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Investor FAQs

Investor FAQs

On February 17, 2016, Targa Resources Corp. (NYSE:TRGP) acquired all of the outstanding common units of Targa Resources Partners LP (NYSE: NGLS) that it did not already own (the “Merger”). All of NGLS's debt and preferred units outstanding at acquisition close remained outstanding.

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When did the Merger close?

The Merger closed prior to the market open on February 17, 2016.

What did I receive for my NGLS common units?

NGLS common unitholders received 0.62 shares of TRGP stock for each common unit of NGLS stock owned, as well as cash in lieu of any fractional TRGP shares after conversion.

What are the expected U.S. federal income tax consequences of the transaction for former NGLS common unitholders?

The receipt of TRGP shares and cash in lieu of fractional shares, if any, in exchange for NGLS common units pursuant to the Merger will be a taxable transaction to U.S. holders for U.S. federal income tax purposes. In general, the Merger will be treated as a taxable sale of a U.S. holder’s NGLS common units in exchange for the TRGP shares and cash in lieu of fractional shares, if any, received in the Merger.

A U.S. holder who receives TRGP shares and cash in lieu of fractional shares, if any, in exchange for NGLS common units pursuant to the Merger will recognize gain or loss in an amount equal to the difference between (i) the sum of (A) the fair market value of the TRGP shares received at the time the transaction closed, (B) the amount of any cash received, and © such U.S. holder’s share of NGLS’s nonrecourse liabilities immediately prior to the Merger and (ii) the U.S. holder’s adjusted tax basis in the NGLS common units exchanged therefor (which includes such U.S. holder’s share of NGLS’s nonrecourse liabilities immediately prior to the Merger).

For more information on the taxability of the merger, please refer to the “Material U.S. Federal Income Tax Consequences” section of the definitive joint proxy statement/prospectus filed by TRGP and NGLS with the Securities and Exchange Commission on January 11, 2016.

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What will be the cost basis of my new TRGP shares?

A U.S. holder’s tax basis in any shares of TRGP common stock received in the NGLS merger is $17.25 per share, which was the closing price of TRGP common stock on February 16, 2016.  The transaction closed prior to market open on February 17, 2016.

What date does my holding period begin on my TRGP shares received in the Merger?

A U.S. holder’s holding period for any shares of TRGP common stock received in the Merger on February 17, 2016, begins on February 17, 2016. The Merger closed prior to market open on February 17, 2016. Therefore, a shareholder that acquired shares of TRGP common stock in the Merger had the opportunity to sell those shares on February 17, 2016.

Will I receive a K-1 in 2017 related to my 2016 ownership of NGLS common units?

A final 2016 K-1 will be available to NGLS common unitholders in early 2017. However, it will not summarize the final gain/loss associated with the NGLS common units held. The holder and/or their tax advisor will have to calculate final gain/loss as described above in the question “What are the expected U.S. federal income tax consequences of the transaction for former NGLS common unitholders?”. 

Does TRGP issue a K-1?

Targa Resources Corp. (NYSE: TRGP) is classified as a corporation for U.S. federal income tax purposes. TRGP shareholders receive an annual IRS Form 1099-DIV for their dividend income.

What kind of dividend does TRGP pay?

Given its classification as a corporation for U.S. federal income tax purposes, TRGP pays a qualified dividend, which will generally be included in an investor’s ordinary dividend income. Please consult a tax advisor about the tax consequences of dividend earnings and refer to “Material U.S. Federal Income Tax Consequences” section of Form S-4 filed with the SEC on December 3, 2015. 

What is the ticker symbol for Targa Resources Corp?

TRGP

On what exchange is Targa Resources Corp listed?

NYSE

Can common shares be purchased directly from Targa Resources Corp?

At this time, Targa Resources Corp does not have a direct purchase plan. Shares can be purchased through the brokerage firm of your choice.

Does Targa Resources Corp have a Distribution Reinvestment Plan (DRIP)?

No, Targa Resources Corp does not have a DRIP.

Who is Targa Resources Corp Transfer Agent?

Computershare Investor Services
P.O. Box 43078
Providence, RI 02940-3078
Phone: 1 (312) 588-4990