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Targa Resources Edits 2015 Expectations
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Targa Resources Corp. and Targa Resources Partners LP announced their respective quarterly dividend and distribution for the first quarter of 2015.
Financial Outlook and Capex Update
Given the commodity price environment and current expectations for producer activity, TRP expects flat to low single digit 2015 average volume growth for our field gathering and processing operations compared to fourth quarter 2014 volumes. Additionally, if commodity prices do not improve from current levels over the course of 2015, average 2016 TRP field volumes may be lower than average 2015 volumes. In the Logistics and Marketing division, TRP expects that 2015 operating margin may be modestly lower than 2014 operating margin. We expect 2015 distribution growth for TRP of 4% to 7% over 2014 and approximately 1.0 times distribution coverage.
The Partnership now estimates that 2015 gross growth capital expenditures will be approximately $700 million to $900 million and 2015 maintenance capital expenditures will be approximately $110 million.
Targa Resources Corp. announced today that its board of directors has declared a quarterly cash dividend of 83.00c per common share, or $3.32 on an annualized basis, for the first quarter 2015. The approved dividend represents increases of approximately 7% over the previous quarter's dividend and 28% over the dividend for the first quarter 2014. This cash dividend will be paid May 18, 2015 on all outstanding common shares to holders of record as of the close of business on May 4, 2015.
Targa Resources Partners LP announced today that the board of directors of its general partner has declared a quarterly cash distribution of 82.00c per common unit, or $3.28 on an annualized basis, for the first quarter 2015. The approved distribution represents increases of approximately 1.2% over the previous quarter's distribution and 7.5% over the distribution for the first quarter 2014. This cash distribution will be paid May 15, 2015 on all outstanding common units to holders of record as of the close of business on May 4, 2015.
Joe Bob Perkins, Chief Executive Officer of the general partner of the Partnership and of the Company, commented: "We completed our mergers with Atlas during the first quarter, and are very pleased with the assets, the people and the progress of combined Targa. We continue to work through the uncertainties of the commodity price environment and its impact on future activity levels. After reviewing multiple scenarios based on the information that we have today, we are revising our preliminary 2015 outlook to appropriately focus primarily on distribution and dividend guidance. Even in this environment, we expect continued TRP distribution growth and TRC dividend growth."