Targa Resources Widens Net Loss, Further Reduces 2020 Capital Spending

SUGAR LAND--May 8, 2020--Researched by Industrial Info Resources (Sugar Land, Texas)--While midstream company Targa Resources Corporation (NYSE:TRGP) (Houston, Texas) started off first-quarter 2020 strong, with growth across its delivery and fractionation volumes, like other companies involved in the crude oil and natural gas liquids (NGL) sector, things took a nosedive toward the end of March, as the COVID-19 pandemic became more widespread and crude oil prices fell because of a price war led by Saudi Arabia and Russia and lower demand. Targa reported a first-quarter 2020 net loss of $1.74 billion, compared with a loss of $38.9 million in the prior-year quarter. The widening net loss was primarily due to non-cash impairment charges on assets in the company's Gathering and Processing segment.