Targa Resources announces higher Q1 core profits on strength of North Dakota assets

Targa Resources, a pipeline operator, reported on Thursday a higher adjusted core profit for the first quarter. This was due to its Badlands operations located in North Dakota as well as the fact that higher NGL prices were offset by service fees and higher NGL volumes.

Targa distributes natural gas and NGLs to key markets via its network of gathering assets and processing assets located across the U.S. These assets can be found in the Permian basin, Bakken Shale and Barnett Shale as well as Eagle Ford Shale.

Badlands operations consist of approximately 500 miles crude oil gathering pipelines and 300 miles natural gas gathering pipes. Targa purchased its Targa Badlands LLC interest for $1.8 billion in the third quarter.

The company's quarterly crude oil sales were up 13% compared to the previous year, at 107.1 thousand barallons per day.

NGL sales were 570.2 thousand bbl/d in the Gathering and Processing Segment in the reported quarter. This is up from 498.8 MBbl/d a full year ago, and prices are also higher.

Targa's core adjusted profit increased 5% over last year, to $1.18 Billion. According to LSEG data, analysts expected an average of $1.16 billion.

Winter weather events reduced system volumes, resulting in a flat overall revenue. (Reporting from Mrinalika Roy, Bengaluru. Editing by Leroy Leo.)

(source: Reuters)