Targa Resources reports higher Q1 core profit on strength of North Dakota assets
May 1 (Reuters) - Pipeline operator Targa Resources (TRGP.N), opens new tab on Thursday reported a rise in adjusted core profit in the first quarter, helped by its Badlands operations in North Dakota and as higher NGL prices and service fees the offset impact of lower volumes.
Targa supplies natural gas and natural gas liquids (NGLs) to key markets through its network of gathering and processing assets, which are spread across the U.S. These assets are located in the Permian Basin, Bakken Shale, Barnett Shale, Eagle Ford Shale, among others.
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The Badlands operations include about 500 miles of crude oil and 300 miles of natural gas gathering pipelines. Targa repurchased its interest in Targa Badlands LLC for $1.8 billion during the quarter.
Quarterly crude oil sales from its Badlands operations were up 13% from the previous year at 107.1 thousand barrels per day (MBbl/d).
NGL sales in its Gathering and Processing Segment were 570.2 thousand barrels per day (MBbl/d) in the reported quarter, compared with 498.8 MBbl/d a year earlier, along with higher prices.
Targa's adjusted core profit rose 5% from last year to $1.18 billion. Analysts, on average, were expecting $1.16 billion, according to data compiled by LSEG.
However, overall revenue was flat and missed analysts' expectations, hurt by winter weather events reducing system volumes.
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