Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
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 | 215,632,882 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Current assets: | |||
Cash and cash equivalents | $ 114.1 | $ 73.5 | |
Trade receivables, net of allowances of $0.1 and $0.9 million at September 30, 2017 and December 31, 2016 | 710.4 | 674.6 | |
Inventories | 267.4 | 137.7 | |
Assets from risk management activities | 18.7 | 16.8 | |
Income tax receivable | 4.6 | 67.8 | |
Other current assets | 85.6 | 36.4 | |
Total current assets | 1,200.8 | 1,006.8 | |
Property, plant and equipment | 13,692 | 12,518.7 | |
Accumulated depreciation | (3,623.2) | (2,827.7) | |
Property, plant and equipment, net | 10,068.8 | 9,691 | |
Intangible assets, net | 2,214.8 | 1,654 | |
Goodwill, net | 256.6 | 210 | |
Long-term assets from risk management activities | 13.7 | 5.1 | |
Investments in unconsolidated affiliates | 222.1 | 240.8 | |
Other long-term assets | 21.5 | 63.5 | |
Total assets | 13,998.3 | [1] | 12,871.2 |
Current liabilities: | |||
Accounts payable and accrued liabilities | 1,024 | 843.5 | |
Liabilities from risk management activities | 80.9 | 49.1 | |
Current debt obligations | 528.4 | 275 | |
Total current liabilities | 1,633.3 | 1,167.6 | |
Long-term debt | 4,368.6 | 4,606 | |
Long-term liabilities from risk management activities | 14.9 | 26.1 | |
Deferred income taxes, net | 728.5 | 941.2 | |
Other long-term liabilities | 497.8 | 215.1 | |
Contingencies (see Note 18) | 0 | 0 | |
Targa Resources Corp. stockholders' equity: | |||
Common stock value | 0.2 | 0.2 | |
Preferred stock ($0.001 par value, after designation of Series A Preferred Stock: 98,800,000 shares authorized, no shares issued and outstanding) | 0 | 0 | |
Additional paid-in capital | 6,434.9 | 5,506.2 | |
Retained earnings (deficit) | (360.5) | (187.3) | |
Accumulated other comprehensive income (loss) | (43.5) | (38.3) | |
Treasury stock, at cost (581,364 shares as of September 30, 2017 and 513,880 as of December 31, 2016) | (35.3) | (32.2) | |
Total Targa Resources Corp. stockholders' equity | 5,995.8 | 5,248.6 | |
Noncontrolling interests in subsidiaries | 549.6 | 475.8 | |
Total owners' equity | 6,545.4 | 5,724.4 | |
Total liabilities, Series A Preferred Stock and owners' equity | 13,998.3 | 12,871.2 | |
Series A Preferred Stock [Member] | |||
Current liabilities: | |||
Series A Preferred 9.5% Stock, $1,000 per share liquidation preference, (1,200,000 shares authorized, issued and outstanding 965,100 shares), net of discount (see Note 12) | $ 209.8 | $ 190.8 | |
[1] | Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Trade receivables, allowances | $ 0.1 | $ 0.9 |
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) | 216,214,005 | 185,234,405 |
Common stock, shares outstanding (in shares) | 215,632,641 | 184,720,525 |
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) | 581,364 | 513,880 |
Series A Preferred Stock [Member] | ||
LIABILITIES, SERIES A PREFERRED STOCK AND OWNERS' EQUITY | ||
Preferred Series A Liquidation Stock Percentage | 9.50% | 9.50% |
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | $ 1,000 |
Preferred Stock, Shares Authorized | 1,200,000 | 1,200,000 |
Preferred Stock, Shares Issued | 965,100 | 965,100 |
Preferred Stock, Shares Outstanding | 965,100 | 965,100 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Sales of commodities | $ 1,871.5 | $ 1,398.7 | $ 5,353.1 | $ 3,882.9 |
Fees from midstream services | 260.3 | 253.6 | 759 | 795.5 |
Total revenues | 2,131.8 | 1,652.3 | 6,112.1 | 4,678.4 |
Costs and expenses: | ||||
Product purchases | 1,663.1 | 1,222.7 | 4,737.8 | 3,378.9 |
Operating expenses | 155.5 | 143 | 462.7 | 414 |
Depreciation and amortization expense | 208.3 | 184 | 602.8 | 563.6 |
General and administrative expense | 49.9 | 46.1 | 149.5 | 138.3 |
Impairment of property, plant and equipment | 378 | 0 | 378 | 0 |
Impairment of goodwill | 0 | 0 | 0 | 24 |
Other operating (income) expense | 0.6 | 4.9 | 17.2 | 6.1 |
Income (loss) from operations | (323.6) | 51.6 | (235.9) | 153.5 |
Other income (expense): | ||||
Interest expense, net | (56.1) | (62.7) | (181.2) | (187) |
Equity earnings (loss) | 0.2 | (2.2) | (16.6) | (11.4) |
Gain (loss) from financing activities | (16.5) | 21.4 | ||
Change in contingent considerations | 126.8 | 0.3 | 125.6 | 0.3 |
Other, net | 0.2 | 1.1 | (2.7) | 0.9 |
Income (loss) before income taxes | (252.5) | (11.9) | (327.3) | (22.3) |
Income tax (expense) benefit | 97.4 | 8.7 | 132.3 | 3.9 |
Net income (loss) | (155.1) | (3.2) | (195) | (18.4) |
Less: Net income attributable to noncontrolling interests | 12.5 | 7.5 | 34.3 | 18.2 |
Net income (loss) attributable to Targa Resources Corp. | (167.6) | (10.7) | (229.3) | (36.6) |
Dividends on Series A Preferred Stock | 22.9 | 22.9 | 68.8 | 49.7 |
Deemed dividends on Series A Preferred Stock | 6.5 | 5.8 | 19 | 12.3 |
Net income (loss) attributable to common shareholders | $ (197) | $ (39.4) | $ (317.1) | $ (98.6) |
Net income (loss) per common share - basic | $ (0.91) | $ (0.23) | $ (1.56) | $ (0.68) |
Net income (loss) per common share - diluted | $ (0.91) | $ (0.23) | $ (1.56) | $ (0.68) |
Weighted average shares outstanding - basic | 215.6 | 168 | 203.8 | 145.5 |
Weighted average shares outstanding - diluted | 215.6 | 168 | 203.8 | 145.5 |
Dividends per common share declared for the period | $ 0.91 | $ 0.91 | $ 2.73 | $ 2.73 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income (loss) attributable to Targa Resources Corp. | $ (167.6) | $ (10.7) | $ (229.3) | $ (36.6) |
Commodity hedging contracts: | ||||
Other comprehensive income (loss) attributable to Targa Resources Corp., pre-tax | (104.7) | 4.8 | (8.3) | (103.6) |
Other comprehensive income (loss) attributable to Targa Resources Corp., related income tax | 39.7 | (1.8) | 3.1 | 39.4 |
Other comprehensive income (loss) attributable to Targa Resources Corp., after tax | (65) | 3 | (5.2) | (64.2) |
Comprehensive income (loss) attributable to Targa Resources Corp. | (232.6) | (7.7) | (234.5) | (100.8) |
Net income (loss) attributable to noncontrolling interests | 12.5 | 7.5 | 34.3 | 18.2 |
Commodity hedging contracts: | ||||
Other comprehensive income (loss) attributable to noncontrolling interests, pre-tax | 0 | 0 | 0 | 12.5 |
Other comprehensive income (loss) attributable to noncontrolling interests, related income tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) attributable to noncontrolling interests, after tax | 0 | 0 | 0 | 12.5 |
Comprehensive income (loss) attributable to noncontrolling interests | 12.5 | 7.5 | 34.3 | 30.7 |
Total | ||||
Net income (loss) | (155.1) | (3.2) | (195) | (18.4) |
Commodity hedging contracts: | ||||
Other comprehensive income (loss) attributable to Targa Resources Corp., pre-tax | (104.7) | 4.8 | (8.3) | (91.1) |
Other comprehensive income (loss) attributable to Targa Resources Corp., related income tax | 39.7 | (1.8) | 3.1 | 39.4 |
Other comprehensive income (loss) attributable to Targa Resources Corp., after tax | (65) | 3 | (5.2) | (51.7) |
Total comprehensive income (loss) | (220.1) | (0.2) | (200.2) | (70.1) |
Commodity Contracts [Member] | ||||
Commodity hedging contracts: | ||||
Change in fair value, pre-tax | (106.8) | 12.9 | (10.5) | (64.1) |
Change in fair value, related income tax | 40.6 | (4.9) | 4.1 | 24.4 |
Change in fair value, after tax | (66.2) | 8 | (6.4) | (39.7) |
Settlements reclassified to revenues, pre-tax | 2.1 | (8.1) | 2.2 | (39.5) |
Settlements reclassified to revenues, related income tax | (0.9) | 3.1 | (1) | 15 |
Settlements reclassified to revenues, after tax | 1.2 | (5) | 1.2 | (24.5) |
Commodity hedging contracts: | ||||
Change in fair value, pre-tax | 0 | 0 | 0 | 23.6 |
Change in fair value, related income tax | 0 | 0 | 0 | 0 |
Change in fair value, after tax | 0 | 0 | 0 | 23.6 |
Settlements reclassified to revenues, pre-tax | 0 | 0 | 0 | (11.1) |
Settlements reclassified to revenues, related income tax | 0 | 0 | 0 | 0 |
Settlements reclassified to revenues, after tax | 0 | 0 | 0 | (11.1) |
Commodity hedging contracts: | ||||
Change in fair value, pre-tax | (106.8) | 12.9 | (10.5) | (40.5) |
Change in fair value, related income tax | 40.6 | (4.9) | 4.1 | 24.4 |
Change in fair value, after tax | (66.2) | 8 | (6.4) | (16.1) |
Settlements reclassified to revenues, pre-tax | 2.1 | (8.1) | 2.2 | (50.6) |
Settlements reclassified to revenues, related income tax | (0.9) | 3.1 | (1) | 15 |
Settlements reclassified to revenues, after tax | $ 1.2 | $ (5) | $ 1.2 | $ (35.6) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN OWNERS' EQUITY AND SERIES A PREFERRED STOCK (Unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Shares [Member] | Noncontrolling Interests [Member] | Series A Preferred Stock [Member] |
Balance at Dec. 31, 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 | 56,020,000 | 426,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Compensation on equity grants | 22.2 | 20 | 2.2 | |||||
Distribution equivalent rights | (7) | (6.8) | (0.2) | |||||
Shares issued under compensation program (in shares) | 331,000 | |||||||
Shares and units tendered for tax withholding obligations | (3.2) | $ (3.1) | (0.1) | |||||
Shares and units tendered for tax withholding obligations (in shares) | (81,000) | 81,000 | ||||||
Issuance of common stock | 398 | 398 | ||||||
Issuance of common stock (in shares) | 9,211,000 | |||||||
Issuance of Series A preferred and detachable warrants | 796.8 | 796.8 | ||||||
Series A Preferred Stock | $ 173.3 | |||||||
Exercise of warrants - share settled (in shares) | 3,186,000 | |||||||
Series A Preferred Stock dividends | ||||||||
Dividends | (49.7) | (49.7) | ||||||
Dividends in excess of retained earnings | (45.9) | 45.9 | ||||||
Deemed dividends - accretion of beneficial conversion feature | (12.3) | (12.3) | 12.3 | |||||
Common stock dividends | ||||||||
Dividends | (349) | (349) | ||||||
Dividends in excess of retained earnings | (325.9) | 325.9 | ||||||
Distributions to noncontrolling interests | (164.3) | (164.3) | ||||||
Contributions from noncontrolling interests | 32.8 | 32.8 | ||||||
Acquisition of TRP noncontrolling common interests, net of acquisition costs and deferred income taxes | (967.5) | $ 0.1 | 3,096.4 | 55.7 | (4,119.7) | |||
Acquisition of TRP noncontrolling common interests, net of acquisition costs and deferred income taxes (in shares) | 104,526,000 | |||||||
Other comprehensive income (loss) | (51.7) | (64.1) | 12.4 | |||||
Net income (loss) | (18.4) | (36.6) | 18.2 | |||||
Balance at Sep. 30, 2016 | 5,876.9 | $ 0.2 | 5,377.7 | (36.6) | (2.7) | $ (31.8) | 570.1 | |
Balance (in shares) at Sep. 30, 2016 | 173,193,000 | 507,000 | ||||||
Series A Preferred Stock at Sep. 30, 2016 | 185.6 | |||||||
Balance at Dec. 31, 2016 | 5,724.4 | $ 0.2 | 5,506.2 | (187.3) | (38.3) | $ (32.2) | 475.8 | |
Balance (in shares) at Dec. 31, 2016 | 184,721,000 | 514,000 | ||||||
Series A Preferred Stock at Dec. 31, 2016 | 190.8 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Impact of accounting standard adoption (see Note 3) | 56.1 | 56.1 | ||||||
Compensation on equity grants | 31.7 | 31.7 | ||||||
Distribution equivalent rights | (7) | (7) | ||||||
Shares issued under compensation program (in shares) | 258,000 | |||||||
Shares and units tendered for tax withholding obligations | (3.1) | $ (3.1) | ||||||
Shares and units tendered for tax withholding obligations (in shares) | (67,000) | 67,000 | ||||||
Issuance of common stock | 1,558.4 | 1,558.4 | ||||||
Issuance of common stock (in shares) | 30,721,000 | |||||||
Series A Preferred Stock dividends | ||||||||
Dividends | (68.8) | (68.8) | ||||||
Dividends in excess of retained earnings | (68.8) | 68.8 | ||||||
Deemed dividends - accretion of beneficial conversion feature | (19) | (19) | 19 | |||||
Common stock dividends | ||||||||
Dividends | (553.2) | (553.2) | ||||||
Dividends in excess of retained earnings | (553.2) | 553.2 | ||||||
Distributions to noncontrolling interests | (41.8) | (41.8) | ||||||
Contributions from noncontrolling interests | 93.8 | 93.8 | ||||||
Purchase of noncontrolling interests in subsidiaries, net of tax impact | (25.9) | (13.4) | (12.5) | |||||
Other comprehensive income (loss) | (5.2) | (5.2) | ||||||
Net income (loss) | (195) | (229.3) | 34.3 | |||||
Balance at Sep. 30, 2017 | $ 6,545.4 | $ 0.2 | $ 6,434.9 | $ (360.5) | $ (43.5) | $ (35.3) | $ 549.6 | |
Balance (in shares) at Sep. 30, 2017 | 215,633,000 | 581,000 | ||||||
Series A Preferred Stock at Sep. 30, 2017 | $ 209.8 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Cash flows from operating activities | |||
Net income (loss) | $ (195) | $ (18.4) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Amortization in interest expense | 8.8 | 12.1 | |
Compensation on equity grants | 31.7 | 22.2 | |
Depreciation and amortization expense | 602.8 | 563.6 | |
Impairment of property, plant and equipment | 378 | 0 | |
Impairment of goodwill | 0 | 24 | |
Accretion of asset retirement obligations | 3 | 3.5 | |
Increase (decrease) in redemption value of mandatorily redeemable preferred interests | 8.5 | (18.8) | |
Deferred income tax expense (benefit) | (132.6) | (3.9) | |
Equity (earnings) loss of unconsolidated affiliates | 16.6 | 11.4 | |
Distributions of earnings received from unconsolidated affiliates | 8.4 | 1.8 | |
Risk management activities | 13.8 | 11.7 | |
(Gain) loss on sale or disposition of assets | [1] | 16.6 | 5.7 |
(Gain) loss from financing activities | 16.5 | (21.4) | |
Change in contingent considerations included in Other expense (income) | (125.6) | (0.3) | |
Changes in operating assets and liabilities, net of business acquisitions: | |||
Receivables and other assets | 67.8 | (94.1) | |
Inventories | (136.4) | (27.8) | |
Accounts payable and other liabilities | (51) | 89.4 | |
Net cash provided by operating activities | 531.9 | 560.7 | |
Cash flows from investing activities | |||
Outlays for property, plant and equipment | (866.6) | (425) | |
Outlays for business acquisition, net of cash acquired | (570.8) | ||
Investments in unconsolidated affiliates | (7.5) | (4.6) | |
Return of capital from unconsolidated affiliates | 2.2 | 3.4 | |
Other, net | (14.8) | 4.2 | |
Net cash used in investing activities | (1,457.5) | (422) | |
Debt obligations: | |||
Proceeds from borrowings under credit facilities | 2,406 | 1,497 | |
Repayments of credit facilities | (1,966) | (1,942) | |
Proceeds from borrowings under accounts receivable securitization facility | 281.6 | 121.4 | |
Repayments of accounts receivable securitization facility | (278.5) | (115.7) | |
Open market purchases of senior notes | (534.3) | ||
Redemption of senior notes and term loan | (447.6) | ||
Proceeds from issuance of common stock | 1,573.4 | 401 | |
Proceeds from issuance of preferred stock and warrants | 994.1 | ||
Costs incurred in connection with financing arrangements | (15.1) | (46.1) | |
Repurchase of shares and units under compensation plans | (3.1) | (3.2) | |
Purchase of noncontrolling interests in subsidiary | (12.5) | ||
Contributions from noncontrolling interests | 93.8 | 32.8 | |
Distributions to noncontrolling interests | (33.4) | (16.8) | |
Distributions to Partnership unitholders | (8.4) | (147.5) | |
Dividends paid to common and Series A preferred shareholders | (624) | (378.2) | |
Payments of distribution equivalent rights | (0.3) | ||
Net cash provided by (used in) financing activities | 966.2 | (137.8) | |
Net change in cash and cash equivalents | 40.6 | 0.9 | |
Cash and cash equivalents, beginning of period | 73.5 | 140.2 | |
Cash and cash equivalents, end of period | $ 114.1 | $ 141.1 | |
[1] | Comprised primarily of a $16.1 million loss in the first quarter of 2017 due to the reduction in the carrying value of our ownership interest in VGS in connection with the April 4, 2017 sale. |
Organization and Operations
Organization and Operations | 9 Months Ended |
Sep. 30, 2017 | |
Organization [Abstract] | |
Organization and Operations | Note 1 — Organization and Operations Our Organization Targa Resources Corp. (“TRC”) is a publicly traded Delaware corporation formed in October 2005. Our common stock is listed on the New York Stock Exchange under the symbol “TRGP.” In this Quarterly Report, unless the context requires otherwise, references to “we,” “us,” “our,” “the Company” or “Targa” are intended to mean our consolidated business and operations. Our Operations The Company is engaged in the business of: • gathering, compressing, treating, processing and selling natural gas; • storing, fractionating, treating, transporting and selling NGLs and NGL products, including services to LPG exporters; • gathering, storing, terminaling and selling crude oil; and • storing, terminaling and selling refined petroleum products. See Note 21 – Segment Information for certain financial information regarding our business segments. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 2 — Basis of Presentation We have prepared these unaudited consolidated financial statements in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. While we derived the year-end balance sheet data from audited financial statements, this interim report does not include all disclosures required by GAAP for annual periods. These unaudited consolidated financial statements and other information included in this Quarterly Report should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report. The unaudited consolidated financial statements for the three and nine months ended September 30, 2017 include all adjustments that we believe are necessary for a fair statement of the results for interim periods. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts in prior periods may have been reclassified to conform to the current year presentation. Our financial results for the three and nine months ended September 30, 2017 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 Atlas Pipeline Partners, L.P. (“APL”) Atlas Energy L.P. (“ATLS”) On February 17, 2016, we completed the transactions contemplated by the Agreement and Plan of Merger (the “TRC/TRP Merger Agreement,” and such transactions, the “TRC/TRP Merger” or “Buy-in Transaction”), 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, 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. The Preferred Units are reported as noncontrolling interests in our financial statements. As we continued to control the Partnership after the TRC/TRP Merger, the resulting change in our ownership interest was accounted for as an equity transaction, which is reflected on our Consolidated Balance Sheets as a reduction of noncontrolling interests and a corresponding increase in common stock and additional paid in capital. The TRC/TRP Merger was a taxable exchange that resulted in a book/tax difference in the basis of the underlying assets acquired (our investment in TRP). The tax impact is presented as a reduction of additional paid-in capital consistent with the accounting for tax effects of transactions with noncontrolling interests. The earnings recorded by TRP that were attributed to its common units held by the public prior to February 17, 2016 are reflected within Net income attributable to noncontrolling interests in our Consolidated Statements of Operations for periods prior to the merger date. On October 19, 2016, TRP executed the Third Amended and Restated Agreement of Limited Partnership of Targa Resources Partners LP (the “Third A&R Partnership Agreement”), effective as of December 1, 2016. The Third A&R Partnership Agreement (i) eliminated the IDRs held by the General Partner, and related distribution and allocation provisions, (ii) eliminated the Special GP Interest held by the General Partner, (iii) provided the ability to declare monthly distributions in addition to quarterly distributions, (iv) modified certain provisions relating to distributions from available cash, (v) eliminated the Class B Unit provisions and (vi) made changes to reflect the passage of time and removed provisions that were no longer applicable. In connection with the Third A&R Partnership Agreement, on December 1, 2016, TRP issued to the General Partner (i) 20,380,286 Common Units and 424,590 General Partner Units in exchange for the elimination of the IDRs and (ii) 11,267,485 Common Units and 234,739 General Partner Units in exchange for the elimination of the Special GP Interest. We have historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to ordinary income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. When calculating the annual estimated effective income tax rate for the nine months ended September 30, 2017, we were subject to a loss limitation rule because the year-to-date ordinary loss is expected to exceed the full-year expected ordinary loss. The tax benefit for that year-to-date ordinary loss was limited to the amount that would be recognized if the year-to-date ordinary loss were the anticipated ordinary loss for the full year. This requires us to use our statutory rate of 37.3% rather than the annual estimated effective tax rate to calculate the benefit for the period. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
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. There were no significant updates or revisions to our policies during the nine months ended September 30, 2017, except as noted below. Recent Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Other Assets and Deferred Costs – Contracts with Customers With the issuance in August 2015 of ASU 2015-14 , Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers We have disaggregated contracts within our two segments and are in the process of completing our review of contracts and transaction types with counterparties in order to evaluate how the new standard would impact our current revenue recognition and disclosure policies upon adoption. Gathering and Processing Segment Based on our progress to date, we have preliminarily concluded that the contracts within our Gathering and Processing segment where we purchase and obtain control of the entire natural gas stream are contracts with suppliers rather than customers and therefore, not included in the scope of Topic 606. However, these supplier contracts are subject to updated guidance in ASC 705, Cost of Sales and Services Logistics and Marketing Segment At this time, we are not anticipating a significant change in revenue recognition for the contracts within our Logistics and Marketing segment, although the potential effects of contributions in aid of construction (which may also affect certain Gathering and Processing contracts where we are acting as an agent for the producer), tiered pricing, and excess fuel are currently being evaluated. We are also anticipating additional disclosures for fixed consideration allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the current reporting period, separate presentation of revenue from contracts with customers and non-customer revenue (i.e. the effects of derivative activity and lease revenue) as well as unbilled receivables and deferred revenue. The new revenue recognition standard is effective for us on January 1, 2018, and currently we plan to adopt using the modified retrospective method and will recognize a cumulative effect adjustment, if any, in the first quarter of 2018. However, we will continue to evaluate our planned adoption method based on our views regarding stakeholder needs and a final determination on remaining accounting matters still under evaluation. We have also established a cross-functional team to assist with the implementation through documentation of process changes, identification of implementation risks, update and development of mitigating controls, determination of data requirements, and identification of changes in system mapping and configuration. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) We expect to adopt the amendments in the first quarter of 2019 and are currently evaluating the impacts of the amendments to our consolidated financial statements and accounting practices for leases. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Cash Flow Classification In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) Recognition of Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory We early adopted the applicable amendments in first quarter of 2017 on a modified retrospective basis which resulted in a cumulative effect adjustment on retained earnings as of January 1, 2017 of $56.1 million in order to recognize unamortized tax expense previously deferred of $40.1 million and deferred tax assets previously unrecognized of $96.2 million. We did not have intra-entity transfers of assets other than inventory during the current period. Business Combinations In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Impairment of Goodwill In January Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Had we applied this new guidance for our November 2016 impairment test date, the full balance of our goodwill would have been impaired. We expect to apply these amendments for our annual goodwill impairment test as of November 30, which may result in impairment of goodwill for 2017. Other Income In February Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) These amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the effect of such amendments on our consolidated financial statements. Stock Compensation – Scope of Modification Accounting In May 2017, FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, Financial Instruments with Down Round Features In July 2017, FASB issued ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception Targeted Improvements to Accounting for Hedge Activities In August Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedge Activities |
Business Acquisitions and Dives
Business Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2017 | |
Business Acquisitions And Divestitures [Abstract] | |
Acquisitions and Divestitures | Note 4 – Acquisitions and Divestitures 2017 Acquisitions Permian Acquisition On March 1, 2017, Targa completed the purchase of 100% of the membership interests of Outrigger Delaware Operating, LLC, Outrigger Southern Delaware Operating, LLC (together “New Delaware”) and Outrigger Midland Operating, LLC (“New Midland” and together with New Delaware, the “Permian Acquisition”). We paid $484.1 million in cash at closing on March 1, 2017, and paid an additional $90.0 million in cash on May 30, 2017 (collectively, the “initial purchase price”). Subject to certain performance-linked measures and other conditions, additional cash of up to $935.0 million may be payable to the sellers of New Delaware and New Midland in potential earn-out payments that would occur in 2018 and 2019. The potential earn-out payments will be based upon a multiple of realized gross margin from contracts that existed on March 1, 2017. New Delaware’s gas gathering and processing and crude gathering assets are located in Loving, Winkler, Pecos and Ward counties in Texas. The operations are backed by producer dedications of more than 145,000 acres under long-term, largely fee-based contracts, with an average weighted contract life of 14 years. The New Delaware assets include 70 MMcf/d of processing capacity, and we are in the process of installing a 60 MMcf/d plant, known as the Oahu Plant, in the Delaware Basin with expectations of commencing operations in the fourth quarter of 2017. Currently, there is 40 MBbl/d of crude gathering capacity on the New Delaware system. Since March 1, 2017, financial and statistical data of New Delaware have been included in Sand Hills operations. New Midland’s gas gathering and processing and crude gathering assets are located in Howard, Martin and Borden counties in Texas. The operations are backed by producer dedications of more than 105,000 acres under long-term, largely fee-based contracts, with an average weighted contract life of 13 years. The New Midland assets include 10 MMcf/d of processing capacity. Currently, there is 40 MBbl/d of crude gathering capacity on the New Midland system. Since March 1, 2017, financial and statistical data of New Midland have been included in SAOU operations. New Delaware’s gas gathering and processing assets were connected to our Sand Hills system in the first quarter of 2017, and the New Midland’s gas gathering and processing assets were connected to our existing WestTX system in October 2017. We believe connecting the acquired assets to our legacy Permian footprint creates operational and capital synergies, and will afford enhanced flexibility in serving our producer customers. On January 26, 2017, we completed a public offering of 9,200,000 shares of our common stock (including the shares sold pursuant to the underwriters’ overallotment option) at a price to the public of $57.65, providing net proceeds of $524.2 million. We used the net proceeds from this public offering to fund the cash portion of the Permian Acquisition purchase price due upon closing and for general corporate purposes. The acquired businesses contributed revenues of $75.2 million and a net loss of $13.4 million to us for the period from March 1, 2017 to September 30, 2017, and are reported in our Gathering and Processing segment. As of September 30, 2017, we had incurred $5.6 million of acquisition-related costs. These expenses are included in Other expense in our Consolidated Statements of Operations for the nine months ended September 30, 2017. Pro Forma Impact of Permian Acquisition on Consolidated Statement of Operations The following summarized unaudited pro forma Consolidated Statement of Operations information for the nine months ended September 30, 2017 and September 30, 2016 assumes that the Permian Acquisition occurred as of January 1, 2016. We prepared the following summarized unaudited pro forma financial results for comparative purposes only. The summarized unaudited pro forma information may not be indicative of the results that would have occurred had we completed this acquisition as of January 1, 2016, or that would be attained in the future. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Pro Forma Pro Forma Pro Forma Pro Forma Revenues $ 2,131.8 $ 1,663.0 $ 6,126.2 $ 4,697.3 Net income (loss) (154.8 ) (11.1 ) (196.0 ) (47.1 ) The pro forma consolidated results of operations amounts have been calculated after applying our accounting policies, and making the following adjustments to the unaudited results of the acquired businesses for the periods indicated: • Reflect the amortization expense resulting from the fair value of intangible assets recognized as part of the Permian Acquisition. • Reflect the change in depreciation expense resulting from the difference between the historical balances of the Permian Acquisition’s property, plant and equipment, net, and the fair value of property, plant and equipment acquired. • Exclude $5.6 million of acquisition-related costs incurred as of September 30, 2017 from pro forma net income for the nine months ended September 30, 2017. Pro forma net income for the nine months ended September 30, 2016 was adjusted to include those charges. • Reflect the income tax effects of the above pro forma adjustments. The following table summarizes the consideration transferred to acquire New Delaware and New Midland: Fair Value of Consideration Transferred: Cash paid, net of $3.3 million cash acquired $ 570.8 Contingent consideration valuation as of the acquisition date 416.3 Total $ 987.1 We accounted for the Permian Acquisition as an acquisition of a business under purchase accounting rules. The assets acquired and liabilities assumed related to the Permian Acquisition were recorded at their fair values as of the closing date of March 1, 2017. The fair value of the assets acquired and liabilities assumed at the acquisition date is shown below: Fair value determination (final): March 1, 2017 Trade and other current receivables, net $ 6.7 Other current assets 0.6 Property, plant and equipment 255.8 Intangible assets 692.3 Current liabilities (14.1 ) Other long-term liabilities (0.8 ) Total identifiable net assets 940.5 Goodwill 46.6 Total fair value of assets acquired and liabilities assumed $ 987.1 Under the acquisition method of accounting, the assets acquired and liabilities assumed are recognized at their estimated fair values, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded as goodwill . operational and capital synergies. The fair value of assets acquired included trade receivables of $6.7 million, substantially all of which has been subsequently collected. 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 17 – Fair Value Measurements. These inputs require significant judgments and estimates at the time of valuation. During the three months ended June 30, 2017, we recorded measurement period adjustments to our preliminary acquisition date fair values due to the refinement of our valuation models, assumptions and inputs, including forecasts of future volumes, capital expenditures and operating expenses. The measurement period adjustments were based upon information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of the amounts recognized at that date. We recognized these measurement period adjustments in the three months ended June 30, 2017, with the effect in the Consolidated Statements of Operations resulting from the change to the provisional amounts calculated as if the acquisition had been completed at March 1, 2017. During the three months ended June 30, 2017, the acquisition date fair value of contingent consideration liability decreased by $45.3 million, intangible assets increased by $66.7 million, and other assets, net, increased by $0.4 million, which resulted in a decrease in goodwill of $112.4 million. These adjustments resulted in an increase in depreciation and amortization expense of $0.4 million recorded for the three months ended June 30, 2017. During the three months ended September 30, 2017, we finalized the purchase price allocation with no additional measurement period adjustments. Contingent Consideration A contingent consideration liability arising from potential earn-out payments in connection with the Permian Acquisition has been recognized at its fair value. We agreed to pay up to an additional $935.0 million in potential earn-out payments that would occur in 2018 and 2019. The acquisition date fair value of the potential earn-out payments of $416.3 million was recorded within Other long-term liabilities on our Consolidated Balance Sheets. Changes in the fair value of this liability (that were not accounted for as revisions of the acquisition date fair value) are included in earnings. During the three and nine months ended September 30, 2017, we recognized $126.6 million and $125.5 million as Other income related to the change in fair value of the contingent consideration. See Note 11 – Other Long-term Liabilities and Note 17 – Fair Value Measurements for additional discussion of the change in fair value and the fair value methodology. As of September 30, 2017, the fair value of the first potential earn-out payment of $5.9 million has been recorded as a component of Accounts payable and accrued liabilities, which are included within current liabilities on our Consolidated Balance Sheets. As of September 30, 2017, the fair value of the second potential earn-out payment of $284.9 million has been recorded within Other long-term liabilities on our Consolidated Balance Sheets. Flag City Acquisition On May 9, 2017, we purchased all of the equity interests in Flag City Processing Partners, LLC ("FCCP") from Boardwalk Midstream, LLC (“Boardwalk”) and all of the equity interests in FCPP Pipeline, LLC from Boardwalk Field Services, LLC (“BFS”) for a base purchase price of $60.0 million subject to customary closing adjustments. The final adjustment to the base purchase price paid to Boardwalk was an additional $3.6 million. As part of the acquisition (the “Flag City Acquisition”), we acquired a natural gas processing plant with 150 MMcf/d of operating capacity (the “Flag City Plant”) located in Jackson County, Texas; 24 miles of gas gathering pipeline systems and related rights-of-ways located in Bee and Karnes counties in Texas; 102.1 acres of land surrounding the Flag City Plant; and a limited number of gas supply contracts. The gas processing activities under the Flag City Plant contracts have been transferred to our Silver Oak Plants. We have shut down the Flag City Plant and are moving the plant and its component parts to other Targa locations. We accounted for this purchase as an asset acquisition and have capitalized less than $0.1 million of acquisition related costs as a component of the cost of assets acquired, which resulted in an allocation of $52.3 million of property, plant and equipment, $7.7 million of intangible assets for customer contracts and $3.6 million of current assets and liabilities, net. Purchase of Outstanding Silver Oak II Interest Effective as of June 1, 2017, we repurchased from SN Catarina, LLC (a subsidiary of Sanchez Energy Corp.) their 10% interest in our consolidated Silver Oak II Gas processing facility and other related assets located in Bee County, Texas for a purchase price of $12.5 million. The change in our ownership interest was accounted for as an equity transaction representing the acquisition of a noncontrolling interest and no gain or loss was recognized in our Consolidated Statements of Operations as a result. 2017 Divestiture Sale of Venice Gathering System, L.L.C. Through our 76.8% ownership interest in Venice Energy Services Company, L.L.C. (“VESCO”), we have operated the Venice Gas Plant and the Venice gathering system. On April 4, 2017, VESCO entered into a purchase and sale agreement with Rosefield Pipeline Company, LLC, an affiliate of Arena Energy, LP, to sell its 100% ownership interests in Venice Gathering System, L.L.C. (“VGS”), a Delaware limited liability company engaged in the business of transporting natural gas in interstate commerce, under authorization granted by and subject to the jurisdiction of the Federal Energy Regulatory Commission (“FERC”), for approximately $0.4 million in cash. Additionally, the VGS asset retirement obligations (“ARO”) were assumed by the buyer. VGS owns and operates a natural gas gathering system in the Gulf of Mexico. Historically, VGS has been reported in our Gathering and Processing segment. After the sale of VGS, we continue to operate the Venice Gas Plant through our ownership in VESCO. Targa Midstream Services LLC continued to operate the Venice gathering system for four months after closing pursuant to a Transition Services Agreement with VGS. As a result of the April 4, 2017 sale, we recognized a loss of $16.1 million in our Consolidated Statements of Operations for the three months ended March 31, 2017 as part of Other operating (income) expense to impair our basis in the VGS net assets to its fair value. 2017 Joint Venture Grand Prix Joint Venture In May 2017, we announced plans to construct a new common carrier NGL pipeline. The NGL pipeline (“Grand Prix”) will transport volumes from the Permian Basin and our North Texas system to our fractionation and storage complex in the NGL market hub at Mont Belvieu, Texas. Grand Prix will be supported by our volumes and other third party customer commitments, and is expected to be in service in the second quarter of 2019. The capacity of the pipeline from the Permian Basin will be approximately 300 MBbl/d, expandable to 550 MBbl/d. In September 2017, we sold to funds managed by Blackstone Energy Partners ("Blackstone") a 25% interest in our consolidated subsidiary, Grand Prix Pipeline LLC (the “Grand Prix Joint Venture”). total growth capital expenditures for Grand Prix is expected to be approximately $975 million, with approximately $275 million of spending in 2017. Concurrent with the sale of the minority interest in the Grand Prix Joint Venture to Blackstone, we and EagleClaw Midstream Ventures, LLC (“EagleClaw”), a Blackstone portfolio company, executed a long-term Raw Product Purchase Agreement for transportation and fractionation whereby EagleClaw has dedicated and committed significant NGLs associated with EagleClaw’s natural gas volumes produced or processed in the Delaware Basin. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 — Inventories September 30, 2017 December 31, 2016 Commodities $ 255.6 $ 126.9 Materials and supplies 11.8 10.8 $ 267.4 $ 137.7 |
Property, Plant and Equipment a
Property, Plant and Equipment and Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Property Plant And Equipment And Intangible Assets [Abstract] | |
Property, Plant and Equipment and Intangible Assets | Note 6 — Property, Plant and Equipment and Intangible Assets September 30, 2017 December 31, 2016 Estimated Useful Lives (In Years) Gathering systems $ 6,900.8 $ 6,626.8 5 to 20 Processing and fractionation facilities 3,577.9 3,390.2 5 to 25 Terminaling and storage facilities 1,238.0 1,205.0 5 to 25 Transportation assets 343.2 451.4 10 to 25 Other property, plant and equipment 284.9 274.2 3 to 25 Land 123.8 121.3 — Construction in progress 1,223.4 449.8 — Property, plant and equipment 13,692.0 12,518.7 Accumulated depreciation (3,623.2 ) (2,827.7 ) Property, plant and equipment, net $ 10,068.8 $ 9,691.0 Intangible assets $ 2,736.6 $ 2,036.6 10 to 20 Accumulated amortization (521.8 ) (382.6 ) Intangible assets, net $ 2,214.8 $ 1,654.0 Impairment of North Texas Gathering and Processing Assets We recorded a non-cash pre-tax impairment charge of $378.0 million in the third quarter of 2017 for the partial impairment of gas processing facilities and gathering systems associated with our North Texas operations in our Gathering and Processing segment. The impairment is a result of our current assessment that forecasted undiscounted future net cash flows from operations, while positive, will not be sufficient to recover the existing total net book value of the underlying assets. Given the current price environment, Targa is projecting a continuing decline in natural gas production across the Barnett Shale in North Texas due in part to producers pursuing more attractive opportunities in other basins. We measured the impairment of property, plant and equipment using discounted estimated future cash flow analysis (“DCF”) including a terminal value (a Level 3 fair value measurement). The future cash flows are based on our estimates of future revenues, income from operations and other factors, such as timing of capital expenditures. We take into account current and expected industry and market conditions, including commodity prices and volumetric forecasts. The discount rate used in our DCF analysis is based on a weighted average cost of capital determined from relevant market comparisons. These carrying value adjustments are included in Impairment of property, plant and equipment in our Consolidated Statements of Operations. Intangible Assets Intangible assets consist of customer contracts and customer relationships acquired in the Permian and Flag City Acquisitions in 2017, the mergers with ATLS and APL in 2015 (collectively, the “Atlas mergers”) and our Badlands 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. Amortization expense attributable to these assets is recorded over the periods in which we benefit from services provided to customers. The intangible assets acquired in the Permian Acquisition were recorded at a fair value of $692.3 million. We are amortizing these intangible assets over a 15-year life using the straight-line method. The intangible assets acquired in the Flag City Acquisition were recorded at a fair value of $7.7 million. We are amortizing these intangible assets over a 10-year life using the straight-line method. The intangible assets acquired in the Atlas mergers are being amortized over a 20-year life using the straight-line method, as a reliably determinable pattern of amortization could not be identified. Amortization expense attributable to our intangible assets related to the Badlands acquisition is recorded using a method that closely reflects the cash flow pattern underlying their intangible asset valuation over a 20-year life. The estimated annual amortization expense for intangible assets is approximately $188.4 million, $182.6 million, $171.6 million, $159.4 million and $149.5 million for each of the years 2017 through 2021. The changes in our intangible assets are as follows: Balance at December 31, 2016 $ 1,654.0 Additions from Permian Acquisition 692.3 Additions from Flag City Acquisition 7.7 Amortization (139.2 ) Balance at September 30, 2017 $ 2,214.8 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 7 – 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. During the first quarter of 2016, we finalized our 2015 impairment assessment and recorded additional impairment expense of $24.0 million in our Consolidated Statement of Operations. The impairment of goodwill was 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. Changes in the net book value of our goodwill are as follows: WestTX SouthTX Permian Total Balance at December 31, 2016, net $ 174.7 $ 35.3 $ — $ 210.0 Permian Acquisition, March 1, 2017 — — 46.6 46.6 Balance at September 30, 2017, net $ 174.7 $ 35.3 $ 46.6 $ 256.6 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Note 8 – Investments in Unconsolidated Affiliates Our • a • three non-operated joint ventures in South Texas acquired in the Atlas mergers in 2015: a 75% interest in T2 LaSalle, a gas gathering company; a 50% interest in T2 Eagle Ford, a gas gathering company; and a 50% interest in T2 EF Cogen (“Cogen”), which owns a cogeneration facility, (together the “T2 Joint Ventures”); and • a 50% operated ownership interest in Cayenne Pipeline, LLC (“Cayenne ”). 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. The T2 Joint Ventures were formed to provide services for the benefit of its joint interest owners. The T2 LaSalle and T2 Eagle Ford gathering companies have capacity lease agreements with its joint interest owners, which cover costs of operations (excluding depreciation and amortization). In July 2017, we entered into the Cayenne with American Midstream LLC to convert an existing 62-mile gas pipeline to an NGL pipeline connecting the VESCO plant in Venice, Louisiana to the Enterprise Products Operating LLC (“Enterprise”) pipeline at Toca, Louisiana, for delivery to Enterprise’s Norco Fractionator. We acquired a 50% interest in the Cayenne for $5.0 million. The project is expected to be completed by November 2017. The following table shows the activity related to our investments in unconsolidated affiliates: GCF T2 LaSalle T2 Eagle Ford T2 EF Cogen Cayenne Total Balance at December 31, 2016 $ 46.1 $ 58.6 $ 118.6 $ 17.5 $ — $ 240.8 Equity earnings (loss) 8.4 (3.7 ) (7.9 ) (13.4 ) — (16.6 ) Cash distributions (1) (10.6 ) — — — — (10.6 ) Acquisition — — — — 5.0 5.0 Contributions (2) — 0.4 1.2 0.1 1.8 3.5 Balance at September 30, 2017 $ 43.9 $ 55.3 $ 111.9 $ 4.2 $ 6.8 $ 222.1 (1) Includes $2.2 million in distributions received from GCF in excess of our share of cumulative earnings for the nine months ended September 30, 2017. Such excess distributions are considered a return of capital and disclosed in cash flows from investing activities in the Consolidated Statements of Cash Flows in the period in which they occur. (2) Includes a $1.0 million contribution of property, plant and equipment to T2 Eagle Ford. Our equity loss for the nine months ended September 30, 2017 includes the effect of an impairment in the carrying value of our investment in T2 EF Cogen. As a result of the decrease in current and expected future utilization of the underlying cogeneration assets, we have determined that factors indicate that a decrease in the value of our investment occurred that was other than temporary. As a result of this evaluation, we recorded an impairment loss of approximately $12.0 million in the first quarter of 2017, which represented our proportionate share (50%) of an impairment charge recorded by the joint venture, as well as our impairment of the unamortized excess fair value resulting from the Atlas mergers. The carrying values of the T2 Joint Venture Subsequent Event Gulf Coast Express Joint Venture In October 2017, we announced that we had executed a letter of intent along with Kinder Morgan Texas Pipeline LLC (“KMTP”) and DCP Midstream Partners, LP with respect to the joint development of the proposed Gulf Coast Express Pipeline Project (“GCX Project”), which would provide an outlet for increased natural gas production from the Permian Basin to growing markets along the Texas Gulf Coast. Under the terms of the letter of intent, we would own a 25% interest in the GCX Project. KMTP would serve as the operator and constructor of the GCX Project, and we would commit significant volumes to it, including certain volumes provided by Pioneer Natural Resources Company, a joint owner in our WestTX Permian Basin system. The participation of the three parties involved with GCX Project is subject to negotiation and execution of definitive agreements. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Note 9 — Accounts Payable and Accrued Liabilities September 30, 2017 December 31, 2016 Commodities $ 600.9 $ 574.4 Other goods and services 222.3 117.0 Interest 49.2 52.3 Income and other taxes 61.2 24.2 Permian Acquisition contingent consideration, estimated current portion 5.9 — Compensation and benefits 37.6 37.2 Preferred Series A dividends payable 22.9 22.9 Other 24.0 15.5 $ 1,024.0 $ 843.5 Accounts payable and accrued liabilities includes $29.4 million and $30.5 million of liabilities to creditors to whom we have issued checks that remained outstanding as of September 30, 2017 and December 31, 2016. The estimated current portion of the Permian Acquisition contingent consideration represents the fair value as of September 30, 2017 of the first potential earn-out payment that would be payable in May 2018. The estimated remaining portion would be payable in May 2019 and is recorded within Other long-term liabilities on our Consolidated Balance Sheets. |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Note 10 — Debt Obligations September 30, 2017 December 31, 2016 Current: Obligations of the Partnership: (1) Accounts receivable securitization facility, due December 2017 $ 278.1 $ 275.0 Senior unsecured notes, 5% fixed rate, due January 2018 (2) 250.5 — 528.6 275.0 Debt issuance costs, net of amortization (0.2 ) — Current debt obligations 528.4 275.0 Long-term: TRC obligations: TRC Senior secured revolving credit facility, variable rate, due February 2020 (3) 435.0 275.0 TRC Senior secured term loan, variable rate, due February 2022 — 160.0 Unamortized discount — (2.2 ) Obligations of the Partnership: (1) Senior secured revolving credit facility, variable rate, due October 2020 (4) 430.0 150.0 Senior unsecured notes: 5% fixed rate, due January 2018 (2) — 250.5 4⅛% fixed rate, due November 2019 749.4 749.4 6⅜% fixed rate, due August 2022 — 278.7 5¼% fixed rate, due May 2023 559.6 559.6 4¼% fixed rate, due November 2023 583.9 583.9 6¾% fixed rate, due March 2024 580.1 580.1 5⅛% fixed rate, due February 2025 500.0 500.0 5⅜% fixed rate, due February 2027 500.0 500.0 TPL notes, 4¾% fixed rate, due November 2021 (5) 6.5 6.5 TPL notes, 5⅞% fixed rate, due August 2023 (5) 48.1 48.1 Unamortized premium 0.4 0.5 4,393.0 4,640.1 Debt issuance costs, net of amortization (24.4 ) (34.1 ) Long-term debt 4,368.6 4,606.0 Total debt obligations $ 4,897.0 $ 4,881.0 Irrevocable standby letters of credit: Letters of credit outstanding under the TRC Senior secured credit facility (3) $ — $ — Letters of credit outstanding under the Partnership senior secured revolving credit facility (4) 22.4 13.2 $ 22.4 $ 13.2 (1) While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership or Targa Pipeline Partners, L.P. (“TPL”). (2) The 5% Notes (“5% Senior Notes due 2018”) were reclassified to a current liability in January 2017. Prior to that date, the notes were classified as a long-term liability on our Consolidated Balance Sheets. These notes were redeemed on October 30, 2017. (3) As of September 30, 2017, availability under TRC’s $670.0 million senior secured revolving credit facility (“TRC Revolver”) was (4) As of September 30, 2017, availability under the Partnership’s $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1,147.6 million. (5) TPL notes are 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 nine months ended September 30, 2017: Range of Interest Rates Incurred Weighted Average Interest Rate Incurred TRC Revolver 2.5% - 4.5% 2.8% TRC Senior secured term loan (1) 5.75% 5.75% TRP Revolver 3.0% - 5.3% 3.2% Partnership's accounts receivable securitization facility 1.8% - 2.2% 2.0% (1) The TRC Senior secured term loan is a Eurodollar rate loan with an interest rate of LIBOR (with a LIBOR floor of 1%) plus an applicable rate of 4.75%. Compliance with Debt Covenants As of September 30, 2017, we were in compliance with the covenants contained in our various debt agreements. Securitization Facility On February 23, 2017, we amended the Partnership’s accounts receivable securitization facility (“Securitization Facility”) to increase the facility size from $275.0 million to $350.0 million. As of September 30, 2017, there was $278.1 million outstanding under the Securitization Facility. Debt Repurchases & Extinguishments In March 2017, we repaid the entirety of the TRC Senior secured term loan in the amount of $160.0 million. The repayment resulted in write offs of $2.1 million of discount and $3.7 million of debt issuance costs, which are reflected as Loss from financing activities on the Consolidated Statements of Operations. In June 2017, the Partnership redeemed its outstanding 6⅜% Senior Notes due August 2022 (“ 6⅜% Senior Notes”), Subsequent Events In October 2017, the Partnership The Partnership In October 2017, the Partnership redeemed its outstanding plus accrued interest through the redemption date. The redemption resulted in a non-cash Loss from financing activities to write-off $0.2 million of unamortized debt issuance costs in the fourth quarter of 2017. |
Other Long-term Liabilities
Other Long-term Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Other Liabilities Noncurrent [Abstract] | |
Other Long-term Liabilities | Note 11 — Other Long-term Liabilities Other long-term liabilities are comprised of the following obligations: September 30, 2017 December 31, 2016 Asset retirement obligations $ 49.9 $ 64.6 Mandatorily redeemable preferred interests 80.0 68.5 Deferred revenue 67.5 69.8 Permian Acquisition contingent consideration, noncurrent portion 284.9 — Other liabilities 15.5 12.2 Total long-term liabilities $ 497.8 $ 215.1 Asset Retirement Obligations Our ARO primarily relate to certain gas gathering pipelines and processing facilities. The changes in our ARO are as follows: Balance at December 31, 2016 $ 64.6 Additions (1) 0.8 Reduction due to sale of VGS (21.6 ) Change in cash flow estimate 3.1 Accretion expense 3.0 Balance at September 30, 2017 $ 49.9 ___________________________________________________________________________________________________________________ (1) Amount reflects ARO assumed from the Permian Acquisition. Mandatorily Redeemable Preferred Interests Our consolidated financial statements include our interest in two joint ventures that, separately, own a 100% interest in the WestOK natural gas gathering and processing system and a 72.8% undivided interest in the WestTX natural gas gathering and processing system. Our partner in the joint ventures holds preferred interests in each joint venture that are redeemable: (i) at our or our partner’s election, on or after July 27, 2022; and (ii) mandatorily, in July 2037. For reporting purposes under GAAP, an estimate of our partner’s interest in each joint venture is required to be recorded as if the redemption had occurred on the reporting date. Because redemption cannot occur before 2022, the actual value of our partner’s allocable share of each joint venture’s assets at the time of redemption may differ from our estimate of redemption value as of September 30, 2017. The following table shows the changes attributable to mandatorily redeemable preferred interests: Balance at December 31, 2016 $ 68.5 Income attributable to mandatorily redeemable preferred interests 3.0 Change in estimated redemption value included in interest expense 8.5 Balance at September 30, 2017 $ 80.0 Deferred Revenue We have certain long-term contractual arrangements under which we have received consideration, but which require future performance by Targa. These arrangements result in deferred revenue, which will be recognized over the periods that performance will be provided. Deferred revenue includes consideration received related to the construction and operation of a crude oil and condensate splitter. On December 27, 2015, Targa Terminals LLC and Noble Americas Corp., a subsidiary of Noble Group Ltd., entered into a long-term, fee-based agreement (“Splitter Agreement”) under which we will build and operate a crude oil and condensate splitter at our Channelview Terminal on the Houston Ship Channel (“Channelview Splitter”) and provide approximately 730,000 barrels of storage capacity. The Channelview Splitter will have the capability to split approximately 35,000 barrels per day of crude oil and condensate into its various components, including naphtha, kerosene, gas oil, jet fuel, and liquefied petroleum gas and will provide segregated storage for the crude, condensate and components. The Channelview Splitter project is expected to be completed by the first half of 2018, and has an estimated total cost of approximately $140.0 million. The first annual advance payment due under the Splitter Agreement was received in October 2016 and has been recorded as deferred revenue, as the Splitter Agreement Deferred revenue also includes nonmonetary consideration received in a 2015 amendment (the “gas contract amendment”) to a gas gathering and processing agreement. We measured the estimated fair value of the gathering assets transferred to us using significant other observable inputs representative of a Level 2 fair value measurement. Because the gas contract amendment will require future performance by Targa, we have recorded the consideration received as deferred revenue. The deferred revenue related to this amendment is being recognized on a straight-line basis through the end of the agreement’s term in 2030. Deferred revenue also includes consideration received for other construction activities of facilities connected to our systems. The deferred revenue related to these other construction activities will be recognized over the periods that future performance will be provided, which extend through 2023. The following table shows the components of deferred revenue: September 30, 2017 December 31, 2016 Splitter agreement $ 43.0 $ 43.0 Gas contract amendment 18.6 19.7 Other deferred revenue 5.9 7.1 Total deferred revenue $ 67.5 $ 69.8 The following table shows the changes in deferred revenue: Balance at December 31, 2016 $ 69.8 Additions — Revenue recognized (2.3 ) Balance at September 30, 2017 $ 67.5 Contingent Consideration Upon closing of the Permian Acquisition, a contingent consideration liability arising from potential earn-out provisions was recognized at its preliminary fair value. The potential earn-out payments will be based upon a multiple of gross margin realized during the first two annual periods after the acquisition date During the three months ended June 30, 2017, we recognized certain adjustments that were accounted for as revisions to the acquisition date fair value and decreased the acquisition date fair value of the contingent consideration by $45.3 million to $416.3 million. During the three months ended September 30, 2017, we finalized the purchase price allocation with no additional revisions to the acquisition date fair value. See Note 4 – Acquisitions and Divestments for additional discussion. For the period from the acquisition date to September 30, 2017, the fair value of this liability decreased by $125.5 million, bringing the total Permian Acquisition contingent consideration to $290.8 million at September 30, 2017. The decrease in fair value of the contingent consideration was primarily related to reductions in actual and forecasted volumes and gross margin as a result of changes in producers’ drilling activity in the region since the acquisition date. Such changes in estimated fair value of the contingent consideration are attributable to events and circumstances that occurred after the acquisition date, and as such have been recognized in Other income (expense). As of September 30, 2017, the fair value of the first potential earn-out payment of $5.9 million has been recorded as a component of Accounts payable and accrued liabilities, which are current liabilities on our Consolidated Balance Sheets. As of September 30, 2017, the fair value of the second potential earn-out payment of $284.9 million has been recorded within Other long-term liabilities on our Consolidated Balance Sheets. See Note 17 – Fair Value Measurements for additional discussion of the fair value methodology. The following table shows the changes in contingent consideration: Balance at March 1, 2017 (acquisition date) $ 461.6 Measurement period adjustment of acquisition date value (45.3 ) Decrease in fair value due to factors occurring after acquisition date (125.5 ) Balance at September 30, 2017 290.8 Less: Current portion (5.9 ) Long-term balance at September 30, 2017 $ 284.9 |
Preferred Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Preferred Stock | Note 12 – Preferred Stock Preferred Stock and Detachable Warrants In the first quarter of 2016, TRC sold in two tranches to investors in a private placement 965,100 shares of Series A Preferred Stock (“Series A Preferred”) 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 (collectively the “Warrants”) for an aggregate purchase price of $994.1 million in cash. The Series A Preferred 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 Series A Preferred ranks senior to the common outstanding stock with respect to the payment of dividends and distributions in liquidation. The Company may 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. We have not made an election to PIK through September 30, 2017. The Series A Preferred 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 Series A Preferred is not redeemed by the end of year twelve, the investors have the right to convert the Series A Preferred into TRC common stock at an exercise price of $20.77, which represented a 10% premium over the ten-day volume weighted average price (“VWAP”) prior to the February 18, 2016 signing date ($18.88) of the Purchase Agreement underlying the first tranche. If the investors do not elect to convert their Series A Preferred into TRC common stock, 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 could result in forced redemption, at the option of the investor, if the Series A Preferred could not otherwise remain outstanding or be replaced with a “substantially equivalent security.” The Series A Preferred does not qualify as a liability instrument under ASC 480 – Distinguishing Liabilities from Equity, The detachable Warrants have a seven-year term and were 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 of common stock at the Company’s option. The Warrants qualify as freestanding financial instruments and meet the derivatives accounting scope exception in ASC 815 because they are indexed to our equity and otherwise meet the applicable criteria for equity classification. The portion of proceeds allocated to the Series A and Series B Warrants was recorded as additional paid-in capital. See exercise of the Warrants in Note 13 – Common Stock and Related Matters. Net cash proceeds were allocated on a relative fair value basis to the Series A Preferred, Series A Warrants and Series B Warrants. The $178.1 million discount on the Series A Preferred 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 $787.1 million allocated to the Series A Preferred was allocated to additional paid-in capital to give effect to the intrinsic value of a beneficial conversion feature (“BCF”). The following table summarizes the accounting upon issuance of our Series A Preferred: Allocation of Proceeds Additional Paid-in Capital Series A Preferred Series A Warrants Series B Warrants Beneficial Conversion Feature Gross proceeds $ 994.1 Transaction fees (24.8 ) Net Proceeds- Initial Relative Fair Value Allocation $ 969.3 $ 787.1 $ 135.7 $ 46.5 $ — Allocation to BCF (614.4 ) — — 614.4 Per balance sheet upon issuance $ 172.7 $ 135.7 $ 46.5 $ 614.4 Beneficial Conversion Feature ASC 470-20-20 – Debt – Debt with conversion and Other Options We have the right to redeem the Series A Preferred beginning after year five. As such, we can effectively mitigate or limit the Series A Preferred Holders’ ability to benefit from their conversion right after year twelve by paying either a $96.5 million (10%) redemption premium in year six or a $48.3 million (5%) redemption premium in years seven through twelve. In either case, the redemption premium would be significantly less than the $614.4 million BCF required to be recognized under GAAP. Upon exercise of our redemption rights, any previously recognized accretion of deemed dividends would be reversed in the period of redemption and reflected as income attributable to common shareholders in our Consolidated Statement of Operations and related per share amounts. Preferred Stock Dividends As of September 30, 2017, we have accrued cumulative preferred dividends of $22.9 million, which will be paid on November 14, 2017. During the nine months ended September 30, 2017, we paid $68.8 million of dividends to preferred shareholders, and recorded deemed dividends of $19.0 million attributable to accretion of the preferred discount resulting from the BCF accounting described above. Such accretion is included in the book value of the Series A Preferred Stock. |
Common Stock and Related Matter
Common Stock and Related Matters | 9 Months Ended |
Sep. 30, 2017 | |
Class Of Stock Disclosures [Abstract] | |
Common Stock and Related Matters | Note 13 — Common Stock and Related Matters Public Offerings of Common Stock On January 26, 2017, we completed a public offering of 9,200,000 shares of our common stock (including the shares sold pursuant to the underwriters’ overallotment option) at a price to the public of $57.65, providing net proceeds of $524.2 million. We used the net proceeds from this public offering to fund the cash portion of the Permian Acquisition purchase price due upon closing and for general corporate purposes. For the nine months ended September 30, 2017, we issued 4,521,310 shares of common stock under our Equity Distribution Agreement entered into in December 2016 (the “December 2016 EDA”), receiving net proceeds of $257.0 million. As of September 30, 2017, we have $411.2 million remaining under the December 2016 EDA. On May 9, 2017, we entered into an equity distribution agreement under the May 2016 Shelf (the “May 2017 EDA”), pursuant to which we may sell through our sales agents, at our option, up to an aggregated amount of $750.0 million of our common stock. For the nine months ended September 30, 2017, no shares of common stock have been issued under the May 2017 EDA. On June 1, 2017, we completed a public offering of 17,000,000 shares of our common stock at a price to the public of $46.10, providing net proceeds after underwriting discounts, commissions and other expenses of $777.3 million. We used the net proceeds from this public offering to fund a portion of the capital expenditures related to the construction of the Grand Prix NGL pipeline, repay outstanding borrowings under our credit facilities, redeem the Partnership’s 6 ⅜ Warrants During 2016, 19,983,843 warrants were exercised and net settled for 11,336,856 shares of common stock. For the nine months ended September 30, 2017, no detachable Warrants were exercised. As a result, Series A Warrants exercisable into a maximum of 67,392 shares of common stock and Series B Warrants exercisable into maximum of 32,496 shares of common stock were outstanding as of September 30, 2017 Dividends The following table details the dividends declared and/or paid by us to common shareholders for the nine months ended September 30, 2017. Three Months Ended Date Paid or To Be Paid Total Common Dividends Declared Amount of Common Dividends Paid or To Be Paid Accrued Dividends (1) Dividends Declared per Share of Common Stock ( per share amounts) September 30, 2017 November 15, 2017 $ 199.0 $ 196.2 $ 2.8 $ 0.91000 June 30, 2017 August 15, 2017 198.6 196.2 2.4 0.91000 March 31, 2017 May 16, 2017 182.8 180.3 2.5 0.91000 December 31, 2016 February 15, 2017 178.3 176.5 1.8 0.91000 (1) Represents accrued dividends on restricted stock and 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. |
Partnership Units and Related M
Partnership Units and Related Matters | 9 Months Ended |
Sep. 30, 2017 | |
Partners Capital [Abstract] | |
Partnership Units and Related Matters | Note 14 — Partnership Units and Related Matters Distributions As a result of the TRC/TRP Merger, we are entitled to receive all Partnership distributions from available cash on the Partnership’s common units after payment of preferred unit distributions each quarter. The Partnership has discretion under the Third A&R Partnership Agreement See Note 2 – Basis of Presentation. The following details the distributions declared or paid by the Partnership for the nine months ended September 30, 2017. Three Months Ended Date Paid Or to Be Paid Total Distributions Distributions to Targa Resources Corp. September 30, 2017 November 10, 2017 $ 225.4 $ 222.6 June 30, 2017 August 10, 2017 225.4 222.6 March 31, 2017 May 11, 2017 209.6 206.8 December 31, 2016 February 10, 2017 198.1 195.3 Contributions Subsequent to December 1, 2016, the effective date of the Third A&R Partnership Agreement, no units will be issued for capital contributions to the Partnership, but all capital contributions will continue to be allocated 98% to the limited partner and 2% to the general partner. For the nine months ended September 30, 2017, we made total capital contributions to the Partnership of $1,620.0 million. Preferred Units In October 2015, the Partnership completed an offering of 5,000,000 Preferred Units at a price of $25.00 per unit. The Preferred Units are listed on the NYSE under the symbol “NGLS PRA.” At any time on or after November 1, 2020, the Partnership may redeem the Preferred Units, in whole or in part, from any source of funds legally available for such purpose, by paying $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of redemption, whether or not declared. In addition, the Partnership (or a third party with the Partnership’s prior written consent) may redeem the Preferred Units following certain changes of control, as described in the Partnership Agreement. Holders of Preferred Units have no voting rights except for certain exceptions set forth in the Partnership’s Partnership Agreement. Distributions on the Partnership’s Preferred Units are cumulative from the date of original issue in October 2015 and are payable monthly in arrears on the 15th day of each month of each year, when, as and if declared by the board of directors of the Partnership’s general partner. Distributions on the Preferred Units are payable out of amounts legally available at a rate equal to 9.0% per annum. On and after November 1, 2020, distributions on the Preferred Units will accumulate at an annual floating rate equal to the one-month LIBOR plus a spread of 7.71%. The Partnership paid $2.8 million and $8.4 million of distributions to the holders of preferred units (“Preferred Unitholders”) for the three and nine months ended September 30, 2017. The Preferred Units are reported as noncontrolling interests in our financial statements. Subsequent Event In October 2017, the board of directors of the general partner of the Partnership declared a cash distribution of $0.1875 per Preferred Unit. This distribution will be paid on November 15, 2017. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Note 15 — Earnings per Common Share The following table sets forth a reconciliation of net income and weighted average shares outstanding (in millions) used in computing basic and diluted net income per common share: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income $ (155.1 ) $ (3.2 ) $ (195.0 ) $ (18.4 ) Less: Net income attributable to noncontrolling interests 12.5 7.5 34.3 18.2 Less: Dividends on preferred stock 29.4 28.7 87.8 62.0 Net income attributable to common shareholders for basic earnings per share $ (197.0 ) $ (39.4 ) $ (317.1 ) $ (98.6 ) Weighted average shares outstanding - basic 215.6 168.0 203.8 145.5 Net income available per common share - basic $ (0.91 ) $ (0.23 ) $ (1.56 ) $ (0.68 ) Weighted average shares outstanding 215.6 168.0 203.8 145.5 Dilutive effect of common stock equivalents — — — — Weighted average shares outstanding - diluted 215.6 168.0 203.8 145.5 Net income available per common share - diluted $ (0.91 ) $ (0.23 ) $ (1.56 ) $ (0.68 ) 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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Unvested restricted stock awards 1.2 0.8 1.2 0.5 Warrants to purchase common stock 0.1 8.9 0.1 6.1 Series A Preferred Stock (1) 46.5 46.5 46.5 33.7 (1) The Series A Preferred 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 Series A Preferred is not redeemed by the end of year twelve, the investors have the right to convert the Series A Preferred into TRC common stock. See Note 12 – Preferred Stock. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 16 — 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, NGL, and condensate equity volumes in our Gathering and Processing operations that result from percent-of-proceeds processing arrangements and (ii) future commodity purchases and sales in our Logistics and Marketing segment by entering into derivative instruments. 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 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 TPL derivative contracts with a fair value of $102.1 million as of February 27, 2015 (the “acquisition date”), were novated to us and included in the acquisition date fair value of assets acquired. We received derivative settlements of $1.4 million and $6.3 million for the three and nine months ended September 30, 2017 and $5.8 million and $20.9 million for the three and nine months ended September 30, 2016, related to these novated contracts. From the acquisition date through September 30, 2017, we have received derivative settlements of $100.9 million. The remainder of the novated contracts will settle by the end of 2017. 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, we recorded ineffectiveness losses of less than $0.1 million and $0.1 million for the three and nine months ended September 30, 2017 and less than $0.1 million and $0.3 million for the three and nine months ended September 30, 2016, related to otherwise qualifying TPL derivatives, which are primarily natural gas swaps. We also enter into derivative instruments to help manage other short-term commodity-related business risks. We have not designated these derivatives as hedges and record changes in fair value and cash settlements to revenues. At September 30, 2017, the notional volumes of our commodity derivative contracts were: Commodity Instrument Unit 2017 2018 2019 2020 Natural Gas Swaps MMBtu/d 160,347 151,100 116,136 - Natural Gas Basis Swaps MMBtu/d 92,200 15,726 12,500 10,445 Natural Gas Futures MMBtu/d - 1,103 - - Natural Gas Options MMBtu/d 22,900 9,486 - - NGL Swaps Bbl/d 23,432 12,858 7,399 - NGL Futures Bbl/d 38,880 6,589 329 - NGL Options Bbl/d 3,094 2,986 410 - Condensate Swaps Bbl/d 3,150 2,420 1,293 - Condensate Options Bbl/d 1,380 691 590 - 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 on our Consolidated Balance Sheets as well as pro forma reporting assuming that we reported derivatives subject to master netting agreements on a net basis: Fair Value as of September 30, 2017 Fair Value as of December 31, 2016 Balance Sheet Derivative Derivative Derivative Derivative Location Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Commodity contracts Current $ 18.4 $ 79.9 $ 16.7 $ 48.6 Long-term 13.7 14.4 5.1 26.1 Total derivatives designated as hedging instruments $ 32.1 $ 94.3 $ 21.8 $ 74.7 Derivatives not designated as hedging instruments Commodity contracts Current $ 0.3 $ 1.0 $ 0.1 $ 0.5 Long-term - 0.5 - - Total derivatives not designated as hedging instruments $ 0.3 $ 1.5 $ 0.1 $ 0.5 Total current position $ 18.7 $ 80.9 $ 16.8 $ 49.1 Total long-term position 13.7 14.9 5.1 26.1 Total derivatives $ 32.4 $ 95.8 $ 21.9 $ 75.2 The pro forma impact of reporting derivatives on our Consolidated Balance Sheets on a net basis is as follows: Gross Presentation Pro forma net presentation September 30, 2017 Asset Liability Collateral Asset Liability Current Position Counterparties with offsetting positions or collateral $ 18.7 $ (79.5 ) $ 44.6 $ 3.6 $ (19.8 ) Counterparties without offsetting positions - assets - - - - - Counterparties without offsetting positions - liabilities - (1.4 ) - - (1.4 ) 18.7 (80.9 ) 44.6 3.6 (21.2 ) Long Term Position Counterparties with offsetting positions or collateral 13.5 (14.2 ) - 6.5 (7.2 ) Counterparties without offsetting positions - assets 0.2 - - 0.2 - Counterparties without offsetting positions - liabilities - (0.7 ) - - (0.7 ) 13.7 (14.9 ) - 6.7 (7.9 ) Total Derivatives Counterparties with offsetting positions or collateral 32.2 (93.7 ) 44.6 10.1 (27.0 ) Counterparties without offsetting positions - assets 0.2 - - 0.2 - Counterparties without offsetting positions - liabilities - (2.1 ) - - (2.1 ) $ 32.4 $ (95.8 ) $ 44.6 $ 10.3 $ (29.1 ) Gross Presentation Pro forma net presentation December 31, 2016 Asset Liability Collateral Asset Liability Current Position Counterparties with offsetting positions or collateral $ 16.8 $ (46.1 ) $ 7.0 $ 5.7 $ (28.0 ) Counterparties without offsetting positions - assets - - - - - Counterparties without offsetting positions - liabilities - (3.0 ) - - (3.0 ) 16.8 (49.1 ) 7.0 5.7 (31.0 ) Long Term Position Counterparties with offsetting positions or collateral 5.1 (18.7 ) - - (13.6 ) Counterparties without offsetting positions - assets - - - - - Counterparties without offsetting positions - liabilities - (7.4 ) - - (7.4 ) 5.1 (26.1 ) - - (21.0 ) Total Derivatives Counterparties with offsetting positions or collateral 21.9 (64.8 ) 7.0 5.7 (41.6 ) Counterparties without offsetting positions - assets - - - - - Counterparties without offsetting positions - liabilities - (10.4 ) - - (10.4 ) $ 21.9 $ (75.2 ) $ 7.0 $ 5.7 $ (52.0 ) Our payment obligations in connection with a majority of these hedging transactions are secured by a first priority lien in the collateral securing the TRP Revolver that ranks equal in right of payment with liens granted in favor of the Partnership’s senior secured lenders. Some of our hedges are futures contracts executed through a broker that clears the hedges through an exchange. We maintain a margin deposit with the broker in an amount sufficient enough to cover the fair value of our open futures positions. The margin deposit is considered collateral, which is located within other current assets on our Consolidated Balance Sheets and is not offset against the fair values of our derivative instruments. The fair value of our derivative instruments, depending on the type of instrument, was determined by the use of present value methods or standard option valuation models with assumptions about commodity prices based on those observed in underlying markets. The estimated fair value of our derivative instruments was a net liability of $63.4 million as of September 30, 2017. The estimated fair value is net of an adjustment for credit risk based on the default probabilities as indicated by market quotes for the counterparties’ credit default swap rates. The credit risk adjustment was immaterial for all periods presented. Our futures contracts that are cleared through an exchange are margined daily and do not require any credit adjustment. The following tables reflect amounts recorded in Other Comprehensive Income and amounts reclassified from OCI to revenue and expense for the periods indicated: Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) Derivatives in Cash Flow Three Months Ended September 30, Nine Months Ended September 30, Hedging Relationships 2017 2016 2017 2016 Commodity contracts $ (106.8 ) $ 12.9 $ (10.5 ) $ (40.5 ) Gain (Loss) Reclassified from OCI into Income (Effective Portion) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2017 2016 2017 2016 Revenues $ (2.1 ) $ 8.1 $ (2.2 ) $ 50.6 Our consolidated earnings are also affected by the use of the mark-to-market method of accounting for derivative instruments that do not qualify for hedge accounting or that have not been designated as hedges. The changes in fair value of these instruments are recorded on the balance sheet and through earnings rather than being deferred until the anticipated transaction settles. The use of mark-to-market accounting for financial instruments can cause non-cash earnings volatility due to changes in the underlying commodity price indices. Location of Gain Gain (Loss) Recognized in Income on Derivatives Derivatives Not Designated Recognized in Income on Three Months Ended September 30, Nine Months Ended September 30, as Hedging Instruments Derivatives 2017 2016 2017 2016 Commodity contracts Revenue $ (1.5 ) $ (0.3 ) $ (2.9 ) $ 1.3 Based on valuations as of September 30, 2017, we expect to reclassify commodity hedge-related deferred losses of $64.1 million included in accumulated other comprehensive income into earnings before income taxes through the end of 2019, with $63.0 million of losses to be reclassified over the next twelve months. See Note 17 – Fair Value Measurements for additional disclosures related to derivative instruments and hedging activities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 17 — 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 on our Consolidated Balance Sheets. Other financial instruments are reported at historical cost or amortized cost on our Consolidated Balance Sheets. The following are additional qualitative and quantitative disclosures regarding fair value measurements of financial instruments. Fair Value of Derivative Financial Instruments Our derivative instruments consist of financially settled commodity swaps, futures, option contracts and fixed-price forward commodity contracts with certain counterparties. We determine the fair value of our derivative contracts using present value methods or standard option valuation models with assumptions about commodity prices based on those observed in underlying markets. We have consistently applied these valuation techniques in all periods presented and we believe we have obtained the most accurate information available for the types of derivative contracts we hold. The fair values of our derivative instruments are sensitive to changes in forward pricing on natural gas, NGLs and crude oil. The financial position of these derivatives at September 30, 2017, a net liability position of $63.4 million, reflects the present value, adjusted for counterparty credit risk, of the amount we expect to receive or pay in the future on our derivative contracts. If forward pricing on natural gas, NGLs and crude oil were to increase by 10%, the result would be a fair value reflecting a net liability of $149.9 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 $22.2 million, ignoring an adjustment for counterparty credit risk. Fair Value of Other Financial Instruments Due to their cash or near-cash nature, the carrying value of other financial instruments included in working capital (i.e., cash and cash equivalents, accounts receivable, accounts payable) approximates their fair value. Long-term debt is primarily the other financial instrument for which carrying value could vary significantly from fair value. We determined the supplemental fair value disclosures for our long-term debt as follows: • The TRC Revolver, TRP Revolver, and the Partnership’s accounts receivable 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 (prior to its repayment) and the Partnership’s senior unsecured notes are based on quoted market prices derived from trades of the debt. Contingent consideration liabilities related to business acquisitions are carried at fair value. Fair Value Hierarchy We categorize the inputs to the fair value measurements of financial assets and liabilities at each balance sheet reporting date using a three-tier fair value hierarchy that prioritizes the significant inputs used in measuring fair value: • Level 1 – observable inputs such as quoted prices in active markets; • Level 2 – inputs other than quoted prices in active markets that we can directly or indirectly observe to the extent that the markets are liquid for the relevant settlement periods; and • Level 3 – unobservable inputs in which little or no market data exists, therefore we must develop our own assumptions. The following table shows a breakdown by fair value hierarchy category for (1) financial instruments measurements included on our Consolidated Balance Sheets at fair value and (2) supplemental fair value disclosures for other financial instruments: September 30, 2017 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) $ 32.0 $ 32.0 $ — $ 29.0 $ 3.0 Liabilities from commodity derivative contracts (1) 95.4 95.4 — 86.5 8.9 Permian Acquisition contingent consideration (2) 290.8 290.8 — — 290.8 TPL contingent consideration (3) 2.5 2.5 — — 2.5 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 114.1 114.1 — — — TRC Revolver 435.0 435.0 — 435.0 — TRC term loan — — — — — TRP Revolver 430.0 430.0 — 430.0 — Partnership's Senior unsecured notes 3,778.5 3,881.2 — 3,881.2 — Partnership's accounts receivable securitization facility 278.1 278.1 — 278.1 — December 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) $ 21.0 $ 21.0 $ — $ 19.6 $ 1.4 Liabilities from commodity derivative contracts (1) 74.2 74.2 — 69.3 4.9 Permian Acquisition contingent consideration (2) — — — — — TPL contingent consideration (3) 2.6 2.6 — — 2.6 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 73.5 73.5 — — — TRC Revolver 275.0 275.0 — 275.0 — TRC term loan 157.8 158.4 — 158.4 — TRP Revolver 150.0 150.0 — 150.0 — Partnership's Senior unsecured notes 4,057.3 4,101.6 — 4,101.6 — Partnership's accounts receivable securitization facility 275.0 275.0 — 275.0 — (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 16 – Derivative Instruments and Hedging Activities. The above fair values reflect the total value of each derivative contract taken as a whole, whereas the Consolidated Balance Sheets presentation is based on the individual maturity dates of estimated future settlements. As such, an individual contract could have both an asset and liability position when segregated into its current and long-term portions for Consolidated Balance Sheets classification purposes. (2) We have a contingent consideration liability related to the Permian Acquisition, which is carried at fair value. (3) We have a contingent consideration liability for TPL’s previous acquisition of a gas gathering system and related assets, which is carried at fair value. Additional Information Regarding Level 3 Fair Value Measurements Included on Our Consolidated Balance Sheets We reported certain of our swaps and option contracts at fair value using Level 3 inputs due to such derivatives not having observable implied volatilities or market prices for substantially the full term of the derivative asset or liability. For valuations that include both observable and unobservable inputs, if the unobservable input is determined to be significant to the overall inputs, the entire valuation is categorized in Level 3. This includes derivatives valued using indicative price quotations whose contract length extends into unobservable periods. The fair value of these swaps is determined using a discounted cash flow valuation technique based on a forward commodity basis curve. For these derivatives, the primary input to the valuation model is the forward commodity basis curve, which is based on observable or public data sources and extrapolated when observable prices are not available. As of September 30, 2017, we had 31 commodity swap and option contracts categorized as Level 3. The significant unobservable inputs used in the fair value measurements of our Level 3 derivatives are (i) the forward natural gas liquids pricing curves, for which a significant portion of the derivative’s term is beyond available forward pricing and (ii) implied volatilities, which are unobservable as a result of inactive natural gas liquids options trading. The change in the fair value of Level 3 derivatives associated with a 10% change in the forward basis curve where prices are not observable is immaterial. The fair value of the Permian Acquisition contingent consideration was determined using a Monte Carlo simulation model. Significant inputs used in the fair value measurement include expected gross margin (calculated in accordance with the terms of the purchase and sale agreements), term of the earn-out period, risk adjusted discount rate and volatility associated with the underlying assets. A significant decrease in expected gross margin during the earn-out period, or significant increase in the discount rate or volatility would result in a lower fair value estimate. The fair value of the TPL contingent consideration was determined using a probability-based model measuring the likelihood of meeting certain volumetric measures. The inputs for both models are not observable; therefore, the entire valuations of the contingent considerations are categorized in Level 3. Changes in the fair value of these liabilities are included in Other income (expense) in 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, 2016 $ (3.6 ) $ (2.6 ) Change in fair value of TPL contingent consideration - 0.1 Fair value of Permian Acquisition contingent consideration (1) - (290.8 ) New Level 3 derivative instruments (0.8 ) - Transfers out of Level 3 (2) 1.6 - Settlements included in Revenue 0.4 - Unrealized gain/(loss) included in OCI (3.5 ) - Balance, September 30, 2017 $ (5.9 ) $ (293.3 ) (1) Represents the September 30, 2017 balance of the contingent consideration that arose as part of the Permian Acquisition in the first quarter of 2017. See Note 4 – Acquisitions and Divestitures for discussion of the initial fair value. (2) Transfers relate to long-term over-the-counter swaps for NGL products for which observable market prices became available for substantially their full term. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Loss Contingency [Abstract] | |
Contingencies | Note 18 – Contingencies Legal Proceedings We and the Partnership are parties to various legal, administrative and regulatory proceedings that have arisen in the ordinary course of our business. |
Other Operating (Income) Expens
Other Operating (Income) Expense | 9 Months Ended |
Sep. 30, 2017 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Expense | Note 19 – Other Operating (Income) Expense Other operating (income) expense is comprised of the following: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Loss on sale or disposal of assets (1) $ 0.3 $ 4.7 $ 16.6 $ 5.7 Miscellaneous business tax 0.3 0.2 0.6 0.4 $ 0.6 $ 4.9 $ 17.2 $ 6.1 _____________________________________________________________________________________________________ (1) Comprised primarily of a $16.1 million loss in the first quarter of 2017 due to the reduction in the carrying value of our ownership interest in VGS in connection with the April 4, 2017 sale. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note 20 - Supplemental Cash Flow Information Nine Months Ended September 30, 2017 2016 Cash: Interest paid, net of capitalized interest (1) $ 164.1 $ 211.2 Income taxes paid, net of refunds (67.4 ) 1.2 Non-cash investing activities: Deadstock commodity inventory transferred to property, plant and equipment $ 8.3 $ 16.9 Impact of capital expenditure accruals on property, plant and equipment 118.3 (0.4 ) Transfers from materials and supplies inventory to property, plant and equipment 2.8 1.9 Contribution of property, plant and equipment to investments in unconsolidated affiliates 1.0 — Change in ARO liability and property, plant and equipment due to revised cash flow estimate 3.1 (9.1 ) Non-cash financing activities: Reduction of Owner's Equity related to accrued dividends on unvested equity awards under share compensation arrangements $ 7.0 $ 6.8 Allocation of Series A Preferred Stock net book value of BCF to additional paid-in capital — 614.4 Change in accrued dividends of Series A Preferred Stock — 22.9 Accretion of deemed dividends on Series A Preferred Stock 19.0 12.3 Transfer within additional paid-in capital for exercise of Warrants — 53.2 Impact of accounting standard adoption recorded in retained earnings 56.1 — Non-cash balance sheet movements related to the Permian Acquisition (See Note 4 - Acquisitions and Divestitures): Contingent consideration recorded at the acquisition date $ 416.3 $ — Non-cash balance sheet movements related to the purchase of noncontrolling interests in subsidiary (See Note 4 - Acquisitions and Divestitures): Additional paid-in capital (13.7 ) — Deferred tax liability 13.7 — Non-cash balance sheet movements related to the TRC/TRP Merger: Prepaid transaction costs reclassified in the additional paid-in capital — 4.5 Issuance of common stock — 0.1 Additional paid-in capital 0.3 3,120.0 Accumulated other comprehensive income — 55.7 Noncontrolling interests — (4,119.7 ) Deferred tax liability (0.3 ) 943.9 (1) Interest capitalized on major projects was $8.3 million and $7.2 million for the nine months ended September 30, 2017 and 2016. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Note 21 — Segment Information We operate in two primary segments: (i) Gathering and Processing, and (ii) Logistics and Marketing (also referred to as the 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. The Logistics and Marketing segment also includes our Grand Prix project. Logistics and Marketing operations are generally connected to and supplied in part by our Gathering and Processing segment and are predominantly located in Mont Belvieu, Galena Park and Channelview, Texas; Lake Charles, Louisiana and Tacoma, Washington. Other contains the results (including any hedge ineffectiveness) of commodity derivative activities included in operating margin and mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. Elimination of inter-segment transactions are reflected in the corporate and eliminations column. Reportable segment information is shown in the following tables: Three Months Ended September 30, 2017 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 200.3 $ 1,672.2 $ (1.0 ) $ — $ 1,871.5 Fees from midstream services 148.5 111.8 — — 260.3 348.8 1,784.0 (1.0 ) — 2,131.8 Intersegment revenues Sales of commodities 783.7 80.6 — (864.3 ) — Fees from midstream services 1.7 7.0 — (8.7 ) — 785.4 87.6 — (873.0 ) — Revenues $ 1,134.2 $ 1,871.6 $ (1.0 ) $ (873.0 ) $ 2,131.8 Operating margin $ 198.3 $ 115.9 $ (1.0 ) $ — * Other financial information: Total assets (1) $ 10,644.3 $ 3,240.9 $ 30.8 $ 82.3 $ 13,998.3 Goodwill $ 256.6 $ — $ — $ — $ 256.6 Capital expenditures $ 295.9 $ 71.0 $ — $ 11.8 $ 378.7 (1) Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. * Total operating margin is not presented in this table as it represents a non-GAAP measure . Three Months Ended September 30, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 172.2 $ 1,215.3 $ 11.2 $ — $ 1,398.7 Fees from midstream services 120.6 133.0 — — 253.6 292.8 1,348.3 11.2 — 1,652.3 Intersegment revenues Sales of commodities 574.8 76.3 — (651.1 ) — Fees from midstream services 1.9 6.6 — (8.5 ) — 576.7 82.9 — (659.6 ) — Revenues $ 869.5 $ 1,431.2 $ 11.2 $ (659.6 ) $ 1,652.3 Operating margin $ 149.4 $ 126.0 $ 11.2 $ — * Other financial information: Total assets (1) $ 10,047.3 $ 2,737.5 $ 47.2 $ 223.6 $ 13,055.6 Goodwill $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 97.1 $ 36.2 $ — $ 1.3 $ 134.6 (1) Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. * Total operating margin is not presented in this table as it represents a non-GAAP measure. Nine Months Ended September 30, 2017 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 544.4 $ 4,804.8 $ 3.9 $ — $ 5,353.1 Fees from midstream services 399.3 359.7 — — 759.0 943.7 5,164.5 3.9 — 6,112.1 Intersegment revenues Sales of commodities 2,209.2 237.8 — (2,447.0 ) — Fees from midstream services 5.1 21.1 — (26.2 ) — 2,214.3 258.9 — (2,473.2 ) — Revenues $ 3,158.0 $ 5,423.4 $ 3.9 $ (2,473.2 ) $ 6,112.1 Operating margin $ 549.3 $ 358.5 $ 3.9 $ (0.1 ) * Other financial information: Total assets (1) $ 10,644.3 $ 3,240.9 $ 30.8 $ 82.3 $ 13,998.3 Goodwill $ 256.6 $ — $ — $ — $ 256.6 Capital expenditures $ 730.7 $ 241.8 $ — $ 15.2 $ 987.7 Business acquisition $ 987.1 $ — $ — $ — $ 987.1 (1) Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. * Total operating margin is not presented in this table as it represents a non-GAAP measure. Nine Months Ended September 30, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 441.3 $ 3,384.7 $ 56.9 $ — $ 3,882.9 Fees from midstream services 360.9 434.6 — — 795.5 802.2 3,819.3 56.9 — 4,678.4 Intersegment revenues Sales of commodities 1,455.8 176.3 — (1,632.1 ) — Fees from midstream services 5.8 15.1 — (20.9 ) — 1,461.6 191.4 — (1,653.0 ) — Revenues $ 2,263.8 $ 4,010.7 $ 56.9 $ (1,653.0 ) $ 4,678.4 Operating margin $ 404.1 $ 424.5 $ 56.9 $ — * Other financial information: Total assets (1) $ 10,047.3 $ 2,737.5 $ 47.2 $ 223.6 $ 13,055.6 Goodwill $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 271.3 $ 151.9 $ — $ 3.3 $ 426.5 (1) Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. * Total operating margin is not presented in this table as it represents a non-GAAP measure. The following table shows our consolidated revenues by product and service for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Sales of commodities: Natural gas $ 504.1 $ 465.6 $ 1,480.9 $ 1,102.0 NGL 1,274.9 866.7 3,623.9 2,575.8 Condensate 44.9 35.0 135.9 96.2 Petroleum products 48.6 20.2 108.5 52.0 Derivative activities (1.0 ) 11.2 3.9 56.9 1,871.5 1,398.7 5,353.1 3,882.9 Fees from midstream services: Fractionating and treating 29.8 33.2 92.8 94.8 Storage, terminaling, transportation and export 75.0 89.7 247.8 316.3 Gathering and processing 138.0 110.9 368.5 329.9 Other 17.5 19.8 49.9 54.5 260.3 253.6 759.0 795.5 Total revenues $ 2,131.8 $ 1,652.3 $ 6,112.1 $ 4,678.4 The following table shows a reconciliation of reportable segment operating margin to income (loss) before income taxes for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Reconciliation of reportable segment operating margin to income (loss) before income taxes: Gathering and Processing operating margin $ 198.3 $ 149.4 $ 549.3 $ 404.1 Logistics and Marketing operating margin 115.9 126.0 358.5 424.5 Other operating margin (1.0 ) 11.2 3.9 56.9 Depreciation and amortization expenses (208.3 ) (184.0 ) (602.8 ) (563.6 ) General and administrative expenses (49.9 ) (46.1 ) (149.5 ) (138.3 ) Impairment of property, plant and equipment (378.0 ) — (378.0 ) — Impairment of goodwill — — — (24.0 ) Interest expense, net (56.1 ) (62.7 ) (181.2 ) (187.0 ) Other, net 126.6 (5.7 ) 72.5 5.1 Income (loss) before income taxes $ (252.5 ) $ (11.9 ) $ (327.3 ) $ (22.3 ) |
Significant Accounting Polici29
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition Other Assets and Deferred Costs – Contracts with Customers With the issuance in August 2015 of ASU 2015-14 , Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers We have disaggregated contracts within our two segments and are in the process of completing our review of contracts and transaction types with counterparties in order to evaluate how the new standard would impact our current revenue recognition and disclosure policies upon adoption. Gathering and Processing Segment Based on our progress to date, we have preliminarily concluded that the contracts within our Gathering and Processing segment where we purchase and obtain control of the entire natural gas stream are contracts with suppliers rather than customers and therefore, not included in the scope of Topic 606. However, these supplier contracts are subject to updated guidance in ASC 705, Cost of Sales and Services Logistics and Marketing Segment At this time, we are not anticipating a significant change in revenue recognition for the contracts within our Logistics and Marketing segment, although the potential effects of contributions in aid of construction (which may also affect certain Gathering and Processing contracts where we are acting as an agent for the producer), tiered pricing, and excess fuel are currently being evaluated. We are also anticipating additional disclosures for fixed consideration allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the current reporting period, separate presentation of revenue from contracts with customers and non-customer revenue (i.e. the effects of derivative activity and lease revenue) as well as unbilled receivables and deferred revenue. The new revenue recognition standard is effective for us on January 1, 2018, and currently we plan to adopt using the modified retrospective method and will recognize a cumulative effect adjustment, if any, in the first quarter of 2018. However, we will continue to evaluate our planned adoption method based on our views regarding stakeholder needs and a final determination on remaining accounting matters still under evaluation. We have also established a cross-functional team to assist with the implementation through documentation of process changes, identification of implementation risks, update and development of mitigating controls, determination of data requirements, and identification of changes in system mapping and configuration. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) We expect to adopt the amendments in the first quarter of 2019 and are currently evaluating the impacts of the amendments to our consolidated financial statements and accounting practices for leases. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Cash Flow Classification In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) Recognition of Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory We early adopted the applicable amendments in first quarter of 2017 on a modified retrospective basis which resulted in a cumulative effect adjustment on retained earnings as of January 1, 2017 of $56.1 million in order to recognize unamortized tax expense previously deferred of $40.1 million and deferred tax assets previously unrecognized of $96.2 million. We did not have intra-entity transfers of assets other than inventory during the current period. Business Combinations In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business Impairment of Goodwill In January Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment Had we applied this new guidance for our November 2016 impairment test date, the full balance of our goodwill would have been impaired. We expect to apply these amendments for our annual goodwill impairment test as of November 30, which may result in impairment of goodwill for 2017. Other Income In February Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) These amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the effect of such amendments on our consolidated financial statements. Stock Compensation – Scope of Modification Accounting In May 2017, FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, Financial Instruments with Down Round Features In July 2017, FASB issued ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception Targeted Improvements to Accounting for Hedge Activities In August Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedge Activities |
Business Acquisitions and Div30
Business Acquisitions and Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Acquisitions And Divestitures [Abstract] | |
Pro Forma Consolidated Information of Operations | The following summarized unaudited pro forma Consolidated Statement of Operations information for the nine months ended September 30, 2017 and September 30, 2016 assumes that the Permian Acquisition occurred as of January 1, 2016. We prepared the following summarized unaudited pro forma financial results for comparative purposes only. The summarized unaudited pro forma information may not be indicative of the results that would have occurred had we completed this acquisition as of January 1, 2016, or that would be attained in the future. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Pro Forma Pro Forma Pro Forma Pro Forma Revenues $ 2,131.8 $ 1,663.0 $ 6,126.2 $ 4,697.3 Net income (loss) (154.8 ) (11.1 ) (196.0 ) (47.1 ) |
Consideration Transferred to Acquire Permian Delaware Assets and Permian Midland Assets | The following table summarizes the consideration transferred to acquire New Delaware and New Midland: Fair Value of Consideration Transferred: Cash paid, net of $3.3 million cash acquired $ 570.8 Contingent consideration valuation as of the acquisition date 416.3 Total $ 987.1 |
Fair Value of the Assets and Liabilities Assumed at Acquisition Date | We accounted for the Permian Acquisition as an acquisition of a business under purchase accounting rules. The assets acquired and liabilities assumed related to the Permian Acquisition were recorded at their fair values as of the closing date of March 1, 2017. The fair value of the assets acquired and liabilities assumed at the acquisition date is shown below: Fair value determination (final): March 1, 2017 Trade and other current receivables, net $ 6.7 Other current assets 0.6 Property, plant and equipment 255.8 Intangible assets 692.3 Current liabilities (14.1 ) Other long-term liabilities (0.8 ) Total identifiable net assets 940.5 Goodwill 46.6 Total fair value of assets acquired and liabilities assumed $ 987.1 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | September 30, 2017 December 31, 2016 Commodities $ 255.6 $ 126.9 Materials and supplies 11.8 10.8 $ 267.4 $ 137.7 |
Property, Plant and Equipment32
Property, Plant and Equipment and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property Plant And Equipment And Intangible Assets [Abstract] | |
Property Plant and Equipment and Intangible Assets | September 30, 2017 December 31, 2016 Estimated Useful Lives (In Years) Gathering systems $ 6,900.8 $ 6,626.8 5 to 20 Processing and fractionation facilities 3,577.9 3,390.2 5 to 25 Terminaling and storage facilities 1,238.0 1,205.0 5 to 25 Transportation assets 343.2 451.4 10 to 25 Other property, plant and equipment 284.9 274.2 3 to 25 Land 123.8 121.3 — Construction in progress 1,223.4 449.8 — Property, plant and equipment 13,692.0 12,518.7 Accumulated depreciation (3,623.2 ) (2,827.7 ) Property, plant and equipment, net $ 10,068.8 $ 9,691.0 Intangible assets $ 2,736.6 $ 2,036.6 10 to 20 Accumulated amortization (521.8 ) (382.6 ) Intangible assets, net $ 2,214.8 $ 1,654.0 |
Schedule of Changes in Intangible Assets | The changes in our intangible assets are as follows: Balance at December 31, 2016 $ 1,654.0 Additions from Permian Acquisition 692.3 Additions from Flag City Acquisition 7.7 Amortization (139.2 ) Balance at September 30, 2017 $ 2,214.8 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Net Book Value of Goodwill | Changes in the net book value of our goodwill are as follows: WestTX SouthTX Permian Total Balance at December 31, 2016, net $ 174.7 $ 35.3 $ — $ 210.0 Permian Acquisition, March 1, 2017 — — 46.6 46.6 Balance at September 30, 2017, net $ 174.7 $ 35.3 $ 46.6 $ 256.6 |
Investments in Unconsolidated34
Investments in Unconsolidated Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 EF Cogen Cayenne Total Balance at December 31, 2016 $ 46.1 $ 58.6 $ 118.6 $ 17.5 $ — $ 240.8 Equity earnings (loss) 8.4 (3.7 ) (7.9 ) (13.4 ) — (16.6 ) Cash distributions (1) (10.6 ) — — — — (10.6 ) Acquisition — — — — 5.0 5.0 Contributions (2) — 0.4 1.2 0.1 1.8 3.5 Balance at September 30, 2017 $ 43.9 $ 55.3 $ 111.9 $ 4.2 $ 6.8 $ 222.1 (1) Includes $2.2 million in distributions received from GCF in excess of our share of cumulative earnings for the nine months ended September 30, 2017. Such excess distributions are considered a return of capital and disclosed in cash flows from investing activities in the Consolidated Statements of Cash Flows in the period in which they occur. (2) Includes a $1.0 million contribution of property, plant and equipment to T2 Eagle Ford. |
Accounts Payable and Accrued 35
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | September 30, 2017 December 31, 2016 Commodities $ 600.9 $ 574.4 Other goods and services 222.3 117.0 Interest 49.2 52.3 Income and other taxes 61.2 24.2 Permian Acquisition contingent consideration, estimated current portion 5.9 — Compensation and benefits 37.6 37.2 Preferred Series A dividends payable 22.9 22.9 Other 24.0 15.5 $ 1,024.0 $ 843.5 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | September 30, 2017 December 31, 2016 Current: Obligations of the Partnership: (1) Accounts receivable securitization facility, due December 2017 $ 278.1 $ 275.0 Senior unsecured notes, 5% fixed rate, due January 2018 (2) 250.5 — 528.6 275.0 Debt issuance costs, net of amortization (0.2 ) — Current debt obligations 528.4 275.0 Long-term: TRC obligations: TRC Senior secured revolving credit facility, variable rate, due February 2020 (3) 435.0 275.0 TRC Senior secured term loan, variable rate, due February 2022 — 160.0 Unamortized discount — (2.2 ) Obligations of the Partnership: (1) Senior secured revolving credit facility, variable rate, due October 2020 (4) 430.0 150.0 Senior unsecured notes: 5% fixed rate, due January 2018 (2) — 250.5 4⅛% fixed rate, due November 2019 749.4 749.4 6⅜% fixed rate, due August 2022 — 278.7 5¼% fixed rate, due May 2023 559.6 559.6 4¼% fixed rate, due November 2023 583.9 583.9 6¾% fixed rate, due March 2024 580.1 580.1 5⅛% fixed rate, due February 2025 500.0 500.0 5⅜% fixed rate, due February 2027 500.0 500.0 TPL notes, 4¾% fixed rate, due November 2021 (5) 6.5 6.5 TPL notes, 5⅞% fixed rate, due August 2023 (5) 48.1 48.1 Unamortized premium 0.4 0.5 4,393.0 4,640.1 Debt issuance costs, net of amortization (24.4 ) (34.1 ) Long-term debt 4,368.6 4,606.0 Total debt obligations $ 4,897.0 $ 4,881.0 Irrevocable standby letters of credit: Letters of credit outstanding under the TRC Senior secured credit facility (3) $ — $ — Letters of credit outstanding under the Partnership senior secured revolving credit facility (4) 22.4 13.2 $ 22.4 $ 13.2 (1) While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership or Targa Pipeline Partners, L.P. (“TPL”). (2) The 5% Notes (“5% Senior Notes due 2018”) were reclassified to a current liability in January 2017. Prior to that date, the notes were classified as a long-term liability on our Consolidated Balance Sheets. These notes were redeemed on October 30, 2017. (3) As of September 30, 2017, availability under TRC’s $670.0 million senior secured revolving credit facility (“TRC Revolver”) was (4) As of September 30, 2017, availability under the Partnership’s $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1,147.6 million. (5) TPL notes are 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 nine months ended September 30, 2017: Range of Interest Rates Incurred Weighted Average Interest Rate Incurred TRC Revolver 2.5% - 4.5% 2.8% TRC Senior secured term loan (1) 5.75% 5.75% TRP Revolver 3.0% - 5.3% 3.2% Partnership's accounts receivable securitization facility 1.8% - 2.2% 2.0% (1) The TRC Senior secured term loan is a Eurodollar rate loan with an interest rate of LIBOR (with a LIBOR floor of 1%) plus an applicable rate of 4.75%. |
Other Long-term Liabilities (Ta
Other Long-term Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Liabilities Noncurrent [Abstract] | |
Schedule of Other Long-term Liabilities | Other long-term liabilities are comprised of the following obligations: September 30, 2017 December 31, 2016 Asset retirement obligations $ 49.9 $ 64.6 Mandatorily redeemable preferred interests 80.0 68.5 Deferred revenue 67.5 69.8 Permian Acquisition contingent consideration, noncurrent portion 284.9 — Other liabilities 15.5 12.2 Total long-term liabilities $ 497.8 $ 215.1 |
Changes in Aggregate ARO | The changes in our ARO are as follows: Balance at December 31, 2016 $ 64.6 Additions (1) 0.8 Reduction due to sale of VGS (21.6 ) Change in cash flow estimate 3.1 Accretion expense 3.0 Balance at September 30, 2017 $ 49.9 ___________________________________________________________________________________________________________________ (1) Amount reflects ARO assumed from the Permian Acquisition. |
Schedule of Changes Attributable to Mandatorily Redeemable Preferred Interests | The following table shows the changes attributable to mandatorily redeemable preferred interests: Balance at December 31, 2016 $ 68.5 Income attributable to mandatorily redeemable preferred interests 3.0 Change in estimated redemption value included in interest expense 8.5 Balance at September 30, 2017 $ 80.0 |
Components of deferred revenue | The following table shows the components of deferred revenue: September 30, 2017 December 31, 2016 Splitter agreement $ 43.0 $ 43.0 Gas contract amendment 18.6 19.7 Other deferred revenue 5.9 7.1 Total deferred revenue $ 67.5 $ 69.8 |
Changes In Deferred revenue | The following table shows the changes in deferred revenue: Balance at December 31, 2016 $ 69.8 Additions — Revenue recognized (2.3 ) Balance at September 30, 2017 $ 67.5 |
Schedule of Changes in Contingent Consideration | The following table shows the changes in contingent consideration: Balance at March 1, 2017 (acquisition date) $ 461.6 Measurement period adjustment of acquisition date value (45.3 ) Decrease in fair value due to factors occurring after acquisition date (125.5 ) Balance at September 30, 2017 290.8 Less: Current portion (5.9 ) Long-term balance at September 30, 2017 $ 284.9 |
Preferred Stock (Tables)
Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accounting for Series A preferred stock | The following table summarizes the accounting upon issuance of our Series A Preferred: Allocation of Proceeds Additional Paid-in Capital Series A Preferred Series A Warrants Series B Warrants Beneficial Conversion Feature Gross proceeds $ 994.1 Transaction fees (24.8 ) Net Proceeds- Initial Relative Fair Value Allocation $ 969.3 $ 787.1 $ 135.7 $ 46.5 $ — Allocation to BCF (614.4 ) — — 614.4 Per balance sheet upon issuance $ 172.7 $ 135.7 $ 46.5 $ 614.4 |
Common Stock and Related Matt39
Common Stock and Related Matters (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Class Of Stock Disclosures [Abstract] | |
Dividends Declared and/or Paid | The following table details the dividends declared and/or paid by us to common shareholders for the nine months ended September 30, 2017. Three Months Ended Date Paid or To Be Paid Total Common Dividends Declared Amount of Common Dividends Paid or To Be Paid Accrued Dividends (1) Dividends Declared per Share of Common Stock ( per share amounts) September 30, 2017 November 15, 2017 $ 199.0 $ 196.2 $ 2.8 $ 0.91000 June 30, 2017 August 15, 2017 198.6 196.2 2.4 0.91000 March 31, 2017 May 16, 2017 182.8 180.3 2.5 0.91000 December 31, 2016 February 15, 2017 178.3 176.5 1.8 0.91000 (1) Represents accrued dividends on restricted stock and restricted stock units that are payable upon vesting. |
Partnership Units and Related40
Partnership Units and Related Matters (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Partners Capital [Abstract] | |
Schedule of Distributions | The following details the distributions declared or paid by the Partnership for the nine months ended September 30, 2017. Three Months Ended Date Paid Or to Be Paid Total Distributions Distributions to Targa Resources Corp. September 30, 2017 November 10, 2017 $ 225.4 $ 222.6 June 30, 2017 August 10, 2017 225.4 222.6 March 31, 2017 May 11, 2017 209.6 206.8 December 31, 2016 February 10, 2017 198.1 195.3 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income and Weighted Average Shares Outstanding Used in Computing Basic and Diluted Net Income Per Common Share | The following table sets forth a reconciliation of net income and weighted average shares outstanding (in millions) used in computing basic and diluted net income per common share: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income $ (155.1 ) $ (3.2 ) $ (195.0 ) $ (18.4 ) Less: Net income attributable to noncontrolling interests 12.5 7.5 34.3 18.2 Less: Dividends on preferred stock 29.4 28.7 87.8 62.0 Net income attributable to common shareholders for basic earnings per share $ (197.0 ) $ (39.4 ) $ (317.1 ) $ (98.6 ) Weighted average shares outstanding - basic 215.6 168.0 203.8 145.5 Net income available per common share - basic $ (0.91 ) $ (0.23 ) $ (1.56 ) $ (0.68 ) Weighted average shares outstanding 215.6 168.0 203.8 145.5 Dilutive effect of common stock equivalents — — — — Weighted average shares outstanding - diluted 215.6 168.0 203.8 145.5 Net income available per common share - diluted $ (0.91 ) $ (0.23 ) $ (1.56 ) $ (0.68 ) |
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 September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Unvested restricted stock awards 1.2 0.8 1.2 0.5 Warrants to purchase common stock 0.1 8.9 0.1 6.1 Series A Preferred Stock (1) 46.5 46.5 46.5 33.7 (1) The Series A Preferred 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 Series A Preferred is not redeemed by the end of year twelve, the investors have the right to convert the Series A Preferred into TRC common stock. See Note 12 – Preferred Stock. |
Derivative Instruments and He42
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Notional Volume of Commodity Hedges | At September 30, 2017, the notional volumes of our commodity derivative contracts were: Commodity Instrument Unit 2017 2018 2019 2020 Natural Gas Swaps MMBtu/d 160,347 151,100 116,136 - Natural Gas Basis Swaps MMBtu/d 92,200 15,726 12,500 10,445 Natural Gas Futures MMBtu/d - 1,103 - - Natural Gas Options MMBtu/d 22,900 9,486 - - NGL Swaps Bbl/d 23,432 12,858 7,399 - NGL Futures Bbl/d 38,880 6,589 329 - NGL Options Bbl/d 3,094 2,986 410 - Condensate Swaps Bbl/d 3,150 2,420 1,293 - Condensate Options Bbl/d 1,380 691 590 - |
Fair Values of Derivative Instruments | The following schedules reflect the fair values of our derivative instruments and their location on our Consolidated Balance Sheets as well as pro forma reporting assuming that we reported derivatives subject to master netting agreements on a net basis: Fair Value as of September 30, 2017 Fair Value as of December 31, 2016 Balance Sheet Derivative Derivative Derivative Derivative Location Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Commodity contracts Current $ 18.4 $ 79.9 $ 16.7 $ 48.6 Long-term 13.7 14.4 5.1 26.1 Total derivatives designated as hedging instruments $ 32.1 $ 94.3 $ 21.8 $ 74.7 Derivatives not designated as hedging instruments Commodity contracts Current $ 0.3 $ 1.0 $ 0.1 $ 0.5 Long-term - 0.5 - - Total derivatives not designated as hedging instruments $ 0.3 $ 1.5 $ 0.1 $ 0.5 Total current position $ 18.7 $ 80.9 $ 16.8 $ 49.1 Total long-term position 13.7 14.9 5.1 26.1 Total derivatives $ 32.4 $ 95.8 $ 21.9 $ 75.2 |
Pro Forma Impact of Derivatives Net in Consolidated Balance Sheet | The pro forma impact of reporting derivatives on our Consolidated Balance Sheets on a net basis is as follows: Gross Presentation Pro forma net presentation September 30, 2017 Asset Liability Collateral Asset Liability Current Position Counterparties with offsetting positions or collateral $ 18.7 $ (79.5 ) $ 44.6 $ 3.6 $ (19.8 ) Counterparties without offsetting positions - assets - - - - - Counterparties without offsetting positions - liabilities - (1.4 ) - - (1.4 ) 18.7 (80.9 ) 44.6 3.6 (21.2 ) Long Term Position Counterparties with offsetting positions or collateral 13.5 (14.2 ) - 6.5 (7.2 ) Counterparties without offsetting positions - assets 0.2 - - 0.2 - Counterparties without offsetting positions - liabilities - (0.7 ) - - (0.7 ) 13.7 (14.9 ) - 6.7 (7.9 ) Total Derivatives Counterparties with offsetting positions or collateral 32.2 (93.7 ) 44.6 10.1 (27.0 ) Counterparties without offsetting positions - assets 0.2 - - 0.2 - Counterparties without offsetting positions - liabilities - (2.1 ) - - (2.1 ) $ 32.4 $ (95.8 ) $ 44.6 $ 10.3 $ (29.1 ) Gross Presentation Pro forma net presentation December 31, 2016 Asset Liability Collateral Asset Liability Current Position Counterparties with offsetting positions or collateral $ 16.8 $ (46.1 ) $ 7.0 $ 5.7 $ (28.0 ) Counterparties without offsetting positions - assets - - - - - Counterparties without offsetting positions - liabilities - (3.0 ) - - (3.0 ) 16.8 (49.1 ) 7.0 5.7 (31.0 ) Long Term Position Counterparties with offsetting positions or collateral 5.1 (18.7 ) - - (13.6 ) Counterparties without offsetting positions - assets - - - - - Counterparties without offsetting positions - liabilities - (7.4 ) - - (7.4 ) 5.1 (26.1 ) - - (21.0 ) Total Derivatives Counterparties with offsetting positions or collateral 21.9 (64.8 ) 7.0 5.7 (41.6 ) Counterparties without offsetting positions - assets - - - - - Counterparties without offsetting positions - liabilities - (10.4 ) - - (10.4 ) $ 21.9 $ (75.2 ) $ 7.0 $ 5.7 $ (52.0 ) |
Amounts Recorded in Other Comprehensive Income and Amounts Reclassified from OCI to Revenue and Expense | The following tables reflect amounts recorded in Other Comprehensive Income and amounts reclassified from OCI to revenue and expense for the periods indicated: Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) Derivatives in Cash Flow Three Months Ended September 30, Nine Months Ended September 30, Hedging Relationships 2017 2016 2017 2016 Commodity contracts $ (106.8 ) $ 12.9 $ (10.5 ) $ (40.5 ) Gain (Loss) Reclassified from OCI into Income (Effective Portion) Three Months Ended September 30, Nine Months Ended September 30, Location of Gain (Loss) 2017 2016 2017 2016 Revenues $ (2.1 ) $ 8.1 $ (2.2 ) $ 50.6 |
Gain (Loss) Recognized in Income on Derivatives | The use of mark-to-market accounting for financial instruments can cause non-cash earnings volatility due to changes in the underlying commodity price indices. Location of Gain Gain (Loss) Recognized in Income on Derivatives Derivatives Not Designated Recognized in Income on Three Months Ended September 30, Nine Months Ended September 30, as Hedging Instruments Derivatives 2017 2016 2017 2016 Commodity contracts Revenue $ (1.5 ) $ (0.3 ) $ (2.9 ) $ 1.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Breakdown by Fair Value Hierarchy Category for Financial Instruments Included in Consolidated Balance Sheets | The following table shows a breakdown by fair value hierarchy category for (1) financial instruments measurements included on our Consolidated Balance Sheets at fair value and (2) supplemental fair value disclosures for other financial instruments: September 30, 2017 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) $ 32.0 $ 32.0 $ — $ 29.0 $ 3.0 Liabilities from commodity derivative contracts (1) 95.4 95.4 — 86.5 8.9 Permian Acquisition contingent consideration (2) 290.8 290.8 — — 290.8 TPL contingent consideration (3) 2.5 2.5 — — 2.5 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 114.1 114.1 — — — TRC Revolver 435.0 435.0 — 435.0 — TRC term loan — — — — — TRP Revolver 430.0 430.0 — 430.0 — Partnership's Senior unsecured notes 3,778.5 3,881.2 — 3,881.2 — Partnership's accounts receivable securitization facility 278.1 278.1 — 278.1 — December 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) $ 21.0 $ 21.0 $ — $ 19.6 $ 1.4 Liabilities from commodity derivative contracts (1) 74.2 74.2 — 69.3 4.9 Permian Acquisition contingent consideration (2) — — — — — TPL contingent consideration (3) 2.6 2.6 — — 2.6 Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value: Cash and cash equivalents 73.5 73.5 — — — TRC Revolver 275.0 275.0 — 275.0 — TRC term loan 157.8 158.4 — 158.4 — TRP Revolver 150.0 150.0 — 150.0 — Partnership's Senior unsecured notes 4,057.3 4,101.6 — 4,101.6 — Partnership's accounts receivable securitization facility 275.0 275.0 — 275.0 — (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 16 – Derivative Instruments and Hedging Activities. The above fair values reflect the total value of each derivative contract taken as a whole, whereas the Consolidated Balance Sheets presentation is based on the individual maturity dates of estimated future settlements. As such, an individual contract could have both an asset and liability position when segregated into its current and long-term portions for Consolidated Balance Sheets classification purposes. (2) We have a contingent consideration liability related to the Permian Acquisition, which is carried at fair value. (3) We have a contingent consideration liability for TPL’s previous acquisition of a gas gathering system and related assets, which is carried at fair value. |
Reconciliation of Changes in Fair Value of Financial Instruments Classified as Level 3 | The following table summarizes the changes in fair value of our financial instruments classified as Level 3 in the fair value hierarchy: Commodity Derivative Contracts Contingent Asset/(Liability) Liability Balance, December 31, 2016 $ (3.6 ) $ (2.6 ) Change in fair value of TPL contingent consideration - 0.1 Fair value of Permian Acquisition contingent consideration (1) - (290.8 ) New Level 3 derivative instruments (0.8 ) - Transfers out of Level 3 (2) 1.6 - Settlements included in Revenue 0.4 - Unrealized gain/(loss) included in OCI (3.5 ) - Balance, September 30, 2017 $ (5.9 ) $ (293.3 ) (1) Represents the September 30, 2017 balance of the contingent consideration that arose as part of the Permian Acquisition in the first quarter of 2017. See Note 4 – Acquisitions and Divestitures for discussion of the initial fair value. (2) Transfers relate to long-term over-the-counter swaps for NGL products for which observable market prices became available for substantially their full term. |
Other Operating (Income) Expe44
Other Operating (Income) Expense (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Income And Expenses [Abstract] | |
Other Operating (Income) Expense | Other operating (income) expense is comprised of the following: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Loss on sale or disposal of assets (1) $ 0.3 $ 4.7 $ 16.6 $ 5.7 Miscellaneous business tax 0.3 0.2 0.6 0.4 $ 0.6 $ 4.9 $ 17.2 $ 6.1 _____________________________________________________________________________________________________ (1) Comprised primarily of a $16.1 million loss in the first quarter of 2017 due to the reduction in the carrying value of our ownership interest in VGS in connection with the April 4, 2017 sale. |
Supplemental Cash Flow Inform45
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Nine Months Ended September 30, 2017 2016 Cash: Interest paid, net of capitalized interest (1) $ 164.1 $ 211.2 Income taxes paid, net of refunds (67.4 ) 1.2 Non-cash investing activities: Deadstock commodity inventory transferred to property, plant and equipment $ 8.3 $ 16.9 Impact of capital expenditure accruals on property, plant and equipment 118.3 (0.4 ) Transfers from materials and supplies inventory to property, plant and equipment 2.8 1.9 Contribution of property, plant and equipment to investments in unconsolidated affiliates 1.0 — Change in ARO liability and property, plant and equipment due to revised cash flow estimate 3.1 (9.1 ) Non-cash financing activities: Reduction of Owner's Equity related to accrued dividends on unvested equity awards under share compensation arrangements $ 7.0 $ 6.8 Allocation of Series A Preferred Stock net book value of BCF to additional paid-in capital — 614.4 Change in accrued dividends of Series A Preferred Stock — 22.9 Accretion of deemed dividends on Series A Preferred Stock 19.0 12.3 Transfer within additional paid-in capital for exercise of Warrants — 53.2 Impact of accounting standard adoption recorded in retained earnings 56.1 — Non-cash balance sheet movements related to the Permian Acquisition (See Note 4 - Acquisitions and Divestitures): Contingent consideration recorded at the acquisition date $ 416.3 $ — Non-cash balance sheet movements related to the purchase of noncontrolling interests in subsidiary (See Note 4 - Acquisitions and Divestitures): Additional paid-in capital (13.7 ) — Deferred tax liability 13.7 — Non-cash balance sheet movements related to the TRC/TRP Merger: Prepaid transaction costs reclassified in the additional paid-in capital — 4.5 Issuance of common stock — 0.1 Additional paid-in capital 0.3 3,120.0 Accumulated other comprehensive income — 55.7 Noncontrolling interests — (4,119.7 ) Deferred tax liability (0.3 ) 943.9 (1) Interest capitalized on major projects was $8.3 million and $7.2 million for the nine months ended September 30, 2017 and 2016. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Reportable segment information is shown in the following tables: Three Months Ended September 30, 2017 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 200.3 $ 1,672.2 $ (1.0 ) $ — $ 1,871.5 Fees from midstream services 148.5 111.8 — — 260.3 348.8 1,784.0 (1.0 ) — 2,131.8 Intersegment revenues Sales of commodities 783.7 80.6 — (864.3 ) — Fees from midstream services 1.7 7.0 — (8.7 ) — 785.4 87.6 — (873.0 ) — Revenues $ 1,134.2 $ 1,871.6 $ (1.0 ) $ (873.0 ) $ 2,131.8 Operating margin $ 198.3 $ 115.9 $ (1.0 ) $ — * Other financial information: Total assets (1) $ 10,644.3 $ 3,240.9 $ 30.8 $ 82.3 $ 13,998.3 Goodwill $ 256.6 $ — $ — $ — $ 256.6 Capital expenditures $ 295.9 $ 71.0 $ — $ 11.8 $ 378.7 (1) Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. * Total operating margin is not presented in this table as it represents a non-GAAP measure . Three Months Ended September 30, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 172.2 $ 1,215.3 $ 11.2 $ — $ 1,398.7 Fees from midstream services 120.6 133.0 — — 253.6 292.8 1,348.3 11.2 — 1,652.3 Intersegment revenues Sales of commodities 574.8 76.3 — (651.1 ) — Fees from midstream services 1.9 6.6 — (8.5 ) — 576.7 82.9 — (659.6 ) — Revenues $ 869.5 $ 1,431.2 $ 11.2 $ (659.6 ) $ 1,652.3 Operating margin $ 149.4 $ 126.0 $ 11.2 $ — * Other financial information: Total assets (1) $ 10,047.3 $ 2,737.5 $ 47.2 $ 223.6 $ 13,055.6 Goodwill $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 97.1 $ 36.2 $ — $ 1.3 $ 134.6 (1) Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. * Total operating margin is not presented in this table as it represents a non-GAAP measure. Nine Months Ended September 30, 2017 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 544.4 $ 4,804.8 $ 3.9 $ — $ 5,353.1 Fees from midstream services 399.3 359.7 — — 759.0 943.7 5,164.5 3.9 — 6,112.1 Intersegment revenues Sales of commodities 2,209.2 237.8 — (2,447.0 ) — Fees from midstream services 5.1 21.1 — (26.2 ) — 2,214.3 258.9 — (2,473.2 ) — Revenues $ 3,158.0 $ 5,423.4 $ 3.9 $ (2,473.2 ) $ 6,112.1 Operating margin $ 549.3 $ 358.5 $ 3.9 $ (0.1 ) * Other financial information: Total assets (1) $ 10,644.3 $ 3,240.9 $ 30.8 $ 82.3 $ 13,998.3 Goodwill $ 256.6 $ — $ — $ — $ 256.6 Capital expenditures $ 730.7 $ 241.8 $ — $ 15.2 $ 987.7 Business acquisition $ 987.1 $ — $ — $ — $ 987.1 (1) Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. * Total operating margin is not presented in this table as it represents a non-GAAP measure. Nine Months Ended September 30, 2016 Gathering and Processing Logistics and Marketing Other Corporate and Eliminations Total Revenues Sales of commodities $ 441.3 $ 3,384.7 $ 56.9 $ — $ 3,882.9 Fees from midstream services 360.9 434.6 — — 795.5 802.2 3,819.3 56.9 — 4,678.4 Intersegment revenues Sales of commodities 1,455.8 176.3 — (1,632.1 ) — Fees from midstream services 5.8 15.1 — (20.9 ) — 1,461.6 191.4 — (1,653.0 ) — Revenues $ 2,263.8 $ 4,010.7 $ 56.9 $ (1,653.0 ) $ 4,678.4 Operating margin $ 404.1 $ 424.5 $ 56.9 $ — * Other financial information: Total assets (1) $ 10,047.3 $ 2,737.5 $ 47.2 $ 223.6 $ 13,055.6 Goodwill $ 393.0 $ — $ — $ — $ 393.0 Capital expenditures $ 271.3 $ 151.9 $ — $ 3.3 $ 426.5 (1) Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. * Total operating margin is not presented in this table as it represents a non-GAAP measure. |
Revenues by Product and Service | The following table shows our consolidated revenues by product and service for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Sales of commodities: Natural gas $ 504.1 $ 465.6 $ 1,480.9 $ 1,102.0 NGL 1,274.9 866.7 3,623.9 2,575.8 Condensate 44.9 35.0 135.9 96.2 Petroleum products 48.6 20.2 108.5 52.0 Derivative activities (1.0 ) 11.2 3.9 56.9 1,871.5 1,398.7 5,353.1 3,882.9 Fees from midstream services: Fractionating and treating 29.8 33.2 92.8 94.8 Storage, terminaling, transportation and export 75.0 89.7 247.8 316.3 Gathering and processing 138.0 110.9 368.5 329.9 Other 17.5 19.8 49.9 54.5 260.3 253.6 759.0 795.5 Total revenues $ 2,131.8 $ 1,652.3 $ 6,112.1 $ 4,678.4 |
Reconciliation of Reportable Segment Operating Margin to Income (Loss) Before Income Taxes | The following table shows a reconciliation of reportable segment operating margin to income (loss) before income taxes for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Reconciliation of reportable segment operating margin to income (loss) before income taxes: Gathering and Processing operating margin $ 198.3 $ 149.4 $ 549.3 $ 404.1 Logistics and Marketing operating margin 115.9 126.0 358.5 424.5 Other operating margin (1.0 ) 11.2 3.9 56.9 Depreciation and amortization expenses (208.3 ) (184.0 ) (602.8 ) (563.6 ) General and administrative expenses (49.9 ) (46.1 ) (149.5 ) (138.3 ) Impairment of property, plant and equipment (378.0 ) — (378.0 ) — Impairment of goodwill — — — (24.0 ) Interest expense, net (56.1 ) (62.7 ) (181.2 ) (187.0 ) Other, net 126.6 (5.7 ) 72.5 5.1 Income (loss) before income taxes $ (252.5 ) $ (11.9 ) $ (327.3 ) $ (22.3 ) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | Feb. 17, 2016shares | Sep. 30, 2017shares | Dec. 01, 2016shares |
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 | ||
Statutory income tax rate, percent | 37.30% | ||
IDRs [Member] | Common Units [Member] | |||
Business Acquisition [Line Items] | |||
Issuance of common units (in units) | 20,380,286 | ||
IDRs [Member] | General Partner Units [Member] | |||
Business Acquisition [Line Items] | |||
General Partner unit in exchange for the elimination of the IDRs and Special GP Interest | 424,590 | ||
Special GP Interest [Member] | Common Units [Member] | |||
Business Acquisition [Line Items] | |||
Issuance of common units (in units) | 11,267,485 | ||
Special GP Interest [Member] | General Partner Units [Member] | |||
Business Acquisition [Line Items] | |||
General Partner unit in exchange for the elimination of the IDRs and Special GP Interest | 234,739 | ||
Series A Cumulative Redeemable Perpetual Preferred Units [Member] | |||
Business Acquisition [Line Items] | |||
Preferred units, outstanding | 5,000,000 | ||
Preferred units dividend percentage | 9.00% | ||
Targa Resources Partners LP [Member] | |||
Business Acquisition [Line Items] | |||
Number of shares exchanged in exchange of common units for common shares to the third party (in shares) | 168,590,009 |
Significant Accounting Polici48
Significant Accounting Policies (Details) - New Accounting Pronouncement, Early Adoption, Effect [Member] $ in Millions | Jan. 02, 2017USD ($) |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Cumulative effect adjustment on retained earnings | $ 56.1 |
Recognize of unamortized tax expense previously deferred | 40.1 |
Deferred tax assets previously unrecognized | $ 96.2 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) | Jun. 01, 2017USD ($)$ / sharesshares | May 30, 2017USD ($) | May 09, 2017USD ($)amiMMcf | Mar. 01, 2017USD ($) | Jan. 26, 2017USD ($)$ / sharesshares | Jan. 22, 2017aMMcfMBbls | Sep. 30, 2017USD ($)MMcf | Sep. 30, 2017USD ($)MMcf | Sep. 30, 2016USD ($) | Jun. 30, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||||
Public offering of common shares (including underwriters' overallotment option) | shares | 17,000,000 | 9,200,000 | ||||||||
Shares issued price | $ / shares | $ 46.10 | $ 57.65 | ||||||||
Proceeds from issuance of common stock | $ 777,300,000 | $ 524,200,000 | $ 1,573,400,000 | $ 401,000,000 | ||||||
Permian Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||||||
Cash payments related to acquisition | $ 484,100,000 | |||||||||
Acquired debt and all other assumed liabilities included in purchase consideration | $ 90,000,000 | |||||||||
Additional cash that may be paid based on potential earn-out payment | 461,600,000 | $ 290,800,000 | 290,800,000 | $ 416,300,000 | ||||||
Revenues from acquired businesses | 75,200,000 | |||||||||
Net loss from acquired business | (13,400,000) | |||||||||
Acquisition-related expenses | 5,600,000 | |||||||||
Allocation of property, plant and equipment | 255,800,000 | |||||||||
Allocation of intangible assets for customer contracts | 692,300,000 | |||||||||
Permian Acquisition [Member] | Maximum [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Additional cash that may be paid based on potential earn-out payment | $ 935,000,000 | $ 935,000,000 | $ 935,000,000 | |||||||
New Delaware [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Oil and gas contracts average weighted contract life | 14 years | |||||||||
Gas processing capacity | MMcf | 70 | |||||||||
Crude gathering capacity | MBbls | 40 | |||||||||
New Delaware [Member] | Oahu Plant [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Gas processing capacity in progress | MMcf | 60 | 60 | ||||||||
New Delaware [Member] | Minimum [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Area of gas gathering and processing and crude gathering systems | a | 145,000 | |||||||||
New Midland [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Oil and gas contracts average weighted contract life | 13 years | |||||||||
Gas processing capacity | MMcf | 10 | |||||||||
Crude gathering capacity | MBbls | 40 | |||||||||
New Midland [Member] | Minimum [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Area of gas gathering and processing and crude gathering systems | a | 105,000 | |||||||||
Flag City Acquisition [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash payments related to acquisition | $ 60,000,000 | |||||||||
Gas processing capacity | MMcf | 150 | |||||||||
Acquisition date | May 9, 2017 | |||||||||
Additional final adjustment due on base purchase price paid | $ 3,600,000 | |||||||||
Number of miles of gas gathering pipeline systems | mi | 24 | |||||||||
Business acquisition area of land acquired | a | 102.1 | |||||||||
Allocation of property, plant and equipment | $ 52,300,000 | |||||||||
Allocation of intangible assets for customer contracts | 7,700,000 | |||||||||
Allocation of current assets and liabilities, net | 3,600,000 | |||||||||
Flag City Acquisition [Member] | Maximum [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition-related expenses | $ 100,000 | |||||||||
S N Catarina, LLC [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 10.00% | |||||||||
Purchase price of business acquisition | $ 12,500,000 |
Acquisitions and Divestitures50
Acquisitions and Divestitures - Pro Forma Impact of Permian Acquisition on Consolidated Statement of Operations (Details) - Permian Acquisition [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pro forma consolidated results of operations [Abstract] | ||||
Revenues | $ 2,131.8 | $ 1,663 | $ 6,126.2 | $ 4,697.3 |
Net income (loss) | $ (154.8) | $ (11.1) | $ (196) | $ (47.1) |
Acquisitions and Divestitures51
Acquisitions and Divestitures - Fair Value of Consideration Transferred (Details) - USD ($) $ in Millions | Mar. 01, 2017 | Sep. 30, 2017 |
Fair Value of Consideration Transferred [Abstract] | ||
Cash paid, net of cash acquired | $ 570.8 | |
Total fair value of consideration transferred | $ 987.1 | |
Permian Acquisition [Member] | ||
Fair Value of Consideration Transferred [Abstract] | ||
Cash paid, net of cash acquired | $ 570.8 | |
Contingent consideration valuation as of the acquisition date | 416.3 | |
Total fair value of consideration transferred | $ 987.1 |
Acquisitions and Divestitures52
Acquisitions and Divestitures - Fair Value of Consideration Transferred (Parenthetical) (Details) $ in Millions | Mar. 01, 2017USD ($) |
Permian Acquisition [Member] | |
Fair Value of Consideration Transferred [Abstract] | |
Cash acquired from acquisition | $ 3.3 |
Acquisitions and Divestitures53
Acquisitions and Divestitures - Fair Value of the Assets and Liabilities Assumed at Acquisition Date (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Mar. 01, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Fair value determination [Abstract] | ||||
Goodwill | $ 256.6 | $ 210 | $ 393 | |
Total fair value of assets acquired and liabilities assumed | 987.1 | |||
Permian Acquisition [Member] | ||||
Fair value determination [Abstract] | ||||
Trade and other current receivables, net | $ 6.7 | |||
Other current assets | 0.6 | |||
Property, plant and equipment | 255.8 | |||
Intangible assets | 692.3 | |||
Current liabilities | (14.1) | |||
Other long-term liabilities | (0.8) | |||
Total identifiable net assets | 940.5 | |||
Goodwill | $ 46.6 | 46.6 | ||
Total fair value of assets acquired and liabilities assumed | $ 987.1 |
Acquisitions and Divestitures54
Acquisitions and Divestitures - Additional Information Pro Forma Impact of Permian Acquisition on Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 01, 2017 | Dec. 31, 2016 | |
Measurement-period adjustments to preliminary acquisition date fair values [Abstract] | ||||||||
Goodwill | $ 256.6 | $ 393 | $ 256.6 | $ 256.6 | $ 393 | $ 210 | ||
Trade receivables, fair value | $ 6.7 | |||||||
Change in fair value of contingent liability | (126.8) | (0.3) | (125.6) | (0.3) | ||||
Depreciation and amortization expense | 208.3 | $ 184 | 602.8 | $ 563.6 | ||||
Measurement Period Adjustments [Member] | ||||||||
Measurement-period adjustments to preliminary acquisition date fair values [Abstract] | ||||||||
Change in fair value of contingent liability | $ (45.3) | |||||||
Intangible assets | 66.7 | |||||||
Other assets, net | 0.4 | |||||||
Goodwill | 112.4 | |||||||
Depreciation and amortization expense | 0.4 | |||||||
Permian Acquisition [Member] | ||||||||
Measurement-period adjustments to preliminary acquisition date fair values [Abstract] | ||||||||
Goodwill | 46.6 | 46.6 | 46.6 | $ 46.6 | ||||
Change in fair value of contingent liability | (126.6) | $ (45.3) | (125.5) | $ (125.5) | ||||
Measurement period adjustment | $ 0 | $ (45.3) |
Acquisitions and Divestitures55
Acquisitions and Divestitures - Additional Information Contingent Liability (Details) - USD ($) | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 01, 2017 | |
Business Acquisition [Line Items] | |||||||
Change in fair value of contingent liability | $ 126,800,000 | $ 300,000 | $ 125,600,000 | $ 300,000 | |||
Permian Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Additional cash paid in potential earn-out payment | 290,800,000 | $ 416,300,000 | $ 290,800,000 | 290,800,000 | $ 461,600,000 | ||
Potential earn-out payments of acquisition date fair value | 416,300,000 | $ 0 | 416,300,000 | 416,300,000 | $ 0 | 461,600,000 | |
Change in fair value of contingent liability | 126,600,000 | $ 45,300,000 | 125,500,000 | 125,500,000 | |||
Fair value of first potential earn-out payment | 5,900,000 | 5,900,000 | 5,900,000 | ||||
Fair value of second potential earn-out payment | 284,900,000 | 284,900,000 | 284,900,000 | ||||
Permian Acquisition [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Additional cash paid in potential earn-out payment | $ 935,000,000 | $ 935,000,000 | $ 935,000,000 | $ 935,000,000 |
Acquisitions and Divestitures56
Acquisitions and Divestitures - Additional Information 2017 Divestiture (Details) - USD ($) $ in Millions | Apr. 04, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | |
Business Divestitures [Line Items] | ||||||||
Loss from sale of VGS | [1] | $ (0.3) | $ (4.7) | $ (16.6) | $ (5.7) | |||
Venice Gathering System, L.L.C. [Member] | Not Qualify as Discontinued Operations [Member] | ||||||||
Business Divestitures [Line Items] | ||||||||
Subsidiary ownership interest sale percentage | 100.00% | |||||||
Proceeds from divestiture of businesses | $ 0.4 | |||||||
Loss from sale of VGS | $ (16.1) | $ (16.1) | ||||||
Venice Energy Services Company, L.L.C. [Member] | ||||||||
Business Divestitures [Line Items] | ||||||||
Ownership interest | 76.80% | |||||||
[1] | Comprised primarily of a $16.1 million loss in the first quarter of 2017 due to the reduction in the carrying value of our ownership interest in VGS in connection with the April 4, 2017 sale. |
Acquisitions and Divestitures57
Acquisitions and Divestitures - Additional Information 2017 Joint Venture (Details) - Grand Prix Joint Venture [Member] $ in Millions | 1 Months Ended | 4 Months Ended | |
Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | May 31, 2017MBbls | |
Business Acquisition [Line Items] | |||
Expected total growth capital expenditures | $ | $ 975 | ||
Blackstone [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of interest sold | 25.00% | ||
Scenario, Forecast [Member] | |||
Business Acquisition [Line Items] | |||
Expected total growth capital expenditures | $ | $ 275 | ||
Permian Basin [Member] | |||
Business Acquisition [Line Items] | |||
Capacity of pipeline | MBbls | 300 | ||
Maximum [Member] | Permian Basin [Member] | |||
Business Acquisition [Line Items] | |||
Capacity of pipeline | MBbls | 550 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Commodities | $ 255.6 | $ 126.9 |
Materials and supplies | 11.8 | 10.8 |
Inventories, net | $ 267.4 | $ 137.7 |
Property, Plant and Equipment59
Property, Plant and Equipment and Intangible Assets - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 13,692 | $ 12,518.7 |
Accumulated depreciation | (3,623.2) | (2,827.7) |
Property, plant and equipment, net | 10,068.8 | 9,691 |
Intangible assets | 2,736.6 | 2,036.6 |
Accumulated amortization | (521.8) | (382.6) |
Intangible assets, net | $ 2,214.8 | 1,654 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 20 years | |
Gathering Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 6,900.8 | 6,626.8 |
Gathering Systems [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Gathering Systems [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 20 years | |
Processing and Fractionation Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 3,577.9 | 3,390.2 |
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 | $ 1,238 | 1,205 |
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 | $ 343.2 | 451.4 |
Transportation Assets [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Transportation Assets [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Other Property, Plant and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 284.9 | 274.2 |
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 | $ 123.8 | 121.3 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 1,223.4 | $ 449.8 |
Property, Plant and Equipment60
Property, Plant and Equipment and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||||
Non-cash pre-tax impairment charge | $ 378 | $ 0 | $ 378 | $ 0 | |
Estimated amortization expense for intangible assets [Abstract] | |||||
2,017 | 188.4 | 188.4 | |||
2,018 | 182.6 | 182.6 | |||
2,019 | 171.6 | 171.6 | |||
2,020 | 159.4 | 159.4 | |||
2,021 | $ 149.5 | 149.5 | |||
Permian Acquisitions [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Additions from acquisition | $ 692.3 | ||||
Estimated useful lives | 15 years | ||||
Flag City Acquisition [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Additions from acquisition | $ 7.7 | ||||
Estimated useful lives | 10 years | ||||
Atlas Energy [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 20 years | ||||
Badlands [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 20 years |
Property, Plant and Equipment61
Property, Plant and Equipment and Intangible Assets - Schedule of Changes in Intangible Assets (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Finite Lived Intangible Assets Roll Forward | |
Balance at December 31, 2016 | $ 1,654 |
Amortization | (139.2) |
Balance at September 30, 2017 | 2,214.8 |
Permian Acquisitions [Member] | |
Finite Lived Intangible Assets Roll Forward | |
Additions from Acquisition | 692.3 |
Flag City Acquisition [Member] | |
Finite Lived Intangible Assets Roll Forward | |
Additions from Acquisition | $ 7.7 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Goodwill impairment | $ 0 | $ 0 | $ 24 | $ 0 | $ 24 |
Goodwill - Changes in Net Book
Goodwill - Changes in Net Book Value of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 210 |
Permian Acquisition, March 1, 2017 | 46.6 |
Ending balance | 256.6 |
WestTX [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 174.7 |
Permian Acquisition, March 1, 2017 | 0 |
Ending balance | 174.7 |
SouthTX [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 35.3 |
Permian Acquisition, March 1, 2017 | 0 |
Ending balance | 35.3 |
Permian [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 0 |
Permian Acquisition, March 1, 2017 | 46.6 |
Ending balance | $ 46.6 |
Investments in Unconsolidated64
Investments in Unconsolidated Affiliates - Additional Information (Details) $ in Millions | 1 Months Ended | 9 Months Ended | |
Jul. 31, 2017USD ($)mi | Sep. 30, 2017USD ($)JointVenture | Oct. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Payment made to acquire | $ 5 | ||
Targa Resources Partners LP [Member] | Gulf Coast Fractionators LP [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 38.80% | ||
Targa Resources Partners LP [Member] | T2 Joint Ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of non-operated joint ventures acquired in Atlas mergers | JointVenture | 3 | ||
Unamortized excess fair value over Joint Ventures | $ 26.8 | ||
Preliminary estimated useful lives of the underlying assets | 20 years | ||
Targa Resources Partners LP [Member] | T2 LaSalle [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 75.00% | ||
Targa Resources Partners LP [Member] | T2 Eagle Ford [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 50.00% | ||
Targa Resources Partners LP [Member] | T2 EF Cogen [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 50.00% | ||
Equity (earnings) loss of unconsolidated affiliates | $ 12 | ||
Targa Resources Partners LP [Member] | Cayenne Joint Venture [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 50.00% | 50.00% | |
Conversion of existing mile gas pipeline | mi | 62 | ||
Payment made to acquire | $ 5 | $ 5 | |
Expected project completion date | 2017-11 | ||
Targa Resources Partners LP [Member] | GCX Project [Member] | Subsequent Event [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest | 25.00% |
Investments in Unconsolidated65
Investments in Unconsolidated Affiliates - Activity Related to Partnership's Investments in Unconsolidated Affiliates (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Beginning of period | $ 240.8 | |||||
Equity earnings (loss) | $ 0.2 | $ (2.2) | (16.6) | $ (11.4) | ||
Cash distributions | [1] | (10.6) | ||||
Acquisition | 5 | |||||
Contributions | [2] | 3.5 | ||||
End of period | 222.1 | 222.1 | ||||
Targa Resources Partners LP [Member] | Gulf Coast Fractionators LP [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Beginning of period | 46.1 | |||||
Equity earnings (loss) | 8.4 | |||||
Cash distributions | [1] | (10.6) | ||||
End of period | 43.9 | 43.9 | ||||
Targa Resources Partners LP [Member] | T2 LaSalle [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Beginning of period | 58.6 | |||||
Equity earnings (loss) | (3.7) | |||||
Contributions | [2] | 0.4 | ||||
End of period | 55.3 | 55.3 | ||||
Targa Resources Partners LP [Member] | T2 Eagle Ford [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Beginning of period | 118.6 | |||||
Equity earnings (loss) | (7.9) | |||||
Contributions | [2] | 1.2 | ||||
End of period | 111.9 | 111.9 | ||||
Targa Resources Partners LP [Member] | T2 EF Cogen [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Beginning of period | 17.5 | |||||
Equity earnings (loss) | (13.4) | |||||
Contributions | [2] | 0.1 | ||||
End of period | 4.2 | 4.2 | ||||
Targa Resources Partners LP [Member] | Cayenne [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Acquisition | $ 5 | 5 | ||||
Contributions | [2] | 1.8 | ||||
End of period | $ 6.8 | $ 6.8 | ||||
[1] | Includes $2.2 million in distributions received from GCF in excess of our share of cumulative earnings for the nine months ended September 30, 2017. Such excess distributions are considered a return of capital and disclosed in cash flows from investing activities in the Consolidated Statements of Cash Flows in the period in which they occur. | |||||
[2] | Includes a $1.0 million contribution of property, plant and equipment to T2 Eagle Ford. |
Investments in Unconsolidated66
Investments in Unconsolidated Affiliates - Activity Related to Partnership's Investments in Unconsolidated Affiliates (Parenthetical) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Return of capital from unconsolidated affiliate | $ 2.2 | $ 3.4 |
Contributions of property, plant and equipment | 1 | $ 0 |
Targa Resources Partners LP [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Return of capital from unconsolidated affiliate | 2.2 | |
Targa Resources Partners LP [Member] | T2 Eagle Ford [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Contributions of property, plant and equipment | $ 1 |
Accounts Payable and Accrued 67
Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Components of accounts payable and accrued liabilities [Abstract] | ||
Commodities | $ 600.9 | $ 574.4 |
Other goods and services | 222.3 | 117 |
Interest | 49.2 | 52.3 |
Income and other taxes | 61.2 | 24.2 |
Compensation and benefits | 37.6 | 37.2 |
Preferred Series A dividends payable | 22.9 | 22.9 |
Other | 24 | 15.5 |
Accounts payable and accrued liabilities | 1,024 | $ 843.5 |
Permian Acquisition [Member] | ||
Components of accounts payable and accrued liabilities [Abstract] | ||
Permian Acquisition contingent consideration, estimated current portion | $ 5.9 |
Accounts Payable and Accrued 68
Accounts Payable and Accrued Liabilities - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Outstanding checks | $ 29.4 | $ 30.5 |
Debt Obligations - Summary Of D
Debt Obligations - Summary Of Debt Obligations (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Current Obligations of the Partnership [Abstract] | |||
Current debt | [1] | $ 278.1 | $ 275 |
Senior unsecured notes, 5% fixed rate, due January 2018 | [2] | 250.5 | 0 |
Total current debt | 528.6 | 275 | |
Debt issuance costs, net of amortization | (0.2) | 0 | |
Current debt obligations | 528.4 | 275 | |
Long-term [Abstract] | |||
Long-term debt | 4,368.6 | 4,606 | |
Long-term debt including Unamortized premium(discount) and Debt issuance costs | 4,393 | 4,640.1 | |
Debt issuance costs, net of amortization | (24.4) | (34.1) | |
Total debt obligations | 4,897 | 4,881 | |
Letters of credit outstanding | 22.4 | 13.2 | |
TRP Senior Secured Revolving Credit Facility due October 2020 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1],[3] | 430 | 150 |
Secured Debt [Member] | TRC Senior Secured Term Loan due February 2022 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | 0 | 160 | |
Unamortized discount | 0 | (2.2) | |
Secured Debt [Member] | TRC Senior Secured Revolving Credit Facility [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Letters of credit outstanding | [4] | 0 | 0 |
Senior Unsecured Notes [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1],[2] | 0 | 250.5 |
Senior Unsecured Notes [Member] | Senior Unsecured 4 1/8% notes due November 2019 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1],[2] | 749.4 | 749.4 |
Senior Unsecured Notes [Member] | Senior Unsecured 6 3/8% Notes due August 2022 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 0 | 278.7 |
Senior Unsecured Notes [Member] | Senior Unsecured 5 1/4% Notes due May 2023 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 559.6 | 559.6 |
Senior Unsecured Notes [Member] | Senior Unsecured 4 1/4% Notes due November 2023 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 583.9 | 583.9 |
Senior Unsecured Notes [Member] | Senior Unsecured 6 3/4% Notes due March 2024 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 580.1 | 580.1 |
Senior Unsecured Notes [Member] | Senior Unsecured 5 1/8% Notes due February 2025 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 500 | 500 |
Senior Unsecured Notes [Member] | Senior Unsecured 5 3/8% Notes due February 2027 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [1] | 500 | 500 |
Senior Unsecured Notes [Member] | Targa Pipeline Partners LP [Member] | Senior Unsecured 4 3/4% Notes due November 2021 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [5] | 6.5 | 6.5 |
Senior Unsecured Notes [Member] | Targa Pipeline Partners LP [Member] | Senior Unsecured 5 7/8% Notes due August 2023 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [5] | 48.1 | 48.1 |
Unamortized premium | [5] | 0.4 | 0.5 |
Revolving Credit Facility [Member] | TRC Senior Secured Revolving Credit Facility due February 2020 [Member] | |||
Long-term [Abstract] | |||
Long-term debt | [4] | 435 | 275 |
Revolving Credit Facility [Member] | TRP Senior Secured Revolving Credit Facility due October 2020 [Member] | Targa Resources Partners LP [Member] | |||
Long-term [Abstract] | |||
Letters of credit outstanding | [3] | $ 22.4 | $ 13.2 |
[1] | While we consolidate the debt of the Partnership in our financial statements, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership or Targa Pipeline Partners, L.P. (“TPL”). | ||
[2] | The 5% Notes (“5% Senior Notes due 2018”) were reclassified to a current liability in January 2017. Prior to that date, the notes were classified as a long-term liability on our Consolidated Balance Sheets. | ||
[3] | As of September 30, 2017, availability under the Partnership’s $1.6 billion senior secured revolving credit facility (“TRP Revolver”) was $1,147.6 million. | ||
[4] | As of September 30, 2017, availability under TRC’s $670.0 million senior secured revolving credit facility (“TRC Revolver”) was $235.0 million. | ||
[5] | TPL notes are not guaranteed by us or the Partnership. |
Debt Obligations - Summary Of70
Debt Obligations - Summary Of Debt Obligations (Parenthetical) (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Feb. 23, 2017 | Dec. 31, 2016 | |
Accounts Receivable Securitization Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 350,000,000 | $ 275,000,000 | ||
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 | $ 670,000,000 | |||
Remaining borrowing capacity | $ 235,000,000 | |||
Senior Unsecured Notes [Member] | Targa Pipeline Partners LP [Member] | Senior Unsecured 4 3/4% Notes due November 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Nov. 15, 2021 | |||
Interest rate on fixed rate debt | 4.75% | |||
Senior Unsecured Notes [Member] | Targa Pipeline Partners LP [Member] | Senior Unsecured 5 7/8% Notes due August 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Aug. 1, 2023 | |||
Interest rate on fixed rate debt | 5.875% | |||
Secured Debt [Member] | TRC Senior Secured Term Loan due February 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Feb. 28, 2022 | |||
Targa Resources Partners LP [Member] | Accounts Receivable Securitization Facility [Member] | Accounts Receivable Securitization Facility Due December 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Dec. 31, 2017 | |||
Targa Resources Partners LP [Member] | Revolving Credit Facility [Member] | TRP Senior Secured Revolving Credit Facility due October 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Oct. 31, 2020 | |||
Maximum borrowing capacity | $ 1,600,000,000 | |||
Remaining borrowing capacity | $ 1,147,600,000 | |||
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% | 5.00% | ||
Debt instrument, redemption date | Oct. 30, 2017 | |||
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 3/8% Notes due August 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Aug. 1, 2022 | |||
Interest rate on fixed rate debt | 6.375% | 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% | |||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5 1/8% Notes due February 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Feb. 28, 2025 | |||
Interest rate on fixed rate debt | 5.125% | |||
Targa Resources Partners LP [Member] | Senior Unsecured Notes [Member] | Senior Unsecured 5 3/8% Notes due February 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity date | Feb. 28, 2027 | |||
Interest rate on fixed rate debt | 5.375% |
Debt Obligations - Range of Int
Debt Obligations - Range of Interest Rates and Weighted Average Interest Rate Incurred on Variable Rate Debt Obligations (Details) | Sep. 30, 2017 | |
TRC Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate incurred | 2.80% | |
TRP Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate incurred | 3.20% | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 5.75% | [1] |
Weighted average interest rate incurred | 5.75% | [1] |
Targa Resources Partners LP [Member] | Accounts Receivable Securitization Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate incurred | 2.00% | |
Minimum [Member] | TRC Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 2.50% | |
Minimum [Member] | TRP Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 3.00% | |
Minimum [Member] | Targa Resources Partners LP [Member] | Accounts Receivable Securitization Facility [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 1.80% | |
Maximum [Member] | TRC Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 4.50% | |
Maximum [Member] | TRP Revolver [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 5.30% | |
Maximum [Member] | Targa Resources Partners LP [Member] | Accounts Receivable Securitization Facility [Member] | ||
Debt Instrument [Line Items] | ||
Range of interest rates incurred | 2.20% | |
[1] | The TRC Senior secured term loan is a Eurodollar rate loan with an interest rate of LIBOR (with a LIBOR floor of 1%) plus an applicable rate of 4.75%. |
Debt Obligations - Range of I72
Debt Obligations - Range of Interest Rates and Weighted Average Interest Rate Incurred on Variable Rate Debt Obligations (Parenthetical) (Details) - Secured Debt [Member] | 9 Months Ended |
Sep. 30, 2017 | |
LIBOR [Member] | |
Debt Instrument [Line Items] | |
Senior secured loan variable rate | 1.00% |
Eurodollar Rate [Member] | |
Debt Instrument [Line Items] | |
Interest rate on fixed rate debt | 4.75% |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Oct. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Feb. 23, 2017 | Dec. 31, 2016 | |
Senior Unsecured Notes [Member] | Senior Unsecured Notes Due January2028 [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior notes issued | $ 750,000,000 | ||||
Interest rate on fixed rate debt | 5.00% | ||||
Maturity date | Jan. 31, 2028 | ||||
Net proceeds from private placement of notes | $ 744,400,000 | ||||
Senior Unsecured Notes [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | Partnership Issuers [Member] | Scenario, Forecast [Member] | |||||
Debt Instrument [Line Items] | |||||
Write off debt issuance cost | $ 200,000 | ||||
Senior Unsecured Notes [Member] | Senior Unsecured 5% Notes due January 2018 [Member] | Subsequent Event [Member] | Partnership Issuers [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage of face value | 5.00% | ||||
Maturity year | 2,018 | ||||
Accounts Receivable Securitization Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 350,000,000 | $ 275,000,000 | |||
Outstanding securitization facility | $ 278,100,000 |
Debt Obligations, Debt Repurcha
Debt Obligations, Debt Repurchases & Extinguishments - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2017 |
Senior secured term loan [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of senior secured debt | $ 160 | ||
Write off debt discounts | 2.1 | ||
Write off debt issuance cost | $ 3.7 | ||
Senior Unsecured Notes [Member] | Targa Resources Partners LP [Member] | Senior Unsecured 6 3/8% Notes due August 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Write off debt issuance cost | $ 1.8 | ||
Interest rate on fixed rate debt | 6.375% | 6.375% | |
Aggregate principal amount of notes redeemed | $ 278.7 | ||
Redemption price, percentage of face value | 103.188% | ||
Loss on extinguishment of debt | $ (10.7) | ||
Premium paid on redemption of debt | $ 8.9 |
Other Long-term Liabilities - S
Other Long-term Liabilities - Schedule of Other Long-term Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Other Liabilities Noncurrent [Line Items] | ||
Asset retirement obligations | $ 49.9 | $ 64.6 |
Mandatorily redeemable preferred interests | 80 | 68.5 |
Deferred revenue | 67.5 | 69.8 |
Other liabilities | 15.5 | 12.2 |
Total long-term liabilities | 497.8 | $ 215.1 |
Permian Acquisition [Member] | ||
Other Liabilities Noncurrent [Line Items] | ||
Permian Acquisition contingent consideration, noncurrent portion | $ 284.9 |
Other Long-term Liabilities - C
Other Long-term Liabilities - Changes in Aggregate ARO (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Changes in aggregate asset retirement obligations [Roll Forward] | |||
Beginning balance | $ 64.6 | ||
Additions | [1] | 0.8 | |
Reduction due to sale of VGS | (21.6) | ||
Change in cash flow estimate | 3.1 | $ (9.1) | |
Accretion expense | 3 | $ 3.5 | |
Ending balance | $ 49.9 | ||
[1] | Amount reflects ARO assumed from the Permian Acquisition. |
Other Long-term Liabilities, Ma
Other Long-term Liabilities, Mandatorily Redeemable Preferred Interests (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2017USD ($)JointVenture | Sep. 30, 2016USD ($) | |
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | ||
Balance at December 31, 2016 | $ 68.5 | |
Change in estimated redemption value included in interest expense | 8.5 | $ (18.8) |
Balance at September 30, 2017 | 80 | |
Mandatorily Redeemable Noncontrolling Interests [Member] | ||
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | ||
Balance at December 31, 2016 | 68.5 | |
Income attributable to mandatorily redeemable preferred interests | 3 | |
Change in estimated redemption value included in interest expense | 8.5 | |
Balance at September 30, 2017 | $ 80 | |
Mandatorily Redeemable Noncontrolling Interests [Member] | West OK [Member] | ||
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | ||
Ownership interest | 100.00% | |
Mandatorily Redeemable Noncontrolling Interests [Member] | West TX [Member] | ||
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | ||
Ownership interest | 72.80% | |
Mandatorily Redeemable Noncontrolling Interests [Member] | Joint Ventures [Member] | ||
Changes in long-term liabilities attributable to mandatorily redeemable preferred interests [Abstract] | ||
Number of joint ventures | JointVenture | 2 |
Other Long-term Liabilities, De
Other Long-term Liabilities, Deferred Revenue (Details) $ in Millions | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Oct. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 27, 2015USD ($)bbl | |
Deferred Revenue and Other [Abstract] | ||||
Deferred revenue | $ 67.5 | $ 69.8 | ||
Channelview Splitter [Member] | ||||
Deferred Revenue and Other [Abstract] | ||||
Storage capacity of Channelview Terminal | bbl | 730,000 | |||
Crude and condensate splitter, barrel per day | bbl | 35,000 | |||
Splitter estimated cost | $ 140 | |||
Annual deferred revenue payments receivable through 2022 | $ 43 | |||
Channelview Splitter [Member] | Subsequent Event [Member] | ||||
Deferred Revenue and Other [Abstract] | ||||
Deferred revenue | $ 43 |
Other Long-term Liabilities, Co
Other Long-term Liabilities, Components of Deferred Revenue (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Component Of Deferred Revenue [Line Items] | ||
Total deferred revenue | $ 67.5 | $ 69.8 |
Splitter Agreement [Member] | ||
Component Of Deferred Revenue [Line Items] | ||
Total deferred revenue | 43 | 43 |
Gas Contract Amendment [Member] | ||
Component Of Deferred Revenue [Line Items] | ||
Total deferred revenue | 18.6 | 19.7 |
Other Deferred Revenue [Member] | ||
Component Of Deferred Revenue [Line Items] | ||
Total deferred revenue | $ 5.9 | $ 7.1 |
Other Long-term Liabilities -80
Other Long-term Liabilities - Changes in Deferred Revenue (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Changes in deferred revenue [Roll Forward] | |
Balance at December 31, 2016 | $ 69.8 |
Revenue recognized | (2.3) |
Balance at September 30, 2017 | $ 67.5 |
Other Long-term Liabilities, 81
Other Long-term Liabilities, Contingent Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 01, 2017 | |
Other Liabilities Noncurrent [Line Items] | |||||||
Change in fair value of contingent liability | $ 126.8 | $ 0.3 | $ 125.6 | $ 0.3 | |||
Permian Acquisition [Member] | |||||||
Other Liabilities Noncurrent [Line Items] | |||||||
Preliminary acquisition date fair value of the contingent consideration | 416.3 | $ 0 | $ 416.3 | 416.3 | $ 0 | $ 461.6 | |
Change in fair value of contingent liability | 126.6 | $ 45.3 | 125.5 | 125.5 | |||
Additional cash paid in potential earn-out payment | 290.8 | $ 416.3 | 290.8 | 290.8 | $ 461.6 | ||
Fair value of first potential earn-out payment | 5.9 | 5.9 | 5.9 | ||||
Fair value of second potential earn-out payment | $ 284.9 | $ 284.9 | $ 284.9 |
Other Long-term Liabilities -82
Other Long-term Liabilities - Schedule of Changes in Contingent Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | 7 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Liabilities Noncurrent [Line Items] | ||||||
Decrease in fair value due to factors occurring after acquisition date | $ (126.8) | $ (0.3) | $ (125.6) | $ (0.3) | ||
Permian Acquisition [Member] | ||||||
Other Liabilities Noncurrent [Line Items] | ||||||
Balance at March 1, 2017 (acquisition date) | 416.3 | $ 461.6 | ||||
Measurement period adjustment | 0 | (45.3) | ||||
Decrease in fair value due to factors occurring after acquisition date | (126.6) | $ (45.3) | (125.5) | (125.5) | ||
Balance at September 30, 2017 | 290.8 | $ 416.3 | 290.8 | 290.8 | ||
Less: Current portion | (5.9) | (5.9) | (5.9) | |||
Long-term balance at September 30, 2017 | $ 284.9 | $ 284.9 | $ 284.9 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($)Trancheshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)$ / sharesshares | |
Class Of Stock [Line Items] | ||||||
Number of tranches sold to investors | Tranche | 2 | |||||
Gross proceeds | $ 994.1 | $ 994.1 | ||||
Term of preferred stock warrants | 7 years | |||||
Net Proceeds- Initial Relative Fair Value Allocation | 969.3 | |||||
Allocation to BCF | $ 0 | (614.4) | ||||
Accounting Conversion Price Of Convertible Preferred Stock | $ / shares | $ 17.02 | |||||
Conversion price of preferred stock into common stock | $ / shares | $ 20.77 | |||||
Preferred Series A dividends payable | $ 22.9 | $ 22.9 | $ 22.9 | |||
Preferred stock dividend paid | $ 68.8 | |||||
Accrued preferred dividends payable date | Nov. 14, 2017 | |||||
Deemed dividends on Series A Preferred Stock | $ 6.5 | $ 5.8 | $ 19 | 12.3 | ||
Series A Warrants [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, shares issued to investors | shares | 13,550,004 | 13,550,004 | ||||
Exercise price of warrants | $ / shares | $ 18.88 | $ 18.88 | ||||
Net Proceeds- Initial Relative Fair Value Allocation | 135.7 | |||||
Series B Warrants [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, shares issued to investors | shares | 6,533,727 | 6,533,727 | ||||
Exercise price of warrants | $ / shares | $ 25.11 | $ 25.11 | ||||
Net Proceeds- Initial Relative Fair Value Allocation | 46.5 | |||||
Series A Preferred Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, shares issued to investors | shares | 965,100 | 965,100 | 965,100 | |||
Preferred stock, liquidation per share | $ / shares | $ 1,000 | $ 1,000 | $ 1,000 | |||
Preferred stock, percentage of dividend | 9.50% | |||||
Preferred stock dividend payment terms | fixed dividend payable quarterly 45 days after the end of each fiscal quarter | |||||
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 | |||||
Stock conversion, description | If the investors do not elect to convert their Series A Preferred into TRC common stock, 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 | |||||
Preferred stock conversion price threshold percentage | 120.00% | |||||
Maximum number of common share would be issued upon conversion of preferred share | shares | 46,466,057 | |||||
Net Proceeds- Initial Relative Fair Value Allocation | 787.1 | |||||
Preferred stock, discount on shares | $ 178.1 | 178.1 | ||||
Allocation to BCF | $ 614.4 | |||||
Series A Preferred Stock [Member] | 10% Redemption Premium | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock conversion redemption premium percentage in sixth year | 10.00% | |||||
Benefit from conversion right by redemption premium | $ 96.5 | |||||
Series A Preferred Stock [Member] | 5% Redemption Premium | ||||||
Class Of Stock [Line Items] | ||||||
Benefit from conversion right by redemption premium | $ 48.3 | |||||
Preferred stock conversion redemption premium percentage in year seven through twelve year | 5.00% | |||||
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 [Member] | ||||||
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) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Class Of Stock [Line Items] | |||
Proceeds from issuance of preferred stock and warrants | $ 994.1 | $ 994.1 | |
Transaction fees | (24.8) | ||
Net Proceeds- Initial Relative Fair Value Allocation | 969.3 | ||
Allocation to BCF | $ 0 | 614.4 | |
Per balance sheet upon issuance | 614.4 | ||
Series A Warrants [Member] | |||
Class Of Stock [Line Items] | |||
Net Proceeds- Initial Relative Fair Value Allocation | 135.7 | ||
Per balance sheet upon issuance | 135.7 | ||
Series B Warrants [Member] | |||
Class Of Stock [Line Items] | |||
Net Proceeds- Initial Relative Fair Value Allocation | 46.5 | ||
Per balance sheet upon issuance | 46.5 | ||
Series A Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Net Proceeds- Initial Relative Fair Value Allocation | 787.1 | ||
Allocation to BCF | (614.4) | ||
Per balance sheet upon issuance | $ 172.7 |
Common Stock and Related Matt85
Common Stock and Related Matters - Additional Information (Details) - USD ($) | Jun. 01, 2017 | Jan. 26, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | May 09, 2017 |
Securities Financing Transaction [Line Items] | ||||||
Issuance of common stock (in shares) | 17,000,000 | 9,200,000 | ||||
Shares issued price | $ 46.10 | $ 57.65 | ||||
Proceeds from issuance of common stock | $ 777,300,000 | $ 524,200,000 | $ 1,573,400,000 | $ 401,000,000 | ||
Warrants exercised (in shares) | 0 | 19,983,843 | ||||
Shares of Common Stock [Member] | ||||||
Securities Financing Transaction [Line Items] | ||||||
Issuance of common stock (in shares) | 30,721,000 | 9,211,000 | ||||
Exercise of warrants - share settled (in shares) | 11,336,856 | |||||
Series A Warrants [Member] | ||||||
Securities Financing Transaction [Line Items] | ||||||
Exercisable warrants outstanding | 67,392 | |||||
Series B Warrants [Member] | ||||||
Securities Financing Transaction [Line Items] | ||||||
Exercisable warrants outstanding | 32,496 | |||||
Equity Distribution Agreement December 2016 [Member] | ||||||
Securities Financing Transaction [Line Items] | ||||||
Issuance of common stock (in shares) | 4,521,310 | |||||
Proceeds from issuance of common stock | $ 257,000,000 | |||||
Remaining amount of common stock available under equity distribution agreement | $ 411,200,000 | |||||
Equity Distribution Agreement May 2017 [Member] | ||||||
Securities Financing Transaction [Line Items] | ||||||
Issuance of common stock (in shares) | 0 | |||||
Amount of common stock authorized under equity distribution agreement | $ 750,000,000 |
Common Stock and Related Matt86
Common Stock and Related Matters - Dividends Declared And Or Paid (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Dividends Payable [Line Items] | |||||
Accrued preferred dividends payable date | Nov. 14, 2017 | ||||
Dividends Declared per Share of Common Stock | $ 0.91 | $ 0.91 | $ 2.73 | $ 2.73 | |
Dividend Declared Q3 2017 [Member] | |||||
Dividends Payable [Line Items] | |||||
Accrued preferred dividends payable date | Nov. 15, 2017 | ||||
Total Common Dividends Declared | $ 199 | ||||
Amount of Common Dividends Paid | 196.2 | ||||
Accrued Dividends | [1] | $ 2.8 | $ 2.8 | ||
Dividends Declared per Share of Common Stock | $ 0.91000 | ||||
Dividend Declared Q2 2017 [Member] | |||||
Dividends Payable [Line Items] | |||||
Accrued preferred dividends payable date | Aug. 15, 2017 | ||||
Total Common Dividends Declared | $ 198.6 | ||||
Amount of Common Dividends Paid | 196.2 | ||||
Accrued Dividends | [1] | 2.4 | $ 2.4 | ||
Dividends Declared per Share of Common Stock | $ 0.91000 | ||||
Dividend Declared Q1 2017 [Member] | |||||
Dividends Payable [Line Items] | |||||
Accrued preferred dividends payable date | May 16, 2017 | ||||
Total Common Dividends Declared | $ 182.8 | ||||
Amount of Common Dividends Paid | 180.3 | ||||
Accrued Dividends | [1] | 2.5 | $ 2.5 | ||
Dividends Declared per Share of Common Stock | $ 0.91000 | ||||
Dividend Declared, Q4 2016 [Member] | |||||
Dividends Payable [Line Items] | |||||
Accrued preferred dividends payable date | Feb. 15, 2017 | ||||
Total Common Dividends Declared | $ 178.3 | ||||
Amount of Common Dividends Paid | 176.5 | ||||
Accrued Dividends | [1] | $ 1.8 | $ 1.8 | ||
Dividends Declared per Share of Common Stock | $ 0.91000 | ||||
[1] | Represents accrued dividends on restricted stock and restricted stock units that are payable upon vesting. |
Partnership Units and Related87
Partnership Units and Related Matters - Summary of Distributions Declared or Paid by the Partnership (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Distributions Declared [Member] | ||||
Distributions declared or paid by the Partnership [Abstract] | ||||
Distributions payable date | Nov. 10, 2017 | Aug. 10, 2017 | ||
Total Distributions | $ 225.4 | $ 225.4 | ||
Distributions to Targa Resources Corp. | $ 222.6 | $ 222.6 | ||
Distributions Paid [Member] | ||||
Distributions declared or paid by the Partnership [Abstract] | ||||
Distributions payable date | May 11, 2017 | Feb. 10, 2017 | ||
Total Distributions | $ 209.6 | $ 198.1 | ||
Distributions to Targa Resources Corp. | $ 206.8 | $ 195.3 |
Partnership Units and Related88
Partnership Units and Related Matters - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 10 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | |
Limited Partners Capital Account [Line Items] | |||||
Total capital contributions to partnership | $ 1,620 | ||||
Percentage of capital contribution towards partner's interest maintained | 8.80% | ||||
Percentage of general partner's interest maintained | 2.00% | ||||
Subsequent Event [Member] | |||||
Limited Partners Capital Account [Line Items] | |||||
Distributions declaration month | 2017-10 | ||||
Distribution declared | $ 0.1875 | ||||
Distributions payable date | Nov. 15, 2017 | ||||
Series A Preferred Units due November 1, 2020 [Member] | LIBOR [Member] | |||||
Limited Partners Capital Account [Line Items] | |||||
Percentage of variable interest rate for distribution on preferred units upon maturity | 7.71% | ||||
Series A Preferred Units [Member] | |||||
Limited Partners Capital Account [Line Items] | |||||
Preferred unit, issued | 5,000,000 | ||||
Preferred unit, par value (in dollar per unit) | $ 25 | ||||
Preferred unit, distribution interest rate | 9.00% | ||||
Series A Preferred Units due November 1, 2020 [Member] | |||||
Limited Partners Capital Account [Line Items] | |||||
Preferred unit, redemption price (in dollars per share) | $ 25 | $ 25 | $ 25 | ||
Series A Cumulative Redeemable Perpetual Preferred Units [Member] | |||||
Limited Partners Capital Account [Line Items] | |||||
Distribution to preferred unitholders | $ 2.8 | $ 8.4 | |||
TRC/TRP Merger | |||||
Limited Partners Capital Account [Line Items] | |||||
Percentage of capital contribution towards partner's interest maintained | 98.00% | ||||
Percentage of general partner's interest maintained | 2.00% |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ (155.1) | $ (3.2) | $ (195) | $ (18.4) |
Net income (loss) attributable to noncontrolling interests | 12.5 | 7.5 | 34.3 | 18.2 |
Less: Dividends on preferred stock | 29.4 | 28.7 | 87.8 | 62 |
Net income (loss) attributable to common shareholders | $ (197) | $ (39.4) | $ (317.1) | $ (98.6) |
Weighted average shares outstanding - basic (in shares) | 215.6 | 168 | 203.8 | 145.5 |
Net income available per common share - basic (in dollars per share) | $ (0.91) | $ (0.23) | $ (1.56) | $ (0.68) |
Weighted average shares outstanding - basic (in shares) | 215.6 | 168 | 203.8 | 145.5 |
Weighted average shares outstanding - diluted (in shares) | 215.6 | 168 | 203.8 | 145.5 |
Net income available per common share - diluted (in dollars per share) | $ (0.91) | $ (0.23) | $ (1.56) | $ (0.68) |
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 shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
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) | 1.2 | 0.8 | 1.2 | 0.5 | |
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) | 0.1 | 8.9 | 0.1 | 6.1 | |
Series A Preferred Stock [Member] | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Anti-dilutive shares excluded from the determination of diluted earnings per share (in shares) | [1] | 46.5 | 46.5 | 46.5 | 33.7 |
[1] | The Series A Preferred 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 Series A Preferred is not redeemed by the end of year twelve, the investors have the right to convert the Series A Preferred into TRC common stock. See Note 12 – Preferred Stock |
Earnings per Common Share - S91
Earnings per Common Share - Summary of Potential Common Stock Equivalents Excluded from Determination of Diluted Earnings Per Share (Parenthetical) (Details) - Series A Preferred Stock [Member] | 9 Months Ended |
Sep. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Preferred stock redemption premium percentage in sixth year | 10.00% |
Preferred stock redemption premium percentage after sixth year | 5.00% |
Derivative Instruments and He92
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 31 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Feb. 27, 2015 | |
Derivative Line [Items] | ||||||
Estimated fair value of derivative instruments, net liability | $ (63.4) | $ (63.4) | $ (63.4) | |||
Amount expected to reclassify commodity hedge related deferred losses to earnings before income taxes | 64.1 | 64.1 | 64.1 | |||
Amount of deferred losses to be reclassified into earnings before income taxes over next twelve months | 63 | $ 63 | 63 | |||
Targa Resources Partners LP [Member] | Targa Pipeline Partners LP [Member] | ||||||
Derivative Line [Items] | ||||||
Fair value of derivative assets | $ 102.1 | |||||
Acquisition date | Feb. 27, 2015 | |||||
Fair value of derivative contracts received as component of derivative contract settlement | 1.4 | $ 5.8 | $ 6.3 | $ 20.9 | $ 100.9 | |
Ineffectiveness gains (losses) | $ 0.1 | $ 0.3 | ||||
Targa Resources Partners LP [Member] | Targa Pipeline Partners LP [Member] | Maximum [Member] | ||||||
Derivative Line [Items] | ||||||
Ineffectiveness gains (losses) | $ 0.1 | $ 0.1 |
Derivative Instruments and He93
Derivative Instruments and Hedging Activities - Notional Volumes Of The Partnership's Commodity Derivative Contracts (Details) - Targa Resources Partners LP [Member] | 9 Months Ended |
Sep. 30, 2017MMBTUbbl | |
Year 2017 [Member] | Swaps [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 3,150 |
Year 2017 [Member] | Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 160,347 |
Year 2017 [Member] | Swaps [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 23,432 |
Year 2017 [Member] | Basis Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 92,200 |
Year 2017 [Member] | Future [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 |
Year 2017 [Member] | Future [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 38,880 |
Year 2017 [Member] | Options [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 1,380 |
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) | 3,094 |
Year 2018 [Member] | Swaps [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 2,420 |
Year 2018 [Member] | Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 151,100 |
Year 2018 [Member] | Swaps [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 12,858 |
Year 2018 [Member] | Basis Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 15,726 |
Year 2018 [Member] | Future [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 1,103 |
Year 2018 [Member] | Future [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 6,589 |
Year 2018 [Member] | Options [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 691 |
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) | 2,986 |
Year 2019 [Member] | Swaps [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 1,293 |
Year 2019 [Member] | Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 116,136 |
Year 2019 [Member] | Swaps [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 7,399 |
Year 2019 [Member] | Basis Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 12,500 |
Year 2019 [Member] | Future [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 |
Year 2019 [Member] | Future [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 329 |
Year 2019 [Member] | Options [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 590 |
Year 2019 [Member] | Options [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 |
Year 2019 [Member] | Options [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 410 |
Year 2020 [Member] | Swaps [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Year 2020 [Member] | Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 |
Year 2020 [Member] | Swaps [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Year 2020 [Member] | Basis Swaps [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 10,445 |
Year 2020 [Member] | Future [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 |
Year 2020 [Member] | Future [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Year 2020 [Member] | Options [Member] | Condensate [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Year 2020 [Member] | Options [Member] | Natural Gas [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in MMBtu per day) | MMBTU | 0 |
Year 2020 [Member] | Options [Member] | NGL [Member] | |
Derivative Line [Items] | |
Notional volumes of commodity hedges (in Bbl per day) | 0 |
Derivative Instruments and He94
Derivative Instruments and Hedging Activities, Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, Current | $ 18.7 | $ 16.8 |
Derivative assets, Long-term | 13.7 | 5.1 |
Derivative assets | 32.4 | 21.9 |
Derivative liabilities | 95.8 | 75.2 |
Derivative liabilities, Current | 80.9 | 49.1 |
Derivative liabilities, Long-term | 14.9 | 26.1 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 32.1 | 21.8 |
Derivative liabilities | 94.3 | 74.7 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 79.9 | 48.6 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-Term Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 14.4 | 26.1 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 18.4 | 16.7 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-Term Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 13.7 | 5.1 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0.3 | 0.1 |
Derivative liabilities | 1.5 | 0.5 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 1 | 0.5 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Long-Term Liabilities from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0.5 | 0 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | Current Assets from Risk Management Activities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0.3 | 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 | $ 0 |
Derivative Instruments and He95
Derivative Instruments and Hedging Activities - Pro Forma Impact Of Offsetting Assets (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Asset [Abstract] | ||
Gross asset | $ 32.4 | $ 21.9 |
Gross liability | (95.8) | (75.2) |
Derivative assets | 32.4 | 21.9 |
Pro forma net presentation, asset, total | 10.3 | 5.7 |
Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 32.2 | 21.9 |
Gross liability | (93.7) | (64.8) |
Pro forma net presentation, asset | 10.1 | 5.7 |
Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 0.2 | |
Pro forma net presentation, asset, total | 0.2 | |
Current Assets from Risk Management Activities [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 18.7 | 16.8 |
Pro forma net presentation, asset, current | 3.6 | 5.7 |
Current Assets from Risk Management Activities [Member] | Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 18.7 | 16.8 |
Pro forma net presentation, asset | 3.6 | 5.7 |
Long-Term Assets from Risk Management Activities [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 13.7 | 5.1 |
Pro forma net presentation, asset, noncurrent | 6.7 | |
Long-Term Assets from Risk Management Activities [Member] | Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 13.5 | $ 5.1 |
Pro forma net presentation, asset | 6.5 | |
Long-Term Assets from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Asset [Abstract] | ||
Gross asset | 0.2 | |
Pro forma net presentation, asset, noncurrent | $ 0.2 |
Derivative Instruments and He96
Derivative Instruments and Hedging Activities - Pro Forma Impact Of Offsetting Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Liability [Abstract] | ||
Gross liability | $ (95.8) | $ (75.2) |
Pro forma net presentation, liability, total | (29.1) | (52) |
Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (93.7) | (64.8) |
Pro forma net presentation, liability, total | (27) | (41.6) |
Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (2.1) | (10.4) |
Pro forma net presentation, liability, total | (2.1) | (10.4) |
Current Liabilities from Risk Management Activities [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (80.9) | (49.1) |
Pro forma net presentation, liability, current | (21.2) | (31) |
Current Liabilities from Risk Management Activities [Member] | Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (79.5) | (46.1) |
Pro forma net presentation, liability, current | (19.8) | (28) |
Current Liabilities from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (1.4) | (3) |
Pro forma net presentation, liability, current | (1.4) | (3) |
Long-Term Liabilities from Risk Management Activities [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (14.9) | (26.1) |
Pro forma net presentation, liability, noncurrent | (7.9) | (21) |
Long-Term Liabilities from Risk Management Activities [Member] | Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (14.2) | (18.7) |
Pro forma net presentation, liability, noncurrent | (7.2) | (13.6) |
Long-Term Liabilities from Risk Management Activities [Member] | Counterparties without Offsetting Position [Member] | ||
Derivative Liability [Abstract] | ||
Gross liability | (0.7) | (7.4) |
Pro forma net presentation, liability, noncurrent | $ (0.7) | $ (7.4) |
Derivative Instruments and He97
Derivative Instruments and Hedging Activities, Pro Forma Impact - Offsetting Collateral (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Asset [Abstract] | ||
Gross collateral | $ 44.6 | $ 7 |
Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Asset [Abstract] | ||
Gross collateral | 44.6 | 7 |
Current Assets from Risk Management Activities [Member] | ||
Derivative Asset [Abstract] | ||
Gross collateral | 44.6 | 7 |
Current Assets from Risk Management Activities [Member] | Counterparties with Offsetting Positions or Collateral [Member] | ||
Derivative Asset [Abstract] | ||
Gross collateral | $ 44.6 | $ 7 |
Derivative Instruments and He98
Derivative Instruments and Hedging Activities - Amounts Included in OCI, Income and AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from OCI into income (effective portion) | $ (2.1) | $ 8.1 | $ (2.2) | $ 50.6 |
Commodity Contracts [Member] | Revenues [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income on derivatives | (1.5) | (0.3) | (2.9) | 1.3 |
Cash Flow Hedging [Member] | Commodity Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in OCI on derivatives (effective portion) | $ (106.8) | $ 12.9 | $ (10.5) | $ (40.5) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($)Swap | |
Fair Value Disclosures [Abstract] | |
Derivative financial instruments, fair value, net | $ (63.4) |
Derivative fair value of net liability if commodity price increases by 10 percent | 149.9 |
Derivative fair value of net asset if commodity price decreases by 10 percent | $ 22.2 |
Number of natural gas basis swaps categorized as Level 3 | Swap | 31 |
Fair Value Measurements - Break
Fair Value Measurements - Breakdown by Fair Value Hierarchy Category for Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | $ 10.3 | $ 5.7 | |
Liabilities from commodity derivative contracts | 29.1 | 52 | |
Carrying Value [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 32 | 21 |
Liabilities from commodity derivative contracts | [1] | 95.4 | 74.2 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 114.1 | 73.5 | |
Carrying Value [Member] | TRC Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 435 | 275 | |
Carrying Value [Member] | Senior Secured Term Loan [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 157.8 | |
Carrying Value [Member] | TRP Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 430 | 150 | |
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 | 278.1 | 275 | |
Carrying Value [Member] | Senior Unsecured Notes [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 3,778.5 | 4,057.3 | |
Carrying Value [Member] | Targa Pipeline Partners LP [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Additional cash paid in potential earn-out payment | [2] | 2.5 | 2.6 |
Carrying Value [Member] | Outrigger Permian Acquisition | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Additional cash paid in potential earn-out payment | [3] | 290.8 | 0 |
Fair Value [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Assets from commodity derivative contracts | [1] | 32 | 21 |
Liabilities from commodity derivative contracts | [1] | 95.4 | 74.2 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 114.1 | 73.5 | |
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 |
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] | 29 | 19.6 |
Liabilities from commodity derivative contracts | [1] | 86.5 | 69.3 |
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 | 1.4 |
Liabilities from commodity derivative contracts | [1] | 8.9 | 4.9 |
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Cash and cash equivalents | 0 | 0 | |
Fair Value [Member] | TRC Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 435 | 275 | |
Fair Value [Member] | TRC Revolver [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 Revolver [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 435 | 275 | |
Fair Value [Member] | TRC Revolver [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 | 0 | 158.4 | |
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 | 0 | 158.4 | |
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] | TRP Revolver [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 430 | 150 | |
Fair Value [Member] | TRP Revolver [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 0 | 0 | |
Fair Value [Member] | TRP Revolver [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Carrying Value [Abstract] | |||
Long-term debt | 430 | 150 | |
Fair Value [Member] | TRP Revolver [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 | 278.1 | 275 | |
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 | 278.1 | 275 | |
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 | 3,881.2 | 4,101.6 | |
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 | 3,881.2 | 4,101.6 | |
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 | |
Fair Value [Member] | Targa Pipeline Partners LP [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Additional cash paid in potential earn-out payment | [2] | 2.5 | 2.6 |
Fair Value [Member] | Targa Pipeline Partners LP [Member] | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Additional cash paid in potential earn-out payment | [2] | 0 | 0 |
Fair Value [Member] | Targa Pipeline Partners LP [Member] | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Additional cash paid in potential earn-out payment | [2] | 0 | 0 |
Fair Value [Member] | Targa Pipeline Partners LP [Member] | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Additional cash paid in potential earn-out payment | [2] | 2.5 | 2.6 |
Fair Value [Member] | Outrigger Permian Acquisition | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Additional cash paid in potential earn-out payment | [3] | 290.8 | 0 |
Fair Value [Member] | Outrigger Permian Acquisition | Level 1 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Additional cash paid in potential earn-out payment | [3] | 0 | 0 |
Fair Value [Member] | Outrigger Permian Acquisition | Level 2 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Additional cash paid in potential earn-out payment | [3] | 0 | 0 |
Fair Value [Member] | Outrigger Permian Acquisition | Level 3 [Member] | |||
Financial Instruments Recorded on Our Consolidated Balance Sheets at Fair Value [Abstract] | |||
Additional cash paid in potential earn-out payment | [3] | $ 290.8 | $ 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 16 – Derivative Instruments and Hedging Activities. The above fair values reflect the total value of each derivative contract taken as a whole, whereas the Consolidated Balance Sheets presentation is based on the individual maturity dates of estimated future settlements. As such, an individual contract could have both an asset and liability position when segregated into its current and long-term portions for Consolidated Balance Sheets classification purposes. | ||
[2] | We have a contingent consideration liability for TPL’s previous acquisition of a gas gathering system and related assets, which is carried at fair value | ||
[3] | We have a contingent consideration liability related to the Permian Acquisition, which is carried at fair value. See Note 4 – Acquisitions and Divestitures |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Fair Value of Financial Instruments Classified as Level 3 (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2017USD ($) | ||
Contingent Liability [Member] | ||
Changes in fair value of financial instruments classified as Level 3 in fair value hierarchy [Roll Forward] | ||
Balance, beginning of period | $ (2.6) | |
New Level 3 derivative instruments | 0 | |
Transfers out of Level 3 | 0 | [1] |
Settlements included in Revenue | 0 | |
Unrealized gain/(loss) included in OCI | 0 | |
Balance, end of period | (293.3) | |
Targa Pipeline Partners LP [Member] | Contingent Liability [Member] | ||
Changes in fair value of financial instruments classified as Level 3 in fair value hierarchy [Roll Forward] | ||
Change in fair value of contingent consideration | 0.1 | |
Permian Acquisition [Member] | Contingent Liability [Member] | ||
Changes in fair value of financial instruments classified as Level 3 in fair value hierarchy [Roll Forward] | ||
Change in fair value of contingent consideration | (290.8) | [2] |
Commodity Derivative Contracts Asset/(Liability) [Member] | ||
Changes in fair value of financial instruments classified as Level 3 in fair value hierarchy [Roll Forward] | ||
Balance, beginning of period | (3.6) | |
New Level 3 derivative instruments | (0.8) | |
Transfers out of Level 3 | 1.6 | [1] |
Settlements included in Revenue | 0.4 | |
Unrealized gain/(loss) included in OCI | (3.5) | |
Balance, end of period | (5.9) | |
Commodity Derivative Contracts Asset/(Liability) [Member] | Targa Pipeline Partners LP [Member] | ||
Changes in fair value of financial instruments classified as Level 3 in fair value hierarchy [Roll Forward] | ||
Change in fair value of contingent consideration | 0 | |
Commodity Derivative Contracts Asset/(Liability) [Member] | Permian Acquisition [Member] | ||
Changes in fair value of financial instruments classified as Level 3 in fair value hierarchy [Roll Forward] | ||
Change in fair value of contingent consideration | $ 0 | [2] |
[1] | Transfers relate to long-term over-the-counter swaps for NGL products for which observable market prices became available for substantially their full term. | |
[2] | Represents the September 30, 2017 balance of the contingent consideration that arose as part of the Permian Acquisition in the first quarter of 2017. See Note 4 – Acquisitions and Divestitures for discussion of the initial fair value. |
Other Operating (Income) Exp102
Other Operating (Income) Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Other Income And Expenses [Abstract] | |||||
(Gain) loss on sale or disposition of assets | [1] | $ 0.3 | $ 4.7 | $ 16.6 | $ 5.7 |
Miscellaneous business tax | 0.3 | 0.2 | 0.6 | 0.4 | |
Total other operating (income) expense | $ 0.6 | $ 4.9 | $ 17.2 | $ 6.1 | |
[1] | Comprised primarily of a $16.1 million loss in the first quarter of 2017 due to the reduction in the carrying value of our ownership interest in VGS in connection with the April 4, 2017 sale. |
Other Operating (Income) Exp103
Other Operating (Income) Expense (Parenthetical) (Details) - USD ($) $ in Millions | Apr. 04, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Operating Income Expense [Line Items] | |||||||
Loss from sale of VGS | [1] | $ (0.3) | $ (4.7) | $ (16.6) | $ (5.7) | ||
VGS [Member] | Not Qualify as Discontinued Operations [Member] | |||||||
Other Operating Income Expense [Line Items] | |||||||
Loss from sale of VGS | $ (16.1) | $ (16.1) | |||||
[1] | Comprised primarily of a $16.1 million loss in the first quarter of 2017 due to the reduction in the carrying value of our ownership interest in VGS in connection with the April 4, 2017 sale. |
Supplemental Cash Flow Infor104
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 01, 2017 | ||
Cash: | ||||||
Interest paid, net of capitalized interest | [1] | $ 164.1 | $ 211.2 | |||
Income taxes paid, net of refunds | (67.4) | 1.2 | ||||
Non-cash investing activities: | ||||||
Deadstock commodity inventory transferred to property, plant and equipment | 8.3 | 16.9 | ||||
Impact of capital expenditure accruals on property, plant and equipment | 118.3 | (0.4) | ||||
Transfers from materials and supplies inventory to property, plant and equipment | 2.8 | 1.9 | ||||
Contribution of property, plant and equipment to investments in unconsolidated affiliates | 1 | 0 | ||||
Change in ARO liability and property, plant and equipment due to revised cash flow estimate | 3.1 | (9.1) | ||||
Non-cash financing activities: | ||||||
Reduction of Owner's Equity related to accrued dividends on unvested equity awards under share compensation arrangements | $ 7 | $ 6.8 | 7 | 6.8 | ||
Allocation of Series A Preferred Stock net book value of BCF to additional paid-in capital | 0 | 614.4 | ||||
Change in accrued dividends of Series A Preferred Stock | 0 | 22.9 | ||||
Accretion of deemed dividends on Series A Preferred Stock | 6.5 | 5.8 | 19 | 12.3 | ||
Transfer within additional paid-in capital for exercise of Warrants | 53.2 | |||||
Impact of accounting standard adoption recorded in retained earnings | 56.1 | |||||
Non-cash balance sheet movements related to the purchase of noncontrolling interests in subsidiary (See Note 4 - Acquisitions and Divestitures): | ||||||
Additional paid-in capital | (13.7) | |||||
Deferred tax liability | 13.7 | |||||
Non-cash balance sheet movements related to the TRC/TRP Merger: | ||||||
Prepaid transaction costs reclassified in the additional paid-in capital | 0 | 4.5 | ||||
Issuance of common stock | 0 | 0.1 | ||||
Additional paid-in capital | 0.3 | 3,120 | 0.3 | 3,120 | ||
Accumulated other comprehensive income | 0 | 55.7 | 0 | 55.7 | ||
Noncontrolling interests | 0 | (4,119.7) | ||||
Deferred tax liability | (0.3) | 943.9 | (0.3) | 943.9 | ||
Permian Acquisition [Member] | ||||||
Non-cash balance sheet movements related to the Permian Acquisition (See Note 4 - Acquisitions and Divestitures): | ||||||
Potential earn-out payments of acquisition date fair value | $ 416.3 | $ 0 | $ 416.3 | $ 0 | $ 461.6 | |
[1] | Interest capitalized on major projects was $8.3 million and $7.2 million for the nine months ended September 30, 2017 and 2016. |
Supplemental Cash Flow Infor105
Supplemental Cash Flow Information (Parenthetical) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest capitalized on major projects | $ 8.3 | $ 7.2 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Segment Information Revenues an
Segment Information Revenues and Operating Margin (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Sales of commodities | $ 1,871.5 | $ 1,398.7 | $ 5,353.1 | $ 3,882.9 |
Fees from midstream services | 260.3 | 253.6 | 759 | 795.5 |
Revenues | 2,131.8 | 1,652.3 | 6,112.1 | 4,678.4 |
Gathering and Processing [Member] | ||||
Revenues | ||||
Revenues | 1,134.2 | 869.5 | 3,158 | 2,263.8 |
Operating margin | 198.3 | 149.4 | 549.3 | 404.1 |
Logistics and Marketing [Member] | ||||
Revenues | ||||
Revenues | 1,871.6 | 1,431.2 | 5,423.4 | 4,010.7 |
Operating margin | 115.9 | 126 | 358.5 | 424.5 |
Other Segment [Member] | ||||
Revenues | ||||
Revenues | (1) | 11.2 | 3.9 | 56.9 |
Operating margin | (1) | 11.2 | 3.9 | 56.9 |
Corporate and Eliminations [Member] | ||||
Revenues | ||||
Revenues | (873) | (659.6) | (2,473.2) | (1,653) |
Operating margin | (0.1) | |||
Operating Segments [Member] | ||||
Revenues | ||||
Sales of commodities | 1,871.5 | 1,398.7 | 5,353.1 | 3,882.9 |
Fees from midstream services | 260.3 | 253.6 | 759 | 795.5 |
Revenues | 2,131.8 | 1,652.3 | 6,112.1 | 4,678.4 |
Operating Segments [Member] | Gathering and Processing [Member] | ||||
Revenues | ||||
Sales of commodities | 200.3 | 172.2 | 544.4 | 441.3 |
Fees from midstream services | 148.5 | 120.6 | 399.3 | 360.9 |
Revenues | 348.8 | 292.8 | 943.7 | 802.2 |
Operating Segments [Member] | Logistics and Marketing [Member] | ||||
Revenues | ||||
Sales of commodities | 1,672.2 | 1,215.3 | 4,804.8 | 3,384.7 |
Fees from midstream services | 111.8 | 133 | 359.7 | 434.6 |
Revenues | 1,784 | 1,348.3 | 5,164.5 | 3,819.3 |
Operating Segments [Member] | Other Segment [Member] | ||||
Revenues | ||||
Sales of commodities | (1) | 11.2 | 3.9 | 56.9 |
Revenues | (1) | 11.2 | 3.9 | 56.9 |
Intersegment Eliminations [Member] | Gathering and Processing [Member] | ||||
Revenues | ||||
Sales of commodities | 783.7 | 574.8 | 2,209.2 | 1,455.8 |
Fees from midstream services | 1.7 | 1.9 | 5.1 | 5.8 |
Revenues | 785.4 | 576.7 | 2,214.3 | 1,461.6 |
Intersegment Eliminations [Member] | Logistics and Marketing [Member] | ||||
Revenues | ||||
Sales of commodities | 80.6 | 76.3 | 237.8 | 176.3 |
Fees from midstream services | 7 | 6.6 | 21.1 | 15.1 |
Revenues | 87.6 | 82.9 | 258.9 | 191.4 |
Intersegment Eliminations [Member] | Corporate and Eliminations [Member] | ||||
Revenues | ||||
Sales of commodities | (864.3) | (651.1) | (2,447) | (1,632.1) |
Fees from midstream services | (8.7) | (8.5) | (26.2) | (20.9) |
Revenues | $ (873) | $ (659.6) | $ (2,473.2) | $ (1,653) |
Segment Information, Other Fina
Segment Information, Other Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||||||
Other financial information [Abstract] | ||||||||||
Total assets | $ 13,998.3 | [1] | $ 13,055.6 | [1] | $ 13,998.3 | [1] | $ 13,055.6 | [1] | $ 12,871.2 | |
Goodwill, net | 256.6 | 393 | 256.6 | 393 | $ 210 | |||||
Capital expenditures | 378.7 | 134.6 | 987.7 | 426.5 | ||||||
Business acquisition | 987.1 | 987.1 | ||||||||
Operating Segments [Member] | Gathering and Processing [Member] | ||||||||||
Other financial information [Abstract] | ||||||||||
Total assets | [1] | 10,644.3 | 10,047.3 | 10,644.3 | 10,047.3 | |||||
Goodwill, net | 256.6 | 393 | 256.6 | 393 | ||||||
Capital expenditures | 295.9 | 97.1 | 730.7 | 271.3 | ||||||
Business acquisition | 987.1 | 987.1 | ||||||||
Operating Segments [Member] | Logistics and Marketing [Member] | ||||||||||
Other financial information [Abstract] | ||||||||||
Total assets | [1] | 3,240.9 | 2,737.5 | 3,240.9 | 2,737.5 | |||||
Capital expenditures | 71 | 36.2 | 241.8 | 151.9 | ||||||
Operating Segments [Member] | Other Segment [Member] | ||||||||||
Other financial information [Abstract] | ||||||||||
Total assets | [1] | 30.8 | 47.2 | 30.8 | 47.2 | |||||
Operating Segments [Member] | Corporate and Eliminations [Member] | ||||||||||
Other financial information [Abstract] | ||||||||||
Total assets | [1] | 82.3 | 223.6 | 82.3 | 223.6 | |||||
Capital expenditures | $ 11.8 | $ 1.3 | $ 15.2 | $ 3.3 | ||||||
[1] | Corporate assets at the segment level primarily include tax-related assets, cash, prepaids and debt issuance costs for our revolving credit facilities. |
Segment Information - Summary o
Segment Information - Summary of Consolidated Revenues by Product and Service (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue from External Customer [Line Items] | ||||
Sales of commodities | $ 1,871.5 | $ 1,398.7 | $ 5,353.1 | $ 3,882.9 |
Fees from midstream services | 260.3 | 253.6 | 759 | 795.5 |
Total revenues | 2,131.8 | 1,652.3 | 6,112.1 | 4,678.4 |
Natural Gas Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 504.1 | 465.6 | 1,480.9 | 1,102 |
NGL Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 1,274.9 | 866.7 | 3,623.9 | 2,575.8 |
Condensate Sales [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 44.9 | 35 | 135.9 | 96.2 |
Petroleum Products [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | 48.6 | 20.2 | 108.5 | 52 |
Derivative Activities [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Sales of commodities | (1) | 11.2 | 3.9 | 56.9 |
Fractionating and Treating Fees [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Fees from midstream services | 29.8 | 33.2 | 92.8 | 94.8 |
Storage, Terminaling, Transportation and Export Fees [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Fees from midstream services | 75 | 89.7 | 247.8 | 316.3 |
Gathering and Processing Fees [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Fees from midstream services | 138 | 110.9 | 368.5 | 329.9 |
Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Fees from midstream services | $ 17.5 | $ 19.8 | $ 49.9 | $ 54.5 |
Segment Information - Reconcili
Segment Information - Reconciliation of Reportable Segment Operating Margin to Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of reportable segment operating margin to income (loss) before income taxes: | |||||
Depreciation and amortization expenses | $ (208.3) | $ (184) | $ (602.8) | $ (563.6) | |
General and administrative expenses | (49.9) | (46.1) | (149.5) | (138.3) | |
Impairment of property, plant and equipment | (378) | 0 | (378) | 0 | |
Impairment of goodwill | 0 | 0 | $ (24) | 0 | (24) |
Interest expense, net | (56.1) | (62.7) | (181.2) | (187) | |
Other, net | 126.6 | (5.7) | 72.5 | 5.1 | |
Income (loss) before income taxes | (252.5) | (11.9) | (327.3) | (22.3) | |
Gathering and Processing [Member] | |||||
Reconciliation of reportable segment operating margin to income (loss) before income taxes: | |||||
Operating margin | 198.3 | 149.4 | 549.3 | 404.1 | |
Logistics and Marketing [Member] | |||||
Reconciliation of reportable segment operating margin to income (loss) before income taxes: | |||||
Operating margin | 115.9 | 126 | 358.5 | 424.5 | |
Other Segment [Member] | |||||
Reconciliation of reportable segment operating margin to income (loss) before income taxes: | |||||
Operating margin | $ (1) | $ 11.2 | $ 3.9 | $ 56.9 |