Targa Resources (NYSE: TRGP) reported Q2 revenue for the quarter came in at $1.52 billion versus the consensus estimate of $1.62 billion.

Second Quarter 2020 Financial Results

Second quarter 2020 net income (loss) attributable to Targa Resources Corp. was $81.0 million compared to a net loss of $(10.2) million for the second quarter of 2019.

The Company reported quarterly earnings before interest, income taxes, depreciation and amortization, and other non-cash items (“Adjusted EBITDA”) of $351.2 million for the second quarter of 2020 compared to $306.5 million for the second quarter of 2019 (see the section of this release entitled “Targa Resources Corp. ― Non-GAAP Financial Measures” for a discussion of Adjusted EBITDA, distributable cash flow, gross margin and operating margin, 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”)).

On July 16, 2020, TRC declared a quarterly dividend of $0.10 per share of its common stock for the three months ended June 30, 2020, or $0.40 per share on an annualized basis. Total cash dividends of approximately $23.3 million will be paid on August 17, 2020 on all outstanding shares of common stock to holders of record as of the close of business on July 31, 2020. Also, on July 16, 2020, TRC declared a quarterly cash dividend of $23.75 per share of its Series A Preferred Stock. Total cash dividends of approximately $22.9 million will be paid on August 14, 2020 on all outstanding shares of Series A Preferred Stock to holders of record as of the close of business on July 31, 2020.

The Company reported distributable cash flow for the second quarter of 2020 of $273.7 million compared to total common dividends to be paid of $23.3 million and total Series A Preferred Stock dividends to be paid of $22.9 million.

Updated 2020 Outlook

While commodity prices remain low and uncertainties associated with the impacts of COVID-19 continue, in certain areas of Targa’s operations like the Permian Basin, production from wells that were previously shut-in during the second quarter has largely resumed. Assuming crude oil prices average $40 per barrel WTI, NGL prices average $0.40 per gallon, and Henry Hub and Waha natural gas prices average $2.00 and $1.50 per million British Thermal unit, respectively and the Company’s current best estimates for a range of volume outcomes through the second half of 2020, Targa is increasing the low end of its previously provided 2020 Adjusted EBITDA outlook and now estimates full year Adjusted EBITDA to be between $1.5 billion to $1.625 billion.

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