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Targa Resources beats quarterly core earnings estimates on gas volumes increase

Targa Resources surpassed Wall Street's price quotes for thirdquarter core profit on Tuesday, gaining from increased volumes of gas and natural gas liquids transferred through its pipelines.

U.S. pipeline operators are seeing

robust demand

for their facilities as oil and gas production continues to climb up in the Permian Basin, which accounts for half of the country's petroleum output.

Targa's total quarterly gas sales volumes were up 3%. to 2.84 billion British thermal systems each day (BBtu/d) from the. previous year, while total gas inlets for processing. rose 18% in the Permian Basin.

Gas liquid (NGL) pipeline transportation volumes. were up about 26% to 829,200 barrels daily in the quarter. ended Sept. 30. NGLs are hydrocarbon liquids such as ethane,. propane and butane, which are used as fuels for heating,. refrigeration and gas mixing, to name a few.

The business expects full-year adjusted core earnings above the. greater end of its previously forecast range of $3.95 billion to. $ 4.05 billion.

Houston, Texas-based Targa also said it would develop two. natural gas processing plants in the Permian Basin, which. straddles New Mexico and Texas, in reaction to the boost in. production.

On an adjusted basis, its core earnings was $1.07 billion in. the documented quarter, compared to analysts' quote of $1.01. billion, according to information compiled by LSEG.

The company's quarterly net income attributable to typical. investors increased 76% to $387.4 million, compared to in 2015.

(source: Reuters)