Targa Resources Partners LP and Targa Resources Corp. Report Fourth Quarter and Full Year 2012 Financial Results

Targa Resources Partners LP and Targa Resources Corp. Report Fourth Quarter
and Full Year 2012 Financial Results

HOUSTON, Feb. 14, 2013 (GLOBE NEWSWIRE) -- Targa Resources Partners LP
(NYSE:NGLS) ("Targa Resources Partners" or the "Partnership") and Targa
Resources Corp. (NYSE:TRGP) ("TRC" or the "Company") today reported fourth
quarter and full year 2012 results. The Saddle Butte acquisition, now called
Targa Badlands or the Badlands acquisition, closed on December 31, 2012 and
did not impact the Partnership's results of operations for 2012, other than
transaction costs related to the acquisition.

Fourth quarter 2012 net income attributable to Targa Resources Partners was
$33.5 million compared to $75.5 million for the fourth quarter of 2011. Net
income per diluted limited partner unit was $0.14 in the fourth quarter of
2012 compared to $0.75 for the fourth quarter of 2011. The Partnership
reported earnings before interest, income taxes, depreciation and
amortization, gains or losses on debt repurchases and redemptions, early debt
extinguishments and asset disposals and non-cash risk management activities
related to derivative instruments ("Adjusted EBITDA") of $130.6 million for
the fourth quarter of 2012 compared to $146.3 million for the fourth quarter
of 2011. Net income and Adjusted EBITDA for the fourth quarter of 2012
included approximately $6 million of transaction costs related to the Badlands
acquisition.

For the full year 2012, net income attributable to Targa Resources Partners
was $174.6 million compared to $204.5 million for 2011. Net income per diluted
limited partner unit was $1.20 for 2012 compared to $1.98 for 2011. Net income
for the full year 2012 included a $15.4 million non-cash loss related to the
write-off of the Partnership's investment in the Yscloskey plant which was
damaged by Hurricane Isaac and a $12.8 million loss on debt redemption and
early debt extinguishment. The Partnership reported Adjusted EBITDA of $514.9
million for the full year 2012 compared to $490.8 million for the full year
2011. Net income and Adjusted EBITDA for the full year 2012 included
approximately $6 million of transaction costs related to the Badlands
acquisition.

The Partnership's distributable cash flow for the fourth quarter 2012 of $86.4
million corresponds to distribution coverage of approximately 1.0 times the
$90.9 million in total distributions to be paid on February 14, 2013 (see the
section of this release entitled "Targa Resources Partners - Non-GAAP
Financial Measures" for a discussion of Adjusted EBITDA, gross margin,
operating margin and distributable cash flow, and reconciliations of such
measures to their most directly comparable financial measures calculated and
presented in accordance with U.S. generally accepted accounting principles
("GAAP")). For the full year 2012, the Partnership's distributable cash flow
of $353.9 corresponds to distribution coverage of 1.1 times the $310.4 million
in total distributions declared with respect to 2012.

"We are pleased to report the Partnership's record full year Adjusted EBITDA
of $515 million despite a lower commodity price environment, impacts from
Hurricane Isaac and one-time transaction expenses related to the Badlands
acquisition. These results demonstrate the diversity in our businesses and our
increasing fee-based margin from projects placed in service in recent years,"
said Joe Bob Perkins, Chief Executive Officer of the general partner of the
Partnership and of Targa Resources Corp. "Our current organic investment
program, with $1.7 billion of announced growth capital projects expected to
come on line in 2013 and 2014, provides high visibility to our increasing
fee-based margin and EBITDA growth, and we continue to evaluate other
potential opportunities to add to our announced projects. With $1.1 billion in
growth investments expected to be placed in service by the fourth quarter of
2013, we expect to exit 2013 a larger, more diversified company than we are
today. Similarly, the Badlands acquisition with its ongoing capital investment
program is a fee-based growth project in process. We expect that our
significant focus on 2013 expansion efforts for this business will result in
growth that is accretive to 2014."

On January 15, 2013, the Partnership announced a cash distribution for the
fourth quarter 2012 of 68.00¢ per common unit, or $2.72 per unit on an
annualized basis, representing an increase of approximately 3% over the third
quarter 2012 and 13% over the distribution for the fourth quarter 2011. The
cash distribution will be paid on February 14, 2013 on all outstanding common
units to holders of record as of the close of business on January 28, 2013.
The total distribution paid will be $90.9 million, with $60.2 million to the
Partnership's third-party limited partners and $30.7 million to TRC for its
ownership of common units, incentive distribution rights ("IDRs") and its 2%
general partner interest in the Partnership.

Targa Resources Partners - Capitalization, Liquidity and Financing Update

Total funded debt at the Partnership as of December 31, 2012 was $2,393.3
million including $620.0 million outstanding under the Partnership's $1.2
billion senior secured revolving credit facility, $72.7 million of 11^1/4%
senior unsecured notes due 2017, $250.0 million of 7^7/8% senior unsecured
notes due 2018, $483.6 million of 6^7/8% senior unsecured notes due 2021,
$400.0 million of 6^3/8% senior unsecured notes due 2022, $600.0 million of
5¼% senior unsecured notes due 2023 and $33.0 million of unamortized
discounts.

As of December 31, 2012, after giving effect to $45.3 million in outstanding
letters of credit, the Partnership had available revolver capacity of $534.7
million and $68.0 million of cash resulting in total liquidity of $602.7
million.

On January 10, 2013, the Partnership entered into an accounts receivable
securitization facility (the "Securitization Facility"), that provides up to
$200 million of borrowing capacity at favorable commercial paper rates plus an
applicable margin through January 2014. Total funding under this
Securitization Facility in January 2013 was $171.4 million.

In January 2013, the Partnership issued 1,679,848 common units and received
net proceeds of approximately $64.1 million from equity issuances under an
equity distribution agreement, which allows the Partnership to periodically
issue equity at prevailing market prices, less a commission. TRC also
contributed $1.3 million to maintain its 2% general partnership interest.

Pro forma for the Securitization Facility and the equity issuances in January,
the Partnership had pro forma available revolver capacity of $771.5 million.

The Partnership estimates that its total growth capital expenditures for 2013
will be approximately $1.0 billion on a gross basis, and that maintenance
capital expenditures net to the Partnership's interest will be $75 million.

Targa Resources Corp. - Fourth Quarter 2012 Financial Results

Targa Resources Corp., the parent of Targa Resources Partners, reported its
fourth quarter 2012 results. The Company, which as of December 31, 2012 owned
a 2% general partner interest (held through its 100% ownership interest in the
general partner of the Partnership), all of the IDRs and 12,945,659 common
units of the Partnership, presents its results consolidated with those of the
Partnership.

TRC reported net income available to common shareholders of $11.2 million for
the fourth quarter 2012 compared with a net income available to common
shareholders of $8.5 million for the fourth quarter 2011. The net income per
diluted common share was $0.27 in the fourth quarter of 2012 compared to $0.20
for the fourth quarter of 2011.

Fourth quarter 2012 distributions to be paid on February 14, 2013 by the
Partnership to the Company will be $30.7 million, with $8.8 million, $20.1
million and $1.8 million paid with respect to common units, IDRs and general
partner interests, respectively.

On January 15, 2013, TRC declared a quarterly dividend of 45.75¢ per share of
its common stock for the three months ended December 31, 2012, or $1.83 per
share on an annualized basis, representing increases of approximately 8% over
the previous quarter's dividend and 36% over the dividend for the fourth
quarter of 2011. Total cash dividends of approximately $19.0 million will be
paid February 15, 2013 on all outstanding common shares to holders of record
as of the close of business on January 28, 2013.

The Company's distributable cash flow for the fourth quarter 2012 was $24.6
million compared to $19.4 million in total declared dividends for the quarter
(see the section of this release entitled "Targa Resources Corp. - Non-GAAP
Financial Measures" for a discussion of distributable cash flow and
reconciliations of this measure to its most directly comparable financial
measure calculated and presented in accordance with GAAP).

Targa Resources Corp. - Capitalization, Liquidity and Financing Update

Total funded debt of the Company as of December 31, 2012, excluding debt of
the Partnership, was $82.0 million in borrowings outstanding under its $150
million senior secured revolving credit facility due 2017. This resulted in
$68 million in available revolver capacity as of December 31, 2012.

The Company's cash balance, excluding cash held at the Partnership and its
subsidiaries, was $8.3 million as of December 31, 2012, resulting in total
liquidity of $76.3 million.

Conference Call

Targa Resources Partners and Targa Resources Corp. will host a joint
conference call for investors and analysts at 11:00 a.m. Eastern Time (10:00
a.m. Central Time) on February 14, 2013 to discuss fourth quarter and full
year 2012 financial results. The conference call can be accessed via Webcast
through the Events and Presentations section of the Partnership's website at
www.targaresources.com, by going directly to
http://ir.targaresources.com/events.cfm?company=LP or by dialing 877-881-2598.
The pass code for the dial-in is 92708088. Please dial in ten minutes prior to
the scheduled start time. A replay will be available approximately two hours
following completion of the Webcast through the Investor's section of the
Partnership's and the Company's website. Telephone replay access numbers are
855-859-2056 or 404-537-3406 with pass code 92708088 and will remain available
until February 28, 2013.

Targa Resources Partners – Consolidated Financial Results of Operations

                      Three Months Ended December   Year Ended December 31,
                       31,
                      2012           2011           2012         2011
                      (In millions except per unit data)
Revenues              $1,526.8     $1,933.3     $5,883.6   $6,987.1
Product purchases      1,267.2       1,674.5       4,878.9     6,039.0
Gross margin (1)       259.6         258.8         1,004.7     948.1
Operating expenses     85.8          72.9          313.0       287.0
Operating margin (2)   173.8         185.9         691.7       661.1
Depreciation and       55.2          46.0          197.3       178.2
amortization expense
General and            31.6          29.2          131.6       127.8
administrative expense
Other operating        1.1           0.5           19.9        0.2
expense
Income from operations 85.9          110.2         342.9       354.9
Interest expense, net  (29.0)        (27.3)        (116.8)     (107.7)
Equity earnings        2.2           3.6           1.9         8.8
Loss on debt
redemption and early   (12.8)        --           (12.8)      --
debt extinguishment
Loss on mark-to-market --           --           --         (5.0)
derivative instruments
Other                 (6.2)         (0.5)         (7.8)       (1.2)
Income tax expense     (1.5)         0.9           (4.2)       (4.3)
(benefit)
Net income            38.6          86.9          203.2       245.5
Less: Net income
attributable to        5.1           11.4          28.6        41.0
noncontrolling
interest
Net income
attributable to Targa  $33.5        $75.5        $174.6     $204.5
Resources Partners LP
                                                              
Net income
attributable to        20.5          11.9          66.7        38.0
general partner
Net income
attributable to        13.0          63.5          107.9       166.5
limited partners
Net income
attributable to Targa  $33.5        $75.5        $174.6     $204.5
Resources Partners LP
                                                              
Basic and diluted net
income per limited     $0.14        $0.75        $1.20      $1.98
partner unit
                                                              
Financial data:                                                
Adjusted EBITDA (3)    $130.6       $146.3       $514.9     $490.8
Distributable cash     86.4          107.2         353.9       336.7
flow (4)
Capital expenditures   1,213.1       112.7         1,612.9     490.0
                                                              
Operating data:                                                
Plant natural gas      2,110.2       2,189.6       2,098.3     2,162.1
inlet, MMcf/d (5)(6)
Gross NGL production,  135.2         129.1         128.7       123.9
MBbl/d
Natural gas sales,     937.1         876.4         927.6       779.3
BBtu/d (6)
NGL sales, MBbl/d      306.2         282.9         284.5       269.6
Condensate sales,      3.5           2.7           3.5         3.0
MBbl/d

(1) Gross margin is a non-GAAP financial measure and is discussed under "Targa
Resources Partners - Non-GAAP Financial Measures."
(2) Operating margin is a non-GAAP financial measure and is discussed under
"Targa Resources Partners - Non-GAAP Financial Measures."
(3) Adjusted EBITDA is net income before: interest, income taxes, depreciation
and amortization, gains or losses on debt repurchases and debt redemptions,
early debt extinguishments and asset disposals and non-cash risk management
activities related to derivative instruments. This is a non-GAAP financial
measure and is discussed under "Targa Resources Partners - Non-GAAP Financial
Measures."
(4) Distributable cash flow is income attributable to Targa Resources Partners
LP plus depreciation and amortization, deferred taxes and amortization of debt
issue costs included in interest expense, adjusted for non-cash losses (gains)
on mark-to-market derivative contracts, debt repurchases and asset disposals,
less maintenance capital expenditures (net of any reimbursements of project
costs). This is a non-GAAP financial measure and is discussed under "Targa
Resources Partners - Non-GAAP Financial Measures."
(5) Plant natural gas inlet represents the volume of natural gas passing
through the meter located at the inlet of a natural gas processing plant.
(6) Plant natural gas inlet volumes include producer take-in-kind volumes,
while natural gas sales exclude producer take-in-kind volumes.

Targa Resources Partners – Review of Consolidated Fourth Quarter and Full Year
Results

Three Months Ended December 31, 2012 Compared to Three Months Ended December
31, 2011

Revenues, including the impacts of hedging, decreased due to the impact of
lower realized prices on commodities ($590.5million), partially offset by
higher commodity sales volumes ($151.4million) and higher fee-based and other
revenues ($32.5million).

The decrease in operating margin reflects a flat gross margin, more than
offset by higher operating expenses. Gross margin was flat as lower revenues
were offset by lower product purchase costs due to the weaker commodity price
environment. The increase in the Partnership's operating costs was primarily
due to its expansion and acquisition activities. See "Targa Resources Partners
– Review of Segment Performance" for additional information regarding changes
in the components of operating margin on a disaggregated basis.

The increase in depreciation and amortization expenses is attributable to the
impact of new assets placed in service as well as assets associated with
business acquisitions.

General and administrative expenses increased due to higher compensation and
benefits.

The increase in interest expense was the result of higher borrowings ($8.7
million) offset by a lower effective interest rate ($3.2 million) and higher
capitalized interest ($3.8 million) attributable to major expansion capital
projects.

Operations at the Partnership's non-operated equity investment, Gulf Coast
Fractionators ("GCF"), were affected by operational issues which resulted in a
decrease in earnings from this equity investment for the fourth quarter.

Losses on a debt redemption and an early debt extinguishment during 2012 are
largely attributable to premiums and a write-off of debt issue costs in
connection with the redemption of the Partnership's 8¼% Notes due 2016 (the
"8¼% Notes") and the amendment to the TRP Revolver.

The increase in other expenses is attributable to fees and expenses related to
the Badlands acquisition.

The decrease in net income attributable to noncontrolling interests reflects
the impact of the weaker price environment on our Versado and VESCO joint
ventures.

Year Ended December 31, 2012 Compared to Year Ended December 31, 2011

Revenues, including the impacts of hedging, decreased due to the impact of
lower realized prices on commodities ($1,962.9million), partially offset by
higher commodity sales volumes ($769.6million) and higher fee-based and other
revenues ($89.8 million).

The increase in gross margin reflects lower revenues more than offset by lower
product purchases. See "Targa Resources Partners – Review of Segment
Performance" for additional information regarding changes in the Partnership's
gross margins. The increase in operating expenses reflects expansion and
acquisition activities.

The increase in depreciation and amortization expenses is attributable to the
impact of new assets placed in service as well as assets associated with
business acquisitions.

General and administrative expenses increased due to higher compensation and
benefits.

Other operating (income) expense reflects a $15.4 million loss due to a
write-off of the Partnership's investment in the Yscloskey joint venture
processing plant in Southeastern Louisiana. Following Hurricane Isaac, the
joint venture owners elected not to restart the plant. Additionally, other
operating (income) expense includes $3.6 million in costs associated with the
clean-up and repairs necessitated by Hurricane Isaac at the Partnership's
Coastal Straddle plants.

The increase in interest expense was the result of higher borrowings ($22.3
million) offset by a lower effective interest rate ($3.0 million) and higher
capitalized interest ($10.2 million) attributable to major expansion capital
projects.

Operations at the Partnership's non-operated equity investment, GCF, were
impacted by the planned shutdown of operations that started during the second
quarter and completed in the third quarter of 2012. The planned shutdown was
associated with GCF's 43 MBbl/d capacity expansion. The facility's operations
were also hampered by start-up issues associated with the expansion. This
resulted in lower equity earnings from this equity investment for 2012
compared to 2011.

Losses on a debt redemption and an early debt extinguishment during 2012 are
largely attributable to premiums and write-off of debt issue costs in
connection with the redemption of the Partnership's 8¼% Notes and the
amendment to the TRP Revolver.

The mark-to-market loss in 2011 was attributable to interest rate swaps that
were de-designated during the second quarter of that year. Consequently, we
discontinued hedge accounting on those swaps, and changes in fair value and
cash settlements were recorded as mark-to-market loss. We terminated all of
our interest rate swaps in September2011, and therefore no comparable loss
was recognized in 2012.

The increase in other expenses is attributable to fees and expenses related to
the Badlands acquisition.

The decrease in net income attributable to noncontrolling interests reflects
the impact of the weaker price environment on our Versado and VESCO joint
ventures, as well as the disruption of operations at VESCO due to Hurricane
Isaac.

Targa Resources Partners – Review of Segment Performance

The following discussion of segment performance includes inter-segment
revenues. The Partnership views segment operating margin as an important
performance measure of the core profitability of its operations. This measure
is a key component of internal financial reporting and is reviewed for
consistency and trend analysis. For a discussion of operating margin, see
"Targa Resources Partners - Non-GAAP Financial Measures - Operating Margin."
Segment operating financial results and operating statistics include the
effects of intersegment transactions. These intersegment transactions have
been eliminated from the consolidated presentation. For all operating
statistics presented, the numerator is the total volume or sales for the
period and the denominator is the number of calendar days for the period.

The Partnership reports its operations in two divisions: (i) Gathering and
Processing, consisting of two reportable segments - (a) Field Gathering and
Processing and (b) Coastal Gathering and Processing; and (ii)Logistics and
Marketing, consisting of two reportable segments - (a)Logistics Assets and
(b)Marketing and Distribution. The financial results of the Partnership's
commodity hedging activities are reported in Other.

Gathering and Processing Segments

Field Gathering and Processing

The Field Gathering and Processing segment gathers and processes natural gas
from the Permian Basin in West Texas and Southeast New Mexico and the Fort
Worth Basin, including the Barnett Shale, in North Texas. The segment's
processing plants include nine owned and operated facilities. With the
Badlands acquisition on December 31, 2012, this segment's assets now include
the Badlands crude oil and natural gas gathering, terminaling and processing
assets in North Dakota. Because the acquisition closed on December 31, 2012,
Badlands had no operational impact for 2012.

The following table provides summary data regarding results of operations of
this segment for the periods indicated:

                      Three Months Ended December   Year Ended December 31,
                       31,
                      2012           2011           2012         2011
                      ($ in millions)
Gross margin           $86.2        $104.2       $357.4     $403.6
Operating expenses     35.6          29.4          126.2       115.7
Operating margin       $50.6        $74.8        $231.2     $287.9
Operating statistics                                           
(1):
Plant natural gas                                              
inlet, MMcf/d (2), (3)
Sand Hills             149.6         142.0         145.2       134.2
SAOU                   136.0         114.0         124.8       111.0
North Texas System     264.0         221.6         244.5       203.5
Versado                170.8         154.8         167.4       162.8
                      720.4         632.4         681.9       611.5
Gross NGL production,                                          
MBbl/d
Sand Hills             17.4          16.5          16.9        15.7
SAOU                   20.2          18.1          19.2        17.4
North Texas System     29.1          24.9          26.8        22.9
Versado                20.5          17.9          19.7        18.2
                      87.2          77.4          82.6        74.2
Natural gas sales,     340.2         298.0         325.0       285.5
BBtu/d (3)
NGL sales, MBbl/d     72.7          62.5          68.5        59.8
Condensate sales,      3.0           2.4           3.2         2.8
MBbl/d
Average realized                                               
prices (4):
Natural gas, $/MMBtu   3.15          3.32          2.60        3.80
NGL, $/gal             0.77          1.27          0.87        1.23
Condensate, $/Bbl      82.23         89.94         88.49       91.55

(1) Segment operating statistics include the effect of intersegment amounts,
which have been eliminated from the consolidated presentation. For all volume
statistics presented, the numerator is the total volume sold during the
quarter and the denominator is the number of calendar days during the quarter.
(2) Plant natural gas inlet represents the volume of natural gas passing
through the meter located at the inlet of a natural gas processing plant.
(3) Plant natural gas inlet volumes include producer take-in-kind volumes,
while natural gas sales exclude producer take-in-kind volumes.
(4) Average realized prices exclude the impact of hedging activities presented
in Other.

Three Months Ended December 31, 2012 Compared to Three Months Ended December
31, 2011

The decrease in gross margin was primarily due to lower commodity sales
prices, partially offset by higher throughput volumes and higher plant
reliability. The increase in plant inlet volumes was largely attributable to
new well connects, particularly North Texas, Sand Hills and SAOU. The impact
of fourth quarter 2011 operational issues at Versado exceeded those incurred
in the fourth quarter 2012.

The increase in operating expenses was primarily due to additional compression
related expenses due to system expansions and higher system maintenance and
repair costs.

Year Ended December 31, 2012 Compared to Year Ended December 31, 2011

The decrease in gross margin was primarily due to lower commodity sales
prices, partially offset by higher throughput volumes. The increase in plant
inlet volumes was largely attributable to new well connects, particularly
North Texas, Sand Hills and SAOU, partially offset by pipeline curtailments
and operational issues.

The increase in operating expenses was primarily due to additional compression
related expenses due to system expansions and higher system maintenance and
repair costs.

Coastal Gathering and Processing

The Coastal Gathering and Processing segment assets are located in the onshore
and near offshore region of the Louisiana Gulf Coast and the Gulf of Mexico.
With the strategic location of the Partnership's assets in Louisiana, it has
access to the Henry Hub, the largest natural gas hub in the U.S., and to a
substantial NGL distribution system with access to markets throughout
Louisiana and the Southeast United States.

The following table provides summary data regarding results of operations of
this segment for the periods indicated:

                     Three Months Ended December    Year Ended December 31,
                      31,
                     2012            2011           2012         2011
                     ($ in millions)
Gross margin          $35.0         $65.1        $162.2     $221.6
Operating expenses    12.2           12.6          47.1        47.3
(1)
Operating margin      $22.8         $52.5        $115.1     $174.3
Operating statistics                                           
(2):
Plant natural gas                                              
inlet, MMcf/d (3),(4)
LOU(5)                307.2          194.1         260.6       175.7
Coastal Straddles     499.5          812.7         676.2       876.4
VESCO                 583.1          550.4         479.5       498.5
                     1,389.8        1,557.2       1,416.4     1,550.6
Gross NGL production,                                          
MBbl/d
LOU                   9.2            8.6           8.6         7.4
Coastal Straddles     13.5           14.7          15.4        16.5
VESCO                 25.2           28.4          22.1        25.9
                     47.9           51.7          46.1        49.8
Natural gas sales,    279.7          290.1         298.5       268.4
Bbtu/d (4)
NGL sales, MBbl/d    43.6           45.2          42.5        43.5
Condensate sales,     0.5            0.3           0.3         0.3
MBbl/d
Average realized                                               
prices:
Natural gas, $/MMBtu  3.43           3.43          2.78        4.02
NGL, $/gal           0.86           1.35          0.96        1.31
Condensate, $/Bbl    98.70          112.67        103.57      105.10

(1) Costs associated with the clean-up and repair of Coastal Straddle plants
resulting from Hurricane Isaac are reported as Other Operating Expenses and
thus are not reflected in operating margin.
(2) Segment operating statistics include intersegment amounts, which have been
eliminated from the consolidated presentation. For all volume statistics
presented, the numerator is the total volume during the quarter and the
denominator is the number of calendar days during the quarter.
(3) Plant natural gas inlet represents the volume of natural gas passing
through the meter located at the inlet of a natural gas processing plant.
(4) Plant natural gas inlet volumes include producer take-in-kind volumes,
while natural gas sales exclude producer take-in-kind volumes.
(5) Includes volumes from the Big Lake processing plant acquired in July 2012.

Three Months Ended December 31, 2012 Compared to Three Months Ended December
31, 2011

The decrease in gross margin was primarily due to lower NGL and condensate
sales prices, less favorable frac spread and lower throughput volumes. The
decrease in plant inlet volumes was largely attributable to the decline in
offshore and off-system supply volumes and the impact of the post hurricane
Isaac shutdown of the Yscloskey plant. This volume decrease was partially
offset by the July 2012 acquisition of the Big Lake plant and gas purchased
for processing at VESCO. Natural gas sales volumes decreased due to a decrease
in demand from industrial customers and decreased sales to other reportable
segments for resale.

Operating expenses decreased primarily due to higher system maintenance and
repair costs at VESCO offset by operating cost reductions attributable to the
Yscloskey and Calumet plant shutdowns in 2012.

Year Ended December 31, 2012 Compared to Year Ended December 31, 2011

The decrease in gross margin was primarily due to lower commodity sales
prices, less favorable frac spread and lower throughput volumes. The decrease
in plant inlet volumes was largely attributable to the decline in offshore and
off-system supply volumes and planned operational outages at VESCO in the
second quarter of 2012, as well as the impact of Hurricane Isaac in the third
quarter of 2012 and the post-Isaac shutdown of the Yscloskey plant. The volume
decreases were partially offset by increased LOU supply volumes, the July 2012
acquisition of the Big Lake plant and gas purchased for processing at VESCO
and Lowry. NGL production and sales at LOU increased on higher throughput
volumes, partially offset by lower average system liquids content of the
natural gas. Natural gas sales volumes increased due to an increase in demand
from industrial customers and increased sales to other reportable segments for
resale.

Operating expenses were relatively flat as higher system maintenance and
repair costs at VESCO were offset by operating cost reductions attributable to
the Yscloskey and Calumet plant shutdowns in 2012.

Logistics and Marketing Segments

Logistics Assets

The Logistics Assets segment is involved in transporting, storing and
fractionating mixed NGLs; storing, terminaling and transporting finished NGLs;
and storing and terminaling refined petroleum products and crude oil. The
Partnership's logistics assets are generally connected to, and supplied in
part by its Gathering and Processing Segments and are predominantly located in
Mont Belvieu, Texas and Southwestern Louisiana. This segment also includes the
activities associated with the 2011 acquisitions of refined petroleum products
and crude oil storage and terminaling facilities.

The following table provides summary data regarding results of operations of
this segment for the periods indicated:

                      Three Months Ended December   Year Ended December 31,
                       31,
                      2012           2011           2012         2011
                      ($ in millions)
Gross margin           $78.0        $64.2        $286.0     $221.1
Operating expenses     28.9          26.9          97.7        98.0
Operating margin       $49.1        $37.3        $188.3     $123.1
Operating statistics                                           
(1):
Fractionation volumes, 298.7         293.2         299.2       268.4
MBbl/d
Treating volumes,      18.4          --           22.4        15.3
MBbl/d (2)

(1) Segment operating statistics include intersegment amounts, which have been
eliminated from the consolidated presentation. For all volume statistics
presented, the numerator is the total volume sold during the quarter and the
denominator is the number of calendar days during the quarter.
(2) Includes the volumes related to the natural gasoline hydrotreater at the
Mt. Belvieu facility.

Three Months Ended December 31, 2012 Compared to Three Months Ended December
31, 2011

Gross margin increased due to higher fractionation volumes, and increased
exporting, treating and terminaling activities. Gross margin improved as a
result of substantially higher exports and increased treating volumes.
Treating fees improved due to higher hydrotreating volumes and the start up of
the benzene and de-pentanizer operations in the first quarter 2012.
Terminaling fees were up as a result of increased product sales and
terminaling activity at the Sound Terminal.

Operating expenses increased primarily due to higher treating unit run-times
attributable to increased volumes, higher maintenance costs and higher
operating costs associated with petroleum logistics operations, partially
offset by favorable system product gains.

Year Ended December 31, 2012 Compared to Year Ended December 31, 2011

The increase in gross margin was primarily due to increased export and storage
fee revenue, higher treating volumes, increased petroleum logistics activities
and higher fractionation volumes. Exporting and storage fees increased due to
higher export shipments. Treating fees increased due to the operational
startup of the benzene treating and de-pentanizer units in the first quarter
of 2012 and increased hydrotreating fees associated with increased volumes in
2012. Terminaling gross margin for 2012 improved as a result of the impact of
the October 2011 Sound Terminal acquisition. Higher fractionation volumes and
fees were primarily attributable to the Cedar Bayou facility Train 3
expansion, which came on line in mid-year 2011, partially offset by the impact
of lower fuel prices which pass through to expenses.

Operating expenses were essentially flat as favorable system product gains and
lower fuel costs (which have a corresponding impact on fractionation revenues)
were offset by higher operating costs due to greater hydrotreating, benzene
and de-pentanizer unit run-times, higher maintenance activities, and the
impact of a full twelve months in 2012 of operating costs associated with
petroleum logistics operations acquired in April and October of 2011.

Marketing and Distribution

The Marketing and Distribution segment covers all activities required to
distribute and market raw and finished natural gas liquids and all natural gas
marketing activities. It includes: (1) marketing of the Partnership's natural
gas liquids production and purchasing natural gas liquids products in selected
United States markets; (2)providing liquefied petroleum gas balancing
services to refinery customers; (3)transporting, storing and selling propane
and providing related propane logistics services to multi-state retailers,
independent retailers and other end users; and (4)marketing natural gas
available to the Partnership from its Gathering and Processing division and
the purchase and resale of natural gas in selected United States markets.

The following table provides summary data regarding results of operations of
this segment for the periods indicated:

                   Three Months Ended December 31,   Year Ended December 31,
                   2012             2011             2012         2011
                   ($ in millions)
Gross margin        $47.9          $40.4          $154.1     $156.4
Operating expenses  9.7             9.8             38.1        43.0
Operating margin    $38.2          $30.6          $116.0     $113.4
Operating                                                       
statistics (1):
Natural gas sales,  1,117.2         1,022.5         1,105.0     877.8
BBtu/d
NGL sales, MBbl/d   312.4           287.8           289.8       272.5
Average realized                                                
prices:
Natural gas,        3.32            3.42            2.74        3.94
$/MMBtu
NGL realized price, 0.91            1.40            0.98        1.34
$/gal

(1) Segment operating statistics include intersegment amounts, which have been
eliminated from the consolidated presentation. For all volume statistics
presented, the numerator is the total volume sold during the quarter and the
denominator is the number of calendar days during the quarter.

Three Months Ended December 31, 2012 Compared to Three Months Ended December
31, 2011

The increase in gross margin was due to the timing of a third-party wholesale
contract settlement, favorable short-term wholesale marketing opportunities
driven by regional supply conditions, increased liquefied petroleum gas
("LPG") export activity and favorable transportation opportunities, partially
offset by a weaker natural gas liquid ("NGL") price environment. LPG export
cargo loading fees and loading volumes increased compared to the same period
last year.

Operating expenses were essentially flat due to lower barge operating and
maintenance costs offset by increased truck operating costs.

Year Ended December 31, 2012 Compared to Year Ended December 31, 2011

The decrease in gross margin was primarily due to a much weaker price
environment and lower barge activity in 2012, partially offset by increased
LPG export activity, increased trucking activity, favorable short-term
wholesale propane marketing opportunities and higher NGL and natural gas sales
volumes.

Operating expenses decreased due to lower barge activity in 2012 compared to
2011, partially offset by increased truck operating costs.

Other

                Three Months Ended December 31, Year Ended December 31,
                2012             2011             2012        2011
                ($ in millions)
Gross margin     $13.0          $(9.2)         $41.1     $(37.6)
Operating margin $13.0          $(9.2)         $41.1     $(37.6)

Other contains the financial effects of the Partnership's hedging program on
operating margin. It typically represents the cash settlements on our
derivative contracts. Other also includes deferred gains or losses on
previously terminated or de-designated hedge contracts that are reclassified
to revenues upon the occurrence of the underlying physical transactions.

The primary purpose of the Partnership's commodity risk management activities
is to manage its exposure to commodity price risk and reduce volatility in its
operating cash flow due to fluctuations in commodity prices. The Partnership
has hedged the commodity price associated with a portion of its expected (i)
natural gas equity volumes in Field Gathering and Processing Operations and
(ii) NGL and condensate equity volumes predominately in Field Gathering and
Processing as well as in the LOU portion of the Coastal Gathering and
Processing Operations that result from its percent of proceeds processing
arrangements by entering into derivative instruments. Because the Partnership
is essentially forward selling a portion of its plant equity volumes, these
hedge positions will move favorably in periods of falling prices and
unfavorably in periods of rising prices.

The following table provides a breakdown of the Partnership's hedge revenue by
product:

           Three Months Ended December 31, Year Ended December 31,
           2012            2011            2012       2011
           (In millions)
Natural gas $6.8          $7.0          $33.8    $21.2
NGL         5.7            (15.1)         9.1       (53.1)
Crude oil   0.5            (1.1)          (1.8)     (5.7)
           $13.0         $(9.2)        $41.1    $(37.6)

The increase in gross margin from risk management activities was primarily due
to decreasing natural gas, NGL and crude oil prices.

About Targa Resources Corp. and Targa Resources Partners

Targa Resources Corp. is a publicly traded Delaware corporation that owns a 2%
general partner interest (which the Company holds through its 100% ownership
interest in the general partner of the Partnership), all of the outstanding
IDRs and a portion of the outstanding limited partner interests in Targa
Resources Partners LP.

Targa Resources Partners is a publicly traded Delaware limited partnership
that is a leading provider of midstream natural gas and natural gas liquid
services in the United States. The Partnership is engaged in the business of
gathering, compressing, treating, processing and selling natural gas; storing,
fractionating, treating, transporting and selling natural gas liquids, or
NGLs, and NGL products; and storing and terminaling refined petroleum products
and crude oil. The Partnership owns an extensive network of integrated
gathering pipelines and gas processing plants and currently operates along the
Louisiana Gulf Coast primarily accessing the onshore and near offshore region
of Louisiana, the Permian Basin in West Texas and Southeast New Mexico and the
Fort Worth Basin in North Texas. Additionally, the Partnership's logistics and
marketing assets are located primarily at Mont Belvieu and Galena Park near
Houston, Texas and in Lake Charles, Louisiana with terminals and
transportation assets across the United States. Targa Resources Partners is
managed by its general partner, Targa Resources GP LLC, which is indirectly
wholly owned by Targa Resources Corp.

The principal executive offices of Targa Resources Corp. and Targa Resources
Partners are located at 1000 Louisiana, Suite 4300, Houston, TX 77002 and
their telephone number is 713-584-1000. For more information please go to
www.targaresources.com.

Targa Resources Partners - Non-GAAP Financial Measures

This press release includes the Partnership's non-GAAP financial measures
distributable cash flow, Adjusted EBITDA, gross margin and operating margin.
The following tables provide reconciliations of these non-GAAP financial
measures to their most directly comparable GAAP measures. The Partnership's
non-GAAP financial measures should not be considered as alternatives to GAAP
measures such as net income, operating income, net cash flows provided by
operating activities or any other GAAP measure of liquidity or financial
performance.

Distributable Cash Flow - The Partnership defines distributable cash flow as
net income attributable to Targa Resources Partners LP plus depreciation and
amortization, deferred taxes and amortization of debt issue costs included in
interest expense, adjusted for non-cash losses (gains) on mark-to-market
derivative contracts, debt repurchases, redemptions, early debt
extinguishments and asset disposals, less maintenance capital expenditures
(net of any reimbursements of project costs). The impact of noncontrolling
interests is included in this measure.

Distributable cash flow is a significant performance metric used by the
Partnership and by external users of its financial statements, such as
investors, commercial banks and research analysts to compare basic cash flows
generated by the Partnership (prior to the establishment of any retained cash
reserves by the board of directors of the Partnership's general partner) to
the cash distributions it expects to pay its unitholders. Using this metric,
management and external users of the Partnership's financial statements can
quickly compute the coverage ratio of estimated cash flows to planned cash
distributions. Distributable cash flow is also an important financial measure
for the Partnership's unitholders since it serves as an indicator of the
Partnership's success in providing a cash return on investment. Specifically,
this financial measure indicates to investors whether or not the Partnership
is generating cash flow at a level that can sustain or support an increase in
its quarterly distribution rates. Distributable cash flow is also a
quantitative standard used throughout the investment community with respect to
publicly-traded partnerships and limited liability companies because the value
of a unit of such an entity is generally determined by the unit's yield (which
in turn is based on the amount of cash distributions the entity pays to a
unitholder).

The GAAP measure most directly comparable to distributable cash flow is net
income attributable to Targa Resources Partners LP. Distributable cash flow
should not be considered as an alternative to GAAP net income attributable to
Targa Resources Partners LP. Distributable cash flow is not a presentation
made in accordance with GAAP and has important limitations as an analytical
tool. Investors should not consider distributable cash flow in isolation or as
a substitute for analysis of the Partnership's results as reported under GAAP.
Because distributable cash flow excludes some, but not all, items that affect
net income attributable to Targa Resources Partners LP and is defined
differently by different companies in the Partnership's industry, the
Partnership's definition of distributable cash flow may not be comparable to
similarly titled measures of other companies, thereby diminishing its utility.

Management compensates for the limitations of distributable cash flow as an
analytical tool by reviewing the comparable GAAP measure, understanding the
differences between the measures and incorporating these insights into its
decision making processes.

The following table presents a reconciliation of net income attributable to
Targa Resources Partners LP to distributable cash flow for the periods
indicated:

                              Three Months Ended    Year Ended December 31,
                               December 31,
                              2012       2011       2012         2011
                              (In millions)
Reconciliation of net income
attributable to Targa                                          
Resources Partners LP to
distributable cash flow:
Net income attributable to     $33.5    $75.5    $174.6     $204.5
Targa Resources Partners LP
Depreciation and amortization  55.2      46.0      197.3       178.2
expenses
Deferred income tax expense    0.5       0.2       1.7         0.8
Amortization in interest       4.0       4.2       17.6        12.4
expense
Loss on debt redemption and    12.8      --       12.8        --
early debt extinguishment
Loss on sale or disposal of    0.1       --       15.6        --
assets
Risk management activities     1.6       1.3       5.4         7.2
Maintenance capital            (19.6)    (24.6)    (67.6)      (81.8)
expenditures
Other (1)                      (1.7)     4.6       (3.5)       15.4
Targa Resources Partners LP    $86.4    $107.2   $353.9     $336.7
distributable cash flow

(1) Includes reimbursements of certain environmental maintenance capital
expenditures by TRC and the noncontrolling interest portion of maintenance
capital expenditures, depreciation and amortization expenses.

Adjusted EBITDA - The Partnership defines Adjusted EBITDA as net income
attributable to Targa Resources Partners LP before interest, income taxes,
depreciation and amortization, gains or losses on debt repurchases and
redemptions, early debt extinguishments and asset disposals and non-cash risk
management activities related to derivative instruments. Adjusted EBITDA is
used as a supplemental financial measure by management and by external users
of the Partnership's financial statements such as investors, commercial banks
and others.

The economic substance behind management's use of Adjusted EBITDA is to
measure the ability of the Partnership's assets to generate cash sufficient to
pay interest costs, support indebtedness and make distributions to investors.

The GAAP measures most directly comparable to Adjusted EBITDA are net cash
provided by operating activities and net income attributable to Targa
Resources Partners LP. Adjusted EBITDA should not be considered as an
alternative to GAAP net cash provided by operating activities or GAAP net
income attributable to Targa Resources Partners LP. Adjusted EBITDA is not a
presentation made in accordance with GAAP and has important limitations as an
analytical tool. Investors should not consider Adjusted EBITDA in isolation or
as a substitute for analysis of the Partnership's results as reported under
GAAP. Because Adjusted EBITDA excludes some, but not all, items that affect
net income attributable to Targa Resources Partners LP and net cash provided
by operating activities and is defined differently by different companies in
the Partnership's industry, the Partnership's definition of Adjusted EBITDA
may not be comparable to similarly titled measures of other companies.

Management compensates for the limitations of Adjusted EBITDA as an analytical
tool by reviewing the comparable GAAP measures, understanding the differences
between the measures and incorporating these insights into its decision-making
processes.

The following table presents a reconciliation of net cash provided by
operating activities to Targa Resources Partners LP Adjusted EBITDA for the
periods indicated:

                           Three Months Ended     Year Ended December 31,
                            December 31,
                           2012        2011       2012          2011
                           (In millions)
Reconciliation of net cash
provided by Targa Resources
Partners LP operating                                         
activities to Adjusted
EBITDA:
Net cash provided by        $150.0    $209.6   $465.4      $400.9
operating activities
Net income attributable to  (5.1)      (11.4)    (28.6)       (41.0)
noncontrolling interests
Interest expense, net (1)   25.0       21.6      99.2         95.3
Loss on debt redemption and (12.8)     --       (12.8)       --
early debt extinguishments
Current income tax expense  1.0        (1.1)     2.5          3.5
(benefit)
Other (2)                   8.1        (2.8)     (6.4)        7.9
Changes in operating assets
and liabilities which used                                    
(provided) cash:
Accounts receivable and     70.0       (19.5)    (96.1)       150.3
other assets
Accounts payable and other  (105.6)    (50.1)    91.7         (126.1)
liabilities
Targa Resources Partners LP $130.6    $146.3   $514.9      $490.8
Adjusted EBITDA

(1) Net of amortization of debt issuance costs, discount and premium included
in interest expense of $4.0 million and $17.6 million for the three months and
year ended December 31, 2012; and $5.7 million and $12.4 million for the three
months and year ended December 31, 2011.
(2) Includes equity earnings from unconsolidated investments – net of
distributions, accretion expense associated with asset retirement obligations,
amortization of stock based compensation, loss on sale or disposal of assets,
loss on debt redemption and loss on early debt extinguishments.

The following table presents a reconciliation of net income attributable to
Targa Resources Partners LP to Adjusted EBITDA for the periods indicated:

                             Three Months Ended      Year Ended December 31,
                              December 31,
                             2012         2011       2012         2011
                             (In millions)
Reconciliation of net income
attributable to Targa                                           
Resources Partners LP to
Adjusted EBITDA:
Net income attributable to    $33.5      $75.5    $174.6     $204.5
Targa Resources Partners LP
Add:                                                            
Interest expense, net (1)     29.0        27.3      116.8       107.7
Income tax expense            1.5         (0.9)     4.2         4.3
Depreciation and amortization 55.2        46.0      197.3       178.2
expenses
Loss on sale or disposal of   0.1         --       15.6        --
assets
Loss on debt redemption and   12.8        --       12.8        --
early debt extinguishments
Risk management activities    1.6         1.3       5.4         7.2
Noncontrolling interests      (3.1)       (2.9)     (11.8)      (11.1)
adjustment (2)
Targa Resources Partners LP   $130.6     $146.3   $514.9     $490.8
Adjusted EBITDA

(1) Includes affiliate and allocated interest expense.
(2) Noncontrolling interest portion of depreciation and amortization expenses.

Gross Margin – The Partnership defines gross margin as revenues less
purchases. It is impacted by volumes and commodity prices as well as by the
Partnership's contract mix and hedging program. The Partnership defines
Gathering and Processing gross margin as total operating revenues from the
sales of natural gas and NGLs plus service fee revenues, less product
purchases, which consist primarily of producer payments and other natural gas
purchases. Natural gas and NGL sales revenue includes settlement gains and
losses on commodity hedges. Logistics Assets gross margin consists primarily
of service fee revenue. Gross margin for Marketing and Distribution equals
total revenue from service fees and NGL sales, less cost of sales, which
consists primarily of NGL purchases, transportation costs and changes in
inventory valuation. The gross margin impacts of cash flow hedge settlements
are reported in Other.

Operating Margin - Operating margin is an important performance measure of the
core profitability of the Partnership's operations. The Partnership defines
operating margin as gross margin less operating expenses.

Gross margin and operating margin are non-GAAP measures. The GAAP measure most
directly comparable to gross margin and operating margin is net income. Gross
margin and operating margin are not alternatives to GAAP net income, and have
important limitations as analytical tools. Investors should not consider gross
margin and operating margin in isolation or as substitutes for analysis of the
Partnership's results as reported under GAAP. Because gross margin and
operating margin exclude some, but not all, items that affect net income and
are defined differently by different companies in the Partnership's industry,
the Partnership's definition of gross margin and operating margin may not be
comparable to similarly titled measures of other companies, thereby
diminishing their utility.

Management reviews business segment gross margin and operating margin monthly
as a core internal management process. The Partnership believes that investors
benefit from having access to the same financial measures that its management
uses in evaluating its operating results. Gross margin and operating margin
provide useful information to investors because they are used as supplemental
financial measures by the Partnership and by external users of the
Partnership's financial statements, including investors and commercial banks
to assess:

  *the financial performance of the Partnership's assets without regard to
    financing methods, capital structure or historical cost basis;
  *the Partnership's operating performance and return on capital as compared
    to other companies in the midstream energy sector, without regard to
    financing or capital structure;and
  *the viability of acquisitions and capital expenditure projects and the
    overall rates of return on alternative investment opportunities.

Management compensates for the limitations of gross margin and operating
margin as analytical tools by reviewing the comparable GAAP measure,
understanding the differences between the measures and incorporating these
insights into its decision-making processes.

The following table presents a reconciliation of gross margin and operating
margin to net income for the periods indicated:

                                   Three Months Ended Year Ended December 31,
                                    December 31,
                                   2012      2011     2012         2011
                                   (In millions)
Reconciliation of Targa Resources
Partners LPgross margin and                                     
operating margin to net income:
Gross margin                        $259.6  $258.8 $1,004.7   $948.1
Operating expenses                  (85.8)   (72.9)  (313.0)     (287.0)
Operating margin                    173.8    185.9   691.7       661.1
Depreciation and amortization       (55.2)   (46.0)  (197.3)     (178.2)
expenses
General and administrative expenses (31.6)   (29.2)  (131.6)     (127.8)
Interest expense, net               (29.0)   (27.3)  (116.8)     (107.7)
Income tax expense                  (1.5)    0.9     (4.2)       (4.3)
Gain (loss) on sale or disposal of  3.2      (0.5)   (15.6)      (0.2)
assets
Loss on debt redemption and early   (12.8)   --     (12.8)      --
debt extinguishments
Other, net                          (8.3)    3.1     (10.2)      2.6
Targa Resources Partners LP Net     $38.6   $86.9  $203.2     $245.5
income

Targa Resources Corp. - Non-GAAP Financial Measures

This press release includes the Company's non-GAAP financial measure
distributable cash flow. Distributable cash flow should not be considered as
an alternative to GAAP measures such as net income or any other GAAP measure
of liquidity or financial performance.

Distributable Cash Flow - The Company defines distributable cash flow as
distributions due to it from the Partnership, less the Company's specific
general and administrative costs as a separate public reporting entity, the
interest carry costs associated with its debt and taxes attributable to the
Company's earnings. Distributable cash flow is a significant performance
metric used by the Company and by external users of the Company's financial
statements, such as investors, commercial banks, research analysts and others
to compare basic cash flows generated by the Company to the cash dividends the
Company expects to pay its shareholders. Using this metric, management and
external users of the Company's financial statements can quickly compute the
coverage ratio of estimated cash flows to planned cash dividends.
Distributable cash flow is also an important financial measure for the
Company's shareholders since it serves as an indicator of the Company's
success in providing a cash return on investment. Specifically, this financial
measure indicates to investors whether or not the Company is generating cash
flow at a level that can sustain or support an increase in the Company's
quarterly dividend rates. Distributable cash flow is also a quantitative
standard used throughout the investment community because the share value is
generally determined by the share's yield (which in turn is based on the
amount of cash dividends the entity pays to a shareholder).

The economic substance behind the Company's use of distributable cash flow is
to measure the ability of the Company's assets to generate cash flow
sufficient to pay dividends to the Company's investors.

The GAAP measure most directly comparable to distributable cash flow is net
income attributable to Targa Resources Corp. Distributable cash flow should
not be considered as an alternative to GAAP net income attributable to Targa
Resources Corp. Distributable cash flow is not a presentation made in
accordance with GAAP and has important limitations as an analytical tool.
Investors should not consider distributable cash flow in isolation or as a
substitute for analysis of the Company's results as reported under GAAP.
Because distributable cash flow excludes some, but not all, items that affect
net income attributable to Targa Resources Corp. and is defined differently by
different companies in the Company's industry, the Company's definition of
distributable cash flow may not be compatible to similarly titled measures of
other companies, thereby diminishing its utility.

Management compensates for the limitations of distributable cash flow as an
analytical tool by reviewing the comparable GAAP measure, understanding the
differences between the measures and incorporating these insights into its
decision making process.

The following table presents a reconciliation of net income of Targa Resources
Corp. to distributable cash flow for the periods indicated:

                              Three Months Ended    Year Ended December 31,
                               December 31,
                              2012        2011      2012         2011
                              (In millions)
Reconciliation of net income
attributable to Targa                                          
Resources Corp. to
Distributable Cash Flow
Net income of Targa Resources  $27.6     $74.8   $159.3     $215.4
Corp.
Less: Net income of Targa      (38.6)     (86.9)   (203.2)     (245.5)
Resources Partners LP
Net loss for TRC               (11.0)     (12.1)   (43.9)      (30.1)
Non-Partnership
Plus: TRC Non-Partnership      10.7       9.0      32.7        22.3
income tax expense
Plus: Distributions from the   30.7       20.1     103.3       66.9
Partnership
Plus: Non-cash loss (gain) on  (0.6)      (0.6)    (2.2)       (4.4)
hedges
Plus: Loss on early debt       0.2        --      0.2         --
extinguishment
Plus: Depreciation -           (1.9)      0.7      0.3         2.8
Non-Partnership assets
Less: Current cash tax expense (5.6)      (8.0)    (20.8)      (7.4)
(1)
Plus: Taxes funded with cash   2.1        5.0      8.7         10.1
on hand (2)
Distributable cash flow        $24.6     $14.1   $78.3      $60.2

(1) Excludes $1.2 million and $4.7 million of non-cash current tax expense
arising from amortization of deferred long-term tax assets from drop down
gains realized for tax purposes and paid in 2010 for the three months and
years ended December 31, 2012 and 2011.
(2) Current period portion of amount established at our IPO to fund taxes on
deferred gains related to drop down transactions that were treated as sales
for income tax purposes.

The following table presents an alternative reconciliation of cash
distributions declared by Targa Resources Partners LP to distributable cash
flow of Targa Resources Corp. for the periods indicated:

                              Three Months Ended    Year Ended December 31,
                               December 31,
                              2012        2011      2012         2011
Targa Resources Corp.          (In millions)
Distributable Cash Flow
Distributions declared by
Targa Resources Partners LP                                    
associated with:
General Partner Interests      $1.8      $1.3    $6.2       $4.8
Incentive Distribution Rights  20.1       11.0     63.3        34.4
Common Units                   8.8        7.8      33.8        27.7
Total distributions declared   30.7       20.1     103.3       66.9
by Targa Resources Partners LP
Income (expenses) of TRC                                       
Non-Partnership
General and administrative     (1.6)      (1.8)    (8.1)       (8.3)
expenses
Interest expense, net          (0.8)      (1.1)    (4.0)       (4.0)
Current cash tax expense (1)   (5.6)      (8.0)    (20.8)      (7.4)
Taxes funded with cash on hand 2.1        5.0      8.7         10.1
(2)
Other income (expense)         (0.2)      (0.1)    (0.8)       2.9
Distributable cash flow        $24.6     $14.1   $78.3      $60.2

(1) Excludes $1.2 million and $4.7 million of non-cash current tax expense
arising from amortization of deferred long-term tax assets from drop down
gains realized for tax purposes and paid in 2010 for the three months and
years ended December 31, 2012 and 2011.
(2) Current period portion of amount established at our IPO to fund taxes on
deferred gains related to drop down transactions that were treated as sales
for income tax purposes.

Forward-Looking Statements

Certain statements in this release are "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All statements, other
than statements of historical facts, included in this release that address
activities, events or developments that the Partnership and the Company
expect, believe or anticipate will or may occur in the future are
forward-looking statements. These forward-looking statements rely on a number
of assumptions concerning future events and are subject to a number of
uncertainties, factors and risks, many of which are outside the Partnership's
and the Company's control, which could cause results to differ materially from
those expected by management of the Partnership and the Company. Such risks
and uncertainties include, but are not limited to, weather, political,
economic and market conditions, including a decline in the price and market
demand for natural gas and natural gas liquids, the timing and success of
business development efforts; and other uncertainties. These and other
applicable uncertainties, factors and risks are described more fully in the
Partnership's and the Company's filings with the Securities and Exchange
Commission, including their Annual Reports on Form 10-K, Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K. Neither the Partnership nor the
Company undertake an obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.

Contact investor relations by phone at (713)584-1133.

Matthew Meloy
Senior Vice President, Chief Financial Officer and Treasurer

Chris McEwan
Senior Manager, Finance


TARGA RESOURCES PARTNERS LP
FINANCIAL SUMMARY (unaudited)
                                                                
CONSOLIDATED STATEMENTS OF                                       
OPERATIONS
(In millions, except per unit                                    
amounts)
                                  Three Months Ended    Year Ended
                                  December 31,          December 31,
                                  2012       2011       2012       2011
REVENUES                           $1,526.8 $1,933.3 $5,883.6 $6,987.1
Product purchases                  1,267.2   1,674.5   4,878.9   6,039.0
Operating expenses                 85.8      72.9      313.0     287.0
Depreciation and amortization      55.2      46.0      197.3     178.2
expenses
General and administrative         31.6      29.2      131.6     127.8
expenses
Other operating                    1.1       0.5       19.9      0.2
Total costs and expenses           1,440.9   1,823.1   5,540.7   6,632.2
INCOME FROM OPERATIONS             85.9      110.2     342.9     354.9
Other income (expense):                                          
Interest expense, net              (29.0)    (27.3)    (116.8)   (107.7)
Equity earnings                   2.2       3.6       1.9       8.8
Loss on debt redemption and early  (12.8)    --       (12.8)    --
debt extinguishments
Loss on mark-to-market derivative  --       --       --       (5.0)
instruments
Other expense                      (6.2)     (0.5)     (7.8)     (1.2)
Income before income taxes         40.1      86.0      207.4     249.8
Income tax expense (benefit)       (1.5)     0.9       (4.2)     (4.3)
NET INCOME                         38.6      86.9      203.2     245.5
Less: Net income attributable to   5.1       11.4      28.6      41.0
noncontrolling interests
NET INCOME ATTRIBUTABLE TO TARGA   $33.5    $75.5    $174.6   $204.5
RESOURCES PARTNERS LP
                                                                
Net income attributable to general $20.5    $11.9    $66.7    $38.0
partner
Net income allocable to limited    13.0      63.5      107.9     166.5
partners
Net income attributable to Targa   $33.5    $75.5    $174.6   $204.5
Resources Partners LP
                                                                
Net income per limited partner     $0.14    $0.75    $1.20    $1.98
unit - basic and diluted
                                                                
Basic weighted average limited     94.0      84.8      90.1      84.1
partner units outstanding
Diluted weighted average limited   94.1      84.8      90.2      84.2
partner units outstanding



TARGA RESOURCES PARTNERS LP
FINANCIAL SUMMARY (unaudited)
                                                                 
CONSOLIDATED CASH FLOW INFORMATION                                
(In millions)                                                     
                                                      Year Ended December 31,
                                                      2012        2011
CASH FLOWS FROM OPERATING ACTIVITIES                              
Net income                                             $203.2    $245.5
Adjustments to reconcile net income to net cash                   
provided by operating activities:
Amortization in interest expense                       17.6       12.4
Compensation on equity grants                          3.6        1.5
Depreciation and other amortization expense            197.3      178.2
Accretion of asset retirement obligations              3.9        3.6
Deferred income tax expense                            1.7        0.8
Equity in earnings of unconsolidated investment, net   --         (0.4)
of distributions
Risk management activities                             5.3        (16.7)
Loss on debt redemption and early debt extinguishments 12.8       --
Loss on sale or disposal of assets                     15.6       0.2
Changes in operating assets and liabilities            4.4        (24.2)
Net cash provided by operating activities              465.4      400.9
CASH FLOWS FROM INVESTING ACTIVITIES                              
Outlays for property, plant and equipment              (582.3)    (328.7)
Business acquisition                                   (996.2)    (156.5)
Investment in unconsolidated affiliate                 (16.8)     (21.2)
Return of capital from unconsolidated affiliate        0.5        --
Other, net                                             1.0        0.3
Net cash used in investing activities                  (1,593.8)  (506.1)
CASH FLOWS FROM FINANCING ACTIVITIES                              
Proceeds from borrowings under credit facility         1,595.0    1,787.0
Repayments of credit facility                          (1,473.0)  (2,054.3)
Proceeds from issuance of senior notes                 1,000.0    325.0
Redemption of senior notes                             (217.7)    --
Costs incurred in connection with financing            (15.2)     (6.2)
arrangements
Cash paid on note exchange                             --        (27.7)
Proceeds from equity offerings                         554.5      304.1
Distributions to unitholders                           (285.7)    (225.2)
Contributions from parent                              1.0        13.2
Contributions from noncontrolling interest             3.2        --
Distribution to noncontrolling interests               (21.3)     (31.4)
Net cash provided by financing activities              1,140.8    84.5
Net change in cash and cash equivalents                12.4       (20.7)
Cash and cash equivalents, beginning of period         55.6       76.3
Cash and cash equivalents, end of period               $68.0     $55.6



TARGA RESOURCES CORP.
FINANCIAL SUMMARY (unaudited)
                                                               
CONSOLIDATED STATEMENTS OF                                      
OPERATIONS
(In millions, except per                                        
share amounts)
                          Three Months Ended December Year Ended December 31,
                           31,
                          2012          2011          2012        2011
REVENUES                   $1,527.3    $1,934.0    $5,885.7  $6,994.5
Product purchases          1,267.2      1,674.5      4,879.0    6,039.0
Operating expenses         85.8         72.9         313.1      287.1
Depreciation and           53.3         46.6         197.6      181.0
amortization expenses
General and administrative 33.5         31.1         139.8      136.1
expenses
Other operating            1.1          0.6          19.9       0.2
Total costs and expenses   1,440.9      1,825.7      5,549.4    6,643.4
INCOME FROM OPERATIONS     86.4         108.3        336.3      351.1
Other income (expense):                                         
Interest expense, net      (29.8)       (28.4)       (120.8)    (111.7)
Equity earnings           2.2          3.6          1.9        8.8
Loss on debt redemption
and early debt             (12.8)       --          (12.8)     --
extinguishments
Loss on mark-to-market     --          --          --        (5.0)
derivative instruments
Other expenses             (6.2)        (0.6)        (8.4)      (1.2)
Income before income taxes 39.8         82.9         196.2      242.0
Income tax expense         (12.2)       (8.1)        (36.9)     (26.6)
NET INCOME                 27.6         74.8         159.3      215.4
Less: Net income
attributable to            16.4         66.3         121.2      184.7
noncontrolling interest
NET INCOME AVAILABLE TO    $11.2       $8.5        $38.1     $30.7
COMMON SHAREHOLDERS
                                                               
Net income available per   $0.27       $0.21       $0.93     $0.75
common share - basic
Net income available per   $0.27       $0.20       $0.91     $0.74
common share - diluted
                                                               
Weighted average shares    41.0         41.0         41.0       41.0
outstanding - basic
Weighted average shares    41.9         41.7         41.8       41.4
outstanding - diluted



TARGA RESOURCES CORP.
FINANCIAL SUMMARY (unaudited)
KEY TARGA RESOURCES CORP. BALANCE SHEET ITEMS
(In millions)                    
                                
                                December 31,
                                 2012
Cash and cash equivalents:       
TRC Non-Partnership              $8.3
Targa Resources Partners        68.0
Total cash and cash equivalents  $76.3
Long-term debt:                  
TRC Non-Partnership              $82.0
Targa Resources Partners        2,393.3
Total long-term debt             $2,475.3