----

----

| þ | QUARTERLY      REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|---------------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|----------------------------------------------------------------------------------------------------|

|    |   For      the transition period from                                to                           |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                    |                                          |
|-------------------------------------------------------------------------|-----------------------------------------------|
| Delaware                                                                | 74-3117058                                    |
| (State      or other jurisdiction ofincorporation      or organization) | (I.R.S.      EmployerIdentification      No.) |
|                                                                    |                                          |
| 1000      Louisiana, Suite 4300, Houston, Texas                    | 77002                                         |
| (Address      of principal executive offices)                           | (Zip      Code)                               |

----

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Table of Contents

| PART I — FINANCIAL INFORMATION |                                                                                                                 |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|
| Item 1.                                        | Financial Statements                                                                                                 |   |   | 4 |   |
|                                           | Consolidated      Balance Sheets as of September 30, 2009 and December 31,      2008                       |   |   | 4 |   |
|                                           | Consolidated      Statements of Operations for the three and nine months ended      September 30, 2009 and 2008 |   |   | 5 |   |
|                                           | Consolidated      Statements of Cash Flows for the nine months ended September 30, 2009 and      2008                |   |   | 6 |   |
|                                           | Notes      to Consolidated Financial Statements                                                                      |   |   | 7 |   |
| Item 2.                                        | Management’s Discussion and Analysis of Financial      Condition and Results of Operations                     |   |   | 41 |   |
| Item 3.                                        | Quantitative and Qualitative Disclosures about Market      Risk                                                      |   |   | 58 |   |
| Item 4T.                                       | Controls and Procedures                                                                                              |   |   | 65 |   |
| PART II      — OTHER INFORMATION    |                                                                                                                 |
| Item 1.                                        | Legal Proceedings                                                                                                    |   |   | 66 |   |
| Item 1A.                                       | Risk Factors                                                                                                         |   |   | 66 |   |
| Item 2.                                        | Unregistered Sales of Equity Securities and Use of      Proceeds                                                     |   |   | 67 |   |
| Item 3.                                        | Defaults Upon Senior Securities                                                                                      |   |   | 67 |   |
| Item 4.                                        | Submission of Matters to a Vote of Security      Holders                                                             |   |   | 67 |   |
| Item 5.                                        | Other Information                                                                                                    |   |   | 67 |   |
| Item 6.                                        | Exhibits                                                                                                             |   |   | 68 |   |
| SIGNATURES                                     |                                                                                                                 |   | 71 |   |

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| Bbl              |   | Barrels                                                                      |
|------------------|--------|------------------------------------------------------------------------------|
| BBtu             |   | Billion      British thermal units, a measure of heating value               |
|  /d         |   |                                                                         | Per      day |
| gal              |   | Gallons                                                                      |
| MBbl             |   | Thousand      barrels                                                        |
| MMBtu            |   | Million      British thermal units                                           |
| MMcf             |   | Million      cubic feet                                                      |
| NGL(s)           |   | Natural      gas liquid(s)                                                   |
|             |   |                                                                         |   |
| Price      Index |   |                                                                         |
| Definitions      |   |                                                                         |
|             |   |                                                                         |   |
| HH-GD            |   | Henry      Hub-Gas Daily                                                     |
| IF-CGT           |   | Inside      FERC Gas Market Report, Columbia Gulf Transmission,    Louisiana |
| IF-HH            |   | Inside      FERC Gas Market Report, Henry Hub                                |
| IF-HSC           |   | Inside      FERC Gas Market Report, Houston Ship Channel/Beaumont,    Texas  |
| IF-NGPL      MC  |   | Inside      FERC Gas Market Report, Natural Gas Pipeline,  Mid-Continent     |
| IF-PB            |   | Inside      FERC Gas Market Report, Permian Basin                            |
| IF-Waha          |   | Inside      FERC Gas Market Report, West Texas Waha                          |
| NY-HH            |   | NYMEX,      Henry Hub Natural Gas                                            |
| NY-WTI           |   | NYMEX,      West Texas Intermediate Crude Oil                                |
| OPIS-MB          |   | Oil      Price Information Service, Mont Belvieu,Texas                       |

|   | • | our      ability to access the debt and equity markets, which will depend on      general market conditions and the credit ratings for our debt      obligations; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      amount of collateral required to be posted from time to time in our      transactions; |
|--------|---------|-------------------------------------------------------------------------------------------------|

|   | • | our      success in risk management activities, including the use of derivative      financial instruments to hedge commodity and interest rate      risks; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|   | • | the      level of creditworthiness of counterparties to    transactions; |
|--------|---------|--------------------------------------------------------------------------|

|   | • | changes      in laws and regulations, particularly with regard to taxes, safety and      protection of the environment; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | • | the      timing and extent of changes in natural gas, natural gas liquids and other      commodity prices, interest rates and demand for our    services; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | weather      and other natural phenomena; |
|--------|---------|-------------------------------------------|

|   | • | industry      changes, including the impact of consolidations and changes in      competition; |
|--------|---------|------------------------------------------------------------------------------------------------|

|   | • | our      ability to obtain necessary licenses, permits and other      approvals; |
|--------|---------|----------------------------------------------------------------------------------|

|   | • | the      level and success of crude oil and natural gas drilling around our assets      and our success in connecting natural gas supplies to our gathering and      processing systems and NGL supplies to our logistics and marketing      facilities; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our      ability to grow through acquisitions or internal growth projects and the      successful integration and future performance of such    assets; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | general      economic, market and business  conditions; and |
|--------|---------|------------------------------------------------------------------|

|   | • | the      risks described in this Quarterly Report and our Annual Report on Form      10-K for the year ended December 31, 2008 (“the Annual      Report”). |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

Ite

| TARGA      RESOURCES, INC.                                                        |   |
|-----------------------------------------------------------------------------------|--------|
| CONSOLIDATED      BALANCE SHEETS                                                  |   |
|                                                                              |   | September      30, |   |   | December      31, |   |
|                                                                              |   | 2009 |   |   | 2008 |   |
|                                                                              |   | (Unaudited) |   |
|                                                                              |   | (In      thousands) |   |
| ASSETS                                                                            |   |
| Current      assets:                                                              |   |   |   |   |   |   |
| Cash      and cash equivalents                                                    |   | $ | 187,927 |   |   | $ | 362,769 |   |
| Trade      receivables, net of allowances of $9,122 and $9,380                    |   |   | 303,332 |   |   |   | 303,904 |   |
| Inventory                                                                         |   |   | 40,830 |   |   |   | 68,519 |   |
| Assets      from risk management activities                                       |   |   | 58,531 |   |   |   | 112,341 |   |
| Other      current assets                                                         |   |   | 27,858 |   |   |   | 9,615 |   |
| Total      current assets                                                         |   |   | 618,478 |   |   |   | 857,148 |   |
| Property,      plant and equipment, at cost                                       |   |   | 3,167,224 |   |   |   | 3,093,264 |   |
| Accumulated      depreciation                                                     |   |   | (603,355 | ) |   |   | (475,895 | ) |
| Property,      plant and equipment, net                                           |   |   | 2,563,869 |   |   |   | 2,617,369 |   |
| Long-term      assets from risk management activities                             |   |   | 28,087 |   |   |   | 89,774 |   |
| Investment      in debt obligations of Targa Resources Investments Inc.           |   |   | 62,191 |   |   |   | 10,953 |   |
| Other      assets                                                                 |   |   | 58,893 |   |   |   | 73,333 |   |
| Total      assets                                                                 |   | $ | 3,331,518 |   |   | $ | 3,648,577 |   |
|                                                                              |   |   |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                         |   |
| Current      liabilities:                                                         |   |   |   |   |   |   |   |   |
| Accounts      payable                                                             |   | $ | 148,260 |   |   | $ | 153,756 |   |
| Accrued      liabilities                                                          |   |   | 244,057 |   |   |   | 253,384 |   |
| Current      maturities of debt                                                   |   |   | 12,500 |   |   |   | 12,500 |   |
| Liabilities      from risk management activities                                  |   |   | 18,331 |   |   |   | 11,664 |   |
| Deferred      income taxes                                                        |   |   | 14,231 |   |   |   | 36,240 |   |
| Total      current liabilities                                                    |   |   | 437,379 |   |   |   | 467,544 |   |
| Long-term      debt, less current maturities                                      |   |   | 1,242,224 |   |   |   | 1,552,440 |   |
| Long-term      liabilities from risk management activities                        |   |   | 24,440 |   |   |   | 9,679 |   |
| Deferred      income taxes                                                        |   |   | 52,042 |   |   |   | 40,027 |   |
| Other      long-term liabilities                                                  |   |   | 59,817 |   |   |   | 49,638 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Commitments      and contingencies (see Note 15)                                  |   |   |   |   |   |   |   |   |
|                                                                              |   |   |   |   |   |   |   |   |
| Stockholders'      equity:                                                        |   |   |   |   |   |   |   |   |
| Targa      Resources, Inc. stockholder's equity:                                  |   |   |   |   |   |   |   |   |
| Common      stock ($0.001 par value, 1,000 shares authorized, issued,             |   |   |   |   |   |   |   |   |
| and      outstanding at September 30, 2009 and December 31, 2008,      collateral |   |   |   |   |   |   |   |   |
| for      Targa Resources Investments Inc. debt)                                   |   |   | - |   |   |   | - |   |
| Additional      paid-in capital                                                   |   |   | 420,314 |   |   |   | 420,067 |   |
| Retained      earnings                                                            |   |   | 141,126 |   |   |   | 127,640 |   |
| Accumulated      other comprehensive income                                       |   |   | 3,027 |   |   |   | 31,934 |   |
| Total      Targa Resources, Inc. stockholder's equity                             |   |   | 564,467 |   |   |   | 579,641 |   |
| Noncontrolling      interest in subsidiaries                                      |   |   | 951,149 |   |   |   | 949,608 |   |
| Total      stockholders' equity                                                   |   |   | 1,515,616 |   |   |   | 1,529,249 |   |
| Total      liabilities and stockholders' equity                                   |   | $ | 3,331,518 |   |   | $ | 3,648,577 |   |
|                                                                              |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements                               |   |

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| TARGA RESOURCES, INC.                                         |   |
|---------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF OPERATIONS                    |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   | Three MonthsEnded September 30, |   |   | Nine MonthsEnded September 30, |   |
|                                                          |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                                          |   | (Unaudited) |   |
|                                                          |   | (In      thousands) |   |
| Revenues                                                      |   | $ | 1,121,477 |   |   | $ | 2,352,987 |   |   | $ | 3,127,020 |   |   | $ | 6,818,606 |   |
| Costs      and expenses:                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product      purchases                                        |   |   | 932,121 |   |   |   | 2,176,830 |   |   |   | 2,606,905 |   |   |   | 6,201,360 |   |
| Operating      expenses                                       |   |   | 63,506 |   |   |   | 73,583 |   |   |   | 182,673 |   |   |   | 208,390 |   |
| Depreciation      and amortization expenses                   |   |   | 44,255 |   |   |   | 41,086 |   |   |   | 127,908 |   |   |   | 118,028 |   |
| General      and administrative expenses                      |   |   | 31,429 |   |   |   | 26,679 |   |   |   | 83,478 |   |   |   | 78,696 |   |
| Other      (see Note 19)                                      |   |   | (3 | ) |   |   | 17,886 |   |   |   | 1,804 |   |   |   | 13,441 |   |
|                                                          |   |   | 1,071,308 |   |   |   | 2,336,064 |   |   |   | 3,002,768 |   |   |   | 6,619,915 |   |
| Income      from operations                                   |   |   | 50,169 |   |   |   | 16,923 |   |   |   | 124,252 |   |   |   | 198,691 |   |
| Other      income (expense):                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense, net                                    |   |   | (29,386 | ) |   |   | (24,599 | ) |   |   | (77,138 | ) |   |   | (73,844 | ) |
| Equity      in earnings of unconsolidated investments         |   |   | 1,417 |   |   |   | 2,534 |   |   |   | 3,221 |   |   |   | 13,189 |   |
| Loss      on debt repurchases (See Note 8)                    |   |   | (1,483 | ) |   |   | - |   |   |   | (1,483 | ) |   |   | - |   |
| Loss      on early debt extinguishment (See Note 8)           |   |   | (14,808 | ) |   |   | - |   |   |   | (14,808 | ) |   |   | - |   |
| Gain      on insurance claims (see Note 12)                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 18,566 |   |
| Gain      (loss) on mark-to-market derivative instruments     |   |   | 805 |   |   |   | (1,311 | ) |   |   | 805 |   |   |   | (1,311 | ) |
| Other      income                                             |   |   | 564 |   |   |   | - |   |   |   | 1,568 |   |   |   | - |   |
| Income      (loss) before income taxes                        |   |   | 7,278 |   |   |   | (6,453 | ) |   |   | 36,417 |   |   |   | 155,291 |   |
| Income      tax (expense) benefit:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                       |   |   | (212 | ) |   |   | 1,053 |   |   |   | (328 | ) |   |   | (184 | ) |
| Deferred                                                      |   |   | 1,409 |   |   |   | 8,829 |   |   |   | (4,880 | ) |   |   | (30,225 | ) |
|                                                          |   |   | 1,197 |   |   |   | 9,882 |   |   |   | (5,208 | ) |   |   | (30,409 | ) |
| Net      income                                               |   |   | 8,475 |   |   |   | 3,429 |   |   |   | 31,209 |   |   |   | 124,882 |   |
| Less:      Net income attributable to noncontrolling interest |   |   | 11,068 |   |   |   | 24,309 |   |   |   | 17,723 |   |   |   | 81,148 |   |
| Net      income (loss) attributable to Targa Resources, Inc.  |   | $ | (2,593 | ) |   | $ | (20,880 | ) |   | $ | 13,486 |   |   | $ | 43,734 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements           |   |

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| TARGA RESOURCES, INC.                                                            |   |
|----------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS                                       |   |
|                                                                             |   |   |   |   |   |   |
|                                                                             |   | Nine      Months Ended |   |
|                                                                             |   | September      30, |   |
|                                                                             |   | 2009 |   |   | 2008 |   |
|                                                                             |   | (Unaudited) |   |
|                                                                             |   | (In      thousands) |   |
| Cash      flows from operating activities                                        |   |   |   |   |   |   |
| Net      income                                                                  |   | $ | 31,209 |   |   | $ | 124,882 |   |
| Adjustments      to reconcile net income to net cash provided                    |   |   |   |   |   |   |   |   |
| by      operating activities:                                                    |   |   |   |   |   |   |   |   |
| Amortization      in interest expense                                            |   |   | 5,052 |   |   |   | 5,899 |   |
| Interest      income on paid-in-kind investment                                  |   |   | (2,209 | ) |   |   | (165 | ) |
| Amortization      in general and other administrative expense                    |   |   | 710 |   |   |   | 1,179 |   |
| Depreciation      and amortization expense                                       |   |   | 126,382 |   |   |   | 118,028 |   |
| Accretion      of asset retirement obligations                                   |   |   | 2,200 |   |   |   | 1,189 |   |
| Deferred      income tax expense                                                 |   |   | 4,880 |   |   |   | 30,225 |   |
| Equity      in earnings of unconsolidated investments, net of      distributions |   |   | 654 |   |   |   | (10,476 | ) |
| Risk      management activities                                                  |   |   | 35,129 |   |   |   | (76,754 | ) |
| Gain      on sale of assets                                                      |   |   | (41 | ) |   |   | (4,458 | ) |
| Loss      on debt repurchases                                                    |   |   | 1,483 |   |   |   | - |   |
| Loss      on early debt extinguishment                                           |   |   | 14,808 |   |   |   | - |   |
| Gain      on property damage insurance settlement (See Note 12)                  |   |   | - |   |   |   | (18,566 | ) |
| Asset      impairment charges                                                    |   |   | 1,526 |   |   |   | 5,112 |   |
| Changes      in operating assets and liabilities:                                |   |   |   |   |   |   |   |   |
| Accounts      receivable and other assets                                        |   |   | (33,788 | ) |   |   | 268,581 |   |
| Inventory                                                                        |   |   | 17,912 |   |   |   | 22,412 |   |
| Accounts      payable and other liabilities                                      |   |   | 3,171 |   |   |   | (204,547 | ) |
| Net      cash provided by operating activities                                   |   |   | 209,078 |   |   |   | 262,541 |   |
| Cash      flows from investing activities                                        |   |   |   |   |   |   |   |   |
| Additions      to property, plant and equipment                                  |   |   | (74,874 | ) |   |   | (93,848 | ) |
| Acquisitions,      net of cash acquired                                          |   |   | - |   |   |   | (124,938 | ) |
| Proceeds      from property insurance                                            |   |   | 23,800 |   |   |   | 48,294 |   |
| Investment      in debt obligations of Targa Resources Investments Inc.          |   |   | (39,296 | ) |   |   | (16,400 | ) |
| Other                                                                            |   |   | 366 |   |   |   | 581 |   |
| Net      cash used in investing activities                                       |   |   | (90,004 | ) |   |   | (186,311 | ) |
| Cash      flows from financing activities                                        |   |   |   |   |   |   |   |   |
| Repayments      of senior secured debt                                           |   |   | (456,875 | ) |   |   | (9,375 | ) |
| Repayments      of senior secured credit facility                                |   |   | (95,920 | ) |   |   | - |   |
| Senior      secured credit facility of the Partnership:                          |   |   |   |   |   |   |   |   |
| Borrowings                                                                       |   |   | 397,618 |   |   |   | 87,500 |   |
| Repayments                                                                       |   |   | (374,900 | ) |   |   | (323,800 | ) |
| Repurchases      of senior notes of the Partnership                              |   |   | (18,882 | ) |   |   | - |   |
| Proceeds      from issuance of senior notes of the Partnership                   |   |   | 237,433 |   |   |   | 250,000 |   |
| Distributions      to noncontrolling interest                                    |   |   | (73,746 | ) |   |   | (75,039 | ) |
| Contributions      from noncontrolling interest                                  |   |   | 104,242 |   |   |   | - |   |
| Distribution      to Targa Resources Investments Inc.                            |   |   | (214 | ) |   |   | (52,774 | ) |
| Costs      incurred in connection with financing arrangements                    |   |   | (12,672 | ) |   |   | (7,202 | ) |
| Net      cash used in financing activities                                       |   |   | (293,916 | ) |   |   | (130,690 | ) |
| Net      change in cash and cash equivalents                                     |   |   | (174,842 | ) |   |   | (54,460 | ) |
| Cash      and cash equivalents, beginning of period                              |   |   | 362,769 |   |   |   | 177,949 |   |
| Cash      and cash equivalents, end of period                                    |   | $ | 187,927 |   |   | $ | 123,489 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements                              |   |

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Note 2—Out of Period Adjustments

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Table of Contents

|                   |                     |   | Distributions Paid                           |   |   | Distributions   |   |
|------------------------|--------------------------|--------|----------------------------------------------|--------|--------|-----------------|--------|
|                   |  For      the Three |   | Limited Partners                             |   |   | General Partner |   |   |   |   |   | per      limited |   |
|  Date Paid        |  Months Ended       |   | Common                                       |   |   | Subordinated    |   |   | Incentive |   |   |   | 2% |   |   | Total |   |   | partner unit |   |
|                   |                     |   | (In      thousands, except per unit amounts) |   |
|  2009             |                     |   |                                         |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| August      14, 2009   | June      30, 2009       |   | $                                            | 23,915 |   |            | $      | - |   |   | $ | 1,933 |   |   | $ | 528 |   |   | $ | 26,376 |   |   | $ | 0.5175 |   |
| May      15, 2009      | March      31, 2009      |   |                                         | 17,949 |   |            |   | 5,966 |   |   |   | 1,933 |   |   |   | 528 |   |   |   | 26,376 |   |   |   | 0.5175 |   |
| February      13, 2009 | December      31, 2008   |   |                                         | 17,949 |   |            |   | 5,965 |   |   |   | 1,933 |   |   |   | 528 |   |   |   | 26,375 |   |   |   | 0.5175 |   |
|                   |                     |   |                                         |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  2008             |                     |   |                                         |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| August      14, 2008   | June      30, 2008       |   |                                         | 17,759 |   |            |   | 5,908 |   |   |   | 1,711 |   |   |   | 518 |   |   |   | 25,896 |   |   |   | 0.5125 |   |
| May      15, 2008      | March      31, 2008      |   |                                         | 14,467 |   |            |   | 4,813 |   |   |   | 208 |   |   |   | 398 |   |   |   | 19,886 |   |   |   | 0.4175 |   |
| February      14, 2008 | December      31, 2007   |   |                                         | 13,768 |   |            |   | 4,582 |   |   |   | 66 |   |   |   | 376 |   |   |   | 18,792 |   |   |   | 0.3975 |   |

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| Held      Less Than |   |   | Held      Twelve Months |   |   |   |   |
|---------------------|--------|--------|-------------------------|--------|--------|--------|--------|
| Twelve Months       |   |   | or Greater              |   |   | Total  |   |
| Fair                |   |   | Unrealized              |   |   | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
| Value               |   |   | Gain (Loss)             |   |   | Value  |   |   | Gain (Loss) |   |   | Value (1) |   |   | Gain (Loss) |   |
| $                   | 43,276 |   |                    | $      | 3,980  |   |   | $ | 13,295 |   |   | $ | (3,105 | ) |   | $ | 56,571 |   |   | $ | 875 |   |

| (1) | Excludes      $3.2 million of interest paid-in-kind and $2.5 million of discount      amortization. |
|-----|-----------------------------------------------------------------------------------------------------|

| September      30, |   |   | December      31, |   |
|--------------------|--------|--------|-------------------|--------|
| 2009               |   |   | 2008              |   |
| $                  | 17,811 |   |              | $      | 18,465 |   |

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Table of Contents

|                        |   | Three Months Ended September      30, |   |   | Nine Months Ended September    30, |   |
|-----------------------------|--------|---------------------------------------|--------|--------|------------------------------------|--------|
|                        |   | 2009                                  |   |   | 2008                               |   |   | 2009 |   |   | 2008 |   |
| Equity      in earnings of: |   |                                  |   |   |                               |   |   |   |   |   |   |   |
| VESCO      (1) (2)          |   | $                                     | -      |   |                               | $      | 1,432 |   |   | $ | - |   |   | $ | 10,161 |   |
| GCF                         |   |                                  | 1,417  |   |                               |   | 1,102 |   |   |   | 3,221 |   |   |   | 3,028 |   |
|                        |   | $                                     | 1,417  |   |                               | $      | 2,534 |   |   | $ | 3,221 |   |   | $ | 13,189 |   |
|                        |   |                                  |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Cash      distributions:    |   |                                  |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| GCF                         |   | $                                     | 3,100  |   |                               | $      | 1,938 |   |   | $ | 3,875 |   |   | $ | 2,713 |   |

| (1) | Includes      our equity earnings through July 31,2008. |
|-----|---------------------------------------------------------|

| (2) | Includes      business interruption insurance claims of $0 and $4.1 million for the      three and nine months ended September 30,2008. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                                                                                 |   | September      30, |      |   | December      31, |   |
|------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                                                                 |   | 2009               |      |   | 2008              |   |
| Long-term      debt:                                                                                 |   |               |      |   |              |   |
| Obligations      of Targa:                                                                           |   |               |      |   |              |   |
| Senior      secured term loan facility, variable rate, due October2012                               |   | $                  | 65,300    |   |              | $      | 522,175 |   |
| Senior      unsecured notes, 81⁄2% fixed rate, due November 2013                                  |   |               | 250,000   |   |              |   | 250,000 |   |
| Senior      secured revolving credit facility, variable rate, due October      2011                  |   |               | -         |   |              |   | 95,920 |   |
| Obligations      of the Partnership: (1)                                                             |   |               |      |   |              |   |   |   |
| Senior      secured revolving credit facility, variable rate, due February      2012                 |   |               | 510,483   |   |              |   | 487,765 |   |
| Senior      unsecured notes, 81⁄4% fixed rate, due July 2016                                      |   |               | 209,080   |   |              |   | 209,080 |   |
| Senior      unsecured notes, 111⁄4% fixed rate, due July 2017 (2)                                 |   |               | 219,861   |   |              |   | - |   |
| Total      debt                                                                                      |   |               | 1,254,724 |   |              |   | 1,564,940 |   |
| Current      maturities of debt                                                                      |   |               | (12,500   | )      |              |   | (12,500 | ) |
| Total      long-term debt                                                                            |   | $                  | 1,242,224 |   |              | $      | 1,552,440 |   |
| Irrevocable      standby letters of credit:                                                          |   |               |      |   |              |   |   |   |
| Letters      of credit outstanding under senior secured synthetic letter of credit      facility (3) |   | $                  | 38,099    |   |              | $      | 114,019 |   |
| Letters      of credit outstanding under senior secured revolvingcredit                              |   |               |      |   |              |   |   |   |
| facility      of the Partnership                                                                     |   |               | 58,844    |   |              |   | 9,651 |   |
|                                                                                                 |   | $                  | 96,943    |   |              | $      | 123,670 |   |

|   | (1) | We      consolidate the debt of the Partnership with that of our own; however, the      Partnership’s debt is non-recourse toTarga. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The      carrying amount of the notes includes $11.4 million of unamortized      original issue discount as of September 30,  2009. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | The      $50 million senior secured synthetic letter of credit facility terminates      in October 2012. |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | Information      Regarding Variable Interest RatesPaid |
|--------|--------------------------------------------------------|

|                                                             |  Range of interest rates      paid |   | Weighted average interest rate      paid |   |
|------------------------------------------------------------------|-----------------------------------------|--------|------------------------------------------|--------|
| Senior      secured term loan facility                           | 2.2%      to 6.0%                       |   |                                     | 3.6    | % |
| Senior      secured revolving credit facility                    | 2.1%      to 3.5%                       |   |                                     | 3.1    | % |
| Senior      secured revolving credit facility of the Partnership | 1.2%      to 4.5%                       |   |                                     | 1.8    | % |

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Table of Contents

|   | · | are      the Partnership’s unsecured seniorobligations; |
|--------|--------|---------------------------------------------------------------|

|   | · | rank      pari passu in      right of payment with the Partnership’s existing and future senior      indebtedness, including indebtedness under its senior secured revolving      credit facility; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | are      senior in right of payment to any of the Partnership’s future subordinated      indebtedness; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | are      unconditionally guaranteed by thePartnership. |
|--------|--------|--------------------------------------------------------|

| Year                     |   | Percentage |    |
|--------------------------|--------|------------|---------|
| 2013                     |   |       | 105.625 | % |
| 2014                     |   |       | 102.813 | % |
| 2015      and thereafter |   |       | 100.000 | % |

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Table of Contents

|                                  |   | Nine      Months Ended |   |
|---------------------------------------|--------|------------------------|--------|
|                                  |   | September 30, 2009     |   |
| Beginning      of period              |   | $                      | 33,985 |   |
| Change      in cash flow estimate (1) |   |                   | (2,853 | ) |
| Accretion      expense                |   |                   | 2,200  |   |
| End      of period                    |   | $                      | 33,332 |   |

| (1) | Results      primarily from a reassessment of the estimated abandonment dates of      certain of our offshore natural gas gathering  systems. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                                                 |   |   |      |   |     |   |    | Accumulated   |   |   |       |   |   |           |    |
|----------------------------------------------------------------------|--------|--------|-----------|--------|----------|--------|---------|---------------|--------|--------|------------|--------|--------|----------------|---------|
|                                                                 |   |   |      |   |     |   |    | Other         |   |   | Additional |   |   |           |    |
|                                                                 |   |   |      |   | Retained |   |    | Comprehensive |   |   | Paid-in    |   |   | Noncontrolling |    |
| Nine Months Ended September 30,      2009                            |   | Total  |      |   | Earnings |   |    | Income        |   |   | Capital    |   |   | Interest       |    |
| Balance,      December 31, 2008                                      |   | $      | 1,529,249 |   |     | $      | 127,640 |          |   | $      | 31,934     |   |   | $              | 420,067 |   |   | $ | 949,608 |   |
| Contributions                                                        |   |   | 104,242   |   |     |   | -       |          |   |   | -          |   |   |           | -       |   |   |   | 104,242 |   |
| Distributions                                                        |   |   | (73,960   | )      |     |   | -       |          |   |   | -          |   |   |           | (214    | ) |   |   | (73,746 | ) |
| Amortization      of equity awards                                   |   |   | 710       |   |     |   | -       |          |   |   | -          |   |   |           | 461     |   |   |   | 249 |   |
| Tax      expense on vesting of common stock                          |   |   | -         |   |     |   | -       |          |   |   | -          |   |   |           | -       |   |   |   | - |   |
|      Subtotal                               |   |   | 1,560,241 |   |     |   | 127,640 |          |   |   | 31,934     |   |   |           | 420,314 |   |   |   | 980,353 |   |
| Comprehensive      income (loss):                                    |   |   |      |   |     |   |    |          |   |   |       |   |   |           |    |   |   |   |   |   |
| Net      income                                                      |   |   | 31,209    |   |     |   | 13,486  |          |   |   | -          |   |   |           | -       |   |   |   | 17,723 |   |
| Other      comprehensive income (loss):                              |   |   |      |   |     |   |    |          |   |   |       |   |   |           |    |   |   |   |   |   |
| Change      in fair value:                                           |   |   |      |   |     |   |    |          |   |   |       |   |   |           |    |   |   |   |   |   |
| Commodity      hedging contracts                                     |   |   | (43,683   | )      |     |   | -       |          |   |   | (16,496    | )      |   |           | -       |   |   |   | (27,187 | ) |
| Interest      rate swaps                                             |   |   | (7,825    | )      |     |   | -       |          |   |   | (7,084     | )      |   |           | -       |   |   |   | (741 | ) |
| Available      for sale securities                                   |   |   | 7,575     |   |     |   | -       |          |   |   | 7,575      |   |   |           | -       |   |   |   | - |   |
| Reclassification      adjustment for settled periods:                |   |   |      |   |     |   |    |          |   |   |       |   |   |           |    |   |   |   |   |   |
| Commodity      hedging contracts                                     |   |   | (59,112   | )      |     |   | -       |          |   |   | (34,930    | )      |   |           | -       |   |   |   | (24,182 | ) |
| Interest      rate swaps                                             |   |   | 12,337    |   |     |   | -       |          |   |   | 7,154      |   |   |           | -       |   |   |   | 5,183 |   |
| Related      income taxes                                            |   |   | 14,874    |   |     |   | -       |          |   |   | 14,874     |   |   |           | -       |   |   |   | - |   |
|      Total      comprehensive income (loss) |   |   | (44,625   | )      |     |   | 13,486  |          |   |   | (28,907    | )      |   |           | -       |   |   |   | (29,204 | ) |
| Balance,      September 30, 2009                                     |   | $      | 1,515,616 |   |     | $      | 141,126 |          |   | $      | 3,027      |   |   | $              | 420,314 |   |   | $ | 951,149 |   |
|                                                                 |   |   |      |   |     |   |    |          |   |   |       |   |   |           |    |   |   |   |   |   |

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Table of Contents

|                                                  |   |   |      |   |     |   |    | Accumulated   |   |   |       |   |   |           |    |
|-------------------------------------------------------|--------|--------|-----------|--------|----------|--------|---------|---------------|--------|--------|------------|--------|--------|----------------|---------|
|                                                  |   |   |      |   |     |   |    | Other         |   |   | Additional |   |   |           |    |
|                                                  |   |   |      |   | Retained |   |    | Comprehensive |   |   | Paid-in    |   |   | Noncontrolling |    |
| Nine Months Ended September 30,      2008             |   | Total  |      |   | Earnings |   |    | Loss          |   |   | Capital    |   |   | Interest       |    |
| Balance,      December 31, 2007                       |   | $      | 1,307,530 |   |     | $      | 74,736  |          |   | $      | (56,116    | )      |   | $              | 473,784 |   |   | $ | 815,126 |   |
| VESCO      Acquisition                                |   |   | 41,856    |   |     |   | -       |          |   |   | -          |   |   |           | -       |   |   |   | 41,856 |   |
| Distributions                                         |   |   | (127,813  | )      |     |   | -       |          |   |   | -          |   |   |           | (52,774 | ) |   |   | (75,039 | ) |
| Amortization      of equity awards                    |   |   | 1,179     |   |     |   | -       |          |   |   | -          |   |   |           | 979     |   |   |   | 200 |   |
| Tax      expense on vesting of common stock           |   |   | (526      | )      |     |   | -       |          |   |   | -          |   |   |           | (526    | ) |   |   | - |   |
| Subtotal                                              |   |   | 1,222,226 |   |     |   | 74,736  |          |   |   | (56,116    | )      |   |           | 421,463 |   |   |   | 782,143 |   |
| Comprehensive      income (loss):                     |   |   |      |   |     |   |    |          |   |   |       |   |   |           |    |   |   |   |   |   |
| Net      income                                       |   |   | 124,882   |   |     |   | 43,734  |          |   |   | -          |   |   |           | -       |   |   |   | 81,148 |   |
| Other      comprehensive income (loss):               |   |   |      |   |     |   |    |          |   |   |       |   |   |           |    |   |   |   |   |   |
| Change      in fair value:                            |   |   |      |   |     |   |    |          |   |   |       |   |   |           |    |   |   |   |   |   |
| Commodity      hedging contracts                      |   |   | (50,530   | )      |     |   | -       |          |   |   | (24,622    | )      |   |           | -       |   |   |   | (25,908 | ) |
| Interest      rate swaps                              |   |   | (1,976    | )      |     |   | -       |          |   |   | (523       | )      |   |           | -       |   |   |   | (1,453 | ) |
| Available      for sale securities                    |   |   | (2,065    | )      |     |   | -       |          |   |   | (2,065     | )      |   |           | -       |   |   |   | - |   |
| Reclassification      adjustment for settled periods: |   |   |      |   |     |   |    |          |   |   |       |   |   |           |    |   |   |   |   |   |
| Commodity      hedging contracts                      |   |   | 87,704    |   |     |   | -       |          |   |   | 51,157     |   |   |           | -       |   |   |   | 36,547 |   |
| Interest      rate swaps                              |   |   | 1,485     |   |     |   | -       |          |   |   | 393        |   |   |           | -       |   |   |   | 1,092 |   |
| Foreign      currency translation adjustment          |   |   | (477      | )      |     |   | -       |          |   |   | (477       | )      |   |           | -       |   |   |   | - |   |
| Related      income taxes                             |   |   | (7,375    | )      |     |   | -       |          |   |   | (7,375     | )      |   |           | -       |   |   |   | - |   |
| Total      comprehensive income (loss)                |   |   | 151,648   |   |     |   | 43,734  |          |   |   | 16,488     |   |   |           | -       |   |   |   | 91,426 |   |
| Balance,      September 30, 2008                      |   | $      | 1,373,874 |   |     | $      | 118,470 |          |   | $      | (39,628    | )      |   | $              | 421,463 |   |   | $ | 873,569 |   |

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Table of Contents

|                                                              |   | Three Months Ended September      30, |   |   | Nine Months Ended September    30, |   |
|-------------------------------------------------------------------|--------|---------------------------------------|--------|--------|------------------------------------|--------|
|                                                              |   | 2009                                  |   |   | 2008                               |   |   | 2009 |   |   | 2008 |   |
| Included      in revenues                                         |   |                                  |   |   |                               |   |   |   |   |   |   |   |
| Natural      Gas Gathering and Processing (1)                     |   | $                                     | 2,900  |   |                               | $      | 749 |   |   | $ | 5,474 |   |   | $ | 3,289 |   |
| Logistics      Assets                                             |   |                                  | -      |   |                               |   | - |   |   |   | 1,926 |   |   |   | 441 |   |
| NGL      Distribution and Marketing                               |   |                                  | -      |   |                               |   | - |   |   |   | - |   |   |   | 8,602 |   |
| Wholesale      Marketing (2)                                      |   |                                  | -      |   |                               |   | - |   |   |   | 500 |   |   |   | 5,920 |   |
|                                                              |   | $                                     | 2,900  |   |                               | $      | 749 |   |   | $ | 7,900 |   |   | $ | 18,252 |   |
|                                                              |   |                                  |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Included      in equity in earnings of unconsolidated investments |   |                                  |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Natural      Gas Gathering and Processing                         |   | $                                     | -      |   |                               | $      | - |   |   | $ | - |   |   | $ | 4,108 |   |
|                                                              |   |                                  |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   |                                  |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   | $                                     | 2,900  |   |                               | $      | 749 |   |   | $ | 7,900 |   |   | $ | 22,360 |   |

|   | (1) | Includes      $0.7 million for the three and nine months ended September 30, 2008 in      non-hurricane business interruption insurance revenue in our natural gas      gathering and processing segment. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Includes      $0.5 million for the nine months ended September 30, 2009 in non-hurricane      business interruption insurance revenue in our wholesale marketing      segment. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                 | Asset Derivatives     |   | Liability Derivatives |   |
|----------------------------------------------------------------------|-----------------------|--------|-----------------------|--------|
|                                                                 |  Balance         |   | Fair Value as of      |   |  Balance |   | Fair Value as of |   |
|                                                                 |  Sheet           |   | September      30,    |   |   | December      31, |   |  Sheet |   | September      30, |   |   | December      31, |   |
|                                                                 | Location              |   | 2009                  |   |   | 2008 |   | Location |   | 2009 |   |   | 2008 |   |
| Derivatives designated as hedging instruments      under ASC 815     |                  |   |                  |   |   |   |   |   |   |   |   |
|  Commodity      contracts                                       | Current      assets   |   | $                     | 55,332 |   |   | $ | 108,731 |   |  Current      liabilities |   | $ | 3,237 |   |   | $ | - |   |
|                                                                 | Long-term      assets |   |                  | 25,639 |   |   |   | 89,774 |   |  Long-term      liabilities |   |   | 18,210 |   |   |   | 123 |   |
|                                                                 |                  |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest      rate contracts                                   | Current      assets   |   |                  | -      |   |   |   | - |   |  Current      liabilities |   |   | 8,601 |   |   |   | 8,020 |   |
|                                                                 | Long-term      assets |   |                  | 493    |   |   |   | - |   |  Long-term      liabilities |   |   | 6,230 |   |   |   | 9,556 |   |
| Total      derivatives designated                                    |                  |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| as      hedging instruments                                          |                  |   |                  | 81,464 |   |   |   | 198,505 |   |   |   |   | 36,278 |   |   |   | 17,699 |   |
|                                                                 |                  |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments      under ASC 815 |                  |   |                  |   |   |   |   |   |   |   |
|  Commodity      contracts                                       | Current      assets   |   |                  | 3,199  |   |   |   | 3,610 |   |  Current      liabilities |   |   | 2,911 |   |   |   | 3,644 |   |
|                                                                 | Long-term      assets |   |                  | 285    |   |   |   | - |   |  Long-term      liabilities |   |   | - |   |   |   | - |   |
|                                                                 |                  |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest      rate contracts                                   | Current      assets   |   |                  | -      |   |   |   | - |   |  Current      liabilities |   |   | 3,582 |   |   |   | - |   |
|                                                                 | Long-term      assets |   |                  | 1,670  |   |   |   | - |   |  Long-term      liabilities |   |   | - |   |   |   | - |   |
| Total      derivatives not designated                                |                  |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| as      hedging instruments                                          |                  |   |                  | 5,154  |   |   |   | 3,610 |   |   |   |   | 6,493 |   |   |   | 3,644 |   |
|                                                                 |                  |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      derivatives                                               |                  |   | $                     | 86,618 |   |   | $ | 202,115 |   |   |   | $ | 42,771 |   |   | $ | 21,343 |   |

|                         |   | Gain      (Loss)                      |    |   | Gain      (Loss)                   |   |
|------------------------------|--------|---------------------------------------|---------|--------|------------------------------------|--------|
| Derivatives      in          |   | Recognized      in OCI on             |    |   | Recognized      in OCI on          |   |
| ASC      815                 |   | Derivatives (Effective    Portion)    |    |   | Derivatives (Effective    Portion) |   |
| Cash      Flow Hedging       |   | Three Months Ended September      30, |    |   | Nine Months Ended September    30, |   |
| Relationships                |   | 2009                                  |    |   | 2008                               |   |   | 2009 |   |   | 2008 |   |
| Interest      rate contracts |   | $                                     | (11,671 | )      |                               | $      | (1,706 | ) |   | $ | (7,825 | ) |   | $ | (1,976 | ) |
| Commodity      contracts     |   |                                  | (17,366 | )      |                               |   | 311,854 |   |   |   | (43,683 | ) |   |   | (50,530 | ) |
|                         |   | $                                     | (29,037 | )      |                               | $      | 310,148 |   |   | $ | (51,508 | ) |   | $ | (52,506 | ) |

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Table of Contents

|                         |   |                                                           |   |   |                               |   |   |   |   |   |   |   |
|------------------------------|--------|----------------------------------------------------------------|--------|--------|------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                         |   | Amount      of Gain (Loss) Recognized in Income on Derivatives |   |
| Location      of Gain (Loss) |   | (Ineffective Portion)                                          |   |
| Reclassified      from       |   | Three Months Ended September      30,                          |   |   | Nine Months Ended September    30, |   |
| OCI into Income              |   | 2009                                                           |   |   | 2008                               |   |   | 2009   |   |   | 2008   |   |
| Interest      expense, net   |   | $                                                              | (1,882 | )      |                               | $      | -      |   |   | $      | (1,882 | )      |   | $ | - |   |
| Revenues                     |   |                                                           | (618   | )      |                               |   | -      |   |   |   | (618   | )      |   |   | - |   |
|                         |   | $                                                              | (2,500 | )      |                               | $      | -      |   |   | $      | (2,500 | )      |   | $ | - |   |

|                         |   |                                                         |   |   |                               |   |
|------------------------------|--------|--------------------------------------------------------------|--------|--------|------------------------------------|--------|
|                         |   | Amount      of Gain (Loss) Reclassified from OCI into Income |   |
| Location      of Gain (Loss) |   | (Effective Portion)                                          |   |
| Reclassified      from       |   | Three Months Ended September      30,                        |   |   | Nine Months Ended September    30, |   |
| OCI into Income              |   | 2009                                                         |   |   | 2008                               |   |   | 2009 |   |   | 2008 |   |
| Interest      expense, net   |   | $                                                            | (4,075 | )      |                               | $      | 2,101 |   |   | $ | (10,455 | ) |   | $ | 1,485 |   |
| Revenues                     |   |                                                         | 23,012 |   |                               |   | 140,105 |   |   |   | 59,730 |   |   |   | 87,704 |   |
|                         |   | $                                                            | 18,937 |   |                               | $      | 142,206 |   |   | $ | 49,275 |   |   | $ | 89,189 |   |

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| Natural      Gas                                               |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
|----------------------------------------------------------------|-------------|--------|-----------------|--------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|
|                                                           |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Instrument                                                     |        |   | Avg.      Price |   |   | MMBtu per day |   |   |   |   |
|  Type                                                     |  Index |   | $/MMBtu         |   |   | 2009          |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value |   |
|  Sales                                                    |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
| Swap                                                           | NY-HH       |   |            | 2.97   |   |          |   | 968    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | (23 | ) |
|                                                           |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Swap                                                           | IF-Waha     |   |            | 6.62   |   |          |   | 21,918 |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 4,259 |   |
| Swap                                                           | IF-Waha     |   |            | 6.69   |   |          |   | -      |   |   |   | 16,300 |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 4,665 |   |
| Swap                                                           | IF-Waha     |   |            | 6.46   |   |          |   | -      |   |   |   | -      |   |   |   | 12,500 |   |   |   | -      |       |   |   | - |   |   |   | (162 | ) |
| Swap                                                           | IF-Waha     |   |            | 7.18   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 5,500  |       |   |   | - |   |   |   | 1,154 |   |
|                                                           |        |   |            |   |   |          |   | 21,918 |   |   |   | 16,300 |   |   |   | 12,500 |   |   |   | 5,500  |       |   |   | - |   |   |   |   |   |
|                                                           |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Swap                                                           | IF-PB       |   |            | 5.42   |   |          |   | -      |   |   |   | 2,000  |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | (305 | ) |
| Swap                                                           | IF-PB       |   |            | 5.42   |   |          |   | -      |   |   |   | -      |   |   |   | 2,000  |   |   |   | -      |       |   |   | - |   |   |   | (686 | ) |
| Swap                                                           | IF-PB       |   |            | 5.54   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 4,000  |       |   |   | - |   |   |   | (1,257 | ) |
| Swap                                                           | IF-PB       |   |            | 5.54   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | 4,000 |   |   |   | (1,314 | ) |
|                                                           |        |   |            |   |   |          |   | -      |   |   |   | 2,000  |   |   |   | 2,000  |   |   |   | 4,000  |       |   |   | 4,000 |   |   |   |   |   |
|                                                           |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Total      Sales                                               |        |   |            |   |   |          | 22,886 |   |   |   | 18,300 |   |   |   | 14,500 |   |   |   | 9,500  |   |       |   | 4,000 |   |   |   |   |   |
| Basis      Swap Oct 2009, 20,000 MMBtu/d                       |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   | (32 | ) |
| Basis      Swap Oct 2009, Rec IF-HH, Pay HH-GD, 10,000 MMBtu/d |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   | (430   | )      |
|                                                           |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | 5,869 |   |

| NGLs              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
|-------------------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Instrument        |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|  Type        |  Index |   | $/gal           |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value |   |
|  Sales       |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
| Swap              | OPIS-MB     |   |            | 0.80   |   |            |   | 3,347  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | (567 | ) |
| Swap              | OPIS-MB     |   |            | 0.84   |   |            |   | -      |   |   |   | 3,100  |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 24 |   |
| Swap              | OPIS-MB     |   |            | 0.86   |   |            |   | -      |   |   |   | -      |   |   |   | 1,900  |   |   |   | -      |       |   |   | - |   |   |   | 51 |   |
| Swap              | OPIS-MB     |   |            | 0.92   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 1,250  |       |   |   | - |   |   |   | 795 |   |
| Total      Swaps  |        |   |            |   |   |            | 3,347  |   |   |   | 3,100  |   |   |   | 1,900  |   |   |   | 1,250  |   |       |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Floor             | OPIS-MB     |   |            | 1.44   |   |            |   | -      |   |   |   | -      |   |   |   | 54     |   |   |   | -      |       |   |   | - |   |   |   | 395 |   |
| Floor             | OPIS-MB     |   |            | 1.43   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 63     |       |   |   | - |   |   |   | 479 |   |
| Total      Floors |        |   |            |   |   |            | -      |   |   |   | -      |   |   |   | 54     |   |   |   | 63     |   |       |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Total      Sales  |        |   |            |   |   |            | 3,347  |   |   |   | 3,100  |   |   |   | 1,954  |   |   |   | 1,313  |   |       |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | 1,177 |   |

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Table of Contents

| Condensate       |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
|------------------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|             |        |   |            |   |   |            |   |   |   |   |   |   |   |
| Instrument       |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|  Type       |  Index |   | $/Bbl           |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value |   |
|  Sales      |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
| Swap             | NY-WTI      |   |            | 67.85  |   |            |   | -      |   |   |   | 200    |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | (472 | ) |
| Swap             | NY-WTI      |   |            | 71.00  |   |            |   | -      |   |   |   | -      |   |   |   | 200    |   |   |   | -      |       |   |   | - |   |   |   | (446 | ) |
| Swap             | NY-WTI      |   |            | 72.60  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 200    |       |   |   | - |   |   |   | (449 | ) |
| Swap             | NY-WTI      |   |            | 73.80  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | 200 |   |   |   | (472 | ) |
| Total      Swaps |        |   |            |   |   |            | -      |   |   |   | 200    |   |   |   | 200    |   |   |   | 200    |   |       |   | 200 |   |   |   |   |   |
|             |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Total      Sales |        |   |            |   |   |            | -      |   |   |   | 200    |   |   |   | 200    |   |   |   | 200    |   |       |   | 200 |   |   |   |   |   |
|             |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | (1,839 | ) |

----

Table of Contents

| Natural      Gas                                                                         |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
|------------------------------------------------------------------------------------------|-----------------|--------|-----------------|--------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|                                                                                     |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Instrument                                                                               |            |   | Avg.      Price |   |   | MMBtu per day |   |   |   |   |
|  Type                                                                               |  Index     |   | $/MMBtu         |   |   | 2009          |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value |   |
|  Sales                                                                              |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
| Swap                                                                                     | IF-HSC          |   |            | 7.39   |   |          |   | 1,966  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | 500 |   |
|                                                                                     |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Swap                                                                                     | IF-NGPL      MC |   |            | 9.18   |   |          |   | 6,256  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 2,675 |   |
| Swap                                                                                     | IF-NGPL      MC |   |            | 8.86   |   |          |   | -      |   |   |   | 5,685  |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 6,169 |   |
| Swap                                                                                     | IF-NGPL      MC |   |            | 7.34   |   |          |   | -      |   |   |   | -      |   |   |   | 2,750  |   |   |   | -      |       |   |   | - |   |   |   | 898 |   |
| Swap                                                                                     | IF-NGPL      MC |   |            | 7.18   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 2,750  |       |   |   | - |   |   |   | 605 |   |
|                                                                                     |            |   |            |   |   |          |   | 6,256  |   |   |   | 5,685  |   |   |   | 2,750  |   |   |   | 2,750  |       |   |   | - |   |   |   |   |   |
|                                                                                     |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Swap                                                                                     | IF-Waha         |   |            | 7.79   |   |          |   | 9,936  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 2,999 |   |
| Swap                                                                                     | IF-Waha         |   |            | 6.53   |   |          |   | -      |   |   |   | 11,709 |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 2,630 |   |
| Swap                                                                                     | IF-Waha         |   |            | 6.10   |   |          |   | -      |   |   |   | -      |   |   |   | 11,250 |   |   |   | -      |       |   |   | - |   |   |   | (1,553 | ) |
| Swap                                                                                     | IF-Waha         |   |            | 6.30   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 7,250  |       |   |   | - |   |   |   | (584 | ) |
| Swap                                                                                     | IF-Waha         |   |            | 5.59   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | 4,000 |   |   |   | (1,251 | ) |
|                                                                                     |            |   |            |   |   |          |   | 9,936  |   |   |   | 11,709 |   |   |   | 11,250 |   |   |   | 7,250  |       |   |   | 4,000 |   |   |   |   |   |
| Total      Swaps                                                                         |            |   |            |   |   |          | 18,158 |   |   |   | 17,394 |   |   |   | 14,000 |   |   |   | 10,000 |   |       |   | 4,000 |   |   |   |   |   |
|                                                                                     |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Floor                                                                                    | IF-NGPL      MC |   |            | 6.55   |   |          |   | 850    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 114 |   |
|                                                                                     |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Floor                                                                                    | IF-Waha         |   |            | 6.55   |   |          |   | 565    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 77 |   |
| Total      Floors                                                                        |            |   |            |   |   |          | 1,415  |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |       |   | - |   |   |   |   |   |
|                                                                                     |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Total      Sales                                                                         |            |   |            |   |   |          | 19,573 |   |   |   | 17,394 |   |   |   | 14,000 |   |   |   | 10,000 |   |       |   | 4,000 |   |   |   |   |   |
| Basis      Swap Oct 2009-May 2011, Rec IF-CGT, Pay NYMEX less $0.11, 20,000      MMBtu/d |            |   |            |   |   |          |   | 586    |   |
| Fuel      cost swap Oct 2009-May 2011, Rec IF-CGT, Pay $5.96, 226      MMbtu/d           |            |   |            |   |   |          |   |   |   |   |   | 18     |   |
|                                                                                     |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | 13,883 |   |

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Table of Contents

| NGLs              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
|-------------------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Instrument        |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|  Type        |  Index |   | $/gal           |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value |   |
|  Sales       |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
| Swap              | OPIS-MB     |   |            | 1.32   |   |            |   | 6,248  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | 10,931 |   |
| Swap              | OPIS-MB     |   |            | 1.23   |   |            |   | -      |   |   |   | 5,209  |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 28,074 |   |
| Swap              | OPIS-MB     |   |            | 0.89   |   |            |   | -      |   |   |   | -      |   |   |   | 3,800  |   |   |   | -      |       |   |   | - |   |   |   | 48 |   |
| Swap              | OPIS-MB     |   |            | 0.92   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 2,700  |       |   |   | - |   |   |   | 1,071 |   |
| Total      Swaps  |        |   |            |   |   |            | 6,248  |   |   |   | 5,209  |   |   |   | 3,800  |   |   |   | 2,700  |   |       |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Floor             | OPIS-MB     |   |            | 1.44   |   |            |   | -      |   |   |   | -      |   |   |   | 199    |   |   |   | -      |       |   |   | - |   |   |   | 1,454 |   |
| Floor             | OPIS-MB     |   |            | 1.43   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 231    |       |   |   | - |   |   |   | 1,755 |   |
| Total      Floors |        |   |            |   |   |            | -      |   |   |   | -      |   |   |   | 199    |   |   |   | 231    |   |       |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Total      Sales  |        |   |            |   |   |            | 6,248  |   |   |   | 5,209  |   |   |   | 3,999  |   |   |   | 2,931  |   |       |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | 43,333 |   |

| Condensate        |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
|-------------------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |
| Instrument        |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|  Type        |  Index |   | $/Bbl           |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value |   |
|  Sales       |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
| Swap              | NY-WTI      |   |            | 69.00  |   |            |   | 322    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | (61 | ) |
| Swap              | NY-WTI      |   |            | 68.04  |   |            |   | -      |   |   |   | 401    |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | (913 | ) |
| Swap              | NY-WTI      |   |            | 71.00  |   |            |   | -      |   |   |   | -      |   |   |   | 200    |   |   |   | -      |       |   |   | - |   |   |   | (446 | ) |
| Swap              | NY-WTI      |   |            | 72.60  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 200    |       |   |   | - |   |   |   | (449 | ) |
| Swap              | NY-WTI      |   |            | 74.00  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | 200 |   |   |   | (459 | ) |
| Total      Swaps  |        |   |            |   |   |            | 322    |   |   |   | 401    |   |   |   | 200    |   |   |   | 200    |   |       |   | 200 |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Floor             | NY-WTI      |   |            | 60.00  |   |            |   | 50     |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 3 |   |
| Total      Floors |        |   |            |   |   |            | 50     |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |       |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Total      Sales  |        |   |            |   |   |            | 372    |   |   |   | 401    |   |   |   | 200    |   |   |   | 200    |   |       |   | 200 |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | (2,325 | ) |

----

Table of Contents

| Period                   |  Commodity  |  Instrument Type |   | Daily Volume |   | Average Price |  Index |   | Fair Value |   |
|--------------------------|------------------|-----------------------|--------|--------------|--------|---------------|-------------|--------|------------|--------|
| Purchases                |             |                  |   |         |   |          |        |   |       |   |   |   |   |   |
| Oct2009      - Dec 2009  | Natural      gas | Swap                  |   |         | 2,935  |          | MMBtu       |   | $          | 9.15   |   | per      MMBtu | NY-HH |   | $ | (1,189 | ) |
| Jan      2010 - Jun 2010 | Natural      gas | Swap                  |   |         | 663    |          | MMBtu       |   |       | 8.03   |   | per      MMBtu | NY-HH |   |   | (247 | ) |
| Sales                    |             |                  |   |         |   |          |        |   |       |   |   |   |   |   |   |   |   |
| Oct      2009 - Dec 2009 | Natural      gas | Fixed      price sale |   |         | 2,935  |          | MMBtu       |   |       | 9.15   |   | per      MMBtu | NY-HH |   |   | 1,188 |   |
| Jan      2010 - Jun 2010 | Natural      gas | Fixed      price sale |   |         | 663    |          | MMBtu       |   |       | 8.03   |   | per      MMBtu | NY-HH |   |   | 247 |   |
|                     |             |                  |   |         |   |          |        |   |       |   |   |   |   |   | $ | (1 | ) |

| Period                 |   | Fixed Rate |   |   | Notional Amount |   | Fair Value |   |
|------------------------|--------|------------|--------|--------|-----------------|--------|------------|--------|
| Remainder      of 2009 |   |       | 1.65%  |   |            | $      | 65         |   | million |   | $ | (231 | ) |
| 2010                   |   |       | 1.65%  |   |            |   | 65         |   | million |   |   | (542 | ) |
| 2011                   |   |       | 1.65%  |   |            |   | 65         |   | million |   |   | 346 |   |
| 01/01-03/31/2012       |   |       | 1.65%  |   |            |   | 65         |   | million |   |   | 195 |   |
|                   |   |       |   |   |            |   |       |   |   |   | $ | (232 | ) |

| Period                 |   | Fixed Rate |   |   | Notional Amount |   | Fair Value |   |
|------------------------|--------|------------|--------|--------|-----------------|--------|------------|--------|
| Remainder      of 2009 |   |       | 3.66%  |   |            | $      | 300        |   | million |   | $ | (647 | ) |
| 2010                   |   |       | 3.66%  |   |            |   | 300        |   | million |   |   | (9,166 | ) |
| 2011                   |   |       | 3.41%  |   |            |   | 300        |   | million |   |   | (4,566 | ) |
| 2012                   |   |       | 3.39%  |   |            |   | 300        |   | million |   |   | (913 | ) |
| 2013                   |   |       | 3.39%  |   |            |   | 300        |   | million |   |   | 569 |   |
| 01/01-04/24/2014       |   |       | 3.39%  |   |            |   | 300        |   | million |   |   | 617 |   |
|                   |   |       |   |   |            |   |       |   |   |   | $ | (14,106 | ) |

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|                                                             |   | Total  |    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|------------------------------------------------------------------|--------|--------|---------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|  Assets      from commodity derivative contracts            |   | $      | 84,455  |   |    | $      | -      |    |   | $      | 84,455  |   |   | $ | - |   |
|  Available-for-sale      securities (1)                     |   |   | 56,571  |   |    |   | -      |    |   |   | -       |   |   |   | 56,571 |   |
|  Assets      from interest rate derivatives                 |   |   | 2,163   |   |    |   | -      |    |   |   | 2,163   |   |   |   | - |   |
|        Total      assets      |   | $      | 143,189 |   |    | $      | -      |    |   | $      | 86,618  |   |   | $ | 56,571 |   |
|                                                             |   |   |    |   |    |   |   |    |   |   |    |   |   |   |   |   |
|  Liabilities      from commodity derivative contracts       |   | $      | 24,358  |   |    | $      | -      |    |   | $      | 24,358  |   |   | $ | - |   |
|  Liabilities      from interest rate derivatives            |   |   | 18,413  |   |    |   | -      |    |   |   | 18,413  |   |   |   | - |   |
|        Total      liabilities |   | $      | 42,771  |   |    | $      | -      |    |   | $      | 42,771  |   |   | $ | - |   |

|   | (1) | Excludes      $3.2 million of interest paid in-kind and $2.5 million in discount      amortization. |
|--------|-----|-----------------------------------------------------------------------------------------------------|

|                                                 |   |        |    |   | Available     |   |   |   |   |
|------------------------------------------------------|--------|-------------|---------|--------|---------------|--------|--------|--------|--------|
|                                                 |   | Derivatives |    |   | For      Sale |   |   |   |   |
|                                                 |   | Contracts   |    |   | Securities    |   |   | Total  |   |
| Balance,      December 31, 2008                      |   | $           | 148,194 |   |          | $      | 9,700  |   |   | $ | 157,894 |   |
|  Unrealized      gains (losses) included in OCI |   |        | (41,582 | )      |          |   | 7,575  |   |   |   | (34,007 | ) |
|  Purchases                                      |   |        | -       |   |          |   | 39,296 |   |   |   | 39,296 |   |
|  Settlements                                    |   |        | (34,985 | )      |          |   | -      |   |   |   | (34,985 | ) |
|  Transfers      out of Level 3                  |   |        | (71,627 | )      |          |   | -      |   |   |   | (71,627 | ) |
| Balance,      September 30, 2009                     |   | $           | -       |   |          | $      | 56,571 |   |   | $ | 56,571 |   |

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Table of Contents

|                                                                     |   | September 30, 2009 |    |   | December 31, 2008 |   |
|--------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                                     |   | Carrying Amount    |    |   | Fair Value        |   |   | Carrying Amount |   |   | Fair Value |   |
| Senior      secured term loan facility                                   |   | $                  | 65,300  |   |              | $      | 64,647 |   |   | $ | 522,175 |   |   | $ | 331,581 |   |
| Senior      unsecured notes, 81⁄2% fixed rate                         |   |               | 250,000 |   |              |   | 235,000 |   |   |   | 250,000 |   |   |   | 134,375 |   |
| Senior      unsecured notes of the Partnership, 81⁄4% fixed rate      |   |               | 209,080 |   |              |   | 193,922 |   |   |   | 209,080 |   |   |   | 128,333 |   |
| Senior      unsecured notes of the Partnership, 111⁄4% fixed rate (1) |   |               | 219,861 |   |              |   | 242,266 |   |   |   | - |   |   |   | - |   |

|   | (1) | The      carrying amount of the notes includes $11.4 million of unamortized      original issue discount as of September 30,  2009. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| Period                   |  Commodity  |   | Daily Volumes |   | Average Price |  Index |
|--------------------------|------------------|--------|---------------|--------|---------------|-------------|
| Oct      2009 - Dec 2009 | Natural      gas |   |          | 21,918 |          | MMBtu       |   | $ | 6.62 |   | per      MMBtu | IF-Waha |
|                     |             |   |          |   |          |        |   |   |   |   |   |   |
| Oct      2009 - Dec 2009 | NGL              |   |          | 2,847  |          |  Bbl   |   |   | 31.83 |   | per      gallon | OPIS-MB |

| Period                   |  Commodity  |   | Daily Volumes |   | Average Price |  Index |
|--------------------------|------------------|--------|---------------|--------|---------------|-------------|
| Oct      2009 - Dec 2009 | Natural      gas |   |          | 3,556  |          | MMBtu       |   | $ | 8.07 |   | per      MMBtu | IF-Waha |
| Oct2009      - Dec 2009  | Natural      gas |   |          | 652    |          | MMBtu       |   |   | 8.35 |   | per      MMBtu | NY-HH |
| Jan      2010 - Dec 2010 | Natural      gas |   |          | 3,289  |          | MMBtu       |   |   | 7.39 |   | per      MMBtu | IF-Waha |
| Jan      2010 - Jun 2010 | Natural      gas |   |          | 497    |          | MMBtu       |   |   | 8.17 |   | per      MMBtu | NY-HH |
|                     |             |   |          |   |          |        |   |   |   |   |   |   |
| Oct      2009 - Dec 2009 | NGL              |   |          | 3,000  |          |  Bbl   |   |   | 1.18 |   | per      gallon | OPIS-MB |
|                     |             |   |          |   |          |        |   |   |   |   |   |   |
| Oct      2009 - Dec 2009 | Condensate       |   |          | 202    |          |  Bbl   |   |   | 70.60 |   | per      barrel | NY-WTI |
| Jan      2010 - Dec 2010 | Condensate       |   |          | 181    |          |  Bbl   |   |   | 69.28 |   | per      barrel | NY-WTI |

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Table of Contents

|                              |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|-----------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                              |   | 2009                                  |   |   | 2008                                 |   |   | 2009 |   |   | 2008 |   |
| Included in revenues              |   |                                  |   |   |                                 |   |   |   |   |   |   |   |
| GCF                               |   | $                                     | 34     |   |                                 | $      | 56 |   |   | $ | 159 |   |   | $ | 422 |   |
| VESCO      (1)                    |   |                                  | -      |   |                                 |   | - |   |   |   | - |   |   |   | 666 |   |
|                              |   | $                                     | 34     |   |                                 | $      | 56 |   |   | $ | 159 |   |   | $ | 1,088 |   |
|                              |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Included in costs and    expenses |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| GCF                               |   | $                                     | 158    |   |                                 | $      | 589 |   |   | $ | 1,426 |   |   | $ | 2,734 |   |
| VESCO      (1)                    |   |                                  | -      |   |                                 |   | 51,508 |   |   |   | - |   |   |   | 151,589 |   |
|                              |   | $                                     | 158    |   |                                 | $      | 52,097 |   |   | $ | 1,426 |   |   | $ | 154,323 |   |

|   | (1) | Subsequent      to July 31, 2008, VESCO is consolidated in our results of operations and      all intercompany transactions have been  eliminated. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Note 18—Segment      Information |
|--------|----------------------------------------|

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Table of Contents

|                                                                  |   | Three Months Ended September 30,      2009 |    |
|-----------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                  |   | Natural Gas Gatheringand Processing        |    |   | Logistics Assets |   |   | NGL Distributionand Marketing |   |   | Wholesale Marketing |   |   | Eliminations and Other |   |   | Total |   |
| Revenues                                                              |   | $                                          | 276,387 |   |   | $ | 30,349 |   |   | $ | 692,167 |   |   | $ | 122,574 |   |   | $ | - |   |   | $ | 1,121,477 |   |
| Intersegment      revenues                                            |   |                                       | 276,740 |   |   |   | 24,727 |   |   |   | 71,614 |   |   |   | 19,418 |   |   |   | (392,499 | ) |   |   | - |   |
| Revenues                                                              |   |                                       | 553,127 |   |   |   | 55,076 |   |   |   | 763,781 |   |   |   | 141,992 |   |   |   | (392,499 | ) |   |   | 1,121,477 |   |
| Product      purchases                                                |   |                                       | 416,134 |   |   |   | - |   |   |   | 438,150 |   |   |   | 77,153 |   |   |   | 684 |   |   |   | 932,121 |   |
| Intersegment      product purchases                                   |   |                                       | 10,048  |   |   |   | - |   |   |   | 317,579 |   |   |   | 61,488 |   |   |   | (389,115 | ) |   |   | - |   |
| Product      purchases                                                |   |                                       | 426,182 |   |   |   | - |   |   |   | 755,729 |   |   |   | 138,641 |   |   |   | (388,431 | ) |   |   | 932,121 |   |
| Operating      expenses                                               |   |                                       | 36,453  |   |   |   | 27,032 |   |   |   | (20 | ) |   |   | 41 |   |   |   | - |   |   |   | 63,506 |   |
| Intersegment      operating expenses                                  |   |                                       | 136     |   |   |   | 3,248 |   |   |   | - |   |   |   | - |   |   |   | (3,384 | ) |   |   | - |   |
| Operating      expenses                                               |   |                                       | 36,589  |   |   |   | 30,280 |   |   |   | (20 | ) |   |   | 41 |   |   |   | (3,384 | ) |   |   | 63,506 |   |
| Operating      margin                                                 |   | $                                          | 90,356  |   |   | $ | 24,796 |   |   | $ | 8,072 |   |   | $ | 3,310 |   |   | $ | (684 | ) |   | $ | 125,850 |   |
| Other      financial information:                                     |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      in earnings of  unconsolidated      investments |   | $                                          | -       |   |   | $ | 1,417 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 1,417 |   |
| Unconsolidated      investments                                       |   |                                       | -       |   |   |   | 17,811 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 17,811 |   |
| Capital      expenditures                                             |   |                                       | 13,754  |   |   |   | 5,070 |   |   |   | - |   |   |   | - |   |   |   | 186 |   |   |   | 19,010 |   |
| Revenues      by type:                                                |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity      sales                                                  |   | $                                          | 539,671 |   |   | $ | - |   |   | $ | 762,373 |   |   | $ | 141,752 |   |   | $ | (367,373 | ) |   | $ | 1,076,423 |   |
| Services                                                              |   |                                       | 7,639   |   |   |   | 55,076 |   |   |   | 1,408 |   |   |   | 240 |   |   |   | (25,126 | ) |   |   | 39,237 |   |
| Business      interruption                                            |   |                                       | 2,900   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,900 |   |
| Other                                                                 |   |                                       | 2,917   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,917 |   |
|                                                                  |   | $                                          | 553,127 |   |   | $ | 55,076 |   |   | $ | 763,781 |   |   | $ | 141,992 |   |   | $ | (392,499 | ) |   | $ | 1,121,477 |   |

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Table of Contents

|                                                                  |   | Three Months Ended September 30,      2008 |    |
|-----------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                  |   | Natural Gas Gathering and Processing  |    |   | Logistics Assets |   |   | NGL Distributionand Marketing |   |   | Wholesale Marketing |   |   | Eliminations and Other |   |   | Total |   |
| Revenues                                                              |   | $                                          | 497,785 |   |   | $ | 25,672 |   |   | $ | 1,514,958 |   |   | $ | 314,572 |   |   | $ | - |   |   | $ | 2,352,987 |   |
| Intersegment      revenues                                            |   |                                       | 473,426 |   |   |   | 39,853 |   |   |   | 139,787 |   |   |   | 5,987 |   |   |   | (659,053 | ) |   |   | - |   |
| Revenues                                                              |   |                                       | 971,211 |   |   |   | 65,525 |   |   |   | 1,654,745 |   |   |   | 320,559 |   |   |   | (659,053 | ) |   |   | 2,352,987 |   |
| Product      purchases                                                |   |                                       | 797,661 |   |   |   | (67 | ) |   |   | 1,179,406 |   |   |   | 199,830 |   |   |   | - |   |   |   | 2,176,830 |   |
| Intersegment      product purchases                                   |   |                                       | 18,721  |   |   |   | 67 |   |   |   | 500,005 |   |   |   | 126,181 |   |   |   | (644,974 | ) |   |   | - |   |
| Product      purchases                                                |   |                                       | 816,382 |   |   |   | - |   |   |   | 1,679,411 |   |   |   | 326,011 |   |   |   | (644,974 | ) |   |   | 2,176,830 |   |
| Operating      expenses                                               |   |                                       | 37,256  |   |   |   | 36,007 |   |   |   | 304 |   |   |   | 16 |   |   |   | - |   |   |   | 73,583 |   |
| Intersegment      operating expenses                                  |   |                                       | 199     |   |   |   | 13,879 |   |   |   | - |   |   |   | 1 |   |   |   | (14,079 | ) |   |   | - |   |
| Operating      expenses                                               |   |                                       | 37,455  |   |   |   | 49,886 |   |   |   | 304 |   |   |   | 17 |   |   |   | (14,079 | ) |   |   | 73,583 |   |
| Operating      margin                                                 |   | $                                          | 117,374 |   |   | $ | 15,639 |   |   | $ | (24,970 | ) |   | $ | (5,469 | ) |   | $ | - |   |   | $ | 102,574 |   |
| Other      financial information:                                     |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      in earnings of  unconsolidated      investments |   | $                                          | 1,432   |   |   | $ | 1,102 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 2,534 |   |
| Unconsolidated      investments                                       |   |                                       | -       |   |   |   | 19,554 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 19,554 |   |
| Capital      expenditures                                             |   |                                       | 25,042  |   |   |   | 9,239 |   |   |   | - |   |   |   | - |   |   |   | 1,479 |   |   |   | 35,760 |   |
| Revenues      by type:                                                |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity      sales                                                  |   | $                                          | 963,841 |   |   | $ | - |   |   | $ | 1,653,998 |   |   | $ | 320,564 |   |   | $ | (619,164 | ) |   | $ | 2,319,239 |   |
| Services                                                              |   |                                       | 6,594   |   |   |   | 65,527 |   |   |   | 747 |   |   |   | (5 | ) |   |   | (39,889 | ) |   |   | 32,974 |   |
| Business      interruption                                            |   |                                       | 749     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 749 |   |
| Other                                                                 |   |                                       | 27      |   |   |   | (2 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 25 |   |
|                                                                  |   | $                                          | 971,211 |   |   | $ | 65,525 |   |   | $ | 1,654,745 |   |   | $ | 320,559 |   |   | $ | (659,053 | ) |   | $ | 2,352,987 |   |

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Table of Contents

|                                                                  |   | Nine Months Ended September 30,      2009 |      |
|-----------------------------------------------------------------------|--------|-------------------------------------------|-----------|
|                                                                  |   | Natural Gas Gatheringand Processing       |      |   | Logistics Assets |   |   | NGL Distributionand Marketing |   |   | Wholesale Marketing |   |   | Eliminations and Other |   |   | Total |   |
| Revenues                                                              |   | $                                         | 764,580   |   |   | $ | 87,127 |   |   | $ | 1,767,170 |   |   | $ | 508,143 |   |   | $ | - |   |   | $ | 3,127,020 |   |
| Intersegment      revenues                                            |   |                                      | 690,163   |   |   |   | 67,715 |   |   |   | 247,601 |   |   |   | 52,509 |   |   |   | (1,057,988 | ) |   |   | - |   |
| Revenues                                                              |   |                                      | 1,454,743 |   |   |   | 154,842 |   |   |   | 2,014,771 |   |   |   | 560,652 |   |   |   | (1,057,988 | ) |   |   | 3,127,020 |   |
| Product      purchases                                                |   |                                      | 1,097,741 |   |   |   | - |   |   |   | 1,198,110 |   |   |   | 311,054 |   |   |   | - |   |   |   | 2,606,905 |   |
| Intersegment      product purchases                                   |   |                                      | 20,408    |   |   |   | - |   |   |   | 784,089 |   |   |   | 238,752 |   |   |   | (1,043,249 | ) |   |   | - |   |
| Product      purchases                                                |   |                                      | 1,118,149 |   |   |   | - |   |   |   | 1,982,199 |   |   |   | 549,806 |   |   |   | (1,043,249 | ) |   |   | 2,606,905 |   |
| Operating      expenses                                               |   |                                      | 98,087    |   |   |   | 83,932 |   |   |   | 592 |   |   |   | 62 |   |   |   | - |   |   |   | 182,673 |   |
| Intersegment      operating expenses                                  |   |                                      | 474       |   |   |   | 14,265 |   |   |   | - |   |   |   | - |   |   |   | (14,739 | ) |   |   | - |   |
| Operating      expenses                                               |   |                                      | 98,561    |   |   |   | 98,197 |   |   |   | 592 |   |   |   | 62 |   |   |   | (14,739 | ) |   |   | 182,673 |   |
| Operating      margin                                                 |   | $                                         | 238,033   |   |   | $ | 56,645 |   |   | $ | 31,980 |   |   | $ | 10,784 |   |   | $ | - |   |   | $ | 337,442 |   |
| Other      financial information:                                     |   |                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      in earnings of  unconsolidated      investments |   | $                                         | -         |   |   | $ | 3,221 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 3,221 |   |
| Unconsolidated      investments                                       |   |                                      | -         |   |   |   | 17,811 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 17,811 |   |
| Capital      expenditures                                             |   |                                      | 47,229    |   |   |   | 15,853 |   |   |   | - |   |   |   | - |   |   |   | 1,445 |   |   |   | 64,527 |   |
| Revenues      by type:                                                |   |                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity      sales                                                  |   | $                                         | 1,422,225 |   |   | $ | 29 |   |   | $ | 2,011,166 |   |   | $ | 559,426 |   |   | $ | (988,876 | ) |   | $ | 3,003,970 |   |
| Services                                                              |   |                                      | 22,077    |   |   |   | 152,888 |   |   |   | 3,607 |   |   |   | 726 |   |   |   | (69,113 | ) |   |   | 110,185 |   |
| Business      interruption                                            |   |                                      | 5,474     |   |   |   | 1,926 |   |   |   | - |   |   |   | 500 |   |   |   | - |   |   |   | 7,900 |   |
| Other                                                                 |   |                                      | 4,967     |   |   |   | (1 | ) |   |   | (2 | ) |   |   | - |   |   |   | 1 |   |   |   | 4,965 |   |
|                                                                  |   | $                                         | 1,454,743 |   |   | $ | 154,842 |   |   | $ | 2,014,771 |   |   | $ | 560,652 |   |   | $ | (1,057,988 | ) |   | $ | 3,127,020 |   |

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Table of Contents

|                                                                  |   | Nine Months Ended September 30,      2008 |      |
|-----------------------------------------------------------------------|--------|-------------------------------------------|-----------|
|                                                                  |   | Natural Gas Gatheringand Processing       |      |   | Logistics Assets |   |   | NGL Distributionand Marketing |   |   | Wholesale Marketing |   |   | Eliminations and Other |   |   | Total |   |
| Revenues                                                              |   | $                                         | 1,480,253 |   |   | $ | 74,120 |   |   | $ | 4,118,034 |   |   | $ | 1,146,199 |   |   | $ | - |   |   | $ | 6,818,606 |   |
| Intersegment      revenues                                            |   |                                      | 1,423,663 |   |   |   | 108,243 |   |   |   | 457,260 |   |   |   | 35,033 |   |   |   | (2,024,199 | ) |   |   | - |   |
| Revenues                                                              |   |                                      | 2,903,916 |   |   |   | 182,363 |   |   |   | 4,575,294 |   |   |   | 1,181,232 |   |   |   | (2,024,199 | ) |   |   | 6,818,606 |   |
| Product      purchases                                                |   |                                      | 2,426,296 |   |   |   | (101 | ) |   |   | 3,040,343 |   |   |   | 734,822 |   |   |   | - |   |   |   | 6,201,360 |   |
| Intersegment      product purchases                                   |   |                                      | 28,690    |   |   |   | 101 |   |   |   | 1,518,402 |   |   |   | 433,426 |   |   |   | (1,980,619 | ) |   |   | - |   |
| Product      purchases                                                |   |                                      | 2,454,986 |   |   |   | - |   |   |   | 4,558,745 |   |   |   | 1,168,248 |   |   |   | (1,980,619 | ) |   |   | 6,201,360 |   |
| Operating      expenses                                               |   |                                      | 101,599   |   |   |   | 105,428 |   |   |   | 1,321 |   |   |   | 42 |   |   |   | - |   |   |   | 208,390 |   |
| Intersegment      operating expenses                                  |   |                                      | 733       |   |   |   | 42,847 |   |   |   | - |   |   |   | - |   |   |   | (43,580 | ) |   |   | - |   |
| Operating      expenses                                               |   |                                      | 102,332   |   |   |   | 148,275 |   |   |   | 1,321 |   |   |   | 42 |   |   |   | (43,580 | ) |   |   | 208,390 |   |
| Operating      margin                                                 |   | $                                         | 346,598   |   |   | $ | 34,088 |   |   | $ | 15,228 |   |   | $ | 12,942 |   |   | $ | - |   |   | $ | 408,856 |   |
| Other      financial information:                                     |   |                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      in earnings of  unconsolidated      investments |   | $                                         | 10,161    |   |   | $ | 3,028 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 13,189 |   |
| Unconsolidated      investments                                       |   |                                      | -         |   |   |   | 19,554 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 19,554 |   |
| Capital      expenditures                                             |   |                                      | 59,290    |   |   |   | 30,933 |   |   |   | - |   |   |   | - |   |   |   | 3,701 |   |   |   | 93,924 |   |
| Revenues      by type:                                                |   |                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity      sales                                                  |   | $                                         | 2,878,360 |   |   | $ | 53 |   |   | $ | 4,564,413 |   |   | $ | 1,175,165 |   |   | $ | (1,914,301 | ) |   | $ | 6,703,690 |   |
| Services                                                              |   |                                      | 22,060    |   |   |   | 181,870 |   |   |   | 2,268 |   |   |   | 150 |   |   |   | (109,897 | ) |   |   | 96,451 |   |
| Business      interruption                                            |   |                                      | 3,289     |   |   |   | 441 |   |   |   | 8,602 |   |   |   | 5,920 |   |   |   | - |   |   |   | 18,252 |   |
| Other                                                                 |   |                                      | 207       |   |   |   | (1 | ) |   |   | 11 |   |   |   | (3 | ) |   |   | (1 | ) |   |   | 213 |   |
|                                                                  |   | $                                         | 2,903,916 |   |   | $ | 182,363 |   |   | $ | 4,575,294 |   |   | $ | 1,181,232 |   |   | $ | (2,024,199 | ) |   | $ | 6,818,606 |   |

|                                                         |   | Three Months Ended September 30, |    |   | Nine Months Ended September 30, |   |
|--------------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
|                                                         |   | 2009                             |    |   | 2008                            |   |   | 2009 |   |   | 2008 |   |
| Reconciliation      of operating margin to net income (loss) |   |                             |    |   |                            |   |   |   |   |   |   |   |
| attributable      to Targa Resources, Inc.:                  |   |                             |    |   |                            |   |   |   |   |   |   |   |
| Operating      margin                                        |   | $                                | 125,850 |   |                            | $      | 102,574 |   |   | $ | 337,442 |   |   | $ | 408,856 |   |
| Net      income attributable to noncontrolling interest      |   |                             | (11,068 | )      |                            |   | (24,309 | ) |   |   | (17,723 | ) |   |   | (81,148 | ) |
| Depreciation      and amortization expense                   |   |                             | (44,255 | )      |                            |   | (41,086 | ) |   |   | (127,908 | ) |   |   | (118,028 | ) |
| General      and administrative expense                      |   |                             | (31,429 | )      |                            |   | (26,679 | ) |   |   | (83,478 | ) |   |   | (78,696 | ) |
| Interest      expense, net                                   |   |                             | (29,386 | )      |                            |   | (24,599 | ) |   |   | (77,138 | ) |   |   | (73,844 | ) |
| Loss      on early debt extinguishment                       |   |                             | (14,808 | )      |                            |   | - |   |   |   | (14,808 | ) |   |   | - |   |
| Income      tax benefit (expense)                            |   |                             | 1,197   |   |                            |   | 9,882 |   |   |   | (5,208 | ) |   |   | (30,409 | ) |
| Other,      net                                              |   |                             | 1,306   |   |                            |   | (16,663 | ) |   |   | 2,307 |   |   |   | 17,003 |   |
| Net      income (loss) attributable to Targa Resources, Inc. |   | $                                | (2,593  | )      |                            | $      | (20,880 | ) |   | $ | 13,486 |   |   | $ | 43,734 |   |

----

Table of Contents

|                                        |   | Three      Months Ended September 30, |   |   | Nine      Months Ended September 30, |   |
|---------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                        |   | 2009                                  |   |   | 2008                                 |   |   | 2009 |   |   | 2008 |   |
|                                        |   |                                  |   |   |                                 |   |   |   |   |   |   |   |
| Abandoned      project costs                |   | $                                     | -      |   |                                 | $      | - |   |   | $ | 5,589 |   |   | $ | - |   |
| Casualty      loss adjustment (see Note 12) |   |                                  | -      |   |                                 |   | 17,899 |   |   |   | (3,744 | ) |   |   | 17,899 |   |
| Gain      on sale of assets (see Note 20)   |   |                                  | (3     | )      |                                 |   | (13 | ) |   |   | (41 | ) |   |   | (4,458 | ) |
|                                        |   | $                                     | (3     | )      |                                 | $      | 17,886 |   |   | $ | 1,804 |   |   | $ | 13,441 |   |

|   | • | The      Parent company only (“Parent”); |
|--------|---------|------------------------------------------------------|

|   | • | The      Guarantor Subsidiaries on a consolidatedbasis; |
|--------|---------|---------------------------------------------------------|

|   | • | Non-wholly      owned and foreign subsidiaries (referred to as “Non-Guarantor      Subsidiaries”); |
|--------|---------|----------------------------------------------------------------------------------------------------------------|

|   | • | Elimination      entries necessary to consolidate the Parent, the Guarantor Subsidiaries,      and the Non-GuarantorSubsidiaries; and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The      Company on a consolidatedbasis. |
|--------|---------|------------------------------------------|

----

Table of Contents

| Targa      Resources, Inc.                                    |   |
|---------------------------------------------------------------|--------|
| Condensed      Consolidating Balance Sheet                    |   |
| September      30, 2009                                       |   |
|                                                          |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|  Assets                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current      assets:                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash      and cash equivalents                          |   | $ | - |   |   | $ | 110,085 |   |   | $ | 77,842 |   |   | $ | - |   |   | $ | 187,927 |   |
|  Trade      receivables and other current assets         |   |   | 269 |   |   |   | 72,768 |   |   |   | 357,514 |   |   |   | - |   |   |   | 430,551 |   |
|  Total      current assets                               |   |   | 269 |   |   |   | 182,853 |   |   |   | 435,356 |   |   |   | - |   |   |   | 618,478 |   |
|  Property,      plant, and equipment, at cost            |   |   | - |   |   |   | 493,556 |   |   |   | 2,673,668 |   |   |   | - |   |   |   | 3,167,224 |   |
|  Accumulated      depreciation                           |   |   | - |   |   |   | 26,694 |   |   |   | (630,049 | ) |   |   | - |   |   |   | (603,355 | ) |
|  Property,      plant, and equipment, net                |   |   | - |   |   |   | 520,250 |   |   |   | 2,043,619 |   |   |   | - |   |   |   | 2,563,869 |   |
|  Investment      in subsidiaries                         |   |   | (429,426 | ) |   |   | 372,418 |   |   |   | - |   |   |   | 57,008 |   |   |   | - |   |
|  Other      assets                                       |   |   | 28,630 |   |   |   | 14,023 |   |   |   | 106,518 |   |   |   | - |   |   |   | 149,171 |   |
|  Total      assets                                       |   | $ | (400,527 | ) |   | $ | 1,089,544 |   |   | $ | 2,585,493 |   |   | $ | 57,008 |   |   | $ | 3,331,518 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Liabilities      and stockholders' equity               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current      liabilities:                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Accounts      payable and other liabilities             |   | $ | 26,596 |   |   | $ | 126,138 |   |   | $ | 272,145 |   |   | $ | - |   |   | $ | 424,879 |   |
|  Current      maturities of debt                         |   |   | 12,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,500 |   |
|  Total      current liabilities                          |   |   | 39,096 |   |   |   | 126,138 |   |   |   | 272,145 |   |   |   | - |   |   |   | 437,379 |   |
|  Long-term      debt, net of current maturities          |   |   | 302,800 |   |   |   | - |   |   |   | 939,424 |   |   |   | - |   |   |   | 1,242,224 |   |
|  Affiliated      indebtedness                            |   |   | (1,359,212 | ) |   |   | 1,359,212 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|  Other      long-term obligations                        |   |   | 52,322 |   |   |   | 33,620 |   |   |   | 50,357 |   |   |   | - |   |   |   | 136,299 |   |
|  Total      Targa Resources, Inc.'s stockholder's equity |   |   | 564,467 |   |   |   | (429,426 | ) |   |   | 1,324,819 |   |   |   | (895,393 | ) |   |   | 564,467 |   |
|  Noncontrolling      interest in subsidiaries            |   |   | - |   |   |   | - |   |   |   | (1,252 | ) |   |   | 952,401 |   |   |   | 951,149 |   |
|  Total      stockholders' equity                         |   |   | 564,467 |   |   |   | (429,426 | ) |   |   | 1,323,567 |   |   |   | 57,008 |   |   |   | 1,515,616 |   |
|  Total      liabilities and stockholders' equity         |   | $ | (400,527 | ) |   | $ | 1,089,544 |   |   | $ | 2,585,493 |   |   | $ | 57,008 |   |   | $ | 3,331,518 |   |

----

Table of Contents

| Targa      Resources, Inc.                                    |   |
|---------------------------------------------------------------|--------|
| Condensed      Consolidating Balance Sheet                    |   |
| December      31, 2008                                        |   |
|                                                          |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|  Assets                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current      assets:                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash      and cash equivalents                          |   | $ | - |   |   | $ | 219,620 |   |   | $ | 143,149 |   |   | $ | - |   |   | $ | 362,769 |   |
|  Trade      receivables and other current assets         |   |   | 298 |   |   |   | 80,099 |   |   |   | 413,982 |   |   |   | - |   |   |   | 494,379 |   |
|  Total      current assets                               |   |   | 298 |   |   |   | 299,719 |   |   |   | 557,131 |   |   |   | - |   |   |   | 857,148 |   |
|  Property,      plant, and equipment, at cost            |   |   | - |   |   |   | 471,852 |   |   |   | 2,621,412 |   |   |   | - |   |   |   | 3,093,264 |   |
|  Accumulated      depreciation                           |   |   | - |   |   |   | 56,192 |   |   |   | (532,087 | ) |   |   | - |   |   |   | (475,895 | ) |
|  Property,      plant, and equipment, net                |   |   | - |   |   |   | 528,044 |   |   |   | 2,089,325 |   |   |   | - |   |   |   | 2,617,369 |   |
|  Investment      in subsidiaries                         |   |   | (291,600 | ) |   |   | (22,913 | ) |   |   | - |   |   |   | 314,513 |   |   |   | - |   |
|  Other      assets                                       |   |   | 45,185 |   |   |   | 26,610 |   |   |   | 102,265 |   |   |   | - |   |   |   | 174,060 |   |
|  Total      assets                                       |   | $ | (246,117 | ) |   | $ | 831,460 |   |   | $ | 2,748,721 |   |   | $ | 314,513 |   |   | $ | 3,648,577 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Liabilities      and stockholders' equity               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current      liabilities:                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Accounts      payable and other liabilities             |   | $ | 50,733 |   |   | $ | 97,707 |   |   | $ | 306,604 |   |   | $ | - |   |   | $ | 455,044 |   |
|  Current      maturities of debt                         |   |   | 12,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,500 |   |
|  Total      current liabilities                          |   |   | 63,233 |   |   |   | 97,707 |   |   |   | 306,604 |   |   |   | - |   |   |   | 467,544 |   |
|  Long-term      debt, net of current maturities          |   |   | 855,595 |   |   |   | - |   |   |   | 696,845 |   |   |   | - |   |   |   | 1,552,440 |   |
|  Affiliated      indebtedness                            |   |   | (1,785,694 | ) |   |   | 1,011,811 |   |   |   | 773,883 |   |   |   | - |   |   |   | - |   |
|  Other      long-term obligations                        |   |   | 41,108 |   |   |   | 13,542 |   |   |   | 44,694 |   |   |   | - |   |   |   | 99,344 |   |
|  Total      Targa Resources, Inc.'s stockholder's equity |   |   | 579,641 |   |   |   | (291,600 | ) |   |   | 926,408 |   |   |   | (634,808 | ) |   |   | 579,641 |   |
|  Noncontrolling      interest in subsidiaries            |   |   | - |   |   |   | - |   |   |   | 287 |   |   |   | 949,321 |   |   |   | 949,608 |   |
|  Total      stockholders' equity                         |   |   | 579,641 |   |   |   | (291,600 | ) |   |   | 926,695 |   |   |   | 314,513 |   |   |   | 1,529,249 |   |
|  Total      liabilities and stockholders' equity         |   | $ | (246,117 | ) |   | $ | 831,460 |   |   | $ | 2,748,721 |   |   | $ | 314,513 |   |   | $ | 3,648,577 |   |

----

Table of Contents

| Targa      Resources, Inc.                                          |   |
|---------------------------------------------------------------------|--------|
| Condensed      Consolidating Statement of Operations                |   |
| Three      Months Ended September 30, 2009                          |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Revenues                                                      |   | $ | - |   |   | $ | 297,908 |   |   | $ | 1,080,706 |   |   | $ | (257,137 | ) |   | $ | 1,121,477 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating      costs and expenses:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Product      purchases                                        |   |   | - |   |   |   | 266,898 |   |   |   | 914,705 |   |   |   | (249,482 | ) |   |   | 932,121 |   |
|  Operating      expenses                                       |   |   | - |   |   |   | 9,155 |   |   |   | 62,006 |   |   |   | (7,655 | ) |   |   | 63,506 |   |
|  Depreciation      and amortization expense                    |   |   | - |   |   |   | 11,143 |   |   |   | 33,112 |   |   |   | - |   |   |   | 44,255 |   |
|  General      and administrative and other                     |   |   | 43 |   |   |   | 14,155 |   |   |   | 17,228 |   |   |   | - |   |   |   | 31,426 |   |
|                                                                |   |   | 43 |   |   |   | 301,351 |   |   |   | 1,027,051 |   |   |   | (257,137 | ) |   |   | 1,071,308 |   |
|  Income      (loss) from operations                            |   |   | (43 | ) |   |   | (3,443 | ) |   |   | 53,655 |   |   |   | - |   |   |   | 50,169 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other      income (expense):                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest      expense, net                                    |   |   | (11,403 | ) |   |   | (3,369 | ) |   |   | (14,614 | ) |   |   | - |   |   |   | (29,386 | ) |
|  Affiliated      interest (expense) income, net                |   |   | 34,108 |   |   |   | (20,407 | ) |   |   | (13,701 | ) |   |   | - |   |   |   | - |   |
|  Other      income (expense)                                   |   |   | (14,781 | ) |   |   | 201 |   |   |   | (342 | ) |   |   | - |   |   |   | (14,922 | ) |
|  Equity      in earnings of unconsolidated investments         |   |   | - |   |   |   | - |   |   |   | 1,417 |   |   |   | - |   |   |   | 1,417 |   |
|  Equity      in earnings of subsidiaries                       |   |   | (11,671 | ) |   |   | 15,347 |   |   |   | - |   |   |   | (3,676 | ) |   |   | - |   |
|  Income      (loss) before income taxes                        |   |   | (3,790 | ) |   |   | (11,671 | ) |   |   | 26,415 |   |   |   | (3,676 | ) |   |   | 7,278 |   |
|  Income      tax benefit                                       |   |   | 1,197 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,197 |   |
|  Net      income (loss)                                        |   |   | (2,593 | ) |   |   | (11,671 | ) |   |   | 26,415 |   |   |   | (3,676 | ) |   |   | 8,475 |   |
|  Less:      Net income attributable to noncontrolling interest |   |   | - |   |   |   | - |   |   |   | 888 |   |   |   | 10,180 |   |   |   | 11,068 |   |
|  Net      income (loss) attributable to Targa Resources, Inc.  |   | $ | (2,593 | ) |   | $ | (11,671 | ) |   | $ | 25,527 |   |   | $ | (13,856 | ) |   | $ | (2,593 | ) |

| Targa Resources, Inc.                                               |   |
|---------------------------------------------------------------------|--------|
| Condensed      Consolidating Statement of Operations                |   |
| Three      Months Ended September 30, 2008                          |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Revenues                                                      |   | $ | - |   |   | $ | 468,953 |   |   | $ | 2,387,035 |   |   | $ | (503,001 | ) |   | $ | 2,352,987 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating      costs and expenses:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Product      purchases                                        |   |   | - |   |   |   | 438,740 |   |   |   | 2,223,553 |   |   |   | (485,463 | ) |   |   | 2,176,830 |   |
|  Operating      expenses                                       |   |   | - |   |   |   | 7,906 |   |   |   | 83,215 |   |   |   | (17,538 | ) |   |   | 73,583 |   |
|  Depreciation      and amortization expense                    |   |   | - |   |   |   | 9,065 |   |   |   | 32,021 |   |   |   | - |   |   |   | 41,086 |   |
|  General      and administrative and other                     |   |   | 44 |   |   |   | 20,366 |   |   |   | 24,155 |   |   |   | - |   |   |   | 44,565 |   |
|                                                                |   |   | 44 |   |   |   | 476,077 |   |   |   | 2,362,944 |   |   |   | (503,001 | ) |   |   | 2,336,064 |   |
|  Income      (loss) from operations                            |   |   | (44 | ) |   |   | (7,124 | ) |   |   | 24,091 |   |   |   | - |   |   |   | 16,923 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other      income (expense):                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest      income (expense), net                           |   |   | (14,622 | ) |   |   | 540 |   |   |   | (10,517 | ) |   |   | - |   |   |   | (24,599 | ) |
|  Affiliate      interest income (expense), net                 |   |   | 34,681 |   |   |   | (19,849 | ) |   |   | (14,832 | ) |   |   | - |   |   |   | - |   |
|  Other      income (expense)                                   |   |   | - |   |   |   | (320 | ) |   |   | (991 | ) |   |   | - |   |   |   | (1,311 | ) |
|  Equity      in earnings of unconsolidated investments         |   |   | - |   |   |   | 1,432 |   |   |   | 1,102 |   |   |   | - |   |   |   | 2,534 |   |
|  Equity      in earnings of subsidiaries                       |   |   | (51,177 | ) |   |   | (25,856 | ) |   |   | - |   |   |   | 77,033 |   |   |   | - |   |
| Income       (Loss) before income taxes                        |   |   | (31,162 | ) |   |   | (51,177 | ) |   |   | (1,147 | ) |   |   | 77,033 |   |   |   | (6,453 | ) |
|  Income      tax (expense) benefit                             |   |   | 10,282 |   |   |   | - |   |   |   | (400 | ) |   |   | - |   |   |   | 9,882 |   |
|  Net      income (loss)                                        |   |   | (20,880 | ) |   |   | (51,177 | ) |   |   | (1,547 | ) |   |   | 77,033 |   |   |   | 3,429 |   |
|  Less:      Net income attributable to noncontrolling interest |   |   | - |   |   |   | - |   |   |   | 161 |   |   |   | 24,148 |   |   |   | 24,309 |   |
|  Net      income (loss) attributable to Targa Resources, Inc.  |   | $ | (20,880 | ) |   | $ | (51,177 | ) |   | $ | (1,708 | ) |   | $ | 52,885 |   |   | $ | (20,880 | ) |

----

Table of Contents

| Targa      Resources, Inc.                                          |   |
|---------------------------------------------------------------------|--------|
| Condensed      Consolidating Statement of Operations                |   |
| Nine      Months Ended September 30, 2009                           |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Revenues                                                      |   | $ | - |   |   | $ | 743,670 |   |   | $ | 3,024,587 |   |   | $ | (641,237 | ) |   | $ | 3,127,020 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating      costs and expenses:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Product      purchases                                        |   |   | - |   |   |   | 655,474 |   |   |   | 2,570,076 |   |   |   | (618,645 | ) |   |   | 2,606,905 |   |
|  Operating      expenses                                       |   |   | - |   |   |   | 23,545 |   |   |   | 181,720 |   |   |   | (22,592 | ) |   |   | 182,673 |   |
|  Depreciation      and amortization expense                    |   |   | - |   |   |   | 29,693 |   |   |   | 98,215 |   |   |   | - |   |   |   | 127,908 |   |
|  General      and administrative and other                     |   |   | 5,798 |   |   |   | 27,472 |   |   |   | 52,012 |   |   |   | - |   |   |   | 85,282 |   |
|                                                                |   |   | 5,798 |   |   |   | 736,184 |   |   |   | 2,902,023 |   |   |   | (641,237 | ) |   |   | 3,002,768 |   |
|  Income      (loss) from operations                            |   |   | (5,798 | ) |   |   | 7,486 |   |   |   | 122,564 |   |   |   | - |   |   |   | 124,252 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other      income (expense):                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest      expense, net                                    |   |   | (39,996 | ) |   |   | (4,705 | ) |   |   | (32,437 | ) |   |   | - |   |   |   | (77,138 | ) |
|  Affiliated      interest (expense) income, net                |   |   | 103,519 |   |   |   | (60,105 | ) |   |   | (43,414 | ) |   |   | - |   |   |   | - |   |
|  Other      income                                             |   |   | (14,711 | ) |   |   | 436 |   |   |   | 357 |   |   |   | - |   |   |   | (13,918 | ) |
|  Equity      in earnings of unconsolidated investments         |   |   | - |   |   |   | - |   |   |   | 3,221 |   |   |   | - |   |   |   | 3,221 |   |
|  Equity      in earnings of subsidiaries                       |   |   | (24,320 | ) |   |   | 32,568 |   |   |   | - |   |   |   | (8,248 | ) |   |   | - |   |
|  Income      (loss) before income taxes                        |   |   | 18,694 |   |   |   | (24,320 | ) |   |   | 50,291 |   |   |   | (8,248 | ) |   |   | 36,417 |   |
|  Income      tax expense                                       |   |   | (5,208 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (5,208 | ) |
|  Net      income (loss)                                        |   |   | 13,486 |   |   |   | (24,320 | ) |   |   | 50,291 |   |   |   | (8,248 | ) |   |   | 31,209 |   |
|  Less:      Net income attributable to noncontrolling interest |   |   | - |   |   |   | - |   |   |   | 1,179 |   |   |   | 16,544 |   |   |   | 17,723 |   |
|  Net      income (loss) attributable to Targa Resources, Inc.  |   | $ | 13,486 |   |   | $ | (24,320 | ) |   | $ | 49,112 |   |   | $ | (24,792 | ) |   | $ | 13,486 |   |

| Targa      Resources, Inc.                                          |   |
|---------------------------------------------------------------------|--------|
| Condensed      Consolidating Statement of Operations                |   |
| Nine      Months Ended September 30, 2008                           |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Revenues                                                      |   | $ | - |   |   | $ | 1,454,337 |   |   | $ | 6,911,442 |   |   | $ | (1,547,173 | ) |   | $ | 6,818,606 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating      costs and expenses:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Product      purchases                                        |   |   | - |   |   |   | 1,365,041 |   |   |   | 6,331,977 |   |   |   | (1,495,658 | ) |   |   | 6,201,360 |   |
|  Operating      expenses                                       |   |   | - |   |   |   | 26,336 |   |   |   | 233,569 |   |   |   | (51,515 | ) |   |   | 208,390 |   |
|  Depreciation      and amortization expense                    |   |   | - |   |   |   | 26,445 |   |   |   | 91,583 |   |   |   | - |   |   |   | 118,028 |   |
|  General      and administrative and other                     |   |   | 17,618 |   |   |   | 20,661 |   |   |   | 53,858 |   |   |   | - |   |   |   | 92,137 |   |
|                                                                |   |   | 17,618 |   |   |   | 1,438,483 |   |   |   | 6,710,987 |   |   |   | (1,547,173 | ) |   |   | 6,619,915 |   |
|  Income      (loss) from operations                            |   |   | (17,618 | ) |   |   | 15,854 |   |   |   | 200,455 |   |   |   | - |   |   |   | 198,691 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other      income (expense):                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest      income (expense), net                           |   |   | (49,827 | ) |   |   | 2,714 |   |   |   | (26,731 | ) |   |   | - |   |   |   | (73,844 | ) |
|  Affiliate      interest income (expense), net                 |   |   | 103,946 |   |   |   | (59,546 | ) |   |   | (44,400 | ) |   |   | - |   |   |   | - |   |
|  Other      income                                             |   |   | 36,054 |   |   |   | (13,264 | ) |   |   | (5,535 | ) |   |   | - |   |   |   | 17,255 |   |
|  Equity      in earnings of unconsolidated investments         |   |   | - |   |   |   | 10,161 |   |   |   | 3,028 |   |   |   | - |   |   |   | 13,189 |   |
|  Equity      in earnings of subsidiaries                       |   |   | 488 |   |   |   | 44,569 |   |   |   | - |   |   |   | (45,057 | ) |   |   | - |   |
|  Income before      income taxes                          |   |   | 73,043 |   |   |   | 488 |   |   |   | 126,817 |   |   |   | (45,057 | ) |   |   | 155,291 |   |
|  Income      tax expense                                       |   |   | (29,309 | ) |   |   | - |   |   |   | (1,100 | ) |   |   | - |   |   |   | (30,409 | ) |
|  Net      income                                               |   |   | 43,734 |   |   |   | 488 |   |   |   | 125,717 |   |   |   | (45,057 | ) |   |   | 124,882 |   |
|  Less:      Net income attributable to noncontrolling interest |   |   | - |   |   |   | - |   |   |   | 91 |   |   |   | 81,057 |   |   |   | 81,148 |   |
|  Net      income attributable to Targa Resources, Inc.    |   | $ | 43,734 |   |   | $ | 488 |   |   | $ | 125,626 |   |   | $ | (126,114 | ) |   | $ | 43,734 |   |

----

Table of Contents

| Targa Resources, Inc.                                             |   |
|-------------------------------------------------------------------|--------|
| Condensed      Consolidating Statement of Cash Flows              |   |
| Nine      Months Ended September 30, 2009                         |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|  Cash      flows from operating activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      income (loss)                                      |   | $ | 13,486 |   |   | $ | (24,320 | ) |   | $ | 50,291 |   |   | $ | (8,248 | ) |   | $ | 31,209 |   |
|  Adjustments      to reconcile net income (loss) to net cash |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  provided      by (used in) operating activities:            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation,      amortization and accretion                     |   |   | 4,318 |   |   |   | 28,584 |   |   |   | 100,732 |   |   |   | - |   |   |   | 133,634 |   |
| Interest      on affiliate indebtedness                           |   |   | (103,519 | ) |   |   | 60,105 |   |   |   | 43,414 |   |   |   | - |   |   |   | - |   |
| Deferred      income taxes                                        |   |   | 4,880 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,880 |   |
| Loss      from unconsolidated investments, net of distributions   |   |   | 654 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 654 |   |
| Equity      in earnings (losses) of subsidiaries                  |   |   | 24,320 |   |   |   | (32,568 | ) |   |   | - |   |   |   | 8,248 |   |   |   | - |   |
| Other                                                             |   |   | 14,189 |   |   |   | 2,828 |   |   |   | 34,389 |   |   |   | - |   |   |   | 51,406 |   |
| Changes      in operating assets and liabilities:                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable and other assets                         |   |   | 834 |   |   |   | 32,917 |   |   |   | (67,539 | ) |   |   | - |   |   |   | (33,788 | ) |
| Inventory                                                         |   |   | - |   |   |   | (670 | ) |   |   | 18,582 |   |   |   | - |   |   |   | 17,912 |   |
| Accounts      payable and other liabilities                       |   |   | (2,928 | ) |   |   | 19,627 |   |   |   | (13,528 | ) |   |   | - |   |   |   | 3,171 |   |
| Net      cash provided by (used in) operating activities          |   |   | (43,766 | ) |   |   | 86,503 |   |   |   | 166,341 |   |   |   | - |   |   |   | 209,078 |   |
|  Cash      flows from investing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Purchases      of property and equipment                    |   |   | - |   |   |   | (19,413 | ) |   |   | (55,461 | ) |   |   | - |   |   |   | (74,874 | ) |
|  Other                                                       |   |   | - |   |   |   | (15,483 | ) |   |   | 353 |   |   |   | - |   |   |   | (15,130 | ) |
| Net      cash provided by (used in) investing activities          |   |   | - |   |   |   | (34,896 | ) |   |   | (55,108 | ) |   |   | - |   |   |   | (90,004 | ) |
|  Cash      flows from financing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings                                                        |   |   | - |   |   |   | - |   |   |   | 635,051 |   |   |   | - |   |   |   | 635,051 |   |
| Repayments      of debt                                           |   |   | (155,295 | ) |   |   | - |   |   |   | (772,400 | ) |   |   | - |   |   |   | (927,695 | ) |
| Retirement      of debt                                           |   |   | - |   |   |   | - |   |   |   | (18,882 | ) |   |   | - |   |   |   | (18,882 | ) |
| Distributions      to noncontrolling interest, net                |   |   | - |   |   |   | - |   |   |   | 30,496 |   |   |   | - |   |   |   | 30,496 |   |
| Cost      incurred in connection with financing arrangements      |   |   | (2,950 | ) |   |   | - |   |   |   | (9,722 | ) |   |   | - |   |   |   | (12,672 | ) |
| Contribution      from Targa Resources Investments Inc., net      |   |   | (214 | ) |   |   | 287,296 |   |   |   | (287,296 | ) |   |   | - |   |   |   | (214 | ) |
| Receipts      from (payments to) subsidiaries                     |   |   | 202,225 |   |   |   | (448,438 | ) |   |   | 246,213 |   |   |   | - |   |   |   | - |   |
| Net      cash provided by (used in) financing activities          |   |   | 43,766 |   |   |   | (161,142 | ) |   |   | (176,540 | ) |   |   | - |   |   |   | (293,916 | ) |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                    |   |   | - |   |   |   | (109,535 | ) |   |   | (65,307 | ) |   |   | - |   |   |   | (174,842 | ) |
| Cash      and cash equivalents, beginning of period               |   |   | - |   |   |   | 219,620 |   |   |   | 143,149 |   |   |   | - |   |   |   | 362,769 |   |
| Cash      and cash equivalents, end of period                     |   | $ | - |   |   | $ | 110,085 |   |   | $ | 77,842 |   |   | $ | - |   |   | $ | 187,927 |   |

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| Targa Resources, Inc.                                             |   |
|-------------------------------------------------------------------|--------|
| Condensed      Consolidating Statement of Cash Flows              |   |
| Nine      Months Ended September 30, 2008                         |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|  Cash      flows from operating activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      income (loss)                                      |   | $ | 43,734 |   |   | $ | 488 |   |   | $ | 125,717 |   |   | $ | (45,057 | ) |   | $ | 124,882 |   |
|  Adjustments      to reconcile net income (loss) to net cash |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  provided      by (used in) operating activities:            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation,      amortization and accretion                     |   |   | 5,218 |   |   |   | 26,956 |   |   |   | 93,956 |   |   |   | - |   |   |   | 126,130 |   |
| Interest      on affiliate indebtedness                           |   |   | (103,946 | ) |   |   | 59,546 |   |   |   | 44,400 |   |   |   | - |   |   |   | - |   |
| Deferred      income taxes                                        |   |   | 29,125 |   |   |   | - |   |   |   | 1,100 |   |   |   | - |   |   |   | 30,225 |   |
| Loss      from unconsolidated investments, net of distributions   |   |   | - |   |   |   | (10,161 | ) |   |   | (315 | ) |   |   | - |   |   |   | (10,476 | ) |
| Equity      in earnings (losses) of subsidiaries                  |   |   | (488 | ) |   |   | (44,569 | ) |   |   | - |   |   |   | 45,057 |   |   |   | - |   |
| Other                                                             |   |   | (18,566 | ) |   |   | 4,106 |   |   |   | (80,206 | ) |   |   | - |   |   |   | (94,666 | ) |
| Changes      in operating assets and liabilities                  |   |   | 39,787 |   |   |   | (60,566 | ) |   |   | 107,225 |   |   |   | - |   |   |   | 86,446 |   |
| Net      cash provided by (used in) operating activities          |   |   | (5,136 | ) |   |   | (24,200 | ) |   |   | 291,877 |   |   |   | - |   |   |   | 262,541 |   |
|  Cash      flows from investing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Purchases      of property and equipment                    |   |   | - |   |   |   | (16,670 | ) |   |   | (77,178 | ) |   |   | - |   |   |   | (93,848 | ) |
|  Other                                                       |   |   | (16,400 | ) |   |   | (81,008 | ) |   |   | 4,945 |   |   |   | - |   |   |   | (92,463 | ) |
| Net      cash provided by (used in) investing activities          |   |   | (16,400 | ) |   |   | (97,678 | ) |   |   | (72,233 | ) |   |   | - |   |   |   | (186,311 | ) |
|  Cash      flows from financing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings                                                        |   |   | - |   |   |   | - |   |   |   | 337,500 |   |   |   | - |   |   |   | 337,500 |   |
| Repayments      of debt                                           |   |   | (9,375 | ) |   |   | - |   |   |   | (323,800 | ) |   |   | - |   |   |   | (333,175 | ) |
| Distributions      to noncontrolling interest, net                |   |   | - |   |   |   | - |   |   |   | (75,039 | ) |   |   | - |   |   |   | (75,039 | ) |
| Cost      incurred in connection with financing arrangements      |   |   | (34 | ) |   |   | - |   |   |   | (7,168 | ) |   |   | - |   |   |   | (7,202 | ) |
| Distribution      to Targa Resources Investments Inc.             |   |   | (52,774 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (52,774 | ) |
| Receipts      from (payments to) subsidiaries                     |   |   | 83,719 |   |   |   | 77,124 |   |   |   | (160,843 | ) |   |   | - |   |   |   | - |   |
| Net      cash provided by (used in) financing activities          |   |   | 21,536 |   |   |   | 77,124 |   |   |   | (229,350 | ) |   |   | - |   |   |   | (130,690 | ) |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                    |   |   | - |   |   |   | (44,754 | ) |   |   | (9,706 | ) |   |   | - |   |   |   | (54,460 | ) |
| Cash      and cash equivalents, beginning of period               |   |   | - |   |   |   | 88,302 |   |   |   | 89,647 |   |   |   | - |   |   |   | 177,949 |   |
| Cash      and cash equivalents, end of period                     |   | $ | - |   |   | $ | 43,548 |   |   | $ | 79,941 |   |   | $ | - |   |   | $ | 123,489 |   |

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|                                                          |   | Three Months Ended September      30,               |    |   | Nine Months Ended September    30, |   |
|---------------------------------------------------------------|--------|-----------------------------------------------------|---------|--------|------------------------------------|--------|
|                                                          |   | 2009                                                |    |   | 2008                               |   |   | 2009 |   |   | 2008 |   |
|                                                          |   | (In      millions, except operating and price data) |    |
| Revenues      (1)                                             |   | $                                                   | 1,121.5 |   |                               | $      | 2,353.0 |   |   | $ | 3,127.0 |   |   | $ | 6,818.6 |   |
| Product      purchases                                        |   |                                                | 932.1   |   |                               |   | 2,176.8 |   |   |   | 2,606.9 |   |   |   | 6,201.4 |   |
| Operating      expenses                                       |   |                                                | 63.5    |   |                               |   | 73.6 |   |   |   | 182.7 |   |   |   | 208.4 |   |
| Depreciation      and amortization expense                    |   |                                                | 44.3    |   |                               |   | 41.1 |   |   |   | 127.9 |   |   |   | 118.0 |   |
| General      and administrative expense                       |   |                                                | 31.4    |   |                               |   | 26.7 |   |   |   | 83.5 |   |   |   | 78.7 |   |
| Other                                                         |   |                                                | -       |   |                               |   | 17.9 |   |   |   | 1.8 |   |   |   | 13.4 |   |
| Income      from operations                                   |   |                                                | 50.2    |   |                               |   | 16.9 |   |   |   | 124.2 |   |   |   | 198.7 |   |
| Interest      expense, net                                    |   |                                                | (29.4   | )      |                               |   | (24.6 | ) |   |   | (77.1 | ) |   |   | (73.8 | ) |
| Gain      on insurance claims                                 |   |                                                | -       |   |                               |   | - |   |   |   | - |   |   |   | 18.6 |   |
| Equity      in earnings of unconsolidated investments         |   |                                                | 1.4     |   |                               |   | 2.5 |   |   |   | 3.2 |   |   |   | 13.2 |   |
| Loss      on debt repurchases                                 |   |                                                | (1.5    | )      |                               |   | - |   |   |   | (1.5 | ) |   |   | - |   |
| Loss      on early debt extinguishment                        |   |                                                | (14.8   | )      |                               |   | - |   |   |   | (14.8 | ) |   |   | - |   |
| Gain      (loss) on mark-to-market derivative instruments     |   |                                                | 0.8     |   |                               |   | (1.3 | ) |   |   | 0.8 |   |   |   | (1.3 | ) |
| Other                                                         |   |                                                | 0.6     |   |                               |   | - |   |   |   | 1.6 |   |   |   | (0.1 | ) |
| Income      tax (expense) benefit                             |   |                                                | 1.2     |   |                               |   | 9.9 |   |   |   | (5.2 | ) |   |   | (30.4 | ) |
| Net      income                                               |   |                                                | 8.5     |   |                               |   | 3.4 |   |   |   | 31.2 |   |   |   | 124.9 |   |
| Less:      Net income attributable to noncontrolling interest |   |                                                | 11.1    |   |                               |   | 24.3 |   |   |   | 17.7 |   |   |   | 81.2 |   |
| Net      income attributable to Targa Resources, Inc.         |   | $                                                   | (2.6    | )      |                               | $      | (20.9 | ) |   | $ | 13.5 |   |   | $ | 43.7 |   |
| Financial      data:                                          |   |                                                |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Operating      margin (2)                                     |   | $                                                   | 125.9   |   |                               | $      | 102.6 |   |   | $ | 337.4 |   |   | $ | 408.8 |   |
| Adjusted      EBITDA (3)                                      |   |                                                | 90.3    |   |                               |   | 46.1 |   |   |   | 273.3 |   |   |   | 275.4 |   |
| Operating      statistics:                                    |   |                                                |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Gathering      throughput  MMcf/d (4)               |   |                                                | 2,323.5 |   |                               |   | 1,854.1 |   |   |   | 2,142.5 |   |   |   | 2,034.5 |   |
| Plant      natural gas inlet, MMcf/d (5) (6)                  |   |                                                | 2,274.2 |   |                               |   | 1,817.2 |   |   |   | 2,097.7 |   |   |   | 1,994.9 |   |
| Gross      NGL production, MBbl/d                             |   |                                                | 123.5   |   |                               |   | 100.8 |   |   |   | 117.1 |   |   |   | 103.2 |   |
| Natural      gas sales, BBtu/d (6)                            |   |                                                | 662.8   |   |                               |   | 515.3 |   |   |   | 590.4 |   |   |   | 524.9 |   |
| NGL      sales, MBbl/d                                        |   |                                                | 269.2   |   |                               |   | 290.1 |   |   |   | 285.1 |   |   |   | 297.8 |   |
| Condensate      sales, MBbl/d                                 |   |                                                | 4.8     |   |                               |   | 3.9 |   |   |   | 4.8 |   |   |   | 3.8 |   |
| Average      realized prices:                                 |   |                                                |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Natural      gas, $/MMBtu                                     |   |                                                | 3.46    |   |                               |   | 9.18 |   |   |   | 3.78 |   |   |   | 9.06 |   |
| NGL,      $/gal                                               |   |                                                | 0.81    |   |                               |   | 1.65 |   |   |   | 0.71 |   |   |   | 1.54 |   |
| Condensate,      $/Bbl                                        |   |                                                | 67.54   |   |                               |   | 108.30 |   |   |   | 54.35 |   |   |   | 105.42 |   |

|   | (1) | Includes      business interruption insurance revenue of $2.9 million and $7.9 million      for the three and nine months ended September 30, 2009 and $0.7      million and $18.3 million for the three and nine months ended September      30, 2008. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (2) | Operating      margin is revenues less product purchases and operating expense. See      “Non-GAAP Financial Measures” included in this Item  2. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Adjusted      EBITDA is net income before interest, income taxes, depreciation and      amortization and non-cash income or loss related to derivative      instruments. See “—Non-GAAP Financial  Measures.” |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Gathering      throughput represents the volume of natural gas gathered and passed      through natural gas gathering pipelines from connections to producing      wells and central delivery points. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Plant      natural gas inlet represents the volume of natural gas passing through the      meter located at the inlet of a natural gas processing    plant. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Plant      natural gas inlet volumes include producer take-in-kind volumes, while      natural gas sales exclude producer take-in-kind  volumes. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Three      Months Ended September 30, 2009 Compared to Three Months Ended      September 30, 2008 |
|--------|-------------------------------------------------------------------------------------------------------------|

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|                                 |   | Three      Months    |    |   | Nine      Months    |   |
|--------------------------------------|--------|----------------------|---------|--------|---------------------|--------|
|                                 |   | Ended September 30   |    |   | Ended September 30, |   |
|                                 |   | 2009                 |    |   | 2008                |   |   | 2009 |   |   | 2008 |   |
|                                 |   | ($      in millions) |    |
| Revenues      (1)                    |   | $                    | 553.2   |   |                | $      | 971.2 |   |   | $ | 1,454.8 |   |   | $ | 2,904.0 |   |
| Product      purchases               |   |                 | (426.0  | )      |                |   | (816.4 | ) |   |   | (1,118.0 | ) |   |   | (2,455.0 | ) |
| Operating      expenses              |   |                 | (36.7   | )      |                |   | (37.5 | ) |   |   | (98.7 | ) |   |   | (102.3 | ) |
| Operating      margin (2)            |   | $                    | 90.5    |   |                | $      | 117.3 |   |   | $ | 238.1 |   |   | $ | 346.7 |   |
| Equity      in earnings of VESCO (3) |   | $                    | -       |   |                | $      | 1.4 |   |   | $ | - |   |   | $ | 10.2 |   |
| Operating      statistics:           |   |                 |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Gathering      throughput, MMcf/d    |   |                 | 2,323.5 |   |                |   | 1,859.2 |   |   |   | 2,142.5 |   |   |   | 2,034.5 |   |
| Plant      natural gas inlet, MMcf/d |   |                 | 2,274.2 |   |                |   | 1,817.3 |   |   |   | 2,097.7 |   |   |   | 1,994.9 |   |
| Gross      NGL production, MBbl/d    |   |                 | 123.5   |   |                |   | 100.8 |   |   |   | 117.1 |   |   |   | 103.2 |   |
| Natural      gas sales, BBtu/d       |   |                 | 683.9   |   |                |   | 532.7 |   |   |   | 609.2 |   |   |   | 543.0 |   |
| NGL      sales, MBbl/d               |   |                 | 99.5    |   |                |   | 84.7 |   |   |   | 95.0 |   |   |   | 88.6 |   |
| Condensate      sales, MBbl/d        |   |                 | 4.8     |   |                |   | 4.8 |   |   |   | 5.0 |   |   |   | 4.9 |   |
| Average      realized prices:        |   |                 |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Natural      gas, $/MMBtu            |   |                 | 3.46    |   |                |   | 9.22 |   |   |   | 3.79 |   |   |   | 9.08 |   |
| NGL,      $/gal                      |   |                 | 0.75    |   |                |   | 1.48 |   |   |   | 0.66 |   |   |   | 1.42 |   |
| Condensate,      $/Bbl               |   |                 | 67.54   |   |                |   | 102.36 |   |   |   | 53.29 |   |   |   | 97.54 |   |

|   | (1) | Includes      business interruption insurance revenue of $2.9 million and $5.5 million      for the three and nine months ended September 30, 2009, and $0.7 million      and $3.3 million for the three and nine months ended September 30,      2008. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | See      “Non-GAAP Financial Measures” included in this Item  2. |
|--------|-----|-----------------------------------------------------------------------------------|

|   | (3) | Amounts      are through July 31, 2008. VESCO was included in our consolidated      results effective August 1,2008. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

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|   | Nine      Months Ended September 30, 2009 Compared to Nine Months Ended      September 30, 2008 |
|--------|-----------------------------------------------------------------------------------------------------------|

----

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|                               |   | Three MonthsEnded September 30, |   |   | Nine MonthsEnded September 30, |   |
|------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                               |   | 2009                            |   |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
|                               |   | ($      in millions)            |   |
| Revenues      from services        |   | $                               | 55.1   |   |                           | $      | 65.5 |   |   | $ | 152.9 |   |   | $ | 181.8 |   |
| Other      revenues (1)            |   |                            | (0.1   | )      |                           |   | (0.1 | ) |   |   | 1.9 |   |   |   | 0.5 |   |
|                               |   |                            | 55.0   |   |                           |   | 65.4 |   |   |   | 154.8 |   |   |   | 182.3 |   |
| Operating      expenses            |   |                            | (30.2  | )      |                           |   | (49.8 | ) |   |   | (98.2 | ) |   |   | (148.2 | ) |
| Operating      margin (2)          |   | $                               | 24.8   |   |                           | $      | 15.6 |   |   | $ | 56.6 |   |   | $ | 34.1 |   |
| Equity      in earnings of GCF     |   | $                               | 1.4    |   |                           | $      | 1.1 |   |   | $ | 3.2 |   |   | $ | 3.0 |   |
| Operating      statistics:         |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Fractionation      volumes, MBbl/d |   |                            | 225.9  |   |                           |   | 207.1 |   |   |   | 215.4 |   |   |   | 219.3 |   |
| Treating      volumes, MBbl/d (3)  |   |                            | 27.5   |   |                           |   | 20.4 |   |   |   | 18.5 |   |   |   | 19.0 |   |

|   | (1) | Includes      business interruption insurance revenue of $0 and $1.9 million for the      three and nine months ended September 30, 2009, and $0 and $0.4 million      for the three and nine months ended September 30,  2008. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | See      “Non-GAAP Financial Measures” included in this Item  2. |
|--------|-----|-----------------------------------------------------------------------------------|

|   | (3) | Consists      of the volumes treated in our low sulfur natural gasoline      unit. |
|--------|-----|------------------------------------------------------------------------------------|

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|                      |   | Three MonthsEnded September 30, |   |   | Nine MonthsEnded September 30, |   |
|--------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                           |   | 2009                            |   |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
|                           |   | ($      in millions)            |   |
| NGL      sales revenues        |   | $                               | 762.4  |   |                           | $      | 1,654.0 |   |   | $ | 2,011.2 |   |   | $ | 4,564.4 |   |
| Other      revenues (1)        |   |                            | 1.4    |   |                           |   | 0.8 |   |   |   | 3.6 |   |   |   | 10.9 |   |
|                           |   |                            | 763.8  |   |                           |   | 1,654.8 |   |   |   | 2,014.8 |   |   |   | 4,575.3 |   |
| Product      purchases         |   |                            | (755.7 | )      |                           |   | (1,679.4 | ) |   |   | (1,982.2 | ) |   |   | (4,558.8 | ) |
| Operating      expenses        |   |                            | -      |   |                           |   | (0.3 | ) |   |   | (0.6 | ) |   |   | (1.5 | ) |
| Operating      margin (2)      |   | $                               | 8.1    |   |                           | $      | (24.9 | ) |   | $ | 32.0 |   |   | $ | 15.0 |   |
| Operating      data:           |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| NGL      sales, MBbl/d         |   |                            | 244.5  |   |                           |   | 258.1 |   |   |   | 251.2 |   |   |   | 257.5 |   |
| NGL      realized price, $/gal |   |                            | 0.81   |   |                           |   | 1.66 |   |   |   | 0.70 |   |   |   | 1.54 |   |

|   | (1) | Includes      business interruption insurance revenue of $0 and $8.6 million for the      three and nine months ended September 30,2008. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | See      “Non-GAAP Financial Measures” included in this Item  2. |
|--------|-----|-----------------------------------------------------------------------------------|

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|                           |   | Three      Months    |   |   | Nine      Months    |   |
|--------------------------------|--------|----------------------|--------|--------|---------------------|--------|
|                           |   | Ended September 30,  |   |   | Ended September 30, |   |
|                           |   | 2009                 |   |   | 2008                |   |   | 2009 |   |   | 2008 |   |
|                           |   | ($      in millions) |   |
| NGL      sales revenues        |   | $                    | 141.7  |   |                | $      | 320.6 |   |   | $ | 559.4 |   |   | $ | 1,175.3 |   |
| Other      revenues (1)        |   |                 | 0.3    |   |                |   | - |   |   |   | 1.2 |   |   |   | 5.9 |   |
|                           |   |                 | 142.0  |   |                |   | 320.6 |   |   |   | 560.6 |   |   |   | 1,181.2 |   |
| Product      purchases         |   |                 | (138.7 | )      |                |   | (326.0 | ) |   |   | (549.9 | ) |   |   | (1,168.2 | ) |
| Operating      margin (2)      |   | $                    | 3.3    |   |                | $      | (5.4 | ) |   | $ | 10.7 |   |   | $ | 13.0 |   |
| Operating      data:           |   |                 |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| NGL      sales, MBbl/d         |   |                 | 41.2   |   |                |   | 47.0 |   |   |   | 54.9 |   |   |   | 60.1 |   |
| NGL      realized price, $/gal |   |                 | 0.89   |   |                |   | 1.77 |   |   |   | 0.89 |   |   |   | 1.70 |   |

|   | (1) | Includes      business interruption insurance revenue of $0 and $0.5 million for the      three and nine months ended September 30, 2009, and $0 and $5.9      million for the three and nine months ended September 30,      2008. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | See      “Non-GAAP Financial Measures” included in this Item  2. |
|--------|-----|-----------------------------------------------------------------------------------|

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|                                 |   | Nine MonthsEnded September 30, |   |
|--------------------------------------|--------|--------------------------------|--------|
|                                 |   | 2009                           |   |   | 2008 |   |
|                                 |   | (In      millions)             |   |
| Net      cash provided by (used in): |   |                           |   |   |   |   |
| Operating      activities            |   | $                              | 209.1  |   |   | $ | 262.5 |   |
| Investing      activities            |   |                           | (90.0  | ) |   |   | (186.3 | ) |
| Financing      activities            |   |                           | (293.9 | ) |   |   | (130.7 | ) |

----

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|                                         |   | Three MonthsEnded September 30, |   |   | Nine MonthsEnded September 30, |   |
|----------------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                                         |   | 2009                            |   |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
|                                         |   | (In      millions)              |   |
| Natural      Gas Gathering and Processing    |   | $                               | 90.5   |   |                           | $      | 117.3 |   |   | $ | 238.1 |   |   | $ | 346.7 |   |
| Logistics      Assets                        |   |                            | 24.8   |   |                           |   | 15.6 |   |   |   | 56.6 |   |   |   | 34.1 |   |
| NGL      Distribution and Marketing Services |   |                            | 8.1    |   |                           |   | (24.9 | ) |   |   | 32.0 |   |   |   | 15.0 |   |
| Wholesale      Marketing                     |   |                            | 3.3    |   |                           |   | (5.4 | ) |   |   | 10.7 |   |   |   | 13.0 |   |
| Other                                        |   |                            | (0.8   | )      |                           |   | - |   |   |   | - |   |   |   | - |   |
|                                         |   | $                               | 125.9  |   |                           | $      | 102.6 |   |   | $ | 337.4 |   |   | $ | 408.8 |   |

----

Table of Contents

|                                                         |   | Three MonthsEnded September 30, |   |   | Nine MonthsEnded September 30, |   |
|--------------------------------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                                                         |   | 2009                            |   |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
|                                                         |   | (In      millions)              |   |
| Reconciliation      of net income (loss) attributable to     |   |                            |   |   |                           |   |   |   |   |   |   |   |
| Targa      Resources, Inc. to operating margin:              |   |                            |   |   |                           |   |   |   |   |   |   |   |
| Net      income (loss) attributable to Targa Resources, Inc. |   | $                               | (2.6   | )      |                           | $      | (20.9 | ) |   | $ | 13.5 |   |   | $ | 43.7 |   |
| Add:                                                         |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net      income attributable to noncontrolling interest      |   |                            | 11.1   |   |                           |   | 24.3 |   |   |   | 17.7 |   |   |   | 81.2 |   |
| Depreciation      and amortization expense                   |   |                            | 44.3   |   |                           |   | 41.1 |   |   |   | 127.9 |   |   |   | 118.0 |   |
| General      and administrative expense                      |   |                            | 31.4   |   |                           |   | 26.7 |   |   |   | 83.5 |   |   |   | 78.7 |   |
| Loss      on debt repurchases                                |   |                            | 1.5    |   |                           |   | - |   |   |   | 1.5 |   |   |   | - |   |
| Loss      on early debt extinguishment                       |   |                            | 14.8   |   |                           |   | - |   |   |   | 14.8 |   |   |   | - |   |
| Interest      expense, net                                   |   |                            | 29.4   |   |                           |   | 24.6 |   |   |   | 77.1 |   |   |   | 73.8 |   |
| Income      tax benefit (expense)                            |   |                            | (1.2   | )      |                           |   | (9.9 | ) |   |   | 5.2 |   |   |   | 30.4 |   |
| Other,      net                                              |   |                            | (2.8   | )      |                           |   | 16.7 |   |   |   | (3.8 | ) |   |   | (17.0 | ) |
| Operating      margin                                        |   | $                               | 125.9  |   |                           | $      | 102.6 |   |   | $ | 337.4 |   |   | $ | 408.8 |   |

|                                                                              |   | Three Months Ended September      30, |   |   | Nine Months Ended September    30, |   |
|-----------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|------------------------------------|--------|
|                                                                              |   | 2009                                  |   |   | 2008                               |   |   | 2009 |   |   | 2008 |   |
| Reconciliation      of net cash provided by (used in)                             |   | (In      millions)                    |   |
| operating      activities to Adjusted EBITDA:                                     |   |                                  |   |   |                               |   |   |   |   |   |   |   |
| Net      cash provided by (used in) operating activities                          |   | $                                     | 96.2   |   |                               | $      | (111.8 | ) |   | $ | 209.1 |   |   | $ | 262.6 |   |
| Net      income attributable to noncontrolling interest                           |   |                                  | (11.1  | )      |                               |   | (24.4 | ) |   |   | (17.7 | ) |   |   | (81.2 | ) |
| Interest      expense, net (1)                                                    |   |                                  | 27.7   |   |                               |   | 22.8 |   |   |   | 72.0 |   |   |   | 67.9 |   |
| Loss      on debt repurchases                                                     |   |                                  | (1.5   | )      |                               |   | - |   |   |   | (1.5 | ) |   |   | - |   |
| Current      income tax expense (benefit)                                         |   |                                  | 0.2    |   |                               |   | (1.0 | ) |   |   | 0.3 |   |   |   | 0.2 |   |
| Other                                                                             |   |                                  | (1.5   | )      |                               |   | 81.6 |   |   |   | (1.7 | ) |   |   | 112.4 |   |
| Changes      in operating assets and liabilities which used (provided)      cash: |   |                                  |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable and other assets                                         |   |                                  | 4.5    |   |                               |   | (154.5 | ) |   |   | 15.9 |   |   |   | (291.0 | ) |
| Accounts      payable and other liabilities                                       |   |                                  | (24.2  | )      |                               |   | 233.4 |   |   |   | (3.1 | ) |   |   | 204.5 |   |
| Adjusted      EBITDA                                                              |   | $                                     | 90.3   |   |                               | $      | 46.1 |   |   | $ | 273.3 |   |   | $ | 275.4 |   |

|   | (1) |   Net      of debt issue costs of $1.5 million and $5.1 million for the three and      nine months ended September 30, 2009, and $1.6 million and $5.7 million      for the three and nine months ended September 30,  2008. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                         |   | Three Months Ended September      30, |   |   | Nine Months Ended September    30, |   |
|--------------------------------------------------------------|--------|---------------------------------------|--------|--------|------------------------------------|--------|
|                                                         |   | 2009                                  |   |   | 2008                               |   |   | 2009 |   |   | 2008 |   |
|                                                         |   | (In      millions)                    |   |
| Reconciliation      of net income (loss) attributable to     |   |                                  |   |   |                               |   |   |   |   |   |   |   |
|  Targa      Resources, Inc. to Adjusted EBITDA:         |   |                                  |   |   |                               |   |   |   |   |   |   |   |
| Net      income (loss) attributable to Targa Resources, Inc. |   | $                                     | (2.6   | )      |                               | $      | (20.9 | ) |   | $ | 13.5 |   |   | $ | 43.7 |   |
| Add:                                                         |   |                                  |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense, net (1)                               |   |                                  | 44.1   |   |                               |   | 24.6 |   |   |   | 91.9 |   |   |   | 73.8 |   |
| Income      tax expense (benefit) (2)                        |   |                                  | (0.9   | )      |                               |   | (10.6 | ) |   |   | 4.9 |   |   |   | 29.2 |   |
| Depreciation      and amortization expense                   |   |                                  | 44.2   |   |                               |   | 41.1 |   |   |   | 127.9 |   |   |   | 118.0 |   |
| Non-cash      loss related to derivatives                    |   |                                  | 5.5    |   |                               |   | 11.9 |   |   |   | 35.1 |   |   |   | 10.7 |   |
| Adjusted      EBITDA                                         |   | $                                     | 90.3   |   |                               | $      | 46.1 |   |   | $ | 273.3 |   |   | $ | 275.4 |   |

|   | (1) |   Includes      loss on early debt extinguishment. |
|--------|-----|--------------------------------------------------------------|

|   | (2) |   Net      of income tax expense attributable to noncontrolling interest of $0.4      million and $1.2 million for the three and nine months ended September 30,      2008. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes      in energy prices; |
|--------|--------|--------------------------------|

|   | · | changes      in competition; |
|--------|--------|------------------------------|

|   | · | changes      in laws and regulations that limit the estimated economic life of an      asset; |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | changes      in technology that render an assetobsolete; |
|--------|--------|----------------------------------------------------------|

|   | · | changes      in expected salvage values; or |
|--------|--------|---------------------------------------------|

|   | · | changes      in the forecast life of applicable resource basins, if  any. |
|--------|--------|---------------------------------------------------------------------------|

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Item

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Table of Contents

| Natural      Gas |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |
|------------------|-------------|--------|-----------------|--------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------|--------|
|             |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |
| Instrument       |        |   | Avg.      Price |   |   | MMBtu per day |   |   |   |   |
|  Type       |  Index |   | $/MMBtu         |   |   | 2009          |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value          |   |
|             |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
|  Sales      |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |
| Swap             | NY-HH       |   |            | 2.97   |   |          |   | 968    |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   | $ | (23 | ) |
|             |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Swap             | IF-Waha     |   |            | 6.62   |   |          |   | 21,918 |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | 4,259 |   |
| Swap             | IF-Waha     |   |            | 6.69   |   |          |   | -      |   |   |   | 16,300 |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | 4,665 |   |
| Swap             | IF-Waha     |   |            | 6.46   |   |          |   | -      |   |   |   | -      |   |   |   | 12,500 |   |   |   | -      |                |   |   | - |   |   |   | (162 | ) |
| Swap             | IF-Waha     |   |            | 7.18   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 5,500  |                |   |   | - |   |   |   | 1,154 |   |
|             |        |   |            |   |   |          |   | 21,918 |   |   |   | 16,300 |   |   |   | 12,500 |   |   |   | 5,500  |                |   |   | - |   |   |   |   |   |
|             |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Swap             | IF-PB       |   |            | 5.42   |   |          |   | -      |   |   |   | 2,000  |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | (305 | ) |
| Swap             | IF-PB       |   |            | 5.42   |   |          |   | -      |   |   |   | -      |   |   |   | 2,000  |   |   |   | -      |                |   |   | - |   |   |   | (686 | ) |
| Swap             | IF-PB       |   |            | 5.54   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 4,000  |                |   |   | - |   |   |   | (1,257 | ) |
| Swap             | IF-PB       |   |            | 5.54   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | 4,000 |   |   |   | (1,314 | ) |
|             |        |   |            |   |   |          |   | -      |   |   |   | 2,000  |   |   |   | 2,000  |   |   |   | 4,000  |                |   |   | 4,000 |   |   |   |   |   |
|             |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Total      Sales |        |   |            |   |   |          |   | 22,886 |   |   |   | 18,300 |   |   |   | 14,500 |   |   |   | 9,500  |                |   |   | 4,000 |   |   |   |   |   |
|             |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   | $ | 6,331 |   |
|             |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
|             |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |

----

Table of Contents

| NGLs              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |
|-------------------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------|--------|
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |
| Instrument        |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|  Type        |  Index |   | $/gal           |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value          |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
|  Sales       |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |
| Swap              | OPIS-MB     |   |            | 0.80   |   |            |   | 3,347  |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   | $ | (567 | ) |
| Swap              | OPIS-MB     |   |            | 0.84   |   |            |   | -      |   |   |   | 3,100  |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | 24 |   |
| Swap              | OPIS-MB     |   |            | 0.86   |   |            |   | -      |   |   |   | -      |   |   |   | 1,900  |   |   |   | -      |                |   |   | - |   |   |   | 51 |   |
| Swap              | OPIS-MB     |   |            | 0.92   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 1,250  |                |   |   | - |   |   |   | 795 |   |
| Total      Swaps  |        |   |            |   |   |            |   | 3,347  |   |   |   | 3,100  |   |   |   | 1,900  |   |   |   | 1,250  |                |   |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Floor             | OPIS-MB     |   |            | 1.44   |   |            |   | -      |   |   |   | -      |   |   |   | 54     |   |   |   | -      |                |   |   | - |   |   |   | 395 |   |
| Floor             | OPIS-MB     |   |            | 1.43   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 63     |                |   |   | - |   |   |   | 479 |   |
| Total      Floors |        |   |            |   |   |            |   | -      |   |   |   | -      |   |   |   | 54     |   |   |   | 63     |                |   |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Total      Sales  |        |   |            |   |   |            |   | 3,347  |   |   |   | 3,100  |   |   |   | 1,954  |   |   |   | 1,313  |                |   |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   | $ | 1,177 |   |

| Condensate       |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |
|------------------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------|--------|
|             |        |   |            |   |   |            |   |   |   |   |   |   |   |
| Instrument       |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|  Type       |  Index |   | $/Bbl           |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value          |   |
|             |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
|  Sales      |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |
| Swap             | NY-WTI      |   |            | 67.85  |   |            |   | -      |   |   |   | 200    |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   | $ | (472 | ) |
| Swap             | NY-WTI      |   |            | 71.00  |   |            |   | -      |   |   |   | -      |   |   |   | 200    |   |   |   | -      |                |   |   | - |   |   |   | (446 | ) |
| Swap             | NY-WTI      |   |            | 72.60  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 200    |                |   |   | - |   |   |   | (449 | ) |
| Swap             | NY-WTI      |   |            | 73.80  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | 200 |   |   |   | (472 | ) |
| Total      Swaps |        |   |            |   |   |            |   | -      |   |   |   | 200    |   |   |   | 200    |   |   |   | 200    |                |   |   | 200 |   |   |   |   |   |
|             |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Total      Sales |        |   |            |   |   |            |   | -      |   |   |   | 200    |   |   |   | 200    |   |   |   | 200    |                |   |   | 200 |   |   |   |   |   |
|             |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   | $ | (1,839 | ) |

----

Table of Contents

| Natural      Gas  |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |
|-------------------|-----------------|--------|-----------------|--------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------|--------|
|              |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |
| Instrument        |            |   | Avg.      Price |   |   | MMBtu per day |   |   |   |   |
|  Type        |  Index     |   | $/MMBtu         |   |   | 2009          |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value          |   |
|              |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
|  Sales       |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |
| Swap              | IF-HSC          |   |            | 7.39   |   |          |   | 1,966  |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   | $ | 500 |   |
|              |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Swap              | IF-NGPL      MC |   |            | 9.18   |   |          |   | 6,256  |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | 2,675 |   |
| Swap              | IF-NGPL      MC |   |            | 8.86   |   |          |   | -      |   |   |   | 5,685  |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | 6,169 |   |
| Swap              | IF-NGPL      MC |   |            | 7.34   |   |          |   | -      |   |   |   | -      |   |   |   | 2,750  |   |   |   | -      |                |   |   | - |   |   |   | 898 |   |
| Swap              | IF-NGPL      MC |   |            | 7.18   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 2,750  |                |   |   | - |   |   |   | 605 |   |
|              |            |   |            |   |   |          |   | 6,256  |   |   |   | 5,685  |   |   |   | 2,750  |   |   |   | 2,750  |                |   |   | - |   |   |   |   |   |
|              |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Swap              | IF-Waha         |   |            | 7.79   |   |          |   | 9,936  |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | 2,999 |   |
| Swap              | IF-Waha         |   |            | 6.53   |   |          |   | -      |   |   |   | 11,709 |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | 2,630 |   |
| Swap              | IF-Waha         |   |            | 6.10   |   |          |   | -      |   |   |   | -      |   |   |   | 11,250 |   |   |   | -      |                |   |   | - |   |   |   | (1,553 | ) |
| Swap              | IF-Waha         |   |            | 6.30   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 7,250  |                |   |   | - |   |   |   | (584 | ) |
| Swap              | IF-Waha         |   |            | 5.59   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | 4,000 |   |   |   | (1,251 | ) |
|              |            |   |            |   |   |          |   | 9,936  |   |   |   | 11,709 |   |   |   | 11,250 |   |   |   | 7,250  |                |   |   | 4,000 |   |   |   |   |   |
| Total      Swaps  |            |   |            |   |   |          |   | 18,158 |   |   |   | 17,394 |   |   |   | 14,000 |   |   |   | 10,000 |                |   |   | 4,000 |   |   |   |   |   |
|              |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Floor             | IF-NGPL      MC |   |            | 6.55   |   |          |   | 850    |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | 114 |   |
|              |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Floor             | IF-Waha         |   |            | 6.55   |   |          |   | 565    |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | 77 |   |
| Total      Floors |            |   |            |   |   |          |   | 1,415  |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   |   |   |
|              |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Total      Sales  |            |   |            |   |   |          |   | 19,573 |   |   |   | 17,394 |   |   |   | 14,000 |   |   |   | 10,000 |                |   |   | 4,000 |   |   |   |   |   |
|              |            |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   | $ | 13,279 |   |

----

Table of Contents

| NGLs              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |
|-------------------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------|--------|
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |
| Instrument        |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|  Type        |  Index |   | $/gal           |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value          |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
|  Sales       |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |
| Swap              | OPIS-MB     |   |            | 1.32   |   |            |   | 6,248  |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   | $ | 10,931 |   |
| Swap              | OPIS-MB     |   |            | 1.23   |   |            |   | -      |   |   |   | 5,209  |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | 28,074 |   |
| Swap              | OPIS-MB     |   |            | 0.89   |   |            |   | -      |   |   |   | -      |   |   |   | 3,800  |   |   |   | -      |                |   |   | - |   |   |   | 48 |   |
| Swap              | OPIS-MB     |   |            | 0.92   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 2,700  |                |   |   | - |   |   |   | 1,071 |   |
| Total      Swaps  |        |   |            |   |   |            |   | 6,248  |   |   |   | 5,209  |   |   |   | 3,800  |   |   |   | 2,700  |                |   |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Floor             | OPIS-MB     |   |            | 1.44   |   |            |   | -      |   |   |   | -      |   |   |   | 199    |   |   |   | -      |                |   |   | - |   |   |   | 1,454 |   |
| Floor             | OPIS-MB     |   |            | 1.43   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 231    |                |   |   | - |   |   |   | 1,755 |   |
| Total      Floors |        |   |            |   |   |            |   | -      |   |   |   | -      |   |   |   | 199    |   |   |   | 231    |                |   |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Total      Sales  |        |   |            |   |   |            |   | 6,248  |   |   |   | 5,209  |   |   |   | 3,999  |   |   |   | 2,931  |                |   |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   | $ | 43,333 |   |

| Condensate        |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |
|-------------------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------|--------|
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |
| Instrument        |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|  Type        |  Index |   | $/Bbl           |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value          |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
|  Sales       |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |
| Swap              | NY-WTI      |   |            | 69.00  |   |            |   | 322    |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   | $ | (61 | ) |
| Swap              | NY-WTI      |   |            | 68.04  |   |            |   | -      |   |   |   | 401    |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | (913 | ) |
| Swap              | NY-WTI      |   |            | 71.00  |   |            |   | -      |   |   |   | -      |   |   |   | 200    |   |   |   | -      |                |   |   | - |   |   |   | (446 | ) |
| Swap              | NY-WTI      |   |            | 72.60  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 200    |                |   |   | - |   |   |   | (449 | ) |
| Swap              | NY-WTI      |   |            | 74.00  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | 200 |   |   |   | (459 | ) |
| Total      Swaps  |        |   |            |   |   |            |   | 322    |   |   |   | 401    |   |   |   | 200    |   |   |   | 200    |                |   |   | 200 |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Floor             | NY-WTI      |   |            | 60.00  |   |            |   | 50     |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   | 3 |   |
| Total      Floors |        |   |            |   |   |            |   | 50     |   |   |   | -      |   |   |   | -      |   |   |   | -      |                |   |   | - |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Total      Sales  |        |   |            |   |   |            |   | 372    |   |   |   | 401    |   |   |   | 200    |   |   |   | 200    |                |   |   | 200 |   |   |   |   |   |
|              |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   | $ | (2,325 | ) |

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| Period                 |   | Fixed Rate |   |   | Notional Amount |   | Fair Value |   |
|------------------------|--------|------------|--------|--------|-----------------|--------|------------|--------|
|                   |   |       |   |   |            |   |       |   | (In      thousands) |   |
| Remainder      of 2009 |   |       | 1.65%  |   |            | $      | 65         |   | million |   | $ | (231 | ) |
| 2010                   |   |       | 1.65%  |   |            |   | 65         |   | million |   |   | (542 | ) |
| 2011                   |   |       | 1.65%  |   |            |   | 65         |   | million |   |   | 346 |   |
| 01/01-03/31/2012       |   |       | 1.65%  |   |            |   | 66         |   | million |   |   | 195 |   |
|                   |   |       |   |   |            |   |       |   |   |   | $ | (232 | ) |

| Period                 |   | Fixed Rate |   |   | Notional Amount |   | Fair Value |   |
|------------------------|--------|------------|--------|--------|-----------------|--------|------------|--------|
|                   |   |       |   |   |            |   |       |   | (In      thousands) |   |
| Remainder      of 2009 |   |       | 3.66%  |   |            | $      | 300        |   | million |   | $ | (647 | ) |
| 2010                   |   |       | 3.66%  |   |            |   | 300        |   | million |   |   | (9,166 | ) |
| 2011                   |   |       | 3.41%  |   |            |   | 300        |   | million |   |   | (4,566 | ) |
| 2012                   |   |       | 3.39%  |   |            |   | 300        |   | million |   |   | (913 | ) |
| 2013                   |   |       | 3.39%  |   |            |   | 300        |   | million |   |   | 569 |   |
| 01/01-04/24/2014       |   |       | 3.39%  |   |            |   | 300        |   | million |   |   | 617 |   |
|                   |   |       |   |   |            |   |       |   |   |   | $ | (14,106 | ) |

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Table of Contents

Item

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Table of Contents

| Item 1. | Legal      Proceedings |
|--------------|------------------------|

| Item 1A. | Risk      Factors |
|---------------|-------------------|

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Ite

|   | Not      applicable. |
|--------|----------------------|

| Item 3. | Defaults Upon Senior      Securities |
|--------------|--------------------------------------|

| Item 4. | Submission of Matters to a      Vote of Security Holders |
|--------------|----------------------------------------------------------|

| Item 5. | Other      Information |
|--------------|------------------------|

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Table of Contents

| Item 6. | Exhibits |
|--------------|----------|

|  0                   |                                                                                                                                                                                                                                                                                                                                                             |
|---------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit      Number  | Description                                                                                                                                                                                                                                                                                                                                            |
| 2.1*                      | Purchase      and Sale Agreement dated July 27, 2009, by and between Targa Resources      Partners LP,  Targa GP Inc. and Targa LP Inc. (incorporated by      reference to Exhibit 2.1 to Targa Resources, Inc.’s Current Report on Form      8-K filed July 29, 2009 (File No. 333-147066)).                                                    |
|                      |                                                                                                                                                                                                                                                                                                                                                             |
| 3.1                       | Amended      and Restated Certificate of Incorporation of Targa Resources, Inc.      (incorporated by reference to Exhibit 3.1 to Targa Resources, Inc.’s      Registration Statement on Form S-4 filed October 31, 2007 (File No.      333-147066)).                                                                                                 |
|                      |                                                                                                                                                                                                                                                                                                                                                             |
| 3.2                       | Amended      and Restated Bylaws of Targa Resources, Inc. (incorporated by reference to      Exhibit 3.2 to Targa Resources, Inc.’s Registration Statement on Form S-4      filed October 31, 2007 (File No. 333-147066)).                                                                                                                                 |
|                      |                                                                                                                                                                                                                                                                                                                                                             |
| 3.3                       | Certificate      of Incorporation of Targa Resources Finance Corporation (incorporated by      reference to Exhibit 3.3 to Targa Resources, Inc.’s Registration Statement      on Form S-4 filed October 31, 2007 (File No.  333-147066)).                                                                                                                 |
|                      |                                                                                                                                                                                                                                                                                                                                                             |
| 3.4                       | Certificate      of Amendment of the Certificate of Incorporation of Targa Resources      Finance Corporation (incorporated by reference to Exhibit 3.4 to Targa      Resources, Inc.’s Registration Statement on Form S-4 filed October 31,      2007 (File No. 333-147066)).                                                                             |
|                      |                                                                                                                                                                                                                                                                                                                                                             |
| 3.5                       | Bylaws      of Targa Resources Finance Corporation (incorporated by reference to      Exhibit 3.5 to Targa Resources, Inc.’s Registration Statement on Form S-4      filed October 31, 2007 (File No. 333-147066)).                                                                                                                                        |
|                      |                                                                                                                                                                                                                                                                                                                                                             |
| 4.1                       | Indenture      dated as of July 6, 2009, among Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the Guarantors named therein and      U.S. Bank National Association (incorporated by reference to Exhibit 4.1      to Targa Resources, Inc.’s Form 10-Q filed August 7, 2009 (File No.      333-147066)).                  |
|                      |                                                                                                                                                                                                                                                                                                                                                             |
| 4.2                       | Registration      Rights Agreement dated as of July 6, 2009, among Targa Resources Partners      LP, Targa Resources Finance Corporation, the Guarantors named therein and      the initial purchasers named therein (incorporated by reference to Exhibit      4.2 to Targa Resources, Inc.’s Form 10-Q filed August 7, 2009 (File No.      333-147066)). |
|                      |                                                                                                                                                                                                                                                                                                                                                             |
| 4.3**                     | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Downstream GP LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                              |
|                      |                                                                                                                                                                                                                                                                                                                                                             |
| 4.4**                     | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Downstream GP LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                          |
| 4.5**                     | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Downstream LP, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                             |
| 4.6**                     | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Downstream LP, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                              |

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| 4.7**  | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa LSNG GP LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.8**  | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa LSNG GP LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                     |
| 4.9**  | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa LSNG LP, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                        |
| 4.10** | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa LSNG LP, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                         |
| 4.11** | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Sparta LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                     |
| 4.12** | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Sparta LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                      |
| 4.13** | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Midstream Barge Company LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                          |
| 4.14** | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Midstream Barge Company LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                           |
| 4.15** | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Retail Electric LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                            |
| 4.16** | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Retail Electric LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                             |
| 4.17** | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa NGL Pipeline Company LLC, a subsidiary of Targa Resources Partners      LP, Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                       |
| 4.18** | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa NGL Pipeline Company LLC, a subsidiary of Targa Resources Partners      LP, Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                        |
| 4.19** | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Transport LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                  |
| 4.20** | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Transport LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                   |
| 4.21** | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Co-Generation LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                              |
| 4.22** | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Co-Generation LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                               |
| 4.23** | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Liquids GP LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                 |
| 4.24** | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Liquids GP LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                  |
| 4.25** | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Liquids Marketing and Trade, a subsidiary of Targa Resources      Partners LP, Targa Resources Partners Finance Corporation, the other      Subsidiary Guarantors and U.S. Bank National Association.                                                                                    |
| 4.26** | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Liquids Marketing and Trade, a subsidiary of Targa Resources      Partners LP, Targa Resources Partners Finance Corporation, the other      Subsidiary Guarantors and U.S. Bank National Association.                                                                                     |
| 10.1   | Commitment      Increase Supplement, dated July 29, 2009, by and among Targa      Resources Partners LP, Bank of America, N.A. and the other parties      signatory thereto Issuer (incorporated by reference to Exhibit 10.2 to      Targa Resources, Inc.’s Form 10-Q filed August 7, 2009 (File No.      333-147066)).                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.2   | Contribution,      Conveyance and Assumption Agreement, dated September 24, 2009, by and      among Targa Resources Partners LP, Targa GP Inc., Targa LP Inc., Targa      Resources Operating LP and Targa North Texas GP LLC (incorporated by      reference to Exhibit 10.1 to Targa Resources, Inc.’s Current Report on      Form 8-K filed September 28, 2009 (file No. 333-147066)).  |
| 10.3   | Second      Amended and Restated Omnibus Agreement, dated September 24, 2009, by      and among Targa Resources Partners LP, Targa Resources, Inc., Targa      Resources LLC and Targa Resources GP LLC (incorporated by reference to      Exhibit 10.2 to Targa Resources, Inc.’s Current Report on Form 8-K filed      September 28, 2009 (file No. 333-147066)).                   |
| 10.4   | Raw      Product Purchase Agreement dated September 24, 2009, to be effective      September 1, 2009, between Targa Liquids Marketing and Trade and Targa      Permian LP (incorporated by reference to Exhibit 10.3 to Targa Resources,      Inc.’s Current Report on Form 8-K filed September 28, 2009 (file No.      333-147066)).                                                      |

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| 10.5   | Specification      Product Purchase Agreement dated September 24 , 2009, to be effective      September 1, 2009, between Targa Liquids Marketing and Trade and Targa      Midstream Services Limited Partnership (SE La) (incorporated by reference      to Exhibit 10.4 to Targa Resources, Inc.’s Current Report on Form 8-K      filed September 28, 2009 (file No. 333-147066)).  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.6   | Raw      Product Purchase Agreement dated September 24 , 2009, to be effective      September 1, 2009, between Targa Liquids Marketing and Trade and Targa      Midstream Services Limited Partnership (Versado) (incorporated by      reference to Exhibit 10.5 to Targa Resources, Inc.’s Current Report on      Form 8-K filed September 28, 2009 (file No. 333-147066)).          |
| 10.7   | Raw      Product Purchase Agreement dated September 24, 2009, to be effective      September 1, 2009, between Targa Liquids Marketing and Trade and Targa      Midstream Services Limited Partnership (West La) (incorporated by      reference to Exhibit 10.6 to Targa Resources, Inc.’s Current Report on      Form 8-K filed September 28, 2009 (file No. 333-147066)).           |
| 31.1** | Certification      of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)      of the Securities Exchange Act of 1934.                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                             |
| 31.2** | Certification      of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)      of the Securities Exchange Act of 1934.                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                             |
| 32.1** | Certification      of the Chief Executive Officer pursuant to 18 U.S.C.      Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                             |
| 32.2** | Certification      of the Chief Financial Officer pursuant to 18 U.S.C.      Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                             |

|   | * | Pursuant      to Item 601(b)(2) of Regulation S-K, the registrant agrees to furnish      supplementary a copy of any omitted exhibit or schedule to the SEC upon      request. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Filed      herewith |
|----|---------------------|

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|   | SIGNATURES |
|--------|------------|

|   |                                                                                                                                                      |                                                                                           |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|--------|
|   | Targa      Resources, Inc.(Registrant)                                                                                                                    |
|   |                                                                                                                                                      |                                                                                           |
|   | By:                                                                                                                                                       | /s/    JOHN ROBERT SPARGER         |
|   |  John      Robert SpargerSenior      Vice President andChief      Accounting Officer(Authorized      signatory andPrincipal      Accounting Officer) |                                                                                           |

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Table of Contents

|  0                   |                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit      Number  | Description                                                                                                                                                                                                                                                                                                                                                                                 |
| 2.1*                      | Purchase      and Sale Agreement dated July 27, 2009, by and between Targa Resources      Partners LP,  Targa GP Inc. and Targa LP Inc. (incorporated by      reference to Exhibit 2.1 to Targa Resources, Inc.’s Current Report on Form      8-K filed July 29, 2009 (File No. 333-147066)).                                                                                         |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.1                       | Amended      and Restated Certificate of Incorporation of Targa Resources, Inc.      (incorporated by reference to Exhibit 3.1 to Targa Resources, Inc.’s      Registration Statement on Form S-4 filed October 31, 2007 (File No.      333-147066)).                                                                                                                                      |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.2                       | Amended      and Restated Bylaws of Targa Resources, Inc. (incorporated by reference to      Exhibit 3.2 to Targa Resources, Inc.’s Registration Statement on Form S-4      filed October 31, 2007 (File No. 333-147066)).                                                                                                                                                                      |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.3                       | Certificate      of Incorporation of Targa Resources Finance Corporation (incorporated by      reference to Exhibit 3.3 to Targa Resources, Inc.’s Registration Statement      on Form S-4 filed October 31, 2007 (File No.  333-147066)).                                                                                                                                                      |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.4                       | Certificate      of Amendment of the Certificate of Incorporation of Targa Resources      Finance Corporation (incorporated by reference to Exhibit 3.4 to Targa      Resources, Inc.’s Registration Statement on Form S-4 filed October 31,      2007 (File No. 333-147066)).                                                                                                                  |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 3.5                       | Bylaws      of Targa Resources Finance Corporation (incorporated by reference to      Exhibit 3.5 to Targa Resources, Inc.’s Registration Statement on Form S-4      filed October 31, 2007 (File No. 333-147066)).                                                                                                                                                                             |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.1                       | Indenture      dated as of July 6, 2009, among Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the Guarantors named therein and      U.S. Bank National Association (incorporated by reference to Exhibit 4.1      to Targa Resources, Inc.’s Form 10-Q filed August 7, 2009 (File No.      333-147066)).                                                       |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.2                       | Registration      Rights Agreement dated as of July 6, 2009, among Targa Resources Partners      LP, Targa Resources Finance Corporation, the Guarantors named therein and      the initial purchasers named therein (incorporated by reference to Exhibit      4.2 to Targa Resources, Inc.’s Form 10-Q filed August 7, 2009 (File No.      333-147066)).                                      |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.3**                     | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Downstream GP LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                                   |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.4**                     | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Downstream GP LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                               |
| 4.5**                     | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Downstream LP, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                  |
| 4.6**                     | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Downstream LP, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                   |
| 4.7**                     | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa LSNG GP LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                    |
| 4.8**                     | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa LSNG GP LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                     |
| 4.9**                     | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa LSNG LP, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                        |
| 4.10**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa LSNG LP, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                         |
| 4.11**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Sparta LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                     |
| 4.12**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Sparta LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                      |
| 4.13**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Midstream Barge Company LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                          |
| 4.14**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Midstream Barge Company LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                           |
| 4.15**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Retail Electric LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                            |
| 4.16**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Retail Electric LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                             |
| 4.17**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa NGL Pipeline Company LLC, a subsidiary of Targa Resources Partners      LP, Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                       |
| 4.18**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa NGL Pipeline Company LLC, a subsidiary of Targa Resources Partners      LP, Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                        |
| 4.19**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Transport LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                  |
| 4.20**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Transport LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                   |
| 4.21**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Co-Generation LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                              |
| 4.22**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Co-Generation LLC, a subsidiary of Targa Resources Partners LP,      Targa Resources Partners Finance Corporation, the other Subsidiary      Guarantors and U.S. Bank National Association.                                                                                               |
| 4.23**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Liquids GP LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                 |
| 4.24**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Liquids GP LLC, a subsidiary of Targa Resources Partners LP, Targa      Resources Partners Finance Corporation, the other Subsidiary Guarantors      and U.S. Bank National Association.                                                                                                  |
| 4.25**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated June 18, 2008, among      Targa Liquids Marketing and Trade, a subsidiary of Targa Resources      Partners LP, Targa Resources Partners Finance Corporation, the other      Subsidiary Guarantors and U.S. Bank National Association.                                                                                    |
| 4.26**                    | Supplemental      Indenture dated September 24, 2009 to Indenture dated July 6, 2009, among      Targa Liquids Marketing and Trade, a subsidiary of Targa Resources      Partners LP, Targa Resources Partners Finance Corporation, the other      Subsidiary Guarantors and U.S. Bank National Association.                                                                                     |
| 10.1                      | Commitment      Increase Supplement, dated July 29, 2009, by and among Targa      Resources Partners LP, Bank of America, N.A. and the other parties      signatory thereto Issuer (incorporated by reference to Exhibit 10.2 to      Targa Resources, Inc.’s Form 10-Q filed August 7, 2009 (File No.      333-147066)).                                                                  |
|                      |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.2                      | Contribution,      Conveyance and Assumption Agreement, dated September 24, 2009, by and      among Targa Resources Partners LP, Targa GP Inc., Targa LP Inc., Targa      Resources Operating LP and Targa North Texas GP LLC (incorporated by      reference to Exhibit 10.1 to Targa Resources, Inc.’s Current Report on      Form 8-K filed September 28, 2009 (file No. 333-147066)).  |
| 10.3                      | Second      Amended and Restated Omnibus Agreement, dated September 24, 2009, by      and among Targa Resources Partners LP, Targa Resources, Inc., Targa      Resources LLC and Targa Resources GP LLC (incorporated by reference to      Exhibit 10.2 to Targa Resources, Inc.’s Current Report on Form 8-K filed      September 28, 2009 (file No. 333-147066)).                   |
| 10.4                      | Raw      Product Purchase Agreement dated September 24, 2009, to be effective      September 1, 2009, between Targa Liquids Marketing and Trade and Targa      Permian LP (incorporated by reference to Exhibit 10.3 to Targa Resources,      Inc.’s Current Report on Form 8-K filed September 28, 2009 (file No.      333-147066)).                                                      |

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Table of Contents

| 10.5   | Specification      Product Purchase Agreement dated September 24 , 2009, to be effective      September 1, 2009, between Targa Liquids Marketing and Trade and Targa      Midstream Services Limited Partnership (SE La) (incorporated by reference      to Exhibit 10.4 to Targa Resources, Inc.’s Current Report on Form 8-K      filed September 28, 2009 (file No. 333-147066)).  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.6   | Raw      Product Purchase Agreement dated September 24 , 2009, to be effective      September 1, 2009, between Targa Liquids Marketing and Trade and Targa      Midstream Services Limited Partnership (Versado) (incorporated by      reference to Exhibit 10.5 to Targa Resources, Inc.’s Current Report on      Form 8-K filed September 28, 2009 (file No. 333-147066)).          |
| 10.7   | Raw      Product Purchase Agreement dated September 24, 2009, to be effective      September 1, 2009, between Targa Liquids Marketing and Trade and Targa      Midstream Services Limited Partnership (West La) (incorporated by      reference to Exhibit 10.6 to Targa Resources, Inc.’s Current Report on      Form 8-K filed September 28, 2009 (file No. 333-147066)).           |
| 31.1** | Certification      of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)      of the Securities Exchange Act of 1934.                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                             |
| 31.2** | Certification      of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)      of the Securities Exchange Act of 1934.                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                             |
| 32.1** | Certification      of the Chief Executive Officer pursuant to 18 U.S.C.      Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                             |
| 32.2** | Certification      of the Chief Financial Officer pursuant to 18 U.S.C.      Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                             |

|   | * | Pursuant      to Item 601(b)(2) of Regulation S-K, the registrant agrees to furnish      supplementary a copy of any omitted exhibit or schedule to the SEC upon      request. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Filed      herewith |
|----|---------------------|