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Targa Resources Corp (NYSE:TRGP)
Cash Flow from Operations
$625 Mil (TTM As of Sep. 2014)

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

For the three months ended in Sep. 2014, Targa Resources Corp's Net Income From Continuing Operations was $121 Mil. Its DDA was $88 Mil. Its Change In Working Capital was $-116 Mil. Its cash flow from deferred tax was $-2 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $4 Mil. In all, Targa Resources Corp's Cash Flow from Operations for the three months ended in Sep. 2014 was $95 Mil.


Definition

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

Targa Resources Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2013 is calculated as:

Targa Resources Corp's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

Targa Resources Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 105.7 (Dec. 2013 ) + 318.7 (Mar. 2014 ) + 105.8 (Jun. 2014 ) + 94.6 (Sep. 2014 ) = $625 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Cash flow from operations contains six items:

1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.

Targa Resources Corp's net income from continuing operations for the three months ended in Sep. 2014 was $121 Mil.

2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
• The term “depreciation” is used when discussing man made tangible assets
• The term “depletion” is used when discussing natural tangible assets
• The term “amortization” is used when discussing intangible assets

Targa Resources Corp's depreciation, depletion and amortization for the three months ended in Sep. 2014 was $88 Mil.

3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.

Targa Resources Corp's change in working capital for the three months ended in Sep. 2014 was $-116 Mil. It means Targa Resources Corp's working capital declined by $116 Mil from Jun. 2014 to Sep. 2014 .

4. Deferred Tax:
It is the cash flow generated from deferred tax.

Targa Resources Corp's cash flow from deferred tax for the three months ended in Sep. 2014 was $-2 Mil.

5. Cash Flow from Discontinued Operations:
Cash received by a company that comes from the sale of part of business.

Targa Resources Corp's cash flow from discontinued operations for the three months ended in Sep. 2014 was $0 Mil.

6. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).

Targa Resources Corp's cash flow from others for the three months ended in Sep. 2014 was $4 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, Cash Flow from Others, Cash Flow from Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Targa Resources Corp Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 00001347963215159201
CF_DDA 0000161169175181198272
ChangeInWorkingCapital 00001531-146-40-9-145
CF_DeferredTax 00001819331295
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 0000-766784107249
Cash Flow from Operations 0000391336209379428383

Targa Resources Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 431915934224996107103121
CF_DDA 48495364666973808688
ChangeInWorkingCapital -38-102988-116-49-67126-89-116
CF_DeferredTax 125016-2-1-1-2
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 1027-108717196874
Cash Flow from Operations 6586138193-119510631910695
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