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Targa Resources’ Structure and Operations

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Operations

Formed in 2005, Targa Resources (TRGP) gathers, compresses, processes, and sells natural gas. It transports and sells NGLs (natural gas liquids) and NGL products. It also gathers and stores crude oil and refined petroleum products. Its gathering and processing assets are located in the Permian Basin, Bakken Shale, Barnett Shale, Anadarko Basin, Arkoma Basin, Eagle Ford Shale, onshore Louisiana, and the Gulf of Mexico.

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Corporate structure

In February 2016, Targa Resources acquired all of the outstanding common units of Targa Resources Partners that it did not already own. Following this roll-in, Targa Resources doesn’t have any MLP, and it operates as a C corporation.

TRGP’s segments

Targa Resources operates through two primary segments:

  • Gathering and Processing
  • Logistics and Marketing

Its Gathering and Processing segment operations include the gathering of crude oil and natural gas produced from oil and gas wells and processing the raw natural gas by extracting NGLs and removing impurities.

The segment’s assets are located in the Permian Basin, the Eagle Ford Shale, the Barnett Shale, the Anadarko Basin, the Ardmore Basin, and the Arkoma Basin. These basins are located in Oklahoma, South Central Kansas, the Louisiana Gulf Coast, and the Gulf of Mexico.

Logistics and Marketing segment

Targa’s Logistics and Marketing segment includes all the activities necessary to convert mixed NGLs into NGL products. It provides certain value-added services such as storing, terminaling, transporting, distributing, and marketing of NGLs, refined petroleum products, and crude oil. It also provides certain natural gas supply and marketing activities in support of Targa’s other businesses, including services to LPG (liquefied petroleum gas) exporters.

Its logistics and marketing operations are generally connected to and supplied in part by the company’s Gathering and Processing segment. Operations for the Logistics and Marketing segment are primarily located in Mont Belvieu and Galena Park, Texas; Lake Charles, Louisiana; and Tacoma, Washington.

Next, let’s take a more detailed look at the performances of these two segments.

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