Targa Resources Partners LP and Targa Resources Corp. Report First Quarter 2013 Financial Results

Targa Resources Partners LP and Targa Resources Corp. Report First Quarter
2013 Financial Results

HOUSTON, May 3, 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 first
quarter 2013 results. First quarter 2013 net income attributable to Targa
Resources Partners was $38.9 million compared to $70.1 million for the first
quarter of 2012. Net income per diluted limited partner unit was $0.16 in the
first quarter of 2013 compared to $0.63 for the first quarter of 2012. The
Partnership reported earnings before interest, income taxes, depreciation and
amortization and other non-cash items ("Adjusted EBITDA") of $132.2 million
for the first quarter of 2013 compared to $145.4 million for the first quarter
of 2012.

The Partnership's distributable cash flow for the first quarter 2013 of $85.5
million corresponds to distribution coverage of approximately 0.9 times the
$95.7 million in total distributions to be paid on May 15, 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")).

"Our first quarter financial results demonstrate the benefits of the
increasing scale, diversity and fee-based nature of our businesses. Despite
the significant reduction in natural gas liquids prices compared to the first
quarter of last year, the effect on our financial results was mitigated by
record quarterly margin from our Logistics and Marketing division," said Joe
Bob Perkins, Chief Executive Officer of the general partner of the Partnership
and of Targa Resources Corp. "We are currently commissioning our 100 MBbl/d
Cedar Bayou Fractionator Train 4 expansion in Mont Belvieu, Texas. This
project is part of the $1.7 billion in organic growth investments expected to
be placed in service by the end of 2014, $1.2 billion of which is expected to
be placed in service this year. We expect these primarily fee-based
investments to add scale, diversity and margin that will support continued
distribution growth."

On April 16, 2013, the Partnership announced a cash distribution for the first
quarter 2013 of $0.6975 per common unit, or $2.79 per unit on an annualized
basis, representing an increase of approximately 3% over the fourth quarter
2012 and 12% over the distribution for the first quarter 2012. The cash
distribution will be paid on May 15, 2013 on all outstanding common units to
holders of record as of the close of business on April 29, 2013. The total
distribution paid will be $95.7 million, with $62.7 million to the
Partnership's third-party limited partners and $33.0 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 March 31, 2013 was $2,450.4 million
including $565.0 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 5 ^1/4%
senior unsecured notes due 2023, $111.4 million outstanding under our accounts
receivable securitization facility due 2014 and $32.3 million of unamortized
discounts.

As of March 31, 2013, after giving effect to $53.2 million in outstanding
letters of credit, the Partnership had available revolver capacity of $581.8
million and $102.1 million of cash, resulting in total liquidity of $683.9
million.

Targa Resources Corp. - First Quarter 2013 Financial Results

Targa Resources Corp., the parent of Targa Resources Partners, reported its
first quarter 2013 results. The Company, which as of March 31, 2013 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 $13.4 million for
the first quarter 2013 compared with a net income available to common
shareholders of $9.6 million for the first quarter 2012. The net income per
diluted common share was $0.32 in the first quarter of 2013 compared to $0.23
for the first quarter of 2012.

First quarter 2013 distributions to be paid on May 15, 2013 by the Partnership
to the Company will be $33.0 million, with $9.0 million, $22.1 million and
$1.9 million paid with respect to common units, IDRs and general partner
interests, respectively.

On April 16, 2013, TRC declared a quarterly dividend of $0.4950 per share of
its common stock for the three months ended March 31, 2013, or $1.98 per share
on an annualized basis, representing increases of approximately 8% over the
previous quarter's dividend and 36% over the dividend for the first quarter of
2012. Total cash dividends of approximately $20.6 million will be paid May 16,
2013 on all outstanding common shares to holders of record as of the close of
business on April 29, 2013.

The Company's distributable cash flow for the first quarter 2013 was $25.1
million compared to $21.0 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 March 31, 2013, excluding debt of the
Partnership, was $72.0 million in borrowings outstanding under its $150.0
million senior secured revolving credit facility due 2017. This resulted in
$78.0 million in available revolver capacity as of March 31, 2013.

The Company's cash balance, excluding cash held by the Partnership and its
subsidiaries, was $10.6 million as of March 31, 2013, resulting in total
liquidity of $88.6 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 May 3, 2013 to discuss first quarter 2013 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 31695655. 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. An updated investor presentation will
be available in the Events and Presentations section of the Partnership's
website following the completion of the conference call.


Targa Resources Partners – Consolidated Financial Results of Operations
                                                          
                                      Three Months Ended March 31,
                                      2013                 2012
                                      (In millions except per unit data)
Revenues                              $1,397.8            $1,645.5
Product purchases                      1,137.5             1,384.1
Gross margin (1)                       260.3               261.4
Operating expenses                     86.1                71.6
Operating margin (2)                   174.2               189.8
Depreciation and amortization expenses 63.9                46.7
General and administrative expenses    34.1                32.9
Income from operations                 76.2                110.2
Interest expense, net                  (31.4)              (29.4)
Equity earnings                        1.6                 2.1
Other                                 (0.2)               (0.1)
Income tax expense                    (0.9)               (1.0)
Net income                            45.3                81.8
Less: Net income attributable to       6.4                 11.7
noncontrolling interests
Net income attributable to Targa       $38.9               $70.1
Resources Partners LP
                                                          
Net income attributable to general     22.8                14.1
partner
Net income attributable to limited     16.1                56.0
partners
Net income attributable to Targa       $38.9               $70.1
Resources Partners LP
                                                          
Basic net income per limited partner   $0.16               $0.64
unit
Diluted net income per limited partner 0.16                0.63
unit
                                                          
Financial data:                                            
Adjusted EBITDA (3)                    $132.2              $145.4
Distributable cash flow (4)            85.5                105.7
Capital expenditures                   206.9               98.0
                                                          
Operating data:                                            
Crude oil gathered, MBbl/d             31.5                --
Plant natural gas inlet, MMcf/d (5)(6) 2,079.1             2,232.7
Gross NGL production, MBbl/d           133.3               132.3
Export volumes, MBbl/d                 44.8                22.1
Natural gas sales, BBtu/d (6)          849.7               860.5
NGL sales, MBbl/d                      281.3               279.1
Condensate sales, MBbl/d               3.4                 3.1
                                                          
(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, non-cash risk
management activities related to derivative instruments, and changes in the
fair value of the Badlands acquisition contingent consideration. 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 redemptions, early debt extinguishments and asset disposals,
less maintenance capital expenditures (net of any reimbursements of project
costs), and changes in the fair value of the Badlands acquisition contingent
consideration. 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 First Quarter Results

Three Months Ended March 31, 2013 Compared to Three Months Ended March 31,
2012

Revenues, including the impacts of hedging, decreased due to impact of lower
realized prices on NGLs and condensate ($317.0million) and lower natural gas
and NGL volumes ($8.8million), partially offset by the impact of higher
realized prices on natural gas ($51.2 million), higher fee-based and other
revenues ($25.1 million) and higher volumes of condensate ($1.8 million).

Consolidated gross margin was essentially flat, as the favorable margin
effects of volumes expansions were mitigated by falling NGL and condensate
prices. Operating expenses increased primarily due to the system expansions in
our Field Gathering and Processing segment and higher maintenance costs. 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 was primarily due to
the acquisition of Badlands properties and intangible assets, system
expansions and other assets placed in service during the last twelve months.

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

The increase in interest expense was the result of higher borrowings ($6.2
million) offset by higher capitalized interest ($4.3 million) as a result of
increased spending on major capital projects.

The decrease in net income attributable to noncontrolling interests reflects
the impact of lower earnings at our non-wholly owned Upstream consolidated
subsidiaries, primarily at our Versado and VESCO joint ventures.

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's assets are located in North Texas
and the Permian Basin on West Texas and New Mexico. 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.

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

                                     Three Months Ended March 31,
                                     2013                2012
                                     ($ in millions)
Gross margin                          $91.5              $102.3
Operating expenses                    37.7               29.3
Operating margin                      $53.8              $73.0
Operating statistics (1):                               
Plant natural gas inlet, MMcf/d (2),                     
(3)
Sand Hills                            152.3              145.7
SAOU                                  139.2              115.3
North Texas System                    260.8              224.5
Versado                               160.7              169.9
Badlands                              15.9               --
                                     728.9              655.4
Gross NGL production, MBbl/d                             
Sand Hills                            17.4               17.0
SAOU                                  20.6               18.2
North Texas System                    29.0               24.9
Versado                               19.4               19.0
Badlands                              1.6                --
                                     88.0               79.1
Crude oil gathered, MBbl/d            31.5               --
Natural gas sales, BBtu/d (3)         339.2              313.3
NGL sales, MBbl/d                     70.8               65.0
Condensate sales, MBbl/d             2.9                2.9
Average realized prices (4):                             
Natural gas, $/MMBtu                  3.12               2.57
NGL, $/gal                            0.72               1.06
Condensate, $/Bbl                     85.66              99.23
                                                        
(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 March 31, 2013 Compared to Three Months Ended March 31,
2012

The decrease in gross margin was primarily driven by lower NGL and condensate
sales prices, partially offset by system volume increases and higher natural
gas prices. The increase in plant inlet volumes were largely attributable to
new well connects, which increased system volumes. Volumes at Sand Hills and
Versado were impacted by operational issues.

The increase in operating expenses was primarily due to expanded operations
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 March 31,
                                     2013                 2012
                                     ($ in millions)
Gross margin                          $34.0               $56.7
Operating expenses                   10.5                10.4
Operating margin                      $23.5               $46.3
Operating statistics (1):                                 
Plant natural gas inlet, MMcf/d                           
(2),(3)
LOU(4)                                341.6               194.9
Coastal Straddles                     474.5               839.5
VESCO                                 534.1               543.0
                                     1,350.2             1,577.4
Gross NGL production, MBbl/d                              
LOU                                   9.0                 8.1
Coastal Straddles                     13.4                17.6
VESCO                                 22.9                27.5
                                     45.3                53.2
Natural gas sales, BBtu/d (3)         275.1               282.0
NGL sales, MBbl/d                    41.4                47.3
Condensate sales, MBbl/d             0.5                 0.3
Average realized prices:                                  
Natural gas, $/MMBtu                  3.45                2.62
NGL, $/gal                           0.84                1.16
Condensate, $/Bbl                    110.44              127.86
                                                         
(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 during the quarter and the
denominator is the number of calendar days during the quarter.
(2) Plantnatural gas inlet represents the volume of natural gas passing
through the meter located at the inlet of a natural gas processing plant.
(3) Plantnatural gas inlet volumes include producer take-in-kind volumes,
while natural gas sales exclude producer take-in-kind volumes.
(4) Includes volumes from the Big Lake processing plant acquired in July
2012.

Three Months Ended March 31, 2013 Compared to Three Months Ended March 31,
2012

The decrease in gross margin was primarily due to lower realized 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
Yscloskey, Calumet and other third-party plant shutdowns in 2012, partially
offset by the addition of the Big Lake plant. Lower natural gas sales volumes
reflected decreased sales to other reportable segments for resale, partially
offset by an increase in demand from industrial customers. VESCO's NGL
production was constrained by damage to one of the two third-party pipelines
that provide NGL takeaway capacity.

Operating expenses were flat as higher system maintenance and repair costs at
LOU and Lowry were offset by the impact of the Yscloskey and Calumet plant
shutdowns.

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.

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

                                       Three Months Ended March 31,
                                       2013                2012
                                       ($ in millions)
Gross margin                            $86.5              $64.4
Operating expenses                      30.2               21.4
Operating margin                        $56.3              $43.0
Operating statistics (1):                                  
Fractionation volumes, MBbl/d           258.0              293.7
LSNG treating volumes, MBbl/d           25.7               19.1
Benzene treating volumes, MBbl/d        20.9               17.0
                                                          
(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 March 31, 2013 Compared to Three Months Ended March 31,
2012

The increase in gross margin was primarily due to increased export and storage
activity, higher fractionation and treating revenues, and increased petroleum
logistics activities, partially offset by lower fractionation volumes. Export
volumes, which benefit both the Logistics Assets and the Marketing and
Distribution segments, averaged 44.8 MBbl/d for the three months ended March
31, 2013, nearly double 2012 volumes. Storage fees increased due to higher
rates and new customers. Higher fractionation fees and contractual capacity
reservation fees more than offset the impact of lower fractionation supply
volumes that resulted from ethane rejection and pipeline operating issues at
facilities not operated by the Partnership. Treating fees increased due to
higher hydrotreating and de-pentanizer volumes. Terminaling gross margin
improved as a result of increased crude oil throughput for the three months
ended 2013 and the start up of the renewable fuels project at the Sound
Terminal.

Operating expenses increased primarily due to higher fuel, labor and
maintenance costs and lower system product gains.

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 March 31,
                                  2013                  2012
                                  ($ in millions)
Gross margin                       $ 44.8               $35.4
Operating expenses                 10.8                 9.3
Operating margin                   $34.0                $26.1
Operating statistics (1):                               
Natural gas sales, BBtu/d          882.1                1,023.5
NGL sales, MBbl/d                  283.6                282.7
Average realized prices:                                
Natural gas, $/MMBtu               3.34                 2.60
NGL realized price, $/gal          0.92                 1.21
                                                       
(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 March 31, 2013 Compared to Three Months Ended March 31,
2012

Despite flat NGL and lower natural gas sales volumes, gross margin increased
due to higher LPG export activity, higher wholesale propane margins driven by
colder weather, additional gasoline blending demand and increased truck and
barge utilization.

Operating expenses increased primarily due to higher truck operating expense
as a result of increased truck utilization, and increased distribution
expense.

Other

                Three Months Ended March 31,
                2013            2012
                (In millions)
Gross margin     $6.6           $1.4
Operating margin $6.6           $1.4

Other contains the financial effects of the Partnership's hedging program on
operating margin. It typically represents the cash settlements on the
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 commodity risk management activities is to manage
the Partnership's 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.

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

           Three Months Ended March 31,
           2013            2012
           (In millions)
Natural gas $3.3           $8.6
NGL         3.5            (5.5)
Crude oil   (0.2)          (1.7)
           $6.6           $1.4

Because the Partnership is essentially forward selling a portion of the plant
equity volumes, these hedge positions will move favorably in periods of
falling prices and unfavorably in periods of rising 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
formed in October 2006 by its parent, Targa Resources Corp. to own, operate,
acquire and develop a diversified portfolio of midstream energy assets. The
Partnership is a leading provider of midstream natural gas and natural gas
liquid services in the United States. In addition, the Partnership provides
crude oil gathering and crude oil and petroleum product terminaling services.
The Partnership is engaged in the business of gathering, compressing,
treating, processing and selling natural gas; storing, fractionating,
treating, transporting, terminaling and selling NGLs and NGL products;
gathering, storing, and terminaling crude oil; and storing and terminaling
petroleum products. The Partnership operates in two primary divisions:
Gathering and Processing, consisting of two reportable segments—Field
Gathering and Processing and Coastal Gathering and Processing; and Logistics
and Marketing, consisting of two reportable segments—Logistics Assets and
Marketing and Distribution.

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 and redemptions, early debt
extinguishments and asset disposals, less maintenance capital expenditures
(net of any reimbursements of project costs), and changes in the fair value of
the Badlands acquisition contingent consideration, to the extent unrealized.
This measure includes any impact of noncontrolling interests.

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).

Distributable cash flow is a non-GAAP financial measure. 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. It 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 March 31,
                                           2013                2012
                                           (In millions)
Reconciliation of net income attributable to Targa              
Resources Partners LP to distributable cash flow:               
Net income attributable to Targa Resources  $38.9              $70.1
Partners LP
Depreciation and amortization expenses      63.9               46.7
Deferred income tax expense                 0.4                0.4
Amortization in interest expense            4.0                4.6
Gain on sale or disposal of assets          (0.1)              --
Risk management activities                  (0.2)              1.0
Maintenance capital expenditures            (21.7)             (16.5)
Other (1)                                   0.3                (0.6)
Targa Resources Partners LP distributable   $85.5              $105.7
cash flow
                                                              
(1) Includes reimbursements of certain environmental maintenance capital
expenditures by TRC, the noncontrolling interest portion of maintenance
capital expenditures, depreciation and amortization expenses and changes in
the fair value of the Badlands acquisition contingent consideration.
                                                              

Adjusted EBITDA - The Partnership defines Adjusted EBITDA as net income
before: interest; income taxes; depreciation and amortization; gains or losses
on debt repurchases and redemptions, early debt extinguishments and asset
disposals; non-cash risk management activities related to derivative
instruments; and changes in the fair value of the Badlands acquisition
contingent consideration. Adjusted EBITDA is used as a supplemental financial
measure by the Partnership 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 March 31,
                                      2013                2012
                                      (In millions)                        
Reconciliation of net cash provided by Targa Resources Partners LP
operating activities to Adjusted EBITDA:
Net cash provided by operating         $171.7             $146.7
activities
Net income attributable to             (6.4)              (11.7)
noncontrolling interests
Interest expense, net (1)              27.4               24.8
Current income tax expense (benefit)   0.5                0.6
Other (2)                              (3.8)              (4.9)
Changes in operating assets and liabilities which used (provided) cash:
Accounts receivable and other assets   (121.5)            (158.2)
Accounts payable and other liabilities 64.3               148.1
Targa Resources Partners LP Adjusted   $132.2             $145.4
EBITDA
                                                         
(1) Net of amortization of debt issuance costs, discount and premium
included in interest expense of $4.0 million and $4.6 million for the three
months ended March 31, 2013 and 2012.
(2) Includes equity earnings from unconsolidated investments – net of
distributions, accretion expense associated with asset retirement
obligations, amortization of stock-based compensation, gain on sale or
disposal of assets, and changes in the contingent consideration associated
with the Badlands acquisition.

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 March 31,
                                                2013           2012
                                                (In millions)
Reconciliation of net income attributable to                   
Targa Resources Partners LP to Adjusted EBITDA:  
Net income attributable to Targa Resources       $38.9         $70.1
Partners LP
Add:                                                           
Interest expense, net                           31.4          29.4
Income tax expense                               0.9           1.0
Depreciation and amortization expenses           63.9          46.7
Gain on sale or disposal of assets               (0.1)         --
Change in contingent consideration               0.3           --
Risk management activities                       (0.2)         1.0
Noncontrolling interests adjustment (1)          (2.9)         (2.8)
Targa Resources Partners LP Adjusted EBITDA      $132.2        $145.4
                                                              
(1) 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 the Partnership's
contract mix and hedging program. The Partnership defines Gathering and
Processing gross margin as total operating revenues from (1) the sale of
natural gas, condensate and NGLs (2) natural gas and crude oil gathering and
service fee revenues and (3) settlement gains and losses on commodity hedges,
less product purchases, which consist primarily of producer payments and other
natural gas purchases. Logistics Assets gross margin consists primarily of
service fee revenue. Gross margin for Marketing and Distribution equals total
revenue from service fees, NGL and natural gas sales, less cost of sales,
which consists primarily of NGL and natural gas purchases, transportation
costs and changes in inventory valuation.

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 March 31,
                                                2013           2012
                                                (In millions)
Reconciliation of Targa Resources Partners LP
gross margin and operating margin to net income:
Gross margin                                     $260.3        $261.4
Operating expenses                               (86.1)        (71.6)
Operating margin                                 174.2         189.8
Depreciation and amortization expenses           (63.9)        (46.7)
General and administrative expenses              (34.1)        (32.9)
Interest expense, net                            (31.4)        (29.4)
Income tax expense                               (0.9)         (1.0)
Gain on sale or disposal of assets               0.1           --
Other, net                                       1.3           2.0
Targa Resources Partners LP Net income           $45.3         $81.8

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 March 31,
                                         2013                2012
Reconciliation of net income attributable (In millions)
to
Targa Resources Corp. to Distributable                       
Cash Flow
Net income of Targa Resources Corp.       $33.8              $69.2
Less: Net income of Targa Resources       (45.3)             (81.8)
Partners LP
Net loss for TRC Non-Partnership          (11.5)             (12.6)
Plus: TRC Non-Partnership income tax      8.5                9.1
expense
Plus: Distributions from the Partnership 33.0               22.2
Plus: Non-cash loss (gain) on hedges      --                (0.3)
Plus: Depreciation - Non-Partnership      0.1                0.7
assets
Less: Current cash tax expense (1)        (7.5)              (6.9)
Plus: Taxes funded with cash on hand (2)  2.5                2.2
Distributable cash flow                   $25.1              $14.4
                                                            
(1) Excludes $1.2 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 ended March 31, 2013
and 2012.
(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 March 31,
                                             2013                2012
Targa Resources Corp. Distributable Cash Flow (In millions)
Distributions declared by Targa Resources Partners LP associated  
with:
General Partner Interests                     $1.9               $1.4
Incentive Distribution Rights                 22.1               12.7
Common Units                                  9.0                8.1
Total distributions declared by Targa         33.0               22.2
Resources Partners LP
Income (expenses) of TRC Non-Partnership                         
General and administrative expenses           (2.2)              (2.0)
Interest expense, net                         (0.7)              (1.1)
Current cash tax expense (1)                  (7.5)              (6.9)
Taxes funded with cash on hand (2)            2.5                2.2
Distributable cash flow                       $25.1              $14.4
                                                                
(1) Excludes $1.2 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 ended March 31, 2013
and 2012.
(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.

                                                              
                                                              
TARGA RESOURCES PARTNERS LP                                    
FINANCIAL SUMMARY (unaudited)
CONSOLIDATED BALANCE SHEETS                                    
(In millions)                                                  
                                                     March 31, December 31,
                                                     2013      2012
ASSETS                                                        
Current assets:                                                
Cash and cash equivalents                             $102.1   $68.0
Trade receivables                                     427.7    514.9
Inventories                                           66.0     99.4
Assets from risk management activities                18.2     29.3
Other current assets                                  2.4      3.3
Total current assets                                  616.4    714.9
Property, plant and equipment, net                    3,687.7  3,533.2
Other intangible assets, net                          674.1     680.8
Long-term assets from risk management activities      3.2      5.1
Other long-term assets                                92.8     91.7
Total assets                                         $5,074.2 $5,025.7
LIABILITIES AND PARTNERS' CAPITAL                              
Current liabilities:                                           
Accounts payable and accrued liabilities              $640.5   $701.2
Liabilities from risk management activities           8.2      7.4
Total current liabilities                             648.7    708.6
Long-term debt                                       2,450.4  2,393.3
Long-term liabilities from risk management activities 5.0      4.8
Other long-term liabilities                           60.7     58.9
Owners' equity:                                                
Targa Resources Partners LP owner's equity            1,754.1  1,709.6
Noncontrolling interests in subsidiaries              155.3    150.5
Total owners' equity                                  1,909.4  1,860.1
Total liabilities and owners' equity                  $5,074.2 $5,025.7

                                                                  
                                                                  
TARGA RESOURCES PARTNERS LP                                        
FINANCIAL SUMMARY (unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS                              
(In millions, except per unit amounts)                             
                                                         Three Months Ended
                                                         March 31,
                                                         2013      2012
REVENUES                                                  $1,397.8 $ 1,645.5
Product purchases                                         1,137.5  1,384.1
Operating expenses                                        86.1     71.6
Depreciation and amortization expenses                    63.9     46.7
General and administrative expenses                       34.1     32.9
Total costs and expenses                                  1,321.6  1,535.3
INCOME FROM OPERATIONS                                    76.2     110.2
Other income (expense):                                            
Interest expense, net                                     (31.4)   (29.4)
Equity earnings                                          1.6      2.1
Other expense                                             (0.2)    (0.1)
Income before income taxes                                46.2     82.8
Income tax expense (benefit)                              (0.9)    (1.0)
NET INCOME                                                45.3     81.8
Less: Net income attributable to noncontrolling interests 6.4      11.7
NET INCOME ATTRIBUTABLE TO TARGA RESOURCES PARTNERS LP    $38.9    $70.1
                                                                  
Net income attributable to general partner                $22.8    $14.1
Net income attributable to limited partners              16.1     56.0
Net income attributable to Targa Resources Partners LP    $38.9    $70.1
                                                                  
Net income per limited partner unit - basic              $0.16    $0.64
Net income per limited partner unit - diluted             0.16     0.63
                                                                  
Basic weighted average limited partner units outstanding 101.8    88.1
Diluted weighted average limited partner units            102.0    88.2
outstanding

                                                               
                                                               
TARGA RESOURCES PARTNERS LP                                     
FINANCIAL SUMMARY (unaudited)
CONSOLIDATED CASH FLOW INFORMATION                              
(In millions)                                                   
                                                 Three Months Ended March 31,
                                                 2013           2012
CASH FLOWS FROM OPERATING ACTIVITIES                            
Net income                                        $45.3         $81.8
Adjustments to reconcile net income to net cash                 
provided by operating activities:
Amortization in interest expense                  4.0           4.6
Compensation on equity grants                     1.7           1.0
Depreciation and other amortization expense       63.9          46.7
Accretion of asset retirement obligations         1.1           1.0
Deferred income tax expense                       0.4           0.4
Equity in earnings of unconsolidated investment,  (1.6)         --
net of distributions
Risk management activities                        (0.2)         1.1
Gain on sale or disposal of assets                (0.1)         --
Changes in operating assets and liabilities       57.2          10.1
Net cash provided by operating activities         171.7         146.7
CASH FLOWS FROM INVESTING ACTIVITIES                            
Outlays for property, plant and equipment         (203.5)       (102.7)
Investment in unconsolidated affiliate            --           (6.2)
Return of capital from unconsolidated affiliate   --           0.3
Other, net                                        (4.6)         0.8
Net cash used in investing activities             (208.1)       (107.8)
CASH FLOWS FROM FINANCING ACTIVITIES                            
Proceeds from borrowings under credit facility    325.0         145.0
Repayments of credit facility                     (380.0)       (643.0)
Proceeds from issuance of senior notes            --           400.0
Proceeds from accounts receivable securitization  171.4         --
facility
Repayments of accounts receivable securitization  (60.0)        --
facility
Costs incurred in connection with financing       (1.0)         (4.4)
arrangements
Proceeds from equity offerings                    107.6         168.4
Distributions to unitholders                      (90.9)        (66.0)
Contributions from parent                         --           0.5
Contributions from noncontrolling interests       2.1           1.4
Distributions to noncontrolling interests         (3.7)         (10.1)
Net cash provided by (used in) financing          70.5          (8.2)
activities
Net change in cash and cash equivalents           34.1          30.7
Cash and cash equivalents, beginning of period    68.0          55.6
Cash and cash equivalents, end of period          $102.1        $86.3

                                                               
                                                               
TARGA RESOURCES CORP.                                           
FINANCIAL SUMMARY (unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS                          
(In millions, except per share amounts)                         
                                                 Three Months Ended March 31,
                                                 2013           2012
REVENUES                                          $1,397.8      $1,645.8
Product purchases                                 1,137.5       1,384.2
Operating expenses                                86.1          71.6
Depreciation and amortization expenses            64.0          47.4
General and administrative expenses               36.3          34.9
Total costs and expenses                         1,323.9       1,538.1
INCOME FROM OPERATIONS                            73.9          107.7
Other income (expense):                                         
Interest expense, net                             (32.1)        (30.5)
Equity earnings                                  1.6           2.1
Other expenses                                    (0.2)         --
Income before income taxes                        43.2          79.3
Income tax expense                                (9.4)         (10.1)
NET INCOME                                        33.8          69.2
Less: Net income attributable to noncontrolling   20.4          59.6
interests
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS       $13.4         $9.6
                                                               
Net income available per common share - basic and $0.32         $0.23
diluted
                                                               
Weighted average shares outstanding - basic      41.6          41.0
Weighted average shares outstanding - diluted     42.0          41.8

                                             
                                             
TARGA RESOURCES CORP.                         
FINANCIAL SUMMARY (unaudited)
KEY TARGA RESOURCES CORP. BALANCE SHEET ITEMS 
(In millions)                                 
                                             
                                             March 31, 2013
Cash and cash equivalents:                    
TRC Non-Partnership                           $10.6
Targa Resources Partners                     102.1
Total cash and cash equivalents               $112.7
Long-term debt:                               
TRC Non-Partnership                           $72.0
Targa Resources Partners                     2,450.4
Total long-term debt                          $2,522.4

CONTACT: Investor relations
         (713) 584-1133

         Matthew Meloy
         Senior Vice President, Chief Financial Officer and Treasurer

         Chris McEwan
         Director, Finance