HOUSTON, Sept. 28, 2010 (GLOBE NEWSWIRE) -- Targa Resources Partners LP ("NGLS" or the "Partnership") (NYSE:NGLS) announced today that it has completed the previously announced acquisition from Targa Resources, Inc. ("Targa") of Targa's 76.8% interest in Venice Energy Services Company, L.L.C. ("VESCO"), a joint venture that is operated by Targa. The natural gas gathering and processing business is located near Venice, LA in Plaquemines Parish along the Louisiana Gulf Coast. Total value of the transaction was approximately $175.6 million including cash acquired by the Partnership, subject to certain adjustments. Consideration paid by the Partnership to Targa consisted entirely of cash funded through borrowings under the Partnership's senior secured revolving credit facility.
"We are pleased to have closed this transaction which is immediately accretive to NGLS unit holders," said Rene Joyce, Chief Executive Officer of the Partnership's general partner and of Targa. "As previously stated, management's goal is to distribute to unit holders a portion of the cash flow accretion associated with this acquisition; therefore, we plan to recommend to the Board of Directors that the annualized cash distribution rate be increased by 4 cents for the third quarter of 2010 to $2.15 per common unit, compared to the current rate of $2.11 per common unit."
The third quarter distribution (if approved by the board) is expected to be declared in October 2010 and paid in November 2010.
About Targa Resources Partners
Targa Resources Partners was formed by Targa to engage in the business of gathering, compressing, treating, processing and selling natural gas and storing, fractionating, treating, transporting and selling natural gas liquids, or NGLs, and NGL products. The Partnership owns an extensive network of integrated gathering pipelines and gas processing plants and currently operates along the Louisiana Gulf Coast primarily accessing the offshore region of Louisiana, the Permian Basin in West Texas and Southeast New Mexico and the Fort Worth Basin in North Texas. Additionally, our natural gas liquids logistics and marketing assets are located primarily at Mont Belvieu and Galena Park near Houston, Texas and in Lake Charles, Louisiana with terminals and transportation assets across the United States. A subsidiary of Targa is the general partner of Targa Resources Partners.
Targa Resources Partners' principal executive offices are located at 1000 Louisiana, Suite 4300, Houston, Texas 77002 and its telephone number is 713-584-1000. For more information, visit .
Forward-Looking Statements
Certain statements in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside Targa Resources Partners' control, which could cause results to differ materially from those expected by management of Targa Resources Partners. Such risks and uncertainties include, but are not limited to, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas and natural gas liquids, the timing and success of business development efforts; and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2009 and other reports filed with the Securities and Exchange Commission. Targa Resources Partners undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
CONTACT: Targa Resources Partners LP Investor contact info: Anthony Riley, Senior Manager - Finance/Investor Relations Matt Meloy, Vice President - Finance and Treasurer 713-584-1133