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Released November 08, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Targa Resources Corporation (NYSE:TRGP) (Houston, Texas) will greatly reduce its capital expenditures in 2020 as it reaps the benefits of about $4 billion worth of projects that were completed and began operations in 2019, company executives said Thursday. Industrial Info is tracking $4.4 billion in active projects belonging to the midstream energy company.
Click on the image at right for a graph showing Targa's project activity by industry sector.
Targa's 2019 growth capital expenditures are expected to be $2.4 billion. For 2020, the company expects capital expenditures to be about $1.2 billion to $1.3 billion, Targa said in its third-quarter earnings release. For related information, see May 9, 2019, article - Targa Vows to Restrain Capital Project Investments in Future.
Most of the 2020 capital expenditures are earmarked for projects already under construction, but as much as $100 million could go into new items such as a natural gas plant that is contemplated for the Permian Basin, as well as development of the planned 110,000-barrel-per-day (BBL/d) Natural Gas Liquids Fractionator Train #9 in Mont Belvieu, Texas, Targa President Matthew Meloy told industry analysts during Tuesday's earnings conference call. The timing of the projects depends on the company's outlook for natural gas volume growth and activity.
In Midland, Texas, Targa is performing equipment studies for a potential cryogenic natural gas processing expansion at a plant now under construction. The 250 million-standard-cubic-foot-per-day expansion would bring the facility's total capacity to 450 million standard cubic feet per day. The facility will process gas for Pioneer Natural Resources Company (NYSE:PXD) (Irving, Texas). For more information, see Industrial Info's project report.
In Rankin, Texas, plans are underway for a 250 million-standard-cubic-foot-per-day natural gas processing plant addition at Targa's Joyce plant. For more information, see Industrial Info's project report.
Construction on Fractionator Train #9 at Targa's Mont Belvieu complex currently is planned to kick off in fourth-quarter 2019, with completion in second-quarter 2021. For more information, see Industrial Info's project report.
Meloy said Targa recently completed its 250 million-cubic-foot-per-day Falcon natural gas processing plant near Orla, Texas, and the rebuild of Dock 2 at its liquefied petroleum gas (LPG) export facilities in Galena Park, Texas.
Another project that began service this year is the Grand Prix Y-grade natural gas liquids (NGL) pipeline, which was placed in-service during the third quarter and moved 230,000 barrels per day from the Permian Basin to Mont Belvieu in September.
Other facilities that started operations this year include the 200 million-cubic-foot-per-day Little Missouri 4 natural gas processing plant in the Badlands of South Dakota; and the 250 million-cubic-foot-per-day Pembrook natural gas plant near Midkiff, Texas.
Projects planned for completion in 2020 include the 110,000-BBL/d NGL fractionator trains #7 and #8 in Mont Belvieu; as well as the Peregrine natural gas-processing plant near Carlsbad, Texas, and the Gateway L1 natural gas processing plant near Big Lake, Texas. Each natural gas processing plant will be able to process 250 million cubic feet per day. For more information, see Industrial Info's project reports on Train #7, Train #8, the Peregrine plant and the Gateway L1 plant.
Targa reported a net loss of $47.3 million for just-ended third quarter, compared with a net loss of $23.7 billion in the same quarter of 2018. Earnings before interest, income taxes, depreciation and amortization were $349.2 million, compared with $347.2 million a year earlier.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Targa's 2019 growth capital expenditures are expected to be $2.4 billion. For 2020, the company expects capital expenditures to be about $1.2 billion to $1.3 billion, Targa said in its third-quarter earnings release. For related information, see May 9, 2019, article - Targa Vows to Restrain Capital Project Investments in Future.
Most of the 2020 capital expenditures are earmarked for projects already under construction, but as much as $100 million could go into new items such as a natural gas plant that is contemplated for the Permian Basin, as well as development of the planned 110,000-barrel-per-day (BBL/d) Natural Gas Liquids Fractionator Train #9 in Mont Belvieu, Texas, Targa President Matthew Meloy told industry analysts during Tuesday's earnings conference call. The timing of the projects depends on the company's outlook for natural gas volume growth and activity.
In Midland, Texas, Targa is performing equipment studies for a potential cryogenic natural gas processing expansion at a plant now under construction. The 250 million-standard-cubic-foot-per-day expansion would bring the facility's total capacity to 450 million standard cubic feet per day. The facility will process gas for Pioneer Natural Resources Company (NYSE:PXD) (Irving, Texas). For more information, see Industrial Info's project report.
In Rankin, Texas, plans are underway for a 250 million-standard-cubic-foot-per-day natural gas processing plant addition at Targa's Joyce plant. For more information, see Industrial Info's project report.
Construction on Fractionator Train #9 at Targa's Mont Belvieu complex currently is planned to kick off in fourth-quarter 2019, with completion in second-quarter 2021. For more information, see Industrial Info's project report.
Meloy said Targa recently completed its 250 million-cubic-foot-per-day Falcon natural gas processing plant near Orla, Texas, and the rebuild of Dock 2 at its liquefied petroleum gas (LPG) export facilities in Galena Park, Texas.
Another project that began service this year is the Grand Prix Y-grade natural gas liquids (NGL) pipeline, which was placed in-service during the third quarter and moved 230,000 barrels per day from the Permian Basin to Mont Belvieu in September.
Other facilities that started operations this year include the 200 million-cubic-foot-per-day Little Missouri 4 natural gas processing plant in the Badlands of South Dakota; and the 250 million-cubic-foot-per-day Pembrook natural gas plant near Midkiff, Texas.
Projects planned for completion in 2020 include the 110,000-BBL/d NGL fractionator trains #7 and #8 in Mont Belvieu; as well as the Peregrine natural gas-processing plant near Carlsbad, Texas, and the Gateway L1 natural gas processing plant near Big Lake, Texas. Each natural gas processing plant will be able to process 250 million cubic feet per day. For more information, see Industrial Info's project reports on Train #7, Train #8, the Peregrine plant and the Gateway L1 plant.
Targa reported a net loss of $47.3 million for just-ended third quarter, compared with a net loss of $23.7 billion in the same quarter of 2018. Earnings before interest, income taxes, depreciation and amortization were $349.2 million, compared with $347.2 million a year earlier.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
