Profile: Targa Resources Partners LP (NGLS.K)
7 Jul 2015
Targa Resources Partners LP, incorporated on October 23, 2006, is a provider of midstream natural gas and natural gas liquid (NGL) services in the United States with a presence in crude oil gathering and petroleum terminaling. The Company is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products, including services to LPG exporters; gathering, storing and terminaling crude oil, and storing, terminaling and selling refined petroleum products. The Company operates in two divisions: Gathering and Processing, and Logistics and Marketing. The Gathering and Processing consists of two segments: Field Gathering and Processing, and Coastal Gathering and Processing. The Logistics and Marketing consists of two segments: Logistics Assets, and Marketing and Distribution.
Gathering and Processing Division
The Company’s Gathering and Processing Division consists of gathering, compressing, dehydrating, treating, conditioning, processing, and marketing natural gas and gathering crude oil. The gathering of natural gas consists of aggregating natural gas produced from various wells through small diameter gathering lines to processing plants. The Field Gathering and Processing segment gathers and processes natural gas from the Permian Basin in West Texas and Southeast New Mexico, the Fort Worth Basin, including the Barnett Shale, in North Texas and the Williston Basin in North Dakota. The natural gas processed in this segment is supplied through the Company’s gathering systems, which in aggregate consist of approximately 11,400 miles of natural gas pipelines and include 12 owned and operated processing plants. As of December 31, 2014, the Company processed an average of 921.2 Million Cubic Feet per Day (MMcf/d) of natural gas and produced an average of 105.9 Thousand Barrels per Day (MBbl/d) of NGLs. In addition to natural gas gathering and processing, the Company’s Badlands operations include a crude oil gathering system and four terminals with crude oil operational storage capacity of 125 Thousand Barrels (MBbl).
The Company’s Field Gathering and Processing segment's operations consist of Sand Hills, Versado, SAOU, North Texas and Badlands. The Sand Hills operations consist of the Sand Hills and Puckett gathering systems in West Texas. These systems consist of approximately 1,600 miles of natural gas gathering pipelines. The Sand Hills refrigerated cryogenic processing plant has a gross processing capacity of approximately 175 MMcf/d. Saunders, Eunice and Monument gas processing plants and related gathering systems in Southeastern New Mexico and in West Texas. Versado consists of approximately 3,350 miles of natural gas gathering pipelines. The Saunders, Eunice and Monument refrigerated cryogenic processing plants have aggregate processing capacity of approximately 240 MMcf/d. SAOU includes approximately 1,750 miles of pipelines in the Permian Basin that gather natural gas for delivery to the Mertzon, Sterling, Conger and High Plains processing plants. SAOU is connected to thousands of producing wells and over 840 central delivery points. SAOU’s processing facilities are refrigerated cryogenic processing plants with an aggregate processing capacity of approximately 369 MMcf/d.
The Company’s North Texas includes two interconnected gathering systems with approximately 4,500 miles of pipelines gathering wellhead natural gas for the Chico, Shackelford and Longhorn natural gas processing facilities. The Chico gathering system consists of approximately 2,450 miles of gathering pipelines. Wellhead natural gas is either gathered for the Chico or Longhorn plants located in Wise County, Texas, and then compressed for processing, or it is compressed in the field at numerous compressor stations and then moved through one of several high-pressure gathering pipelines to the Chico or Longhorn plants. The Chico plant has an aggregated processing capacity of approximately 265 MMcf/d and an integrated fractionation capacity of approximately 15 MBbl/d. The Longhorn plant has a capacity of approximately 200 MMcf/d. The Shackelford gathering system includes approximately 2,050 miles of gathering pipelines and gathers wellhead natural gas for the Shackelford plant in Albany, Texas. Natural gas gathered from the northern and eastern portions of the Shackelford gathering system is compressed in the field at various compressor stations and then transported to the Chico plant for processing. The Shackelford plant has an aggregate processing capacity of approximately 13 MMcf/d.
The Company’s Badlands operations are located in the Bakken and Three Forks Shale plays of the Williston Basin in North Dakota and include approximately 360 miles of crude oil gathering pipelines, 40 MBbl of operational crude storage capacity at the Johnsons Corner Terminal, and 30 MBbl of operational crude storage capacity at the Alexander Terminal. The Badlands assets also includes approximately 170 miles of natural gas gathering pipelines and the Little Missouri natural gas processing plant with a gross processing capacity of approximately 50 MMcf/d.
The Company’s Coastal Gathering and Processing segment’s assets are located in the onshore region of the Louisiana Gulf Coast, accessing natural gas from the Gulf Coast and the Gulf of Mexico. The Coastal Gathering and Processing segment’s assets consist of LOU and the Coastal Straddles. As of December 31, 2014, the Company processed an average of 1,188.4 MMcf/d of plant natural gas inlet and produced an average of 47.1 MBbl/d of NGLs. LOU consists of approximately 1,000 miles of gathering system pipelines in Southwest Louisiana. The gathering system is connected to various producing wells central delivery points and/or pipeline interconnects in the area between Lafayette and Lake Charles, Louisiana. The gathering system is a high-pressure gathering system that delivers natural gas for processing to either the Acadia or Gillis plants through three main trunk lines. The processing facilities include the Gillis and Acadia processing plants, both of which are cryogenic plants. The Big Lake plant, also cryogenic, is located near the LOU gathering system. These processing plants have an aggregate processing capacity of approximately 440 MMcf/d. In addition, the Gillis plant has integrated fractionation with operating capacity of approximately 11 MBbl/d , which is interconnected with the Lake Charles Fractionator. The LOU gathering system is also interconnected with the Lowry gas plant, allowing receipt or delivery of gas. The Company operates the Venice gas plant, which has an aggregate processing capacity of 750 MMcf/d and the Venice Gathering System (VGS) that is approximately 150 miles in length and has a nominal capacity of approximately 320 MMcf/d.
The Company’s other Coastal Straddles operates plants, having an aggregate processing capacity of approximately 3,255 MMcf/d. Coastal Straddles also has ownership in two offshore gathering systems that include The Pelican and Seahawk gathering systems, with a combined length of approximately 175 miles and a combined capacity of approximately 230 MMcf/d. These systems gather natural gas from the shallow waters of the central Gulf of Mexico and supply a portion of the natural gas delivered to the Barracuda and Lowry processing facilities.
Logistics and Marketing Division
The Company’s Logistics and Marketing Division is also referred to as the Downstream Business. It includes the activities necessary to convert mixed NGLs into NGL products and provide certain value-added services, such he fractionation, storage, terminaling, transportation, exporting, distribution and marketing of NGLs and NGL products; the storing and terminaling of refined petroleum products and crude oil, and certain natural gas supply and marketing activities in support of the Company’s other businesses. These products are delivered to end-users through pipelines, barges, ships, trucks and rail cars. End-users of NGL products include petrochemical, refining companies, export markets for propane and butane, and propane markets for heating, cooking or crop drying applications.
The Company’s Logistics Assets segment uses its platform of integrated assets to receive, fractionate, store, treat, transport and deliver NGLs typically under fee-based arrangements. Its logistics assets are generally connected to and supplied in part by its gathering and processing assets and are primarily located at Mont Belvieu and Galena Park, Texas and in Lake Charles Louisiana. This segment also contains refined petroleum product and crude oil storage and terminaling facilities in Texas (the Channelview and Patriot Terminals; both on the Houston Ship Channel), Maryland (the Baltimore Terminal), and Washington (the Sound Terminal, located in Tacoma).
The Company’s NGL storage assets provide warehousing of mixed NGLs NGL products and petrochemical products in underground wells , which allows for the injection and withdrawal of such products at various times in order to meet supply and demand cycles. Its Petroleum Logistics business consists of storage and terminaling facilities in Texas (the Channelview Terminal and the Patriot facility) Maryland (the Baltimore Terminal) and Washington (the Sound Terminal). These facilities primarily serve the refined petroleum products and crude oil markets but also include LPGs and biofuels. The Company owns or operates a total of around 39 storage wells with a net storage capacity of approximately 64 MMBbl. The fractionation storage and terminaling business is supported by approximately 900 miles of company owned pipelines to transport mixed NGLs and specification products.
The Company’s Marketing and Distribution segment transports, distributes and markets NGLs through terminals and transportation assets across the United States. It owns or commercially manages terminal facilities in a number of states, including Texas, Louisiana, Arizona, Nevada, California, Florida, Alabama, Mississippi, Tennessee, Kentucky, New Jersey and Washington. The Marketing and Distribution segment consists of NGL Distribution and Marketing, Wholesale Marketing, Refinery Services, Commercial Transportation, Natural Gas Marketing and Terminal Facilities. The Company markets its own NGL production and also purchases component NGL products from other NGL producers and marketers for resale. The wholesale propane marketing operations primarily sell propane and related logistics services to multi-state retailers, independent retailers and other end-users. Its propane supply primarily originates from both refinery/gas supply contracts and other owned or managed logistics and marketing assets.
The Company’s refinery services business provides NGL balancing services through contractual arrangements with refiners to purchase and/or market propane and to supply butanes. The Company's transportation and distribution infrastructure include a range of assets supporting both third-party customers and the delivery requirements of marketing and asset management business. As of December 31, 2014, the Company’s transportation assets included 716 railcars that are leased and managed, 75 owned and leased transport tractors and 22 company-owned pressurized NGL barges. The Company also markets natural gas available from the Gathering and Processing segments, purchases and resells natural gas in selected United States markets, and manages the scheduling and logistics for these activities.
The Company competes with APL, Kinder Morgan, WTG Gas Processing, L.P., DCP Midstream Partners, LP, Devon Energy Corporation, Enbridge Inc., Enlink Midstream Partners LP, Regency Energy Partners LP, ONEOK Rockies Midstream, L.L.C., Gulf South Pipeline Company, LP, Hanlon Gas Processing, Ltd., J-W Operating Company, Louisiana Intrastate Gas Company L.L.C., Arrow Midstream Holdings, LLC, Hiland Partners, LP, Great Northern Midstream LLC, Caliber Midstream Partners, L.P., Bridger Pipeline LLC, ONEOK, Inc., BP p.l.c. and LoneStar NGL LLC.
Targa Resources Partners LP
SUITE 4300, 1000 LOUISIANA
HOUSTON TX 77002