Targa Resources Partners LP Announces Monthly Distribution on Preferred Units

Rhea-AI Summary

Targa Resources Partners LP announced a monthly distribution of $0.1637 per unit on its 9.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units for November 2020. This marks a transition from a fixed rate to an annual floating rate, based on one-month LIBOR plus a 7.71% spread, effective November 1, 2020. The payment is scheduled for December 15, 2020, to holders on record by November 30, 2020. Targa Resources operates a diversified portfolio of midstream infrastructure assets and is a major player in the North American market for natural gas, NGLs, and crude oil.

Positive

• Monthly distribution of $0.1637 per Series A Preferred Unit declared.
• Transition to a floating rate distribution linked to one-month LIBOR plus a 7.71% spread enhances yield potential.

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• None.

HOUSTON, Nov. 16, 2020 (GLOBE NEWSWIRE) -- Targa Resources Partners LP (“Targa Resources Partners” or the “Partnership”) (NYSE: NGLS PR A) announced its monthly distribution on the Partnership’s 9.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units ("Series A Preferred Units") for November 2020. Per the original terms of the Series A Preferred Units, effective November 1, 2020, distributions on the Series A Preferred Units converted from a fixed rate to an annual floating rate equal to the one-month LIBOR plus a spread of 7.71%.

Targa Resources Partners LP announced today that the board of directors of its general partner has declared a monthly cash distribution of $0.1637 per Series A Preferred Unit for November 2020. This cash distribution will be paid December 15, 2020 on all outstanding Series A Preferred Units to holders of record as of the close of business on November 30, 2020.

About Targa Resources Partners LP

Targa Resources Partners LP is a Delaware limited partnership formed in October 2006 by its parent, Targa Resources Corp. (“TRC” or the “Company”), to own, operate, acquire and develop a diversified portfolio of complementary midstream infrastructure assets. On February 17, 2016 TRC completed the acquisition of all outstanding common units of the Partnership. Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent midstream infrastructure companies in North America. Targa owns, operates, acquires and develops a diversified portfolio of complementary midstream infrastructure assets. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, transporting and purchasing and selling natural gas; transporting, storing, fractionating, treating and purchasing and selling NGLs and NGL products, including services to LPG exporters; and gathering, storing, terminaling and purchasing and selling crude oil.

The principal executive offices of Targa Resources Partners LP are located at 811 Louisiana, Suite 2100, Houston, TX 77002 and their telephone number is 713-584-1000.

For more information, please visit our website at www.targaresources.com.

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 expects, believes or anticipates 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 control, which could cause results to differ materially from those expected by management of the Partnership. 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, natural gas liquids and crude oil, the impact of pandemics such as COVID-19, actions by the Organization of the Petroleum Exporting Countries (“OPEC”) and non-OPEC oil producing countries, 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 filings with the Securities and Exchange Commission, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Partnership does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Targa Resources Partners LP’s distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Targa Resources Partners LP’s distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate.

Contact the Company's investor relations department by email at InvestorRelations@targaresources.com or by phone at (713) 584-1133.

Sanjay Lad
Vice President, Finance & Investor Relations

Jennifer Kneale
Chief Financial Officer

FAQ

What is the monthly distribution amount for Targa Resources Partners LP for November 2020?

The monthly distribution amount is $0.1637 per Series A Preferred Unit.

When will Targa Resources Partners LP pay the November 2020 distribution?

The distribution will be paid on December 15, 2020.

What change occurred in Targa Resources Partners LP's distribution rate in November 2020?

The distribution changed from a fixed rate to an annual floating rate based on one-month LIBOR plus a 7.71% spread.

Who is eligible to receive the November 2020 distribution from Targa Resources Partners LP?

Holders of Series A Preferred Units on record as of the close of business on November 30, 2020, are eligible.