to do so. A maximum of 20,083,731 common shares could be issued upon conversion of the warrants. Liquidated damages under the Preferred Registration Rights Agreement and the Warrants Registration Rights Agreement are calculated in the same manner. If either registration statement is not declared effective by the applicable required effective date, each record holder of the securities to be registered would receive liquidated damages. The Liquidated Damages Multiplier (“the multiplier”) is calculated as the product of (1) the purchased preferred stock price and (ii) the number of registrable securities by the applicable record holder of any registrable securities. The liquidated damages, which would accrue daily, are an amount equal to 0.25% of the multiplier for the first 60 day period following the Effective Date plus an additional 0.25% of the multiplier for each subsequent 60 days (i.e. 0.5% for 61-120 days, 0.75% for 121-180 days, and 1.0% thereafter), up to a maximum amount equal to 1.0% of the multiplier thereafter. There is no limitation for the maximum potential consideration of liquidated damages. Management believes that remittance of any future payments under these provisions is not probable and therefore has not attributed any allocation of offering proceeds to a contingent liability for registration payment arrangements under ASC 825-20 – Financial Instruments-Registration Payment Arrangements Net cash proceeds of $970.4 million (which reflects payment of $23.7 million transaction fees), were allocated on a relative fair value basis to the preferred stock ($788.0 million), Series A Warrants ($135.9 million) and Series B Warrants ($46.5 million). The $177.1 million discount on the preferred stock created by the relative fair value allocation of proceeds, which is not subject to periodic accretion, would be reported as a deemed dividend in the event a redemption occurs. As described below, $614.4 million of the $788.0 million allocated to the preferred stock is allocated to additional paid-in capital to give effect to the intrinsic value of a beneficial conversion feature (“BCF”). Beneficial Conversion Feature ASC 470-20-20 – Debt – Debt with conversion and Other Options The following table summarizes the accounting for our Series A preferred stock: Allocation of Proceeds Additional Paid-in Capital Preferred Series A Series A Warrants Series B Warrants Beneficial Conversion Feature (BCF) Gross proceeds $ 994.1 Transaction fees (23.7 ) Net Proceeds- Initial Relative Fair Value Allocation $ 970.4 $ 788.0 $ 135.9 $ 46.5 $ — Allocation to BCF (614.4 ) — — 614.4 Per Balance sheet $ 173.6 $ 135.9 $ 46.5 $ 614.4 As of March 31, 2016, we have accrued preferred dividends of $3.8 million which represents a pro-rated quarterly dividend for the period after the March 16, 2016 issue date. |
Partnership Units and Related M
Partnership Units and Related Matters | 3 Months Ended |
Mar. 31, 2016 | |
Partners Capital [Abstract] | |
Partnership Units and Related Matters | Note 12 — Partnership Units and Related Matters Preferred Units As of March 31, 2016, the Partnership has 5,000,000 Preferred Units outstanding. The Partnership paid $2.8 million to preferred unitholders during the three months ended March 31, 2016. Subsequent Event On April 19, 2016, the board of directors declared a monthly cash distribution of $0.1875 per preferred unit for April 2016. This distribution will be paid on May 16, 2016. Distributions In accordance with the Partnership Agreement, the Partnership must distribute all of its available cash, after the preferred distribution, as defined in the Partnership Agreement, and as determined by the general partner, to common unitholders of record within 45 days after the end of each quarter. The following table details the distributions declared and paid by the Partnership, net of the IDR Giveback, for the three months ended March 31, 2016: Distributions Limited Partners General Partner Three Months Ended Date Paid Distributions per limited partner unit Common Incentive 2% Total Distributions to Targa Resources Corp. (In millions, except per unit amounts) December 31, 2015 February 9, 2016 $ 0.8250 $ 152.5 $ 43.9 $ 4.0 $ 200.4 $ 61.4 Total distributions declared as of March 31, 2016 to be paid to TRC on May 12, 2016 are $154.8 million. As a result of the TRC/TRP Merger, we are entitled to receive all available Partnership cash for the quarter ended March 31, 2016 and all future quarters. |
Common Stock and Related Matter
Common Stock and Related Matters | 3 Months Ended |
Mar. 31, 2016 | |
Class Of Stock Disclosures [Abstract] | |
Common Stock and Related Matters | Note 13 — Common Stock and Related Matters TRC/TRP Merger On February 17, 2016, we completed the TRC/TRP Merger (see Note 2 – Basis of Presentation). Dividends The following table details the dividends declared and/or paid by us to common shareholders for the three months ended March 31, 2016: Three Months Ended Date Paid or To Be Paid Total Dividends Declared Amount of Dividends Paid or To Be Paid Accrued Dividends (1) Dividend Declared per Share of Common Stock (In millions, except per share amounts) March 31, 2016 May 16, 2016 $ 147.8 $ 146.1 $ 1.7 $ 0.91000 December 31, 2015 February 9, 2016 51.7 51.0 0.7 0.91000 (1) Represents accrued dividends on restricted stock units that are payable upon vesting. Dividends declared are recorded as a reduction of retained earnings to the extent that retained earnings was available at the close of the prior quarter, with any excess recorded as a reduction of additional paid-in capital. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Note 14 — Earnings per Common Share The following table sets forth a reconciliation of net income and weighted average shares outstanding used in computing basic and diluted net income per common share: Three Months Ended March 31, 2016 2015 Net income $ (0.7 ) $ 35.7 Less: Net income attributable to noncontrolling interests 2.0 32.5 Less: Dividends on preferred stock 3.8 — Net income attributable to common shareholders for basic earnings per share $ (6.5 ) $ 3.2 Weighted average shares outstanding - basic 106.6 45.8 Net income available per common share - basic $ (0.06 ) $ 0.07 Weighted average shares outstanding 106.6 45.8 Dilutive effect of unvested stock awards — 0.1 Weighted average shares outstanding - diluted 106.6 45.9 Net income available per common share - diluted $ (0.06 ) $ 0.07 The following potential common stock equivalents are excluded from the determination of diluted earnings per share because the inclusion of such shares would have been anti-dilutive (in millions on a weighted-average basis): Three Months Ended March 31, 2016 2015 Unvested restricted stock awards 0.1 — Warrants to purchase common stock 2.0 — Series A Preferred Stock 13.8 — |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 15 — 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 related to these novated contracts were received during the year ended December 31, 2015 and $8.7 million related to these novated contracts were received during the quarter ended March 31, 2016 and were reflected as a reduction of the acquisition date fair value of the APL derivative assets acquired, with no effect on results of operations. 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 quarters ended March 31, 2016 and 2015, we recorded less than $0.1 million and $1.0 million of ineffectiveness gains related to otherwise qualifying APL derivatives, primarily natural gas swaps. At March 31, 2016, the notional volumes of our commodity derivative contracts were: Commodity Instrument Unit 2016 2017 2018 Natural Gas Swaps MMBtu/d 91,840 53,982 30,900 Natural Gas Basis Swaps MMBtu/d 43,309 18,082 - Natural Gas Options MMBtu/d 22,900 22,900 9,486 NGL Swaps Bbl/d 4,812 1,688 818 NGL Futures Bbl/d 4,331 274 - NGL Options Bbl/d 920 920 32 Condensate Swaps Bbl/d 2,375 1,400 900 Condensate Options Bbl/d 790 790 101 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 March 31, 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 $ 82.4 $ 1.7 $ 92.1 $ 2.1 Long-term 25.2 7.9 34.9 2.4 Total derivatives designated as hedging instruments $ 107.6 $ 9.6 $ 127.0 $ 4.5 Derivatives not designated as hedging instruments Commodity contracts Current $ — $ 0.3 $ 0.1 $ 3.1 Total derivatives not designated as hedging instruments $ — $ 0.3 $ 0.1 $ 3.1 Total current position $ 82.4 $ 2.0 $ 92.2 $ 5.2 Total long-term position 25.2 7.9 34.9 2.4 Total derivatives $ 107.6 $ 9.9 $ 127.1 $ 7.6 The pro forma impact of reporting derivatives in the Consolidated Balance Sheets on a net basis is as follows: Gross Presentation Pro forma net presentation March 31, 2016 Asset Liability Asset Liability Current Position Counterparties with offsetting positions $ 79.4 $ 2.0 $ 77.4 $ - Counterparties without offsetting positions - assets 3.0 - 3.0 - Counterparties without offsetting positions - liabilities - - - - 82.4 2.0 80.4 - Long Term Position Counterparties with offsetting positions 25.2 7.7 17.5 - Counterparties without offsetting positions - assets - - - - Counterparties without offsetting positions - liabilities - 0.2 - 0.2 25.2 7.9 17.5 0.2 Total Derivatives Counterparties with offsetting positions 104.6 9.7 94.9 - Counterparties without offsetting positions - assets 3.0 - 3.0 - Counterparties without offsetting positions - liabilities - 0.2 - 0.2 $ 107.6 $ 9.9 $ 97.9 $ 0.2 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 substantially all 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 counterparty that clears the hedges through an exchange. The payment obligations on these futures are settled daily. 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 $97.7 million as of March 31, 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 March 31, Hedging Relationships 2016 2015 Commodity contracts $ 6.7 $ 30.3 Gain (Loss) Reclassified from OCI into Income (Effective Portion) Three Months Ended March 31, Location of Gain (Loss) 2016 2015 Revenues $ (24.2 ) $ (13.2 ) $ (24.2 ) $ (13.2 ) 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 Recognized in Income on Three Months Ended March 31, Derivatives Not Designated as Hedging Instruments Derivatives 2016 2015 Commodity contracts Revenue $ 1.8 $ 7.2 The following table shows the deferred gains (losses) included in accumulated OCI, which will be reclassified into earnings before income taxes through the end of 2018 based on valuations as of the balance sheet date: March 31, 2016 December 31, 2015 Commodity hedges, before tax (1) $ 69.3 $ 86.8 (1) Includes deferred net gains of $58.9 million as of March 31, 2016 related to contracts that will be settled and reclassified to revenue over the next 12 months. See Note 16 – Fair Value Measurements for additional disclosures related to derivative instruments and hedging activities. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 16 — 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. This financial position of these derivatives at March 31, 2016, a net asset position of $97.7 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 asset of $68.1 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 $126.0 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: · Our and the Partnership’s senior secured revolving credit facilities and the Partnership’s Securitization Facility are based on carrying value, which approximates fair value as their interest rates are based on prevailing market rates; and · Our term loan and the Partnership’s 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 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: March 31, 2016 Carrying Fair Value Value Total Level 1 Level 2 Level 3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value Assets from commodity derivative contracts (1) $ 104.4 $ 104.4 $ - $ 101.0 $ 3.4 Liabilities from commodity derivative contracts (1) 6.7 6.7 - 5.9 0.8 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 114.5 114.5 - - - TRC Senior secured revolving credit facility 275.0 275.0 - 275.0 - TRC Term Loan 157.5 158.7 - 158.7 - Partnership's Senior secured revolving credit facility - - - - - Partnership's Senior unsecured notes 4,526.9 4,357.1 - 4,357.1 - Partnership's accounts receivable securitization facility 150.0 150.0 - 150.0 - December 31, 2015 Carrying Fair Value Value Total Level 1 Level 2 Level 3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: Assets from commodity derivative contracts (1) $ 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 140.2 140.2 - - - TRC Senior secured revolving credit facility 440.0 440.0 - 440.0 - TRC Term Loan 157.5 158.3 - 158.3 - Partnership's Senior secured revolving credit facility 280.0 280.0 - 280.0 - Partnership's Senior unsecured notes 4,884.0 4,192.0 - 4,192.0 - Partnership's 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 15 – 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 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 March 31, 2016, we had 15 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 the forward natural gas curves, for which a significant portion of the derivative’s term is beyond available forward pricing. 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; 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 New Level 3 instruments (0.2 ) - Settlements included in Revenue (0.5 ) - Unrealized gain/(loss) included in OCI (0.4 ) - Balance, March 31, 2016 $ 2.6 $ 3.0 For the three months ended March 31, 2016, we had no transfers of derivative liabilities out of Level 3 and into Level 2. Transfers relate to long-term over-the-counter swaps for natural gas and NGL products with deliveries for which observable market prices were available. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Loss Contingency [Abstract] | |
Contingencies | Note 17 – 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 the general partner (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. 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 TRP partnership agreement and (ii) TRC, TRP’s general partner, 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 and (e) the TRP GP Board has conflicts of interest due to TRC’s control of TRP’s general partner. Based on these allegations, the State Court Plaintiffs sought to enjoin the State Court Defendants from proceeding with or consummating the TRC/TRP Merger unless and until the TRP GP Board adopted and implemented processes to obtain the best possible terms for TRP common unitholders. The State Court Plaintiffs now seek to have the TRC/TRP Merger rescinded and seek attorneys’ fees. On February 26 and 29, 2016, the State Court Defendants filed general denials and asserted affirmative defenses. 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 challenging the TRC/TRP Merger. On January 6 and 19, 2016, two additional purported unitholders of TRP (the “Federal Court Plaintiffs”) filed two putative class action lawsuits challenging the disclosures made in connection with the TRC/TRP Merger against TRP and the members of the TRP GP Board (the “Federal Court Defendants”). These lawsuits have been consolidated as In re Targa Resources Partners, L.P. Securities Litigation The Federal Court Plaintiffs alleged that (i) the Federal Court Defendants have violated Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder and (ii) the members of the TRP GP Board have violated Section 20(a) of the Exchange Act. The Federal Court Plaintiffs alleged, in general, that the preliminary and definitive joint proxy statements/prospectuses filed in connection with the TRC/TRP Merger failed, among other things, to disclose allegedly material information concerning (i) the TRP GP Conflicts Committee’s financial advisor’s and TRC’s financial advisor’s analyses in connection with the TRC/TRP Merger, (ii) certain TRC and TRP projections, and (iii) the events leading up to the TRC/TRP Merger. The Federal Court Plaintiffs further alleged, 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 and (e) the TRP GP Board has conflicts of interest due to TRC’s control of the general partner. Based on these allegations, the Federal Court Plaintiffs sought to enjoin the Federal Court Defendants from proceeding with or consummating the TRC/TRP Merger unless and until the Federal Court Defendants disclosed the allegedly omitted information summarized above. The Federal Court Plaintiffs also sought damages, attorneys’ fees, and to have the TRC/TRP Merger rescinded. One of the Federal Court Plaintiffs sought a Temporary Restraining Order (“TRO”) to prevent the Federal Court Defendants from proceeding with the TRC/TRP vote and/or merger. On January 29, 2016, this Plaintiff was denied his request for a TRO. On April 20, 2016, the court dismissed the Federal Court Lawsuits without prejudice. Atlas Unitholder Litigation Between October and December 2014, five public unitholders of APL (the “APL Plaintiffs”) filed putative class action lawsuits against APL, ATLS, APL GP, its managers, Targa, the Partnership, the general partner and MLP Merger Sub (the “APL Lawsuit Defendants”). These lawsuits were styled (a) Michael Evnin v. Atlas Pipeline Partners, L.P., et al William B. Federman Family Wealth Preservation Trust v. Atlas Pipeline Partners, L.P., et al., Greenthal Living Trust U/A 01/26/88 v. Atlas Pipeline Partners, L.P., et al Mike Welborn v. Atlas Pipeline Partners, L.P., et al., Irving Feldbaum v. Atlas Pipeline Partners, L.P., et al., Evnin, Greenthal, Welborn and Feldbaum In re Atlas Pipeline Partners, L.P. Unitholder Litigation Rick Kane v. Atlas Energy, L.P., et al. Jeffrey Ayers v. Atlas Energy, L.P., et al. In re Atlas Energy, L.P. Unitholder Litigation Kane The Atlas Lawsuit Plaintiffs alleged a variety of causes of action challenging the Atlas mergers. Generally, the APL Plaintiffs alleged that (a) APL GP’s managers have breached the covenant of good faith and/or their fiduciary duties and (b) Targa, the Partnership, the general partner, MLP Merger Sub, APL, ATLS and APL GP have aided and abetted in these alleged breaches of the covenant of good faith and/or fiduciary duties. The APL Plaintiffs further alleged that (a) the premium offered to APL’s unitholders was inadequate, (b) APL agreed to contractual terms that would allegedly dissuade other potential acquirers from seeking to acquire APL, and (c) APL GP’s managers favored their self-interests over the interests of APL’s unitholders. The APL Plaintiffs in the Consolidated APL Lawsuit also alleged that the registration statement filed on November 19, 2014 failed, among other things, to disclose allegedly material details concerning (i) Stifel, Nicolaus & Company, Incorporated’s analysis of the Atlas mergers; (ii) APL and the Partnership’s financial projections; and (iii) the background of the Atlas mergers. Generally, the ATLS Plaintiffs alleged that (a) ATLS GP’s directors have breached the covenant of good faith and/or their fiduciary duties and (b) Targa, GP Merger Sub, and ATLS have aided and abetted in these alleged breaches of the covenant of good faith and/or fiduciary duties. The ATLS Plaintiffs further alleged that (a) the premium offered to the ATLS unitholders was inadequate, (b) ATLS agreed to contractual terms that would allegedly dissuade other potential acquirers from seeking to acquire ATLS, (c) ATLS GP’s directors favored their self-interests over the interests of the ATLS unitholders and (d) the registration statement failed to disclose allegedly material details concerning, among other things, (i) Wells Fargo Securities, LLC, Stifel, Nicolaus & Company, Incorporated, and Deutsche Bank Securities Inc.’s analyses of the Atlas mergers; (ii) the Partnership, Targa, APL, and ATLS’ financial projections; and (iii) the background of the Atlas mergers. Based on these allegations, the Atlas Lawsuit Plaintiffs sought to enjoin the Atlas Lawsuit Defendants from proceeding with or consummating the Atlas mergers unless and until APL and ATLS adopted and implemented processes to obtain the best possible terms for their respective unitholders. The Atlas Lawsuit Plaintiffs also sought rescission, damages, and attorneys’ fees. The parties to the Consolidated Atlas Lawsuits agreed to settle the Consolidated Atlas Lawsuits on February 9, 2015. In general, the settlements provide that in consideration for the dismissal of the Consolidated Atlas Lawsuits, ATLS and APL would provide supplemental disclosures regarding the Atlas mergers in a filing with the SEC on Form 8-K, which ATLS and APL did on February 11, 2015. The Atlas Lawsuit Defendants agreed to make such supplemental disclosures solely to avoid the uncertainty, risk, burden, and expense inherent in litigation and deny that any supplemental disclosure was or is required under any applicable rule, statute, regulation or law. On January 21, 2016, the Court granted final approval of the settlements in the Consolidated Atlas Lawsuits and dismissed the Consolidated Atlas Lawsuits with prejudice. 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 operated by the Partnership and owned by Versado Gas Processors, L.L.C., which is a joint venture in which we own a 63% interest. 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 and the Partnership are also parties 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 | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note 18 - Supplemental Cash Flow Information Three Months Ended March 31, 2016 2015 Cash: Interest paid, net of capitalized interest (1) $ 82.8 $ 31.4 Income taxes paid, net of refunds 1.0 0.8 Non-cash investing activities: Deadstock commodity inventory transferred to property, plant and equipment 16.9 — Impact of capital expenditure accruals on property, plant and equipment 13.7 30.9 Transfers from materials and supplies inventory to property, plant and equipment 0.5 0.6 Change in ARO liability and property, plant and equipment due to revised future ARO cash flow estimate (9.1 ) 3.7 Non-cash financing activities: Reduction of Owner's Equity related to accrued dividends on unvested equity awards under share compensation arrangements 3.7 1.6 Accrued issue costs associated with Series A Preferred Stock 3.3 — Accrued dividends of preferred stock 3.8 — Non-cash balance sheet movements related to the TRC/TRP Merger: (see Note 2 - Basis of Presentation): Acquisition costs classified in the additional paid in capital $ 4.5 $ — Issuance of common stock 0.1 — Additional paid in capital 3,115.5 — Accumulated other comprehensive income 55.9 — Noncontrolling interests (4,119.9 ) — Deferred tax liability 948.4 — 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 $ — $ 2,436.1 Non-cash merger consideration - common shares and replacement equity awards — 1,013.7 Net non-cash balance sheet movements excluded from consolidated statements of cash flows — 3,449.8 Net cash merger consideration included in investing activities — 1,574.4 Total fair value of consideration transferred $ — $ 5,024.2 (1) Interest capitalized on major projects was $4.8 million and $2.4 million for the three months ended March 31, 2016 and 2015. |
Compensation Plans
Compensation Plans | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation Plans | Note 19 – Compensation Plans Long Term Incentive Plan In connection with the TRC/TRP Merger, as of February 17, 2016, we assumed, adopted, and amended the Targa Resources Partners Long-Term Incentive Plan (“TRP LTIP”), and changed the name of the plan to the Targa Resources Corp. Equity Compensation Plan (as assumed, adopted and amended, the “Plan”), and we assumed all Partnership obligations associated with the Plan existing prior to its assumption and adoption by us. The only outstanding awards under the Plan at the time of the TRC/TRP Merger and immediately prior to the assumption and adoption of the Plan were performance units and certain phantom units of the Partnership. All such outstanding awards were converted at the effective time of the TRC/TRP Merger into comparable time-based restricted stock unit awards based on our common stock, which were assumed and adopted by us and continue to be outstanding and governed by the Plan. On March 2, 2016, we filed a Registration Statement S-8 to register 800,000 shares of common stock issuable under the Plan. The TRC/TRP Merger did not trigger the acceleration of any time-based vesting of any of the Partnership’s outstanding long-term equity incentive compensation awards under the TRP LTIP. 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, and the performance factor was eliminated. 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 February 17, 2016 conversion of equity-settled performance units and replacement phantom units outstanding to equity-settled performance shares and replacement phantom shares was considered modification of awards under ASC 718, Accounting for Stock-Based Compensation The February 17, 2016 conversion of outstanding cash-settled performance units 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 current 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. Additional Grants made under the Plan On March 2, 2016, the Compensation Committee granted restricted stock units awards of 331,282 shares to executive management and employees under the Plan for the 2016 compensation cycle that will cliff vest three years from the grant date. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Note 20 — Segment Information We operate in two primary segments (previously referred to as divisions): (i) Gathering and Processing, and (b) Logistics and Marketing (also referred to as the Downstream Business). Concurrent with the completion of the TRC/TRP Merger, management reevaluated our reportable segments and determined that our previously disclosed divisions are the appropriate level of disclosure 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 March 31, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 110.3 $ 1,033.9 $ 26.8 $ — $ 1,171.0 Fees from midstream services 115.8 155.6 — — 271.4 226.1 1,189.5 26.8 — 1,442.4 Intersegment revenues Sales of commodities 412.6 47.3 — (459.9 ) — Fees from midstream services 2.1 4.1 — (6.2 ) — 414.7 51.4 — (466.1 ) — Revenues $ 640.8 $ 1,240.9 $ 26.8 $ (466.1 ) $ 1,442.4 Operating margin $ 115.6 $ 157.0 $ 26.8 $ (0.1 ) $ 299.3 Other financial information: Total assets (1) $ 10,219.0 $ 2,501.0 $ 105.7 $ 123.5 $ 12,949.2 Goodwill (2) $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 103.0 $ 73.1 $ — $ 0.8 $ 176.9 (1) Corporate assets at the Segment level primarily include tax-related assets, cash and prepaids. (2) Total assets include goodwill. Goodwill has been attributed to our Gathering and Processing segment. Three Months Ended March 31, 2015 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 220.9 $ 1,159.7 $ 21.7 $ (0.1 ) $ 1,402.2 Fees from midstream services 72.0 205.4 — 0.1 277.5 292.9 1,365.1 21.7 (0.0 ) 1,679.7 Intersegment revenues Sales of commodities 278.1 55.9 — (334.0 ) — Fees from midstream services 2.0 4.5 — (6.5 ) — 280.1 60.4 — (340.5 ) — Revenues $ 573.0 $ 1,425.5 $ 21.7 $ (340.5 ) $ 1,679.7 Operating margin $ 87.0 $ 191.3 $ 21.7 $ — $ 300.0 Other financial information: Total assets (1) $ 10,671.8 $ 2,302.5 $ 177.3 $ 217.5 $ 13,369.1 Goodwill (2) $ 557.9 $ — $ — $ — $ 557.9 Capital expenditures $ 95.5 $ 60.7 $ — $ 1.1 $ 157.3 Business acquisition $ 5,024.2 $ — $ — $ — $ 5,024.2 (1) Corporate assets at the Segment level primarily include tax-related assets, cash and prepaids. (2) Total assets include goodwill. Goodwill has been attributed to our Gathering and Processing segment. The following table shows our consolidated revenues by product and service for the periods presented: Three Months Ended March 31, 2016 2015 Sales of commodities: Natural gas $ 326.9 $ 302.1 NGL 785.5 1,030.7 Condensate 22.2 21.3 Petroleum products 9.6 26.4 Derivative activities 26.8 21.7 1,171.0 1,402.2 Fees from midstream services: Fractionating and treating 30.2 49.8 Storage, terminaling, transportation and export 118.4 136.2 Gathering and processing 105.0 68.4 Other 17.8 23.1 271.4 277.5 Total revenues $ 1,442.4 $ 1,679.7 The following table shows a reconciliation of operating margin to net income (loss) for the periods presented: Three Months Ended March 31, 2016 2015 Reconciliation of operating margin to net income: Operating margin $ 299.3 $ 300.0 Depreciation and amortization expense (193.5 ) (118.6 ) General and administrative expense (45.3 ) (42.6 ) Goodwill impairment (24.0 ) - Interest expense, net (52.9 ) (54.1 ) Other, net 18.8 (33.8 ) Income tax expense (3.1 ) (15.2 ) Net income (loss) $ (0.7 ) $ 35.7 |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 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 three months ended March 31, 2016. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs 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 financial statements and accounting practices for leases. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations These amendments are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2017, with early adoption permitted. We expect to adopt this guidance on January 1, 2018 and are continuing to evaluate the impact on our revenue recognition practices. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. An entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. We expect to adopt the amendments in the second quarter of 2016 and are currently evaluating the impacts of the amendments to our financial statements and accounting practices for stock compensation. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. |
Impact of Revisions to Activity
Impact of Revisions to Activity Reported in Statement of Changes in Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Impact of Revisions to Activity Reported in Statement of Changes in Other Comprehensive Income | The following table displays the impact of these revisions to activity reported in our Statement of Changes in Other Comprehensive Income during 2015. Three Months Ended March 31, 2015 March 31, 2015 As Reported As Reported As Reported As Corrected As Corrected As Corrected Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Targa Resources Corp. Commodity hedging contracts: Change in fair value $ 1.8 $ (0.7 ) $ 1.1 $ 2.3 $ (0.9 ) $ 1.4 Settlements reclassified to revenues (0.9 ) 0.3 (0.6 ) (1.4 ) 0.5 (0.9 ) Other comprehensive income (loss) attributable to Targa Resources Corp. 0.9 (0.4 ) 0.5 0.9 (0.4 ) 0.5 Noncontrolling interests Commodity hedging contracts: Change in fair value 23.4 - 23.4 28.0 - 28.0 Settlements reclassified to revenues (7.2 ) - (7.2 ) (11.8 ) - (11.8 ) Other comprehensive income (loss) attributable to noncontrolling interests 16.2 - 16.2 16.2 - 16.2 Total Commodity hedging contracts: Change in fair value 25.2 (0.7 ) 24.5 30.3 (0.9 ) 29.4 Settlements reclassified to revenues (8.1 ) 0.3 (7.8 ) (13.2 ) 0.5 (12.7 ) Other comprehensive income (loss) $ 17.1 $ (0.4 ) $ 16.7 $ 17.1 $ (0.4 ) $ 16.7 Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 As Reported As Corrected As Reported As Corrected Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Targa Resources Corp. Commodity hedging contracts: Change in fair value $ (1.1 ) $ 0.4 $ (0.7 ) $ (0.5 ) $ 0.2 $ (0.3 ) $ 0.6 $ (0.2 ) $ 0.4 $ 2.0 $ (0.6 ) $ 1.4 Settlements reclassified to revenues (1.8 ) 0.7 (1.1 ) (2.4 ) 0.9 (1.5 ) (2.7 ) 1.0 (1.7 ) (4.1 ) 1.4 (2.7 ) Other comprehensive income (loss) attributable to Targa Resources Corp. (2.9 ) 1.1 (1.8 ) (2.9 ) 1.1 (1.8 ) (2.1 ) 0.8 (1.3 ) (2.1 ) 0.8 (1.3 ) Noncontrolling interests Commodity hedging contracts: Change in fair value (7.6 ) - (7.6 ) (3.1 ) - (3.1 ) 15.9 - 15.9 25.0 - 25.0 Settlements reclassified to revenues (14.5 ) - (14.5 ) (19.0 ) - (19.0 ) (21.7 ) - (21.7 ) (30.8 ) - (30.8 ) Other comprehensive income (loss) attributable to noncontrolling interests (22.1 ) - (22.1 ) (22.1 ) - (22.1 ) (5.8 ) - (5.8 ) (5.8 ) - (5.8 ) Total Commodity hedging contracts: Change in fair value (8.7 ) 0.4 (8.3 ) (3.6 ) 0.2 (3.4 ) 16.5 (0.2 ) 16.3 27.0 (0.6 ) 26.4 Settlements reclassified to revenues (16.3 ) 0.7 (15.6 ) (21.4 ) 0.9 (20.5 ) (24.4 ) 1.0 (23.4 ) (34.9 ) 1.4 (33.5 ) Other comprehensive income (loss) $ (25.0 ) $ 1.1 $ (23.9 ) $ (25.0 ) $ 1.1 $ (23.9 ) $ (7.9 ) 0.8 (7.1 ) (7.9 ) 0.8 (7.1 ) Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 As Reported As Corrected As Reported As Corrected Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Targa Resources Corp. Commodity hedging contracts: Change in fair value $ 4.6 $ (1.7 ) $ 2.9 $ 5.5 $ (2.0 ) $ 3.5 $ 5.2 $ (2.0 ) $ 3.2 $ 7.5 $ (2.9 ) $ 4.6 Settlements reclassified to revenues (1.8 ) 0.7 (1.1 ) (2.7 ) 1.0 (1.7 ) (4.5 ) 1.7 (2.8 ) (6.8 ) 2.6 (4.2 ) Other comprehensive income (loss) attributable to Targa Resources Corp. 2.8 (1.0 ) 1.8 2.8 (1.0 ) 1.8 0.7 (0.3 ) 0.4 0.7 (0.3 ) 0.4 Noncontrolling interests Commodity hedging contracts: Change in fair value 38.3 - 38.3 45.2 - 45.2 54.2 - 54.2 70.1 - 70.1 Settlements reclassified to revenues (14.9 ) - (14.9 ) (21.8 ) - (21.8 ) (36.6 ) - (36.6 ) (52.5 ) - (52.5 ) Other comprehensive income (loss) attributable to noncontrolling interests 23.4 - 23.4 23.4 - 23.4 17.6 - 17.6 17.6 - 17.6 Total Commodity hedging contracts: Change in fair value 42.9 (1.7 ) 41.2 50.7 (2.0 ) 48.7 59.4 (2.0 ) 57.4 77.6 (2.9 ) 74.7 Settlements reclassified to revenues (16.7 ) 0.7 (16.0 ) (24.5 ) 1.0 (23.5 ) (41.1 ) 1.7 (39.4 ) (59.3 ) 2.6 (56.7 ) Other comprehensive income (loss) $ 26.2 $ (1.0 ) $ 25.2 $ 26.2 $ (1.0 ) $ 25.2 $ 18.3 $ (0.3 ) $ 18.0 $ 18.3 $ (0.3 ) $ 18.0 2015 2015 As Reported As Corrected Pre-Tax Related Income Tax After Tax Pre-Tax Related Income Tax After Tax Targa Resources Corp. Commodity hedging contracts: Change in fair value $ 7.4 $ (2.8 ) $ 4.6 $ 11.0 $ (4.2 ) $ 6.8 Settlements reclassified to revenues (5.9 ) 2.2 (3.7 ) (9.5 ) 3.6 (5.9 ) Other comprehensive income (loss) attributable to Targa Resources Corp. 1.5 (0.6 ) 0.9 1.5 (0.6 ) 0.9 Noncontrolling interests Commodity hedging contracts: Change in fair value 73.8 - 73.8 101.7 - 101.7 Settlements reclassified to revenues (48.9 ) - (48.9 ) (76.8 ) - (76.8 ) Other comprehensive income (loss) attributable to noncontrolling interests 24.9 - 24.9 24.9 - 24.9 Total Commodity hedging contracts: Change in fair value 81.2 (2.8 ) 78.4 112.7 (4.2 ) 108.5 Settlements reclassified to revenues (54.8 ) 2.2 (52.6 ) (86.3 ) 3.6 (82.7 ) Other comprehensive income (loss) $ 26.4 $ (0.6 ) 25.8 26.4 (0.6 ) 25.8 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Pro Forma Consolidated Results of Operations | The following summarized unaudited pro forma Consolidated Statement of Operations information for the three months ended March 31, 2015 assumes that the Partnership’s acquisition of APL and our 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 these acquisitions as of January 1, 2014, or that the results that will be attained in the future. Amounts presented below are in millions. March 31, 2015 Pro Forma Revenues $ 1,994.0 Net income 18.0 |
Consideration Transferred to Acquire ATLS and APL | The following table summarizes the consideration transferred to acquire ATLS and APL: Fair Value of Consideration Transferred: Cash paid, net of cash acquired (1): TRC $ 745.7 TRP 828.7 Common shares of TRC 1,008.5 Replacement restricted stock units awarded (2) 5.2 Common units of TRP 2,421.1 Replacement phantom units awarded (2) 15.0 Total $ 5,024.2 (1) Net of cash acquired of $40.8 million. (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. |
Fair Value Determination Related to the Atlas Mergers | Our fair value determination related to the Atlas mergers was as follows. Fair value determination: February 27, 2015 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 (259.3 ) Long-term debt (1,573.3 ) Deferred income tax liabilities, net (13.6 ) Other long-term liabilities (119.1 ) Total identifiable net assets 4,534.1 Noncontrolling interest in subsidiaries (216.9 ) Goodwill 707.0 Total fair value of consideration transferred $ 5,024.2 |
Changes in Gross Amounts of Goodwill and Impairment Loss | Changes in the gross amounts of our goodwill and impairment loss are as follows: WestTX SouthTX SouthOK Total Beginning of period January 1, 2015 $ — $ — $ — $ — Acquisition February 27, 2015 364.5 160.3 182.2 707.0 Provisional Impairment (37.6 ) (70.2 ) (182.2 ) (290.0 ) Goodwill December 31, 2015 326.9 90.1 — 417.0 Additional Impairment (14.4 ) (9.6 ) — (24.0 ) Goodwill March 31, 2016 $ 312.5 $ 80.5 $ — $ 393.0 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | March 31, 2016 December 31, 2015 Commodities $ 49.2 $ 128.3 Materials and supplies 12.5 12.7 $ 61.7 $ 141.0 |
Property, Plant and Equipment32
Property, Plant and Equipment and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment And Intangible Assets [Abstract] | |
Property, Plant and Equipment and Intangible Assets | Property, Plant and Equipment March 31, 2016 December 31, 2015 Estimated Useful Lives (In Years) Gathering systems $ 6,357.8 $ 6,304.5 5 to 20 Processing and fractionation facilities 3,003.1 2,995.2 5 to 25 Terminaling and storage facilities 1,173.9 1,115.0 5 to 25 Transportation assets 454.7 454.0 10 to 25 Other property, plant and equipment 215.5 221.1 3 to 25 Land 108.8 108.8 — Construction in progress 800.8 736.5 — Property, plant and equipment 12,114.6 11,935.1 Accumulated depreciation (2,380.0 ) (2,232.4 ) Property, plant and equipment, net $ 9,734.6 $ 9,702.7 Intangible assets $ 2,036.6 $ 2,036.6 20 Accumulated amortization (271.5 ) (226.5 ) Intangible assets, net $ 1,765.1 $ 1,810.1 |
Schedule of Intangible Assets | 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. March 31, 2016 December 31, 2015 Beginning of period $ 1,810.1 $ 591.9 Additions from acquisition — 1,354.9 Amortization (45.0 ) (136.7 ) Intangible assets, net $ 1,765.1 $ 1,810.1 |
Investments in Unconsolidated33
Investments in Unconsolidated Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Activity Related to Partnership's Investments in Unconsolidated Affiliates | The following table shows the activity related to our investments in unconsolidated affiliates: GCF T2 LaSalle T2 Eagle Ford T2 Cogen Total December 31, 2015 $ 49.5 $ 63.6 $ 123.8 $ 22.0 $ 258.9 Equity earnings (loss) (1.0 ) (1.6 ) (1.3 ) (0.9 ) (4.8 ) Cash distributions (1) (3.0 ) — — (0.4 ) (3.4 ) Cash calls for expansion projects — — 4.2 — 4.2 March 31, 2016 $ 45.5 $ 62.0 $ 126.7 $ 20.7 $ 254.9 (1) Includes $3.4 million in distributions received from GCF and T2 Joint Ventures in excess of our share of cumulative earnings for the three months ended March 31, 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 34
Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | March 31, 2016 December 31, 2015 Commodities $ 322.5 $ 385.2 Other goods and services 97.7 142.9 Interest 65.6 81.0 Compensation and benefits 16.5 16.0 Income and other taxes 19.1 13.4 Other 19.6 18.6 $ 541.0 $ 657.1 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | March 31, 2016 December 31, 2015 Current: Obligations of the Partnership Accounts receivable securitization facility, due December 2016 (1) $ 150.0 $ 219.3 Long-term: TRC obligations: TRC Senior secured revolving credit facility, variable rate, due February 2020 (2) 275.0 440.0 TRC Senior secured term loan, variable rate, due February 2022 160.0 160.0 Unamortized discount (2.5 ) (2.5 ) Obligations of the Partnership: (1) Senior secured revolving credit facility, variable rate, due October 2017 (3) - 280.0 Senior unsecured notes, 5% fixed rate, due January 2018 935.1 1,100.0 Senior unsecured notes, 4 ⅛ 749.4 800.0 Senior unsecured notes, 6 ⅝ 309.9 342.1 Unamortized premium 4.3 5.0 Senior unsecured notes, 6 ⅞ 478.6 483.6 Unamortized discount (20.9 ) (22.1 ) Senior unsecured notes, 6 ⅜ 278.7 300.0 Senior unsecured notes, 5 ¼ 559.6 583.7 Senior unsecured notes, 4¼% fixed rate, due November 2023 583.9 623.5 Senior unsecured notes, 6¾% fixed rate, due March 2024 580.1 600.0 Senior unsecured APL notes, 6 ⅝ 12.9 12.9 Unamortized premium 0.2 0.2 Senior unsecured APL notes, 4¾% fixed rate, due November 2021 (5) 6.5 6.5 Senior unsecured APL notes, 5⅞% fixed rate, due August 2023 (5) 48.1 48.1 Unamortized premium 0.5 0.5 4,959.4 5,761.5 Debt issuance costs (38.2 ) (42.7 ) Total long-term debt 4,921.2 5,718.8 Total debt $ 5,071.2 $ 5,938.1 Irrevocable standby letters of credit: Letters of credit outstanding under the TRC Senior secured credit facility (2) $ — $ — Letters of credit outstanding under the Partnership senior secured revolving credit facility (3) 12.2 12.9 $ 12.2 $ 12.9 (1) While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. (2) As of March 31, 2016, availability under TRC’s $670.0 million senior secured revolving credit facility was $395.0 million. (3) As of March 31, 2016, availability under the Partnership’s $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1.6 billion. (4) In May 2015, the Partnership exchanged TRP 6⅝% Senior Notes with the same economic terms to holders of the 6⅝% APL Notes that validly tendered such notes for exchange to us. (5) APL debt is not guaranteed by us or the Partnership. |
Range of Interest Rates and Weighted Average Interest Rate Incurred on Variable Rate Debt Obligations | The following table shows the range of interest rates and weighted average interest rate incurred on variable-rate debt obligations during the three months ended March 31, 2016: Range of Interest Rates Incurred Weighted Average Interest Rate Incurred TRC senior secured revolving credit facility 2.3% - 4.5% 2.5% TRC senior secured term loan 5.75% 5.75% Partnership's senior secured revolving credit facility 2.6% - 4.8% 2.7% Partnership's accounts receivable securitization facility 1.2% 1.2% |
Summary of Debt Repurchased on Open Market Portion of Outstanding Senior Notes | During the quarter ended March 31, 2016, the Partnership repurchased on the open market a portion of its outstanding Senior Notes as follows: Debt Issue Repurchased Book Value Payment Gain/Loss Write-off of Debt Issue 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 164.9 (164.5 ) 0.4 (1.0 ) (0.6 ) 4⅛% Senior Notes 50.6 (44.2 ) 6.4 (0.4 ) 6.0 $ 357.7 $ (330.6 ) $ 27.1 $ (2.4 ) $ 24.7 |
Summary of Payment Obligations for Debt Instruments | The following summarizes payment obligations for debt instruments after giving effect to 2016 debt repurchases. Payments Due By Period Less Than More Than Total 1 Year 1-3 Years 3-5 Years 5 Years (in millions) Partnership Senior Unsecured Debt: Debt obligations (1) $ 4,542.8 $ - $ 935.1 $ 1,550.8 $ 2,056.9 Interest on debt obligations (2) 1,378.1 191.9 476.5 376.5 333.2 $ 5,920.9 $ 191.9 $ 1,411.6 $ 1,927.3 $ 2,390.1 (1) Represents scheduled future maturities of consolidated debt obligations for the periods indicated. (2) Represents interest expense on debt obligations based on both fixed debt interest rates and prevailing March 31, 2016 rates for floating debt. Subsequent Events In April 2016, the Partnership repurchased on the open market a portion of its outstanding 5% Senior Notes paying $96.4 million to repurchase $96.0 million of the outstanding balance of the 5% Senior Notes. |
Other Long-term Liabilities (Ta
Other Long-term Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Liabilities Noncurrent [Abstract] | |
Schedule of Other Long-term Liabilities | Other long-term liabilities are comprised of the following obligations: March 31, 2016 December 31, 2015 Asset retirement obligations $ 62.5 $ 70.4 Mandatorily redeemable preferred interests 64.1 82.9 Deferred revenue and other 29.2 26.9 Total long-term liabilities $ 155.8 $ 180.2 |
Changes in Aggregate Asset Retirement Obligations | The changes in our ARO are as follows: March 31, 2016 Beginning of period $ 70.4 Change in cash flow estimate (9.1 ) Accretion expense 1.2 End of period $ 62.5 |
Schedule of Changes in Long-term Liabilities Attributable to Mandatorily Redeemable Preferred Interests | The following table shows the changes attributable to mandatorily redeemable preferred interests: March 31, 2016 Beginning of period $ 82.9 Income (loss) attributable to mandatorily redeemable preferred interests (0.3 ) Change in estimated redemption value (18.5 ) End of period $ 64.1 |
Preferred Stock (Tables)
Preferred Stock (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Accounting for Series A preferred stock | The following table summarizes the accounting for our Series A preferred stock: Allocation of Proceeds Additional Paid-in Capital Preferred Series A Series A Warrants Series B Warrants Beneficial Conversion Feature (BCF) Gross proceeds $ 994.1 Transaction fees (23.7 ) Net Proceeds- Initial Relative Fair Value Allocation $ 970.4 $ 788.0 $ 135.9 $ 46.5 $ — Allocation to BCF (614.4 ) — — 614.4 Per Balance sheet $ 173.6 $ 135.9 $ 46.5 $ 614.4 |
Partnership Units and Related38
Partnership Units and Related Matters (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Partners Capital [Abstract] | |
Schedule of Distributions | The following table details the distributions declared and paid by the Partnership, net of the IDR Giveback, for the three months ended March 31, 2016: Distributions Limited Partners General Partner Three Months Ended Date Paid Distributions per limited partner unit Common Incentive 2% Total Distributions to Targa Resources Corp. (In millions, except per unit amounts) December 31, 2015 February 9, 2016 $ 0.8250 $ 152.5 $ 43.9 $ 4.0 $ 200.4 $ 61.4 |
Common Stock and Related Matt39
Common Stock and Related Matters (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Class Of Stock Disclosures [Abstract] | |
Dividends Declared and/or Paid | The following table details the dividends declared and/or paid by us to common shareholders for the three months ended March 31, 2016: Three Months Ended Date Paid or To Be Paid Total Dividends Declared Amount of Dividends Paid or To Be Paid Accrued Dividends (1) Dividend Declared per Share of Common Stock (In millions, except per share amounts) March 31, 2016 May 16, 2016 $ 147.8 $ 146.1 $ 1.7 $ 0.91000 December 31, 2015 February 9, 2016 51.7 51.0 0.7 0.91000 (1) Represents accrued dividends on restricted stock units that are payable upon vesting. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income and Weighted Average Shares Outstanding Used in Computing Basic and Diluted Net Income Per Common Share | The following table sets forth a reconciliation of net income and weighted average shares outstanding used in computing basic and diluted net income per common share: Three Months Ended March 31, 2016 2015 Net income $ (0.7 ) $ 35.7 Less: Net income attributable to noncontrolling interests 2.0 32.5 Less: Dividends on preferred stock 3.8 — Net income attributable to common shareholders for basic earnings per share $ (6.5 ) $ 3.2 Weighted average shares outstanding - basic 106.6 45.8 Net income available per common share - basic $ (0.06 ) $ 0.07 Weighted average shares outstanding 106.6 45.8 Dilutive effect of unvested stock awards — 0.1 Weighted average shares outstanding - diluted 106.6 45.9 Net income available per common share - diluted $ (0.06 ) $ 0.07 |
Summary of Potential Common Stock Equivalents Excluded from Determination of Diluted Earnings Per Share | The following potential common stock equivalents are excluded from the determination of diluted earnings per share because the inclusion of such shares would have been anti-dilutive (in millions on a weighted-average basis): Three Months Ended March 31, 2016 2015 Unvested restricted stock awards 0.1 — Warrants to purchase common stock 2.0 — Series A Preferred Stock 13.8 — |
Derivative Instruments and He41
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Notional Volume of Commodity Hedges | At March 31, 2016, the notional volumes of our commodity derivative contracts were: Commodity Instrument Unit 2016 2017 2018 Natural Gas Swaps MMBtu/d 91,840 53,982 30,900 Natural Gas Basis Swaps MMBtu/d 43,309 18,082 - Natural Gas Options MMBtu/d 22,900 22,900 9,486 NGL Swaps Bbl/d 4,812 1,688 818 NGL Futures Bbl/d 4,331 274 - NGL Options Bbl/d 920 920 32 Condensate Swaps Bbl/d 2,375 1,400 900 Condensate Options Bbl/d 790 790 101 |
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 March 31, 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 $ 82.4 $ 1.7 $ 92.1 $ 2.1 Long-term 25.2 7.9 34.9 2.4 Total derivatives designated as hedging instruments $ 107.6 $ 9.6 $ 127.0 $ 4.5 Derivatives not designated as hedging instruments Commodity contracts Current $ — $ 0.3 $ 0.1 $ 3.1 Total derivatives not designated as hedging instruments $ — $ 0.3 $ 0.1 $ 3.1 Total current position $ 82.4 $ 2.0 $ 92.2 $ 5.2 Total long-term position 25.2 7.9 34.9 2.4 Total derivatives $ 107.6 $ 9.9 $ 127.1 $ 7.6 |
Pro Forma Impact of Derivatives Net in Consolidated Balance Sheet | The pro forma impact of reporting derivatives in the Consolidated Balance Sheets on a net basis is as follows: Gross Presentation Pro forma net presentation March 31, 2016 Asset Liability Asset Liability Current Position Counterparties with offsetting positions $ 79.4 $ 2.0 $ 77.4 $ - Counterparties without offsetting positions - assets 3.0 - 3.0 - Counterparties without offsetting positions - liabilities - - - - 82.4 2.0 80.4 - Long Term Position Counterparties with offsetting positions 25.2 7.7 17.5 - Counterparties without offsetting positions - assets - - - - Counterparties without offsetting positions - liabilities - 0.2 - 0.2 25.2 7.9 17.5 0.2 Total Derivatives Counterparties with offsetting positions 104.6 9.7 94.9 - Counterparties without offsetting positions - assets 3.0 - 3.0 - Counterparties without offsetting positions - liabilities - 0.2 - 0.2 $ 107.6 $ 9.9 $ 97.9 $ 0.2 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 March 31, Hedging Relationships 2016 2015 Commodity contracts $ 6.7 $ 30.3 Gain (Loss) Reclassified from OCI into Income (Effective Portion) Three Months Ended March 31, Location of Gain (Loss) 2016 2015 Revenues $ (24.2 ) $ (13.2 ) $ (24.2 ) $ (13.2 ) |
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 Recognized in Income on Three Months Ended March 31, Derivatives Not Designated as Hedging Instruments Derivatives 2016 2015 Commodity contracts Revenue $ 1.8 $ 7.2 |
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 before income taxes through the end of 2018 based on valuations as of the balance sheet date: March 31, 2016 December 31, 2015 Commodity hedges, before tax (1) $ 69.3 $ 86.8 (1) Includes deferred net gains of $58.9 million as of March 31, 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) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Breakdown by Fair Value Hierarchy Category for Financial Instruments Included in Consolidated Balance Sheets | The following table shows a breakdown by fair value hierarchy category for (1) financial instruments measurements included in our Consolidated Balance Sheets at fair value and (2) supplemental fair value disclosures for other financial instruments: March 31, 2016 Carrying Fair Value Value Total Level 1 Level 2 Level 3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value Assets from commodity derivative contracts (1) $ 104.4 $ 104.4 $ - $ 101.0 $ 3.4 Liabilities from commodity derivative contracts (1) 6.7 6.7 - 5.9 0.8 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 114.5 114.5 - - - TRC Senior secured revolving credit facility 275.0 275.0 - 275.0 - TRC Term Loan 157.5 158.7 - 158.7 - Partnership's Senior secured revolving credit facility - - - - - Partnership's Senior unsecured notes 4,526.9 4,357.1 - 4,357.1 - Partnership's accounts receivable securitization facility 150.0 150.0 - 150.0 - December 31, 2015 Carrying Fair Value Value Total Level 1 Level 2 Level 3 Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value: Assets from commodity derivative contracts (1) $ 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 140.2 140.2 - - - TRC Senior secured revolving credit facility 440.0 440.0 - 440.0 - TRC Term Loan 157.5 158.3 - 158.3 - Partnership's Senior secured revolving credit facility 280.0 280.0 - 280.0 - Partnership's Senior unsecured notes 4,884.0 4,192.0 - 4,192.0 - Partnership's 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 15 – 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 New Level 3 instruments (0.2 ) - Settlements included in Revenue (0.5 ) - Unrealized gain/(loss) included in OCI (0.4 ) - Balance, March 31, 2016 $ 2.6 $ 3.0 |
Supplemental Cash Flow Inform43
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Three Months Ended March 31, 2016 2015 Cash: Interest paid, net of capitalized interest (1) $ 82.8 $ 31.4 Income taxes paid, net of refunds 1.0 0.8 Non-cash investing activities: Deadstock commodity inventory transferred to property, plant and equipment 16.9 — Impact of capital expenditure accruals on property, plant and equipment 13.7 30.9 Transfers from materials and supplies inventory to property, plant and equipment 0.5 0.6 Change in ARO liability and property, plant and equipment due to revised future ARO cash flow estimate (9.1 ) 3.7 Non-cash financing activities: Reduction of Owner's Equity related to accrued dividends on unvested equity awards under share compensation arrangements 3.7 1.6 Accrued issue costs associated with Series A Preferred Stock 3.3 — Accrued dividends of preferred stock 3.8 — Non-cash balance sheet movements related to the TRC/TRP Merger: (see Note 2 - Basis of Presentation): Acquisition costs classified in the additional paid in capital $ 4.5 $ — Issuance of common stock 0.1 — Additional paid in capital 3,115.5 — Accumulated other comprehensive income 55.9 — Noncontrolling interests (4,119.9 ) — Deferred tax liability 948.4 — 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 $ — $ 2,436.1 Non-cash merger consideration - common shares and replacement equity awards — 1,013.7 Net non-cash balance sheet movements excluded from consolidated statements of cash flows — 3,449.8 Net cash merger consideration included in investing activities — 1,574.4 Total fair value of consideration transferred $ — $ 5,024.2 (1) Interest capitalized on major projects was $4.8 million and $2.4 million for the three months ended March 31, 2016 and 2015. |
Compensation Plans (Tables)
Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [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 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable segment information is shown in the following tables. Three Months Ended March 31, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 110.3 $ 1,033.9 $ 26.8 $ — $ 1,171.0 Fees from midstream services 115.8 155.6 — — 271.4 226.1 1,189.5 26.8 — 1,442.4 Intersegment revenues Sales of commodities 412.6 47.3 — (459.9 ) — Fees from midstream services 2.1 4.1 — (6.2 ) — 414.7 51.4 — (466.1 ) — Revenues $ 640.8 $ 1,240.9 $ 26.8 $ (466.1 ) $ 1,442.4 Operating margin $ 115.6 $ 157.0 $ 26.8 $ (0.1 ) $ 299.3 Other financial information: Total assets (1) $ 10,219.0 $ 2,501.0 $ 105.7 $ 123.5 $ 12,949.2 Goodwill (2) $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 103.0 $ 73.1 $ — $ 0.8 $ 176.9 (1) Corporate assets at the Segment level primarily include tax-related assets, cash and prepaids. (2) Total assets include goodwill. Goodwill has been attributed to our Gathering and Processing segment. Three Months Ended March 31, 2015 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 220.9 $ 1,159.7 $ 21.7 $ (0.1 ) $ 1,402.2 Fees from midstream services 72.0 205.4 — 0.1 277.5 292.9 1,365.1 21.7 (0.0 ) 1,679.7 Intersegment revenues Sales of commodities 278.1 55.9 — (334.0 ) — Fees from midstream services 2.0 4.5 — (6.5 ) — 280.1 60.4 — (340.5 ) — Revenues $ 573.0 $ 1,425.5 $ 21.7 $ (340.5 ) $ 1,679.7 Operating margin $ 87.0 $ 191.3 $ 21.7 $ — $ 300.0 Other financial information: Total assets (1) $ 10,671.8 $ 2,302.5 $ 177.3 $ 217.5 $ 13,369.1 Goodwill (2) $ 557.9 $ — $ — $ — $ 557.9 Capital expenditures $ 95.5 $ 60.7 $ — $ 1.1 $ 157.3 Business acquisition $ 5,024.2 $ — $ — $ — $ 5,024.2 (1) Corporate assets at the Segment level primarily include tax-related assets, cash and prepaids. (2) Total assets include goodwill. Goodwill has been attributed to our Gathering and Processing segment. |
Revenues by Product and Service | The following table shows our consolidated revenues by product and service for the periods presented: Three Months Ended March 31, 2016 2015 Sales of commodities: Natural gas $ 326.9 $ 302.1 NGL 785.5 1,030.7 Condensate 22.2 21.3 Petroleum products 9.6 26.4 Derivative activities 26.8 21.7 1,171.0 1,402.2 Fees from midstream services: Fractionating and treating 30.2 49.8 Storage, terminaling, transportation and export 118.4 136.2 Gathering and processing 105.0 68.4 Other 17.8 23.1 271.4 277.5 Total revenues $ 1,442.4 $ 1,679.7 |
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 March 31, 2016 2015 Reconciliation of operating margin to net income: Operating margin $ 299.3 $ 300.0 Depreciation and amortization expense (193.5 ) (118.6 ) General and administrative expense (45.3 ) (42.6 ) Goodwill impairment (24.0 ) - Interest expense, net (52.9 ) (54.1 ) Other, net 18.8 (33.8 ) Income tax expense (3.1 ) (15.2 ) Net income (loss) $ (0.7 ) $ 35.7 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) $ in Millions | Feb. 17, 2016shares | Mar. 31, 2016USD ($)shares | Dec. 31, 2015shares |
Business Acquisition [Line Items] | |||
Ownership interest in Partnership by general partner | 2.00% | ||
Parent's ownership interest in the general partner of the Partnership | 100.00% | ||
Number of Partnership common units owned (in units) | 16,309,594 | ||
Ownership interest in Partnership by limited partner | 8.80% | ||
Conversion ratio in stock-for-unit transaction | 0.62 | ||
Number of shares issued in exchange of common units for common shares to the third party (in shares) | 104,525,775 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Targa Resources Partners LP [Member] | |||
Business Acquisition [Line Items] | |||
Conversion ratio in stock-for-unit transaction | 0.62 | ||
Number of shares exchanged in exchange of common units for common shares to the third party (in shares) | 168,590,009 | ||
Deferred tax liability | $ | $ 950 | ||
Deferred tax liabilities computed over book basis | $ | 9,000 | ||
Deferred tax liabilities excess over tax basis | $ | $ 6,500 | ||
Tax basis statutory tax rate | 37.11% | ||
Targa Resources Partners LP [Member] | Series A Cumulative Redeemable Perpetual Preferred Units [Member] | |||
Business Acquisition [Line Items] | |||
Preferred stock, shares outstanding (in shares) | 5,000,000 | ||
Preferred units dividend percentage | 9.00% |
Impact of Revisions to Activi47
Impact of Revisions to Activity Reported in Statement of Changes in Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2015 | |
Commodity hedging contracts: | |||||||
Change in fair value, pre-tax | $ 50.7 | $ (3.6) | $ 30.3 | $ 27 | $ 77.6 | $ 112.7 | |
Settlements reclassified to revenues, pre-tax | (24.5) | (21.4) | (13.2) | (34.9) | (59.3) | (86.3) | |
Other comprehensive income (loss), pre-tax | $ (17.5) | 26.2 | (25) | 17.1 | (7.9) | 18.3 | 26.4 |
Commodity hedging contracts: | |||||||
Change in fair value, related income tax | (2) | 0.2 | (0.9) | (0.6) | (2.9) | (4.2) | |
Settlements reclassified to revenues, related income tax | 1 | 0.9 | 0.5 | 1.4 | 2.6 | 3.6 | |
Other comprehensive income (loss), related income tax | 11.7 | (1) | 1.1 | (0.4) | 0.8 | (0.3) | (0.6) |
Commodity hedging contracts: | |||||||
Change in fair value, after tax | 48.7 | (3.4) | 29.4 | 26.4 | 74.7 | 108.5 | |
Settlements reclassified to revenues, after tax | (23.5) | (20.5) | (12.7) | (33.5) | (56.7) | (82.7) | |
Other comprehensive income (loss), after tax | $ (5.8) | 25.2 | (23.9) | 16.7 | (7.1) | 18 | 25.8 |
Noncontrolling Interests [Member] | |||||||
Commodity hedging contracts: | |||||||
Change in fair value, pre-tax | 45.2 | (3.1) | 28 | 25 | 70.1 | 101.7 | |
Settlements reclassified to revenues, pre-tax | (21.8) | (19) | (11.8) | (30.8) | (52.5) | (76.8) | |
Other comprehensive income (loss), pre-tax | 23.4 | (22.1) | 16.2 | (5.8) | 17.6 | 24.9 | |
Commodity hedging contracts: | |||||||
Change in fair value, after tax | 45.2 | (3.1) | 28 | 25 | 70.1 | 101.7 | |
Settlements reclassified to revenues, after tax | (21.8) | (19) | (11.8) | (30.8) | (52.5) | (76.8) | |
Other comprehensive income (loss), after tax | 23.4 | (22.1) | 16.2 | (5.8) | 17.6 | 24.9 | |
Targa Resources Partners LP [Member] | |||||||
Commodity hedging contracts: | |||||||
Change in fair value, pre-tax | 5.5 | (0.5) | 2.3 | 2 | 7.5 | 11 | |
Settlements reclassified to revenues, pre-tax | (2.7) | (2.4) | (1.4) | (4.1) | (6.8) | (9.5) | |
Other comprehensive income (loss), pre-tax | 2.8 | (2.9) | 0.9 | (2.1) | 0.7 | 1.5 | |
Commodity hedging contracts: | |||||||
Change in fair value, related income tax | (2) | 0.2 | (0.9) | (0.6) | (2.9) | (4.2) | |
Settlements reclassified to revenues, related income tax | 1 | 0.9 | 0.5 | 1.4 | 2.6 | 3.6 | |
Other comprehensive income (loss), related income tax | (1) | 1.1 | (0.4) | 0.8 | (0.3) | (0.6) | |
Commodity hedging contracts: | |||||||
Change in fair value, after tax | 3.5 | (0.3) | 1.4 | 1.4 | 4.6 | 6.8 | |
Settlements reclassified to revenues, after tax | (1.7) | (1.5) | (0.9) | (2.7) | (4.2) | (5.9) | |
Other comprehensive income (loss), after tax | 1.8 | (1.8) | 0.5 | (1.3) | 0.4 | 0.9 | |
Scenario, Previously Reported | |||||||
Commodity hedging contracts: | |||||||
Change in fair value, pre-tax | 42.9 | (8.7) | 25.2 | 16.5 | 59.4 | 81.2 | |
Settlements reclassified to revenues, pre-tax | (16.7) | (16.3) | (8.1) | (24.4) | (41.1) | (54.8) | |
Other comprehensive income (loss), pre-tax | 26.2 | (25) | 17.1 | (7.9) | 18.3 | 26.4 | |
Commodity hedging contracts: | |||||||
Change in fair value, related income tax | (1.7) | 0.4 | (0.7) | (0.2) | (2) | (2.8) | |
Settlements reclassified to revenues, related income tax | 0.7 | 0.7 | 0.3 | 1 | 1.7 | 2.2 | |
Other comprehensive income (loss), related income tax | (1) | 1.1 | (0.4) | 0.8 | (0.3) | (0.6) | |
Commodity hedging contracts: | |||||||
Change in fair value, after tax | 41.2 | (8.3) | 24.5 | 16.3 | 57.4 | 78.4 | |
Settlements reclassified to revenues, after tax | (16) | (15.6) | (7.8) | (23.4) | (39.4) | (52.6) | |
Other comprehensive income (loss), after tax | 25.2 | (23.9) | 16.7 | (7.1) | 18 | 25.8 | |
Scenario, Previously Reported | Noncontrolling Interests [Member] | |||||||
Commodity hedging contracts: | |||||||
Change in fair value, pre-tax | 38.3 | (7.6) | 23.4 | 15.9 | 54.2 | 73.8 | |
Settlements reclassified to revenues, pre-tax | (14.9) | (14.5) | (7.2) | (21.7) | (36.6) | (48.9) | |
Other comprehensive income (loss), pre-tax | 23.4 | (22.1) | 16.2 | (5.8) | 17.6 | 24.9 | |
Commodity hedging contracts: | |||||||
Change in fair value, after tax | 38.3 | (7.6) | 23.4 | 15.9 | 54.2 | 73.8 | |
Settlements reclassified to revenues, after tax | (14.9) | (14.5) | (7.2) | (21.7) | (36.6) | (48.9) | |
Other comprehensive income (loss), after tax | 23.4 | (22.1) | 16.2 | (5.8) | 17.6 | 24.9 | |
Scenario, Previously Reported | Targa Resources Partners LP [Member] | |||||||
Commodity hedging contracts: | |||||||
Change in fair value, pre-tax | 4.6 | (1.1) | 1.8 | 0.6 | 5.2 | 7.4 | |
Settlements reclassified to revenues, pre-tax | (1.8) | (1.8) | (0.9) | (2.7) | (4.5) | (5.9) | |
Other comprehensive income (loss), pre-tax | 2.8 | (2.9) | 0.9 | (2.1) | 0.7 | 1.5 | |
Commodity hedging contracts: | |||||||
Change in fair value, related income tax | (1.7) | 0.4 | (0.7) | (0.2) | (2) | (2.8) | |
Settlements reclassified to revenues, related income tax | 0.7 | 0.7 | 0.3 | 1 | 1.7 | 2.2 | |
Other comprehensive income (loss), related income tax | (1) | 1.1 | (0.4) | 0.8 | (0.3) | (0.6) | |
Commodity hedging contracts: | |||||||
Change in fair value, after tax | 2.9 | (0.7) | 1.1 | 0.4 | 3.2 | 4.6 | |
Settlements reclassified to revenues, after tax | (1.1) | (1.1) | (0.6) | (1.7) | (2.8) | (3.7) | |
Other comprehensive income (loss), after tax | $ 1.8 | $ (1.8) | $ 0.5 | $ (1.3) | $ 0.4 | $ 0.9 |
Significant Accounting Polici48
Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Unamortized debt issuance costs | [1] | $ 38.2 | $ 42.7 |
Accounting Standards Update201503 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prior Period Reclassification Adjustment | $ 42.7 | ||
[1] | While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) | Feb. 27, 2015USD ($)$ / sharesshares | Mar. 31, 2015USD ($) | Mar. 31, 2016USD ($)MMcf / dmi$ / shares | Mar. 31, 2015USD ($) | Mar. 31, 2016USD ($)$ / shares | Dec. 31, 2015$ / shares |
Business Acquisition [Line Items] | ||||||
Percentage of general partner's interest maintained | 2.00% | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Acquisition-related expenses | $ 26,000,000 | $ 27,300,000 | ||||
Revenues from acquired business | $ 160,600,000 | |||||
Net income (loss) from acquired business | 3,400,000 | |||||
Targa Pipeline Partners LP [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Processing capacity | MMcf / d | 2,053 | |||||
Length of additional pipelines | mi | 12,220 | |||||
Atlas Energy [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interest in common units | 100.00% | |||||
Purchase consideration | $ 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 stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||||
Acquisition-related expenses | $ 11,000,000 | |||||
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] | ||||||
Total distribution of common shares (in shares) | shares | 10,126,532 | |||||
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] | Restricted Stock Units (RSUs) [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total distribution of common shares (in shares) | shares | 81,740 | |||||
Atlas Energy [Member] | Change Of Control Payments [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash payments related to acquisition | $ 149,200,000 | |||||
Atlas Energy [Member] | Equity Award Settlements [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash payments related to acquisition | $ 88,000,000 | |||||
Atlas Energy [Member] | Targa Resources Partners LP [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 Pipeline Partners [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Amount contributed to maintain general partner ownership percentage | $ 52,400,000 | |||||
Percentage of general partner's interest maintained | 2.00% | |||||
Atlas Pipeline Partners [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] | 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] | Targa Resources Partners LP [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase consideration | $ 5,300,000,000 | |||||
Acquired debt and all other assumed liabilities included in 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] | Targa Resources Partners LP [Member] | Class E Preferred Units [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Preferred units dividend percentage | 8.25% | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [Member] | Change Of Control Payments [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash payments related to acquisition | $ 28,800,000 | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [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] | Targa Resources Partners LP [Member] | Distribution Rights Year 1 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Reduction in incentive distribution | $ 9,375,000 | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [Member] | Distribution Rights Year 2 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Reduction in incentive distribution | 6,250,000 | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [Member] | Distribution Rights Year 3 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Reduction in incentive distribution | 2,500,000 | |||||
Atlas Pipeline Partners [Member] | Targa Resources Partners LP [Member] | Distribution Rights Year 4 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Reduction in incentive distribution | $ 1,250,000 |
Business Acquisitions - Pro For
Business Acquisitions - Pro Forma Impact of Atlas Mergers on Consolidated Statements of Operations (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Pro forma consolidated results of operations [Abstract] | |
Revenues | $ 1,994 |
Net income | $ 18 |
Business Acquisitions - Pro F51
Business Acquisitions - Pro Forma Impact of Atlas Mergers on Consolidated Statements of Operations (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | |
Pro forma consolidated results of operations [Abstract] | |||
Acquisition-related expenses | $ 26 | $ 27.3 | |
Atlas Resource Partners, LP [Member] | |||
Pro forma consolidated results of operations [Abstract] | |||
Percentage of equity interest sold | 100.00% |
Business Acquisitions - Fair Va
Business Acquisitions - Fair Value of Consideration Transferred (Details) - USD ($) $ in Millions | Feb. 27, 2015 | Mar. 31, 2015 | ||
Fair Value of Consideration Transferred [Abstract] | ||||
Cash paid, net of cash acquired | $ 745.7 | [1] | $ 1,574.4 | |
Total fair value of consideration transferred | 5,024.2 | $ 5,024.2 | ||
Replacement Restricted Stock Units (RSUs) [Member] | ||||
Fair Value of Consideration Transferred [Abstract] | ||||
Common shares of TRC | [2] | 5.2 | ||
Replacement Phantom Units [Member] | ||||
Fair Value of Consideration Transferred [Abstract] | ||||
Common shares of TRC | [2] | 15 | ||
Targa Resources Partners LP [Member] | ||||
Fair Value of Consideration Transferred [Abstract] | ||||
Cash paid, net of cash acquired | [1] | 828.7 | ||
Common Stock [Member] | ||||
Fair Value of Consideration Transferred [Abstract] | ||||
Common shares of TRC | 1,008.5 | |||
Common Units [Member] | Targa Resources Partners LP [Member] | ||||
Fair Value of Consideration Transferred [Abstract] | ||||
Common shares of TRC | $ 2,421.1 | |||
[1] | Net of cash acquired of $40.8 million. | |||
[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. |
Business Acquisitions - Fair 53
Business Acquisitions - Fair Value of Consideration Transferred (Parenthetical) (Details) $ in Millions | Feb. 27, 2015USD ($) |
Fair Value of Consideration Transferred [Abstract] | |
Cash acquired from acquisition | $ 40.8 |
Business Acquisitions - Fair 54
Business Acquisitions - Fair Value Determination Related to Mergers (Details) - USD ($) $ in Millions | Mar. 31, 2016 | [1] | Dec. 31, 2015 | Mar. 31, 2015 | 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 | (259.3) | ||||||
Long-term debt | (1,573.3) | ||||||
Deferred income tax liabilities, net | (13.6) | ||||||
Other long-term liabilities | (119.1) | ||||||
Total identifiable net assets | 4,534.1 | ||||||
Noncontrolling interest in subsidiaries | (216.9) | ||||||
Goodwill, net of impairment provisions | $ 393 | $ 417 | $ 557.9 | [1] | 707 | $ 0 | |
Total fair value of consideration transferred | $ 5,024.2 | $ 5,024.2 | |||||
[1] | Total assets include goodwill. Goodwill has been attributed to our Gathering and Processing segment. |
Business Acquisitions - Addit55
Business Acquisitions - Additional Information Pro Forma Impact of Atlas Mergers on Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | ||||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Feb. 27, 2015 | Dec. 31, 2014 | |||
Measurement-period adjustments to preliminary acquisition date fair values [Abstract] | |||||||
Depreciation and amortization expenses | $ 193.5 | $ 118.6 | |||||
Equity earnings (loss) | (4.8) | 1.9 | |||||
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 | ||||||
Fair value determination [Abstract] | |||||||
Goodwill, net of impairment provisions | $ 393 | [1] | 557.9 | [1] | $ 417 | $ 707 | $ 0 |
Measurement Period Adjustments [Member] | |||||||
Measurement-period adjustments to preliminary acquisition date fair values [Abstract] | |||||||
Depreciation and amortization expenses | (1) | ||||||
Equity earnings (loss) | $ 0.3 | ||||||
[1] | Total assets include goodwill. Goodwill has been attributed to our Gathering and Processing segment. |
Business Acquisitions - Addit56
Business Acquisitions - Additional Information Mandatorily Redeemable Preferred Interests (Details) $ in Millions | Mar. 31, 2016USD ($)JointVenture | Dec. 31, 2015USD ($) |
Redeemable Noncontrolling Interest [Line Items] | ||
Other long-term liabilities | $ 155.8 | $ 180.2 |
Mandatorily Redeemable Noncontrolling Interests [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Number of joint ventures | JointVenture | 2 | |
Other long-term liabilities | $ 109.3 |
Business Acquisitions - Addit57
Business Acquisitions - Additional Information Contingent Consideration, Replacement Restricted Stock Units and Replacement Phantom Units (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015 | |
Replacement Restricted Stock Units (RSUs) [Member] | ||
Business Acquisition [Line Items] | ||
Vesting period of original term | 4 years | |
Number of common units called by replacement equity unit (in shares) | 1 | |
Dividend payment period | 60 days | |
Replacement Restricted Stock Units (RSUs) [Member] | Vesting Term One [Member] | ||
Business Acquisition [Line Items] | ||
Vesting percentage original term | 25.00% | |
Replacement Restricted Stock Units (RSUs) [Member] | Vesting Term Two [Member] | ||
Business Acquisition [Line Items] | ||
Vesting percentage original term | 25.00% | |
Replacement Restricted Stock Units (RSUs) [Member] | Vesting Term Three [Member] | ||
Business Acquisition [Line Items] | ||
Vesting percentage original term | 75.00% | |
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- Addition
Business Acquisitions- Additional Information Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Feb. 27, 2015 | Dec. 31, 2014 | |||
Business Combinations [Abstract] | ||||||||
Goodwill, net of impairment provisions | $ 393 | [1] | $ 417 | $ 557.9 | [1] | $ 417 | $ 707 | $ 0 |
Goodwill impairment | $ 24 | $ 290 | $ 0 | $ 290 | ||||
[1] | Total assets include goodwill. Goodwill has been attributed to our Gathering and Processing segment. |
Business Acquisitions, Goodwill
Business Acquisitions, Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |||
Goodwill [Roll Forward] | ||||||
Beginning of period January 1, 2015 | $ 417 | $ 0 | $ 0 | |||
Acquisition February 27, 2015 | 707 | |||||
Provisional Impairment | (24) | $ (290) | 0 | (290) | ||
Goodwill December 31, 2015 | 393 | [1] | 417 | 557.9 | [1] | 417 |
West Texas LPG Pipeline Limited Partnership [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Beginning of period January 1, 2015 | 326.9 | 0 | 0 | |||
Acquisition February 27, 2015 | 364.5 | |||||
Provisional Impairment | (14.4) | (37.6) | ||||
Goodwill December 31, 2015 | 312.5 | 326.9 | 326.9 | |||
SouthTX [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Beginning of period January 1, 2015 | 90.1 | 0 | 0 | |||
Acquisition February 27, 2015 | 160.3 | |||||
Provisional Impairment | (9.6) | (70.2) | ||||
Goodwill December 31, 2015 | 80.5 | 90.1 | 90.1 | |||
SouthOK [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Beginning of period January 1, 2015 | 0 | $ 0 | 0 | |||
Acquisition February 27, 2015 | 182.2 | |||||
Provisional Impairment | 0 | (182.2) | ||||
Goodwill December 31, 2015 | $ 0 | $ 0 | $ 0 | |||
[1] | Total assets include goodwill. Goodwill has been attributed to our Gathering and Processing segment. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Commodities | $ 49.2 | $ 128.3 |
Materials and supplies | 12.5 | 12.7 |
Inventories, net | $ 61.7 | $ 141 |
Property, Plant and Equipment61
Property, Plant and Equipment and Intangible Assets - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 12,114.6 | $ 11,935.1 | |
Accumulated depreciation | (2,380) | (2,232.4) | |
Property, plant and equipment, net | 9,734.6 | 9,702.7 | |
Intangible assets | 2,036.6 | 2,036.6 | |
Accumulated amortization | (271.5) | (226.5) | |
Intangible assets, net | $ 1,765.1 | $ 1,810.1 | $ 591.9 |
Estimated useful lives | 20 years | 20 years | |
Gathering Systems [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 6,357.8 | $ 6,304.5 | |
Gathering Systems [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Gathering Systems [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 20 years | ||
Processing and Fractionation Facilities [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 3,003.1 | 2,995.2 | |
Processing and Fractionation Facilities [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Processing and Fractionation Facilities [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 25 years | ||
Terminaling and Storage Facilities [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 1,173.9 | 1,115 | |
Terminaling and Storage Facilities [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Terminaling and Storage Facilities [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 25 years | ||
Transportation Assets [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 454.7 | 454 | |
Transportation Assets [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years | ||
Transportation Assets [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 25 years | ||
Other Property, Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 215.5 | 221.1 | |
Other Property, Plant and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Other Property, Plant and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 25 years | ||
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 108.8 | 108.8 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 800.8 | $ 736.5 |
Property, Plant and Equipment62
Property, Plant and Equipment and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment And Intangible Assets [Abstract] | ||
Additions from acquisition | $ 1,354.9 | |
Estimated useful lives | 20 years | 20 years |
Property, Plant and Equipment63
Property, Plant and Equipment and Intangible Assets - Intangible Assets Acquired (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Finite Lived Intangible Assets Roll Forward | ||
Beginning of period | $ 1,810.1 | $ 591.9 |
Additions from acquisition | 1,354.9 | |
Amortization | (45) | (136.7) |
Intangible assets, net | $ 1,765.1 | $ 1,810.1 |
Investments in Unconsolidated64
Investments in Unconsolidated Affiliates - Additional Information (Details) - Targa Resources Partners LP [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)JointVenture | |
Gulf Coast Fractionators LP [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 38.80% |
T2 Joint Ventures [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Number of non-operated joint ventures acquired in Atlas mergers | JointVenture | 3 |
Basis difference on preliminary fair values | $ | $ 39.9 |
Preliminary estimated useful lives of the underlying assets | 20 years |
T2 LaSalle [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 75.00% |
T2 Eagle Ford [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 50.00% |
T2 EF Co-Gen [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 50.00% |
Investments in Unconsolidated65
Investments in Unconsolidated Affiliates - Activity Related to Partnership's Investments in Unconsolidated Affiliates (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Schedule of Equity Method Investments [Line Items] | |||
Beginning of period | $ 258.9 | ||
Equity earnings (loss) | (4.8) | $ 1.9 | |
End of period | 254.9 | ||
Targa Resources Partners LP [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Beginning of period | 258.9 | ||
Equity earnings (loss) | (4.8) | ||
Cash distributions | [1] | (3.4) | |
Cash calls for expansion projects | 4.2 | ||
End of period | 254.9 | ||
Targa Resources Partners LP [Member] | Gulf Coast Fractionators LP [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Beginning of period | 49.5 | ||
Equity earnings (loss) | (1) | ||
Cash distributions | [1] | (3) | |
End of period | 45.5 | ||
Targa Resources Partners LP [Member] | T2 LaSalle [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Beginning of period | 63.6 | ||
Equity earnings (loss) | (1.6) | ||
End of period | 62 | ||
Targa Resources Partners LP [Member] | T2 Eagle Ford [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Beginning of period | 123.8 | ||
Equity earnings (loss) | (1.3) | ||
Cash calls for expansion projects | 4.2 | ||
End of period | 126.7 | ||
Targa Resources Partners LP [Member] | T2 EF Co-Gen [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Beginning of period | 22 | ||
Equity earnings (loss) | (0.9) | ||
Cash distributions | [1] | (0.4) | |
End of period | $ 20.7 | ||
[1] | Includes $3.4 million in distributions received from GCF and T2 Joint Ventures in excess of our share of cumulative earnings for the three months ended March 31, 2016. Such excess distributions are considered a return of capital and disclosed in cash flows from investing activities in the Consolidated Statements of Cash Flows. |
Investments in Unconsolidated66
Investments in Unconsolidated Affiliates - Activity Related to Partnership's Investments in Unconsolidated Affiliates (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||
Return of capital from unconsolidated affiliate | $ 3.4 | $ 0.6 |
Targa Resources Partners LP [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Return of capital from unconsolidated affiliate | $ 3.4 |
Accounts Payable and Accrued 67
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Components of accounts payable and accrued liabilities [Abstract] | ||
Commodities | $ 322.5 | $ 385.2 |
Other goods and services | 97.7 | 142.9 |
Interest | 65.6 | 81 |
Compensation and benefits | 16.5 | 16 |
Income and other taxes | 19.1 | 13.4 |
Other | 19.6 | 18.6 |
Accounts payable and accrued liabilities | $ 541 | $ 657.1 |
Accounts Payable and Accrued 68
Accounts Payable and Accrued Liabilities - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Outstanding checks | $ 24.3 | $ 34.2 |
Debt Obligations - Summary Of D
Debt Obligations - Summary Of Debt Obligations (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Long-term [Abstract] | |||
Long-term debt | $ 4,921.2 | $ 5,718.8 | |
Long-term debt including Unamortized premium(discount) and Debt issuance costs | [1] | 4,959.4 | 5,761.5 |
Debt issuance costs | [1] | (38.2) | (42.7) |
Total debt | [1] | 5,071.2 | 5,938.1 |
Letters of credit outstanding | 12.2 | 12.9 | |
Secured Debt [Member] | TRC Senior Secured Term Loan due February 2022 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | 160 | 160 | |
Unamortized discount | (2.5) | (2.5) | |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1],[2],[3] | 12.9 | 12.9 |
Unamortized premium | [1] | 0.2 | 0.2 |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 4 3/4% Notes due November 2021 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1],[2] | 6.5 | 6.5 |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 5 7/8% Notes due August 2023 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1],[2] | 48.1 | 48.1 |
Unamortized premium | [1] | 0.5 | 0.5 |
Revolving Credit Facility [Member] | TRC Senior Secured Revolving Credit Facility due February 2020 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [4] | 275 | 440 |
Targa Resources Partners LP [Member] | TRP Senior Secured Revolving Credit Facility due October 2017 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1],[5] | 0 | 280 |
Targa Resources Partners LP [Member] | Accounts Receivable Securitization Facility [Member] | Accounts Receivable Securitization Facility Due December 2016 [Member] | |||
Current Obligations of the Partnership [Abstract] | |||
Current debt | [1] | 150 | 219.3 |
Targa Resources Partners LP [Member] | Secured Debt [Member] | TRC Senior Secured Revolving Credit Facility [Member] | |||
Long-term [Abstract] | |||
Letters of credit outstanding | [4] | 0 | 0 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 935.1 | 1,100 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 4 1/8% notes due November 2019 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 749.4 | 800 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1],[3] | 309.9 | 342.1 |
Unamortized premium | [1] | 4.3 | 5 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 7/8% Notes due February 2021 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1],[3] | 478.6 | 483.6 |
Unamortized discount | [1] | (20.9) | (22.1) |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 3/8% Notes due August 2022 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 278.7 | 300 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5 1/4% Notes due May 2023 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 559.6 | 583.7 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 4 1/4% Notes due November 2023 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 583.9 | 623.5 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 3/4% Notes due March 2024 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 580.1 | 600 |
Targa Resources Partners LP [Member] | Revolving Credit Facility [Member] | TRP Senior Secured Revolving Credit Facility due October 2017 [Member] | |||
Long-term [Abstract] | |||
Letters of credit outstanding | [5] | $ 12.2 | $ 12.9 |
[1] | While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. | ||
[2] | APL debt is not guaranteed by us or the Partnership. | ||
[3] | In May 2015, the Partnership exchanged TRP 6⅝% Senior Notes with the same economic terms to holders of the 6⅝% APL Notes that validly tendered such notes for exchange to us. | ||
[4] | As of March 31, 2016, availability under TRC’s $670.0 million senior secured revolving credit facility was $395.0 million. | ||
[5] | As of March 31, 2016, availability under the Partnership’s $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1.6 billion. |
Debt Obligations - Summary Of70
Debt Obligations - Summary Of Debt Obligations (Parenthetical) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Revolving Credit Facility [Member] | TRC Senior Secured Revolving Credit Facility due February 2020 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Feb. 29, 2020 |
Maximum borrowing capacity | $ 670 |
Remaining borrowing capacity | $ 395 |
Secured Debt [Member] | TRC Senior Secured Term Loan due February 2022 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Feb. 28, 2022 |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Oct. 1, 2020 |
Interest rate on fixed rate debt | 6.625% |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 4 3/4% Notes due November 2021 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Nov. 15, 2021 |
Interest rate on fixed rate debt | 4.75% |
Senior Unsecured Notes [Member] | Atlas Pipeline Partners [Member] | Senior Unsecured 5 7/8% Notes due August 2023 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Aug. 1, 2023 |
Interest rate on fixed rate debt | 5.875% |
Targa Resources Partners LP [Member] | Accounts Receivable Securitization Facility [Member] | Accounts Receivable Securitization Facility Due December 2016 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Dec. 31, 2016 |
Targa Resources Partners LP [Member] | Revolving Credit Facility [Member] | TRP Senior Secured Revolving Credit Facility due October 2017 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Oct. 31, 2017 |
Maximum borrowing capacity | $ 1,600 |
Remaining borrowing capacity | $ 1,600 |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Jan. 15, 2018 |
Interest rate on fixed rate debt | 5.00% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 4 1/8% notes due November 2019 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Nov. 15, 2019 |
Interest rate on fixed rate debt | 4.125% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 5/8% Notes due October 2020 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Oct. 1, 2020 |
Interest rate on fixed rate debt | 6.625% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 7/8% Notes due February 2021 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Feb. 1, 2021 |
Interest rate on fixed rate debt | 6.875% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 3/8% Notes due August 2022 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Aug. 1, 2022 |
Interest rate on fixed rate debt | 6.375% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5 1/4% Notes due May 2023 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | May 1, 2023 |
Interest rate on fixed rate debt | 5.25% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 4 1/4% Notes due November 2023 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Nov. 15, 2023 |
Interest rate on fixed rate debt | 4.25% |
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 6 3/4% Notes due March 2024 [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Mar. 15, 2024 |
Interest rate on fixed rate debt | 6.75% |
Debt Obligations - Range of Int
Debt Obligations - Range of Interest Rates and Weighted Average Interest Rate Incurred on Variable Rate Debt Obligations (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Range of interest rates incurred, minimum | 2.30% |
Range of interest rates incurred, maximum | 4.50% |
Weighted average interest rate incurred | 2.50% |
Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Range of interest rates incurred | 5.75% |
Weighted average interest rate incurred | 5.75% |
Targa Resources Partners LP [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Range of interest rates incurred, minimum | 2.60% |
Range of interest rates incurred, maximum | 4.80% |
Weighted average interest rate incurred | 2.70% |
Targa Resources Partners LP [Member] | Accounts Receivable Securitization Facility [Member] | |
Debt Instrument [Line Items] | |
Range of interest rates incurred | 1.20% |
Weighted average interest rate incurred | 1.20% |
Debt Obligations - Summary of72
Debt Obligations - Summary of Debt Repurchased on Open Market Portion of Outstanding Senior Notes (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | $ 357.7 |
Open market purchases of senior notes | (330.6) |
Gain/Loss on Debt Repurchase | 27.1 |
Debt Repurchase, Write-off of Debt Issue Costs | (2.4) |
Net Gain (loss) on Debt Repurchase | 24.7 |
5¼% Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | 24.1 |
Open market purchases of senior notes | (20.1) |
Gain/Loss on Debt Repurchase | 4 |
Debt Repurchase, Write-off of Debt Issue 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 |
Open market purchases of senior notes | (31.8) |
Gain/Loss on Debt Repurchase | 7.7 |
Debt Repurchase, Write-off of Debt Issue 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 |
Open market purchases of senior notes | (4.3) |
Gain/Loss on Debt Repurchase | 0.5 |
Debt Repurchase, Write-off of Debt Issue 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 |
Open market purchases of senior notes | (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 |
Open market purchases of senior notes | (18.7) |
Gain/Loss on Debt Repurchase | 2.6 |
Debt Repurchase, Write-off of Debt Issue 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 |
Open market purchases of senior notes | (17.5) |
Gain/Loss on Debt Repurchase | 2.4 |
Debt Repurchase, Write-off of Debt Issue Costs | (0.2) |
Net Gain (loss) on Debt Repurchase | 2.2 |
5% Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | 164.9 |
Open market purchases of senior notes | (164.5) |
Gain/Loss on Debt Repurchase | 0.4 |
Debt Repurchase, Write-off of Debt Issue Costs | (1) |
Net Gain (loss) on Debt Repurchase | (0.6) |
4⅛% Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Repurchase, Book Value | 50.6 |
Open market purchases of senior notes | (44.2) |
Gain/Loss on Debt Repurchase | 6.4 |
Debt Repurchase, Write-off of Debt Issue Costs | (0.4) |
Net Gain (loss) on Debt Repurchase | $ 6 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Contractual Obligations (Details) $ in Millions | Mar. 31, 2016USD ($) | |
Contractual Obligation [Line Items] | ||
Total | $ 5,920.9 | |
Less Than 1 Year | 191.9 | |
1-3 Years | 1,411.6 | |
3-5 Years | 1,927.3 | |
More Than 5 Tears | 2,390.1 | |
Debt Obligations [Member] | ||
Contractual Obligation [Line Items] | ||
Total | 4,542.8 | [1] |
1-3 Years | 935.1 | [1] |
3-5 Years | 1,550.8 | [1] |
More Than 5 Tears | 2,056.9 | [1] |
Interest On Debt Obligations [Member] | ||
Contractual Obligation [Line Items] | ||
Total | 1,378.1 | [2] |
Less Than 1 Year | 191.9 | [2] |
1-3 Years | 476.5 | [2] |
3-5 Years | 376.5 | [2] |
More Than 5 Tears | $ 333.2 | [2] |
[1] | Represents scheduled future maturities of consolidated debt obligations for the periods indicated. | |
[2] | Represents interest expense on debt obligations based on both fixed debt interest rates and prevailing March 31, 2016 rates for floating debt. |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Details) - USD ($) $ in Millions | Apr. 30, 2016 | Mar. 31, 2016 |
Debt Instrument [Line Items] | ||
Open market purchases of senior notes | $ 330.6 | |
Debt Repurchase, Book Value | 357.7 | |
5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Open market purchases of senior notes | 164.5 | |
Debt Repurchase, Book Value | $ 164.9 | |
Subsequent Event | 5% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Open market purchases of senior notes | $ 96.4 | |
Debt Repurchase, Book Value | $ 96 |
Other Long-term Liabilities - S
Other Long-term Liabilities - Schedule of Other Long-term Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Noncurrent [Abstract] | ||
Asset retirement obligations | $ 62.5 | $ 70.4 |
Mandatorily redeemable preferred interests | 64.1 | 82.9 |
Deferred revenue and other | 29.2 | 26.9 |
Total long-term liabilities | $ 155.8 | $ 180.2 |
Other Long-term Liabilities - C
Other Long-term Liabilities - Changes in Aggregate Asset Retirement Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Changes in aggregate asset retirement obligations [Roll Forward] | ||
Beginning of period | $ 70.4 | |
Change in cash flow estimate | (9.1) | $ 3.7 |
Accretion expense | 1.2 | $ 1.3 |
End of period | $ 62.5 |
Other Long-term Liabilities, Ma
Other Long-term Liabilities, Mandatorily Redeemable Preferred Interests (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | |
Beginning of period | $ 82.9 |
Change in estimated redemption value | 18.5 |
End of period | 64.1 |
Mandatorily Redeemable Noncontrolling Interests [Member] | |
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | |
Beginning of period | 82.9 |
Income (loss) attributable to mandatorily redeemable preferred interests | (0.3) |
Change in estimated redemption value | (18.5) |
End of period | $ 64.1 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Class Of Stock [Line Items] | |
Gross proceeds | $ 994.1 |
Preferred stock redemption premium percentage in sixth year | 10.00% |
Preferred stock redemption premium percentage in sixth year and thereafter | 5.00% |
Preferred stock redemption premium percentage in twelfth year | 10.00% |
Volume Weighted Average Share Price | $ / shares | $ 18.88 |
Preferred stock redemption premium percentage in twelfth year and thereafter | 120.00% |
Preferred stock premium change in next twelve month | 25.00% |
Preferred stock premium change in two year | 20.00% |
Preferred stock premium change in three year | 15.00% |
Preferred stock premium change in four year | 10.00% |
Preferred stock premium change in five year | 5.00% |
Term of preferred stock warrants | 7 years |
Maximum number of common shares would be issued upon conversion of warrants | shares | 20,083,731 |
Liquidated damage percentage multiplier for the first 60 days | 0.25% |
Additional liquidated damage percentage multiplier for each 60 subsequent days | 0.25% |
Liquidated damage percentage for 61-120 days | 0.50% |
Liquidation damage percentage for 121-180 days | 0.75% |
Liquidation damage percentage thereafter | 1.00% |
Liquidation damage percentage multiplier thereafter | 1.00% |
Net Proceeds- Initial Relative Fair Value Allocation | $ 970.4 |
Transaction fees | 23.7 |
Allocation to BCF | $ 614.4 |
Accounting Conversion Price Of Convertible Preferred Stock | $ / shares | $ 17.02 |
Conversion price of preferred stock into common stock | $ / shares | $ 20.77 |
Accrued preferred dividend | $ 3.8 |
Maximum [Member] | |
Class Of Stock [Line Items] | |
Incurrence of indebtedness other than stipulated fixed charge coverage | $ 2,750 |
Series A Warrants [Member] | |
Class Of Stock [Line Items] | |
Preferred stock, shares issued to investors | shares | 13,550,004 |
Exercise price of warrants | $ / shares | $ 18.88 |
Net Proceeds- Initial Relative Fair Value Allocation | $ 135.9 |
Series B Warrants [Member] | |
Class Of Stock [Line Items] | |
Preferred stock, shares issued to investors | shares | 6,533,727 |
Exercise price of warrants | $ / shares | $ 25.11 |
Net Proceeds- Initial Relative Fair Value Allocation | $ 46.5 |
Series A Preferred Stock | |
Class Of Stock [Line Items] | |
Net Proceeds- Initial Relative Fair Value Allocation | 788 |
Allocation to BCF | $ (614.4) |
Series A Preferred Stock | |
Class Of Stock [Line Items] | |
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 1,000 |
Preferred Series A Liquidation Stock Percentage | 9.50% |
Preferred stock dividend payment terms | fixed dividend payable quarterly 45 days after the end of each fiscal quarter |
Preferred stock, discount on shares | $ 177.1 |
Maximum number of common share would be issued upon conversion of preferred share | shares | 46,466,057 |
Private Placement [Member] | Series A Warrants [Member] | |
Class Of Stock [Line Items] | |
Conversion of warrant into preferred stock | shares | 13,550,004 |
Private Placement [Member] | Series B Warrants [Member] | |
Class Of Stock [Line Items] | |
Conversion of warrant into preferred stock | shares | 6,533,727 |
Private Placement [Member] | Series A Preferred Stock | |
Class Of Stock [Line Items] | |
Preferred stock, shares issued to investors | shares | 965,100 |
Accounting for Series A Preferr
Accounting for Series A Preferred Stock (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Class Of Stock [Line Items] | |
Proceeds from issuance of preferred stock and warrants | $ 994.1 |
Transaction fees | (23.7) |
Net Proceeds- Initial Relative Fair Value Allocation | 970.4 |
Allocation to BCF | 614.4 |
Per Balance sheet | 614.4 |
Series A Preferred Stock | |
Class Of Stock [Line Items] | |
Net Proceeds- Initial Relative Fair Value Allocation | 788 |
Allocation to BCF | (614.4) |
Per Balance sheet | 173.6 |
Series A Warrants [Member] | |
Class Of Stock [Line Items] | |
Net Proceeds- Initial Relative Fair Value Allocation | 135.9 |
Per Balance sheet | 135.9 |
Series B Warrants [Member] | |
Class Of Stock [Line Items] | |
Net Proceeds- Initial Relative Fair Value Allocation | 46.5 |
Per Balance sheet | $ 46.5 |
Partnership Units and Related80
Partnership Units and Related Matters - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 19, 2016 | Mar. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Preferred units, outstanding | 5,000,000 | |
Distribution to preferred unitholders | $ 2.8 | |
Distributions declared | $ 154.8 | |
Distributions declaration date | Mar. 31, 2016 | |
Distributions payable date | May 12, 2016 | |
Partnership Equity [Abstract] | ||
Number of days from end of each quarter by when cash is distributed to unit holders | 45 days | |
Subsequent Event | ||
Schedule of Equity Method Investments [Line Items] | ||
Distributions declaration date | Apr. 19, 2016 | |
Distributions payable date | May 16, 2016 | |
Distributions declared | $ 0.1875 |
Partnership Units and Related81
Partnership Units and Related Matters - Summary of Distributions Declared and (or) Paid by Partnership, Net of IDR Giveback (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | |
Distributions declared and/or paid by the Partnership [Abstract] | |||
Distributions payable date | May 12, 2016 | ||
Distributions to limited partners common | $ 141.7 | $ 85.9 | |
Distributions Declared [Member] | |||
Distributions declared and/or paid by the Partnership [Abstract] | |||
Distributions payable date | Feb. 9, 2016 | ||
Distributions per limited partner unit | $ 0.8250 | ||
Distributions to limited partners common | $ 152.5 | ||
Distributions to general partners (Incentive) | 43.9 | ||
Distributions to general partners (2%) | 4 | ||
Total distributions to general and limited partners | 200.4 | ||
Distributions to Targa Resources Corp. | $ 61.4 |
Common Stock and Related Matt82
Common Stock and Related Matters - Dividends Declared And Or Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Dividends Payable [Line Items] | |||
Amount of Dividends Paid | $ 51.4 | $ 32.4 | |
Dividend Declared, Q1 2016 [Member] | |||
Dividends Payable [Line Items] | |||
Date Paid or To Be Paid | May 16, 2016 | ||
Total Dividends Declared | $ 147.8 | ||
Accrued Dividends | [1] | $ 1.7 | |
Dividend Declared per Share of Common Stock | $ 0.91000 | ||
Amount of Dividends To Be Paid | $ 146.1 | ||
Dividend Declared, Q4 2015 [Member] | |||
Dividends Payable [Line Items] | |||
Date Paid or To Be Paid | Feb. 9, 2016 | ||
Total Dividends Declared | $ 51.7 | ||
Amount of Dividends Paid | 51 | ||
Accrued Dividends | [1] | $ 0.7 | |
Dividend Declared per Share of Common Stock | $ 0.91000 | ||
[1] | Represents accrued dividends on restricted stock units that are payable upon vesting. |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income | $ (0.7) | $ 35.7 |
Less: Net income (loss) attributable to noncontrolling interests | 2 | 32.5 |
Less: Dividends on preferred stock | 3.8 | |
Net income (loss) attributable to common shareholders | $ (6.5) | $ 3.2 |
Weighted average shares outstanding - basic (in shares) | 106.6 | 45.8 |
Net income available per common share - basic (in dollars per share) | $ (0.06) | $ 0.07 |
Weighted average shares outstanding - basic (in shares) | 106.6 | 45.8 |
Dilutive effect of unvested stock awards (in shares) | 0 | 0.1 |
Weighted average shares outstanding - diluted (in shares) | 106.6 | 45.9 |
Net income available per common share - diluted (in dollars per share) | $ (0.06) | $ 0.07 |
Earnings per Common Share - Sum
Earnings per Common Share - Summary of Potential Common Stock Equivalents Excluded from Determination of Diluted Earnings Per Share (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2016shares | |
Unvested Restricted Stock Awards [Member] | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive shares excluded from the determination of diluted earnings per share (in shares) | 0.1 |
Warrants to Purchase Common Stock [Member] | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive shares excluded from the determination of diluted earnings per share (in shares) | 2 |
Series A Preferred Stock | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive shares excluded from the determination of diluted earnings per share (in shares) | 13.8 |
Derivative Instruments and He85
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Feb. 27, 2015 | |
Derivative Line [Items] | ||||
Fair value of derivative assets | $ 102.1 | |||
Pro forma net presentation, asset | $ 97.7 | |||
Targa Resources Partners LP [Member] | 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 | 8.7 | $ 67.9 | ||
Ineffectiveness gains | $ 1 | |||
Targa Resources Partners LP [Member] | Atlas Pipeline Partners [Member] | Maximum [Member] | ||||
Derivative Line [Items] | ||||
Ineffectiveness gains | $ 0.1 |
Derivative Instruments and He86
Derivative Instruments and Hedging Activities - Notional Volumes Of The Partnership's Commodity Derivative Contracts (Details) - Targa Resources Partners LP [Member] | 3 Months Ended |
Mar. 31, 2016MMBTUbbl | |
Year 2016 [Member] | Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 91,840 |
Year 2016 [Member] | Swaps [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 4,812 |
Year 2016 [Member] | Swaps [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 2,375 |
Year 2016 [Member] | Basis Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 43,309 |
Year 2016 [Member] | Options [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 22,900 |
Year 2016 [Member] | Options [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 920 |
Year 2016 [Member] | Options [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 790 |
Year 2016 [Member] | Future [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 4,331 |
Year 2017 [Member] | Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 53,982 |
Year 2017 [Member] | Swaps [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 1,688 |
Year 2017 [Member] | Swaps [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 1,400 |
Year 2017 [Member] | Basis Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 18,082 |
Year 2017 [Member] | Options [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 22,900 |
Year 2017 [Member] | Options [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 920 |
Year 2017 [Member] | Options [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 790 |
Year 2017 [Member] | Future [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 274 |
Year 2018 [Member] | Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 30,900 |
Year 2018 [Member] | Swaps [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 818 |
Year 2018 [Member] | Swaps [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 900 |
Year 2018 [Member] | Basis Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 |
Year 2018 [Member] | Options [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 9,486 |
Year 2018 [Member] | Options [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 32 |
Year 2018 [Member] | Options [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 101 |
Year 2018 [Member] | Future [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Derivative Instruments and He87
Derivative Instruments and Hedging Activities, Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 107.6 | $ 127.1 |
Derivative liabilities | 9.9 | 7.6 |
Current Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 82.4 | 92.2 |
Long-Term Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 25.2 | 34.9 |
Current Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 2 | 5.2 |
Long-Term Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 7.9 | 2.4 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 107.6 | 127 |
Derivative liabilities | 9.6 | 4.5 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 82.4 | 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 | 25.2 | 34.9 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 1.7 | 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 | 7.9 | 2.4 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0.3 | 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 | |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-Term Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 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 | $ 0.3 | $ 3.1 |
Derivative Instruments and He88
Derivative Instruments and Hedging Activities - Pro Forma Impact Of Offsetting Assets (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative Asset [Abstract] | ||
Derivative assets | $ 107.6 | $ 127.1 |
Pro forma net presentation, asset | 97.7 | |
Pro forma net presentation, asset, total | 97.9 | 119.5 |
Counterparties with Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 104.6 | 121.1 |
Gross liability | 9.7 | 7.6 |
Pro forma net presentation, asset | 94.9 | 113.5 |
Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 3 | 6 |
Pro forma net presentation, asset, total | 3 | 6 |
Current Assets from Risk Management Activities [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 82.4 | |
Derivative assets | 82.4 | 92.2 |
Pro forma net presentation, asset, current | 80.4 | 87 |
Current Assets from Risk Management Activities [Member] | Counterparties with Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 79.4 | 86.9 |
Gross liability | 2 | 5.2 |
Pro forma net presentation, asset | 77.4 | 81.7 |
Current Assets from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 3 | 5.3 |
Pro forma net presentation, asset, current | 3 | 5.3 |
Long-Term Assets from Risk Management Activities [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 25.2 | |
Derivative assets | 25.2 | 34.9 |
Pro forma net presentation, asset, noncurrent | 17.5 | 32.5 |
Long-Term Assets from Risk Management Activities [Member] | Counterparties with Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 25.2 | 34.2 |
Gross liability | 7.7 | 2.4 |
Pro forma net presentation, asset | $ 17.5 | 31.8 |
Long-Term Assets from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 0.7 | |
Pro forma net presentation, asset, noncurrent | $ 0.7 |
Derivative Instruments and He89
Derivative Instruments and Hedging Activities - Pro Forma Impact Of Offsetting Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative Liability [Abstract] | ||
Gross liability | $ 9.9 | $ 7.6 |
Pro forma net presentation, liability, total | 0.2 | |
Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 0.2 | |
Pro forma net presentation, liability, total | 0.2 | |
Current Liabilities from Risk Management Activities [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 2 | 5.2 |
Long-Term Liabilities from Risk Management Activities [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 7.9 | $ 2.4 |
Pro forma net presentation, liability, noncurrent | 0.2 | |
Long-Term Liabilities from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | 0.2 | |
Pro forma net presentation, liability, noncurrent | $ 0.2 |
Derivative Instruments and He90
Derivative Instruments and Hedging Activities - Amounts Included in OCI, Income and AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from OCI into income (effective portion) | $ (24.2) | $ (13.2) | ||
Revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from OCI into income (effective portion) | (24.2) | (13.2) | ||
Commodity Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Deferred gains (losses) included in accumulated OCI, before tax | [1] | 69.3 | $ 86.8 | |
Commodity Contracts [Member] | Revenues [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income on derivatives | 1.8 | 7.2 | ||
Cash Flow Hedging [Member] | Commodity Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in OCI on derivatives (effective portion) | $ 6.7 | $ 30.3 | ||
[1] | Includes deferred net gains of $58.9 million as of March 31, 2016 related to contracts that will be settled and reclassified to revenue over the next 12 months. |
Derivative Instruments and He91
Derivative Instruments and Hedging Activities - Amounts Included in OCI, Income and AOCI (Parenthetical) (Details) $ in Millions | Mar. 31, 2016USD ($) |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Net losses on commodity hedges recorded in OCI that are expected to be reclassified to revenue within twelve months | $ 58.9 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2016USD ($)Swap | |
Fair Value Measurements [Abstract] | |
Derivative financial instruments, fair value, net | $ 97,700,000 |
Derivative fair value of net asset if commodity price increases by 10 percent | 68,100,000 |
Derivative fair value of net asset if commodity price decreases by 10 percent | $ 126,000,000 |
Number of natural gas basis swaps categorized as Level 3 | Swap | 15 |
Commodity Derivative Contracts Liability/ (Asset) [Member] | |
Fair Value Measurements [Abstract] | |
Transfers out of Level 3 | $ 0 |
Fair Value Measurements - Break
Fair Value Measurements - Breakdown by Fair Value Hierarchy Category for Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | $ 97.9 | $ 119.5 | |
Liabilities from commodity derivative contracts | 0.2 | ||
Carrying Value [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 104.4 | 127.1 |
Liabilities from commodity derivative contracts | [1] | 6.7 | 7.6 |
TPL contingent consideration | [2] | 3 | 3 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 114.5 | 140.2 | |
Carrying Value [Member] | TRC Senior Secured Revolving Credit Facility [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 275 | 440 | |
Carrying Value [Member] | Senior Secured Term Loan [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 157.5 | 157.5 | |
Carrying Value [Member] | Partnership's Senior secured credit facility [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 280 | |
Carrying Value [Member] | Partnership's Accounts Receivable Securitization Facility [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 150 | 219.3 | |
Carrying Value [Member] | Senior Unsecured Notes [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 4,526.9 | 4,884 | |
Fair Value [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 104.4 | 127.1 |
Liabilities from commodity derivative contracts | [1] | 6.7 | 7.6 |
TPL contingent consideration | [2] | 3 | 3 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 114.5 | 140.2 | |
Fair Value [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 0 | 0 |
Liabilities from commodity derivative contracts | [1] | 0 | 0 |
TPL contingent consideration | [2] | 0 | 0 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 0 | 0 | |
Fair Value [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 101 | 123.1 |
Liabilities from commodity derivative contracts | [1] | 5.9 | 7.3 |
TPL contingent consideration | [2] | 0 | 0 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 0 | 0 | |
Fair Value [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 3.4 | 4 |
Liabilities from commodity derivative contracts | [1] | 0.8 | 0.3 |
TPL contingent consideration | [2] | 3 | 3 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 0 | 0 | |
Fair Value [Member] | TRC Senior Secured Revolving Credit Facility [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 275 | 440 | |
Fair Value [Member] | TRC Senior Secured Revolving Credit Facility [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | TRC Senior Secured Revolving Credit Facility [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 275 | 440 | |
Fair Value [Member] | TRC Senior Secured Revolving Credit Facility [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Senior Secured Term Loan [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 158.7 | 158.3 | |
Fair Value [Member] | Senior Secured Term Loan [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Senior Secured Term Loan [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 158.7 | 158.3 | |
Fair Value [Member] | Senior Secured Term Loan [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Partnership's Senior secured credit facility [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 280 | |
Fair Value [Member] | Partnership's Senior secured credit facility [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Partnership's Senior secured credit facility [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 280 | |
Fair Value [Member] | Partnership's Senior secured credit facility [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Partnership's Accounts Receivable Securitization Facility [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 150 | 219.3 | |
Fair Value [Member] | Partnership's Accounts Receivable Securitization Facility [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Partnership's Accounts Receivable Securitization Facility [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 150 | 219.3 | |
Fair Value [Member] | Partnership's Accounts Receivable Securitization Facility [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 4,357.1 | 4,192 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 4,357.1 | 4,192 | |
Fair Value [Member] | Senior Unsecured Notes [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | $ 0 | $ 0 | |
[1] | The fair value of derivative contracts in this table is presented on a different basis than the Consolidated Balance Sheets presentation as disclosed in Note 15 – 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 - Chang
Fair Value Measurements - Changes in Fair Value of Financial Instruments Classified as Level 3 (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Contingent Liability [Member] | |
Changes in fair value of financial instruments classified as Level 3 in the fair value hierarchy [Roll Forward] | |
Balance, beginning of period | $ 3 |
New Level 3 instruments | 0 |
Settlements included in Revenue | 0 |
Unrealized gain/(loss) included in OCI | 0 |
Balance, end of period | 3 |
Commodity Derivative Contracts Liability/ (Asset) [Member] | |
Changes in fair value of financial instruments classified as Level 3 in fair value hierarchy [Roll Forward] | |
Balance, beginning of period | 3.7 |
New Level 3 instruments | (0.2) |
Settlements included in Revenue | (0.5) |
Unrealized gain/(loss) included in OCI | (0.4) |
Balance, end of period | $ 2.6 |
Contingencies - Additional Info
Contingencies - Additional Information (Details) | Jan. 19, 2016PlaintiffLawsuit | Dec. 16, 2015Plaintiff | Jun. 18, 2015USD ($) | Nov. 30, 2014Plaintiff | Dec. 31, 2014Plaintiff |
State Court Lawsuit [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of plaintiffs | 2 | ||||
Federal Court Lawsuits [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of plaintiffs | 2 | ||||
Number of putative class action lawsuits filed | Lawsuit | 2 | ||||
Atlas Unitholder Litigation [Member] | Atlas Pipeline Partners [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of plaintiffs | 5 | ||||
Atlas Unitholder Litigation [Member] | Atlas Energy [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of plaintiffs | 2 | ||||
Environment Proceeding [Member] | |||||
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 |
Supplemental Cash Flow Inform96
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | Feb. 27, 2015 | [2] | Mar. 31, 2016 | Mar. 31, 2015 | |
Cash: | |||||
Interest paid, net of capitalized interest | [1] | $ 82.8 | $ 31.4 | ||
Income taxes paid, net of refunds | 1 | 0.8 | |||
Non-cash investing activities [Abstract] | |||||
Deadstock commodity inventory transferred to property, plant and equipment | 16.9 | ||||
Impact of capital expenditure accruals on property, plant and equipment | 13.7 | 30.9 | |||
Transfers from materials and supplies inventory to property, plant and equipment | 0.5 | 0.6 | |||
Change in cash flow estimate | (9.1) | 3.7 | |||
Non-cash financing activities [Abstract] | |||||
Reduction of Owner's Equity related to accrued dividends on unvested equity awards under share compensation arrangements | 3.7 | 1.6 | |||
Accrued issue costs associated with Series A Preferred Stock | 3.3 | ||||
Dividends on Series A preferred stock | 3.8 | ||||
Non-cash balance sheet movements related to the TRC/TRP Merger: (see Note 2 - Basis of Presentation): | |||||
Acquisition costs classified in the additional paid in capital | 4.5 | ||||
Issuance of common stock | 0.1 | ||||
Additional paid in capital | 3,115.5 | ||||
Accumulated other comprehensive income | 55.9 | ||||
Noncontrolling interests | (4,119.9) | ||||
Deferred tax liability | $ 948.4 | ||||
Non-cash balance sheet movements related to the Atlas Merger: (see Note 4) [Abstract] | |||||
Non-cash merger consideration - common units and replacement equity awards | 2,436.1 | ||||
Non-cash merger consideration - common shares and replacement equity awards | 1,013.7 | ||||
Net non-cash balance sheet movements excluded from consolidated statements of cash flows | 3,449.8 | ||||
Cash paid, net of cash acquired | $ 745.7 | 1,574.4 | |||
Total fair value of consideration transferred | $ 5,024.2 | ||||
[1] | Interest capitalized on major projects was $4.8 million and $2.4 million for the three months ended March 31, 2016 and 2015. | ||||
[2] | Net of cash acquired of $40.8 million. |
Supplemental Cash Flow Inform97
Supplemental Cash Flow Information (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest capitalized on major projects | $ 4.8 | $ 2.4 |
Compensation Plans - Additional
Compensation Plans - Additional Information (Details) $ in Millions | Mar. 02, 2016shares | Feb. 17, 2016USD ($) | Mar. 31, 2016USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Conversion ratio in stock-for-unit transaction | 0.62 | ||
Equity-Settled Performance Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation costs | $ | $ 3.9 | ||
Cash-Settled Performance Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation costs | $ | $ 4.8 | ||
Targa Resources Partners LP [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Conversion ratio in stock-for-unit transaction | 0.62 | ||
Long Term Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock issuance for registration | shares | 800,000 | ||
Long Term Incentive Plan [Member] | Unvested Restricted Stock Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted (in shares) | shares | 331,282 | ||
Vesting period of awards | 3 years |
Compensation Plans - Long Term
Compensation Plans - Long Term Incentive Plan (Details) - Targa Resources Partners LP [Member] | Feb. 17, 2016shares |
Phantom Unit Awards [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding shares | 349,451 |
Converted outstanding shares | 216,561 |
Partnership Long Term Incentive Plan [Member] | Equity-Settled Performance Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding shares | 675,745 |
Converted outstanding shares | 418,903 |
2015 Long Term Incentive Plan [Member] | Cash-Settled Performance Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding shares | 192,390 |
Converted outstanding shares | 119,178 |
2014 Long Term Incentive Plan [Member] | Cash-Settled Performance Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding shares | 119,900 |
Converted outstanding shares | 74,248 |
2013 Long Term Incentive Plan [Member] | Cash-Settled Performance Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding shares | 139,700 |
Converted outstanding shares | 86,538 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting Information [Line Items] | |
Number of segments | 2 |
Gathering and Processing [Member] | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
Logistics and Marketing [Member] | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
Segment Information Revenues an
Segment Information Revenues and Operating Margin (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | ||
Sales of commodities | $ 1,171 | $ 1,402.2 |
Fees from midstream services | 271.4 | 277.5 |
Revenues | 1,442.4 | 1,679.7 |
Operating margin | 299.3 | 300 |
Gathering and Processing [Member] | ||
Revenues | ||
Revenues | 640.8 | 573 |
Operating margin | 115.6 | 87 |
Logistics and Marketing [Member] | ||
Revenues | ||
Revenues | 1,240.9 | 1,425.5 |
Operating margin | 157 | 191.3 |
Other Segment [Member] | ||
Revenues | ||
Revenues | 26.8 | 21.7 |
Operating margin | 26.8 | 21.7 |
Corporate and Eliminations [Member] | ||
Revenues | ||
Revenues | (466.1) | (340.5) |
Operating margin | (0.1) | |
Operating Segments [Member] | ||
Revenues | ||
Sales of commodities | 1,171 | 1,402.2 |
Fees from midstream services | 271.4 | 277.5 |
Revenues | 1,442.4 | 1,679.7 |
Operating Segments [Member] | Gathering and Processing [Member] | ||
Revenues | ||
Sales of commodities | 110.3 | 220.9 |
Fees from midstream services | 115.8 | 72 |
Revenues | 226.1 | 292.9 |
Operating Segments [Member] | Logistics and Marketing [Member] | ||
Revenues | ||
Sales of commodities | 1,033.9 | 1,159.7 |
Fees from midstream services | 155.6 | 205.4 |
Revenues | 1,189.5 | 1,365.1 |
Operating Segments [Member] | Other Segment [Member] | ||
Revenues | ||
Sales of commodities | 26.8 | 21.7 |
Revenues | 26.8 | 21.7 |
Operating Segments [Member] | Corporate and Eliminations [Member] | ||
Revenues | ||
Sales of commodities | (0.1) | |
Fees from midstream services | 0.1 | |
Revenues | 0 | |
Intersegment Eliminations [Member] | Gathering and Processing [Member] | ||
Revenues | ||
Sales of commodities | 412.6 | 278.1 |
Fees from midstream services | 2.1 | 2 |
Revenues | 414.7 | 280.1 |
Intersegment Eliminations [Member] | Logistics and Marketing [Member] | ||
Revenues | ||
Sales of commodities | 47.3 | 55.9 |
Fees from midstream services | 4.1 | 4.5 |
Revenues | 51.4 | 60.4 |
Intersegment Eliminations [Member] | Corporate and Eliminations [Member] | ||
Revenues | ||
Sales of commodities | (459.9) | (334) |
Fees from midstream services | (6.2) | (6.5) |
Revenues | $ (466.1) | $ (340.5) |
Segment Information, Other Fina
Segment Information, Other Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Feb. 27, 2015 | Dec. 31, 2014 | ||||
Other financial information [Abstract] | ||||||||
Total assets | $ 12,949.2 | [1] | $ 13,369.1 | [1] | $ 13,211 | |||
Goodwill, net of impairment provisions | 393 | [2] | 557.9 | [2] | $ 417 | $ 707 | $ 0 | |
Capital expenditures | 176.9 | 157.3 | ||||||
Total fair value of consideration transferred | 5,024.2 | $ 5,024.2 | ||||||
Operating Segments [Member] | Gathering and Processing [Member] | Reportable Subsegments | ||||||||
Other financial information [Abstract] | ||||||||
Total assets | [1] | 10,219 | 10,671.8 | |||||
Goodwill, net of impairment provisions | [2] | 393 | 557.9 | |||||
Capital expenditures | 103 | 95.5 | ||||||
Total fair value of consideration transferred | 5,024.2 | |||||||
Operating Segments [Member] | Logistics and Marketing [Member] | Reportable Subsegments | ||||||||
Other financial information [Abstract] | ||||||||
Total assets | [1] | 2,501 | 2,302.5 | |||||
Capital expenditures | 73.1 | 60.7 | ||||||
Operating Segments [Member] | Other Segment [Member] | ||||||||
Other financial information [Abstract] | ||||||||
Total assets | [1] | 105.7 | 177.3 | |||||
Operating Segments [Member] | Corporate and Other | ||||||||
Other financial information [Abstract] | ||||||||
Total assets | [1] | 123.5 | 217.5 | |||||
Capital expenditures | $ 0.8 | $ 1.1 | ||||||
[1] | Corporate assets at the Segment level primarily include tax-related assets, cash and prepaids. | |||||||
[2] | Total assets include goodwill. Goodwill has been attributed to our Gathering and Processing segment. |
Segment Information - Summary o
Segment Information - Summary of Consolidated Revenues by Product and Service (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue from External Customer [Line Items] | ||
Sales of commodities | $ 1,171 | $ 1,402.2 |
Fees from midstream services | 271.4 | 277.5 |
Total revenues | 1,442.4 | 1,679.7 |
Natural Gas Sales [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales of commodities | 326.9 | 302.1 |
NGL Sales [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales of commodities | 785.5 | 1,030.7 |
Condensate Sales [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales of commodities | 22.2 | 21.3 |
Petroleum Products [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales of commodities | 9.6 | 26.4 |
Derivative Activities [Member] | ||
Revenue from External Customer [Line Items] | ||
Sales of commodities | 26.8 | 21.7 |
Fractionating and Treating Fees [Member] | ||
Revenue from External Customer [Line Items] | ||
Fees from midstream services | 30.2 | 49.8 |
Storage, Terminaling, Transportation and Export Fees [Member] | ||
Revenue from External Customer [Line Items] | ||
Fees from midstream services | 118.4 | 136.2 |
Gathering and Processing Fees [Member] | ||
Revenue from External Customer [Line Items] | ||
Fees from midstream services | 105 | 68.4 |
Other [Member] | ||
Revenue from External Customer [Line Items] | ||
Fees from midstream services | $ 17.8 | $ 23.1 |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Margin to Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |
Reconciliation of operating margin to net income: | ||||
Operating margin | $ 299.3 | $ 300 | ||
Depreciation and amortization expense | (193.5) | (118.6) | ||
General and administrative expense | (45.3) | (42.6) | ||
Goodwill impairment | (24) | $ (290) | 0 | $ (290) |
Interest expense, net | (52.9) | (54.1) | ||
Other, net | 18.8 | (33.8) | ||
Total tax (expense) benefit | (3.1) | (15.2) | ||
Net income (loss): | $ (0.7) | $ 35.7 |