Targa Resources Partners LP Earnings: Everything You Must Know Now

Targa Resources Partners LP (NYSE:NGLS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Targa Resources Partners LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 75% to $0.14 in the quarter versus EPS of $0.75 in the year-earlier quarter.

Revenue: Decreased 21.03% to $1.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Targa Resources Partners LP reported adjusted EPS income of $0.14 per share. By that measure, the company missed the mean analyst estimate of $0.26. It missed the average revenue estimate of $1.62 billion.

Quoting Management: “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.”

Key Stats (on next page)…

Revenue increased 9.61% from $1.39 billion in the previous quarter. EPS increased 75% from $0.08 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.29 to a profit $0.26. For the current year, the average estimate has moved down from a profit of $1.47 to a profit of $1.32 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)