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| 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 June 30, 2009 and December 31, 2008 | 4 |
|                                           |   | Consolidated Statements of Operations for the three and six months ended June 30, 2009 and 2008 | 5 |
|                                           |   | Consolidated Statements of Cash Flows for the six months ended June 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 | 38 |
| Item 3.                                        |   | Quantitative and Qualitative Disclosures about Market Risk | 52 |
| Item 4T.                                       |   | Controls and Procedures | 59 |
| PART II — OTHER INFORMATION    |
| Item 1.                                        |   | Legal Proceedings | 60 |
| Item 1A.                                       |   | Risk Factors | 60 |
| Item 2.                                        |   | Unregistered Sales of Equity Securities and Use of Proceeds | 61 |
| Item 3.                                        |   | Defaults Upon Senior Securities | 61 |
| Item 4.                                        |   | Submission of Matters to a Vote of Security Holders | 61 |
| Item 5.                                        |   | Other Information | 61 |
| Item 6.                                        |   | Exhibits | 62 |
| SIGNATURES                                     | 63 |

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|                                |                                                                 |
|-------------------------------------|----------------------------------------------------------------------|
| Bbl                                 | Barrel(s)                                                            |
| BBtu                                | Billion British thermal unit(s)                                      |
| Btu                                 | British thermal unit, a measure of heating value                     |
| /d                                  | Per day                                                              |
| Gal                                 | Gallon(s)                                                            |
| MBbl                                | Thousand barrels                                                     |
| MMBtu                               | Million British thermal units                                        |
| MMcf                                | Million cubic feet                                                   |
| NGL(s)                              | Natural gas liquid(s)                                                |
|                                |
| Price Index Definitions   |
| IF-CGT                              | Inside FERC Gas Market Report, Columbia Gulf Transmission, Louisiana |
| 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-Waha                             | Inside FERC Gas Market Report, West Texas Waha                       |
| IF-PB                               | Inside FERC Gas Market Report, Permian Basin                         |
| 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; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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|   | Item 1. Financial Statements |
|--------|-----------------------------------|

| TARGA RESOURCES, INC.                                              |   |
|--------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                        |   |
|                                                               |   | June 30, |   |   | December 31, |   |
|                                                               |   | 2009 |   |   | 2008 |   |
|                                                               |   | (Unaudited) |   |
|                                                               |   | (In thousands) |   |
| ASSETS                                                             |   |
| Current assets:                                                    |   |   |   |   |   |   |
| Cash and cash equivalents                                          |   | $ | 217,825 |   |   | $ | 362,769 |   |
| Trade receivables, net of allowances of $9,089 and $9,380          |   |   | 308,987 |   |   |   | 303,904 |   |
| Inventory                                                          |   |   | 33,649 |   |   |   | 68,519 |   |
| Assets from risk management activities                             |   |   | 84,118 |   |   |   | 112,341 |   |
| Other current assets                                               |   |   | 41,250 |   |   |   | 9,615 |   |
| Total current assets                                               |   |   | 685,829 |   |   |   | 857,148 |   |
|                                                               |   |   |   |   |   |   |   |   |
| Property, plant and equipment, at cost                             |   |   | 3,148,527 |   |   |   | 3,093,264 |   |
| Accumulated depreciation                                           |   |   | (559,245 | ) |   |   | (475,895 | ) |
| Property, plant and equipment, net                                 |   |   | 2,589,282 |   |   |   | 2,617,369 |   |
| Long-term assets from risk management activities                   |   |   | 47,811 |   |   |   | 89,774 |   |
| Investment in debt obligations of Targa Resources Investments Inc. |   |   | 35,198 |   |   |   | 10,953 |   |
| Other assets                                                       |   |   | 69,746 |   |   |   | 73,333 |   |
| Total assets                                                       |   | $ | 3,427,866 |   |   | $ | 3,648,577 |   |
|                                                               |   |   |   |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                               |   |
| Current liabilities:                                               |   |   |   |   |   |   |   |   |
| Accounts payable                                                   |   | $ | 144,649 |   |   | $ | 153,756 |   |
| Accrued liabilities                                                |   |   | 221,886 |   |   |   | 253,384 |   |
| Current maturities of debt                                         |   |   | 12,500 |   |   |   | 12,500 |   |
| Liabilities from risk management activities                        |   |   | 13,921 |   |   |   | 11,664 |   |
| Deferred income taxes                                              |   |   | 25,833 |   |   |   | 36,240 |   |
| Total current liabilities                                          |   |   | 418,789 |   |   |   | 467,544 |   |
|                                                               |   |   |   |   |   |   |   |   |
| Long-term debt, less current maturities                            |   |   | 1,410,270 |   |   |   | 1,552,440 |   |
| Long-term liabilities from risk management activities              |   |   | 21,053 |   |   |   | 9,679 |   |
| Deferred income taxes                                              |   |   | 50,731 |   |   |   | 40,027 |   |
| Other long-term liabilities                                        |   |   | 61,145 |   |   |   | 49,638 |   |
| Commitments and contingencies (see Note 14)                        |   |   |   |   |   |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |
| Stockholders' equity:                                              |   |   |   |   |   |   |   |   |
| Common stock ($0.001 par value, 1,000 shares authorized, issued,   |   |   |   |   |   |   |   |   |
| and outstanding at June 30, 2009 and December 31, 2008, collateral |   |   |   |   |   |   |   |   |
| for Targa Resources Investments Inc. debt)                         |   |   | - |   |   |   | - |   |
| Additional paid-in capital                                         |   |   | 420,348 |   |   |   | 420,067 |   |
| Retained earnings                                                  |   |   | 143,719 |   |   |   | 127,640 |   |
| Accumulated other comprehensive income                             |   |   | 18,103 |   |   |   | 31,934 |   |
| Total Targa Resources, Inc. stockholder's equity                   |   |   | 582,170 |   |   |   | 579,641 |   |
| Noncontrolling interest in subsidiaries                            |   |   | 883,708 |   |   |   | 949,608 |   |
| Total stockholders' equity                                         |   |   | 1,465,878 |   |   |   | 1,529,249 |   |
| Total liabilities and stockholders' equity                         |   | $ | 3,427,866 |   |   | $ | 3,648,577 |   |
|                                                               |   |   |   |   |   |   |   |   |
| See notes to consolidated financial statements                     |   |

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| TARGA RESOURCES, INC.                                    |   |
|----------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                    |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Three MonthsEnded June 30, |   |   | Six MonthsEnded June 30, |   |
|                                                     |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                                     |   | (Unaudited) |   |
|                                                     |   | (In thousands) |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                 |   | $ | 1,003,652 |   |   | $ | 2,263,226 |   |   | $ | 2,005,543 |   |   | $ | 4,465,619 |   |
| Costs and expenses:                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product purchases                                        |   |   | 828,786 |   |   |   | 2,023,089 |   |   |   | 1,674,784 |   |   |   | 4,024,530 |   |
| Operating expenses                                       |   |   | 54,213 |   |   |   | 71,229 |   |   |   | 119,167 |   |   |   | 134,807 |   |
| Depreciation and amortization expense                    |   |   | 42,053 |   |   |   | 38,750 |   |   |   | 83,653 |   |   |   | 76,942 |   |
| General and administrative expense                       |   |   | 28,196 |   |   |   | 27,924 |   |   |   | 52,049 |   |   |   | 52,017 |   |
| Other (see Note 18)                                      |   |   | 1,820 |   |   |   | (2 | ) |   |   | 1,807 |   |   |   | (4,445 | ) |
|                                                     |   |   | 955,068 |   |   |   | 2,160,990 |   |   |   | 1,931,460 |   |   |   | 4,283,851 |   |
| Income from operations                                   |   |   | 48,584 |   |   |   | 102,236 |   |   |   | 74,083 |   |   |   | 181,768 |   |
| Other income (expense):                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                                    |   |   | (22,050 | ) |   |   | (23,660 | ) |   |   | (47,752 | ) |   |   | (49,245 | ) |
| Equity in earnings of unconsolidated investments         |   |   | 1,683 |   |   |   | 7,196 |   |   |   | 1,804 |   |   |   | 10,655 |   |
| Gain on insurance claims (see Note 11)                   |   |   | - |   |   |   | 18,566 |   |   |   | - |   |   |   | 18,566 |   |
| Other income (see Note 19)                               |   |   | 41 |   |   |   | - |   |   |   | 1,004 |   |   |   | - |   |
| Income before income taxes                               |   |   | 28,258 |   |   |   | 104,338 |   |   |   | 29,139 |   |   |   | 161,744 |   |
| Income tax expense:                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                  |   |   | (114 | ) |   |   | (275 | ) |   |   | (116 | ) |   |   | (1,237 | ) |
| Deferred                                                 |   |   | (6,362 | ) |   |   | (27,910 | ) |   |   | (6,289 | ) |   |   | (39,054 | ) |
|                                                     |   |   | (6,476 | ) |   |   | (28,185 | ) |   |   | (6,405 | ) |   |   | (40,291 | ) |
| Net income                                               |   |   | 21,782 |   |   |   | 76,153 |   |   |   | 22,734 |   |   |   | 121,453 |   |
| Less: Net income attributable to noncontrolling interest |   |   | 8,294 |   |   |   | 29,955 |   |   |   | 6,655 |   |   |   | 56,839 |   |
| Net income attributable to Targa Resources, Inc.         |   | $ | 13,488 |   |   | $ | 46,198 |   |   | $ | 16,079 |   |   | $ | 64,614 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See notes to consolidated financial statements           |   |

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| TARGA RESOURCES, INC.                                                  |   |
|------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                  |   |
|                                                                   |   |   |   |   |   |   |
|                                                                   |   | Six MonthsEnded June 30, |   |
|                                                                   |   | 2009 |   |   | 2008 |   |
|                                                                   |   | (Unaudited) |   |
|                                                                   |   | (In thousands) |   |
| Cash flows from operating activities                                   |   |   |   |   |   |   |
| Net income                                                             |   | $ | 22,734 |   |   | $ | 121,453 |   |
| Adjustments to reconcile net income to net cash provided               |   |   |   |   |   |   |   |   |
| by operating activities:                                               |   |   |   |   |   |   |   |   |
| Amortization in interest expense                                       |   |   | 3,548 |   |   |   | 4,091 |   |
| Interest income on paid-in-kind investment                             |   |   | (1,340 | ) |   |   | (30 | ) |
| Amortization in general and administrative expense                     |   |   | 417 |   |   |   | 883 |   |
| Depreciation and amortization expense                                  |   |   | 83,653 |   |   |   | 76,942 |   |
| Accretion of asset retirement obligations                              |   |   | 1,467 |   |   |   | 629 |   |
| Deferred income tax expense                                            |   |   | 6,289 |   |   |   | 39,054 |   |
| Equity in earnings of unconsolidated investments, net of distributions |   |   | (1,029 | ) |   |   | (9,880 | ) |
| Risk management activities                                             |   |   | 29,647 |   |   |   | (1,176 | ) |
| Gain on sale of assets                                                 |   |   | (38 | ) |   |   | (4,445 | ) |
| Gain on property damage insurance settlement (See Note 11)             |   |   | - |   |   |   | (18,566 | ) |
| Changes in operating assets and liabilities:                           |   |   |   |   |   |   |   |   |
| Accounts receivable and other assets                                   |   |   | (36,458 | ) |   |   | 100,871 |   |
| Inventory                                                              |   |   | 25,093 |   |   |   | 35,630 |   |
| Accounts payable and other liabilities                                 |   |   | (21,063 | ) |   |   | 28,919 |   |
| Net cash provided by operating activities                              |   |   | 112,920 |   |   |   | 374,375 |   |
| Cash flows from investing activities                                   |   |   |   |   |   |   |   |   |
| Additions to property, plant and equipment                             |   |   | (54,886 | ) |   |   | (57,978 | ) |
| Proceeds from property insurance                                       |   |   | 4,700 |   |   |   | 48,294 |   |
| Investment in debt obligations of Targa Resources Investments Inc.     |   |   | (12,239 | ) |   |   | (16,400 | ) |
| Other                                                                  |   |   | 155 |   |   |   | 364 |   |
| Net cash used in investing activities                                  |   |   | (62,270 | ) |   |   | (25,720 | ) |
| Cash flows from financing activities                                   |   |   |   |   |   |   |   |   |
| Repayments of senior secured debt                                      |   |   | (6,250 | ) |   |   | (6,250 | ) |
| Repayments of senior secured credit facility                           |   |   | (95,920 | ) |   |   | - |   |
| Repayments of senior secured credit facility of the Partnership        |   |   | (40,000 | ) |   |   | (301,300 | ) |
| Proceeds from issuance of senior notes of the Partnership              |   |   | - |   |   |   | 250,000 |   |
| Distributions to noncontrolling interest                               |   |   | (50,847 | ) |   |   | (42,480 | ) |
| Contribution from noncontrolling interest                              |   |   | 1,071 |   |   |   | - |   |
| Contribution from (distribution to) Targa Resources Investments Inc.   |   |   | 37 |   |   |   | (53,752 | ) |
| Costs incurred in connection with financing arrangements               |   |   | (3,685 | ) |   |   | (6,590 | ) |
| Net cash used in financing activities                                  |   |   | (195,594 | ) |   |   | (160,372 | ) |
| Net increase (decrease) in cash and cash equivalents                   |   |   | (144,944 | ) |   |   | 188,283 |   |
| Cash and cash equivalents, beginning of period                         |   |   | 362,769 |   |   |   | 177,949 |   |
| Cash and cash equivalents, end of period                               |   | $ | 217,825 |   |   | $ | 366,232 |   |
|                                                                   |   |   |   |   |   |   |   |   |
| See notes to consolidated financial statements                         |   |
|                                                                   |   |   |   |   |   |   |   |   |

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|              |                |   | 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        |                |   |                                    |   |          |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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        |                |   |                                    |   |          |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 |   |

| 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) |   |
| $              | 18,080 |   |               | $      | 5,841  |   |   | $ | 13,430 |   |   | $ | (2,970 | ) |   | $ | 31,510 |   |   | $ | 2,871 |   |

|  (1) | Excludes $2.3 million of interest paid in-kind and $1.4 million in discount amortization. |
|-----------|-------------------------------------------------------------------------------------------|

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|                   |   | June 30, |   |   | December 31, |   |
|------------------------|--------|----------|--------|--------|--------------|--------|
|                   |   | 2009     |   |   | 2008         |   |
| Logistics Assets - GCF |   | $        | 19,494 |   |         | $      | 18,465 |   |

|                   |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|
|                   |   | 2009                        |   |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
| Equity in earnings of: |   |                        |   |   |                      |   |   |   |   |   |   |   |
| VESCO (1) (2)          |   | $                           | -      |   |                      | $      | 6,354 |   |   | $ | - |   |   | $ | 8,729 |   |
| GCF                    |   |                        | 1,683  |   |                      |   | 842 |   |   |   | 1,804 |   |   |   | 1,926 |   |
|                   |   | $                           | 1,683  |   |                      | $      | 7,196 |   |   | $ | 1,804 |   |   | $ | 10,655 |   |
|                   |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Cash distributions:    |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| GCF                    |   | $                           | 775    |   |                      | $      | - |   |   | $ | 775 |   |   | $ | 775 |   |

| (1)   | Includes our equity earnings through June 30, 2008. |
|-----------------|-----------------------------------------------------|

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

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|                                                                        |   | June 30, |      |   | December 31, |   |
|-----------------------------------------------------------------------------|--------|----------|-----------|--------|--------------|--------|
|                                                                        |   | 2009     |      |   | 2008         |   |
| Long-term debt:                                                             |   |     |      |   |         |   |
| Obligations of Targa:                                                       |   |     |      |   |         |   |
| Senior secured term loan facility, variable rate, due October 2012          |   | $        | 515,925   |   |         | $      | 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  |   |     | 447,765   |   |         |   | 487,765 |   |
| Senior unsecured notes, 81⁄4% fixed rate, due July 2016                  |   |     | 209,080   |   |         |   | 209,080 |   |
| Total debt                                                                  |   |     | 1,422,770 |   |         |   | 1,564,940 |   |
| Current maturities of debt                                                  |   |     | (12,500   | )      |         |   | (12,500 | ) |
| Total long-term debt                                                        |   | $        | 1,410,270 |   |         | $      | 1,552,440 |   |
| Irrevocable standby letters of credit:                                      |   |     |      |   |         |   |   |   |
| Letters of credit outstanding under synthetic letter of credit facility (2) |   | $        | 107,413   |   |         | $      | 114,019 |   |
| Letters of credit outstanding under senior secured revolving credit         |   |     |      |   |         |   |   |   |
| facility of the Partnership                                                 |   |     | 13,370    |   |         |   | 9,651 |   |
|                                                                        |   | $        | 120,783   |   |         | $      | 123,670 |   |

|  (1) | We consolidate the debt of the Partnership with that of our own; however, we do not have the obligation to make interest payments or debt payments with respect to the debt of the Partnership. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (2) | The $300 million senior secured synthetic letter of credit facility terminates in October 2012. |
|-----------|-------------------------------------------------------------------------------------------------|

|   | Information Regarding Variable Interest Rates Paid |
|--------|----------------------------------------------------|

|                                                        |  Range of interest rates paid |   | Weighted average interest rate paid |   |
|-------------------------------------------------------------|------------------------------------|--------|-------------------------------------|--------|
| Senior secured term loan facility                           | 2.3% to 6.0%                       |   |                                | 4.2    | % |
| Senior secured revolving credit facility                    | 2.1% to 3.5%                       |   |                                | 3.1    | % |
| Senior secured revolving credit facility of the Partnership | 1.3% to 4.5%                       |   |                                | 1.9    | % |

| ·   | are the Partnership’s unsecured senior obligations; |
|--------------------|-----------------------------------------------------------|

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

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

| ·   | are unconditionally guaranteed by the Partnership. |
|--------------------|----------------------------------------------------|

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TABLE OF CONTENTS

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

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TABLE OF CONTENTS

|                             |   | Six Months Ended June 30, 2009 |   |
|----------------------------------|--------|-------------------------------------|--------|
| Beginning of period              |   | $                                   | 33,985 |   |
| Change in cash flow estimate (1) |   |                                | (2,854 | ) |
| Accretion expense                |   |                                | 1,467  |   |
| End of period                    |   | $                                   | 32,598 |   |

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

|                                                            |   |   |      |   |     |   |    | Accumulated   |   |   |       |   |   |        |    |
|-----------------------------------------------------------------|--------|--------|-----------|--------|----------|--------|---------|---------------|--------|--------|------------|--------|--------|-------------|---------|
|                                                            |   |   |      |   |     |   |    | Other         |   |   | Additional |   |   | Non-        |    |
|                                                            |   |   |      |   | Retained |   |    | Comprehensive |   |   | Paid-in    |   |   | controlling |    |
|  Six Months Ended June 30, 2009                            |   | Total  |      |   | Earnings |   |    | Income        |   |   | Capital    |   |   | interest    |    |
|                                                            |   |   |      |
| Balance, December 31, 2008                                      |   | $      | 1,529,249 |   |     | $      | 127,640 |          |   | $      | 31,934     |   |   | $           | 420,067 |   |   | $ | 949,608 |   |
| Contributions                                                   |   |   | 1,108     |   |     |   | -       |          |   |   | -          |   |   |        | 37      |   |   |   | 1,071 |   |
| Distributions                                                   |   |   | (50,847   | )      |     |   | -       |          |   |   | -          |   |   |        | -       |   |   |   | (50,847 | ) |
| Amortization of equity awards                                   |   |   | 417       |   |     |   | -       |          |   |   | -          |   |   |        | 244     |   |   |   | 173 |   |
| Tax expense on vesting of common stock                          |   |   | -         |   |     |   | -       |          |   |   | -          |   |   |        | -       |   |   |   | - |   |
|      Subtotal                          |   |   | 1,479,927 |   |     |   | 127,640 |          |   |   | 31,934     |   |   |        | 420,348 |   |   |   | 900,005 |   |
| Comprehensive income (loss):                                    |   |   |      |   |     |   |    |          |   |   |       |   |   |        |    |   |   |   |   |   |
| Net income                                                      |   |   | 22,734    |   |     |   | 16,079  |          |   |   |       |   |   |        |    |   |   |   | 6,655 |   |
| Other comprehensive income (loss):                              |   |   |      |   |     |   |    |          |   |   |       |   |   |        |    |   |   |   |   |   |
| Change in fair value:                                           |   |   |      |   |     |   |    |          |   |   |       |   |   |        |    |   |   |   |   |   |
| Commodity hedging contracts                                     |   |   | (26,317   | )      |     |   |    |          |   |   | (10,947    | )      |   |        |    |   |   |   | (15,370 | ) |
| Interest rate swaps                                             |   |   | 3,846     |   |     |   |    |          |   |   | 557        |   |   |        |    |   |   |   | 3,289 |   |
| Available for sale securities                                   |   |   | 9,571     |   |     |   |    |          |   |   | 9,571      |   |   |        |    |   |   |   | - |   |
| Reclassification adjustment for settled periods:                |   |   |      |   |     |   |    |          |   |   |       |   |   |        |    |   |   |
| Commodity hedging contracts                                     |   |   | (36,718   | )      |     |   |    |          |   |   | (22,080    | )      |   |        |    |   |   |   | (14,638 | ) |
| Interest rate swaps                                             |   |   | 6,380     |   |     |   |    |          |   |   | 2,613      |   |   |        |    |   |   |   | 3,767 |   |
| Foreign currency translation adjustment                         |   |   | 463       |   |     |   |    |          |   |   | 463        |   |   |        |    |   |   |   | - |   |
| Related income taxes                                            |   |   | 5,992     |   |     |   | -       |          |   |   | 5,992      |   |   |        | -       |   |   |   | - |   |
|      Total comprehensive income (loss) |   |   | (14,049   | )      |     |   | 16,079  |          |   |   | (13,831    | )      |   |        | -       |   |   |   | (16,297 | ) |
| Balance, June 30, 2009                                          |   | $      | 1,465,878 |   |     | $      | 143,719 |          |   | $      | 18,103     |   |   | $           | 420,348 |   |   | $ | 883,708 |   |

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TABLE OF CONTENTS

|                                                            |   |   |      |   |     |   |    | Accumulated   |   |   |       |   |   |        |    |
|-----------------------------------------------------------------|--------|--------|-----------|--------|----------|--------|---------|---------------|--------|--------|------------|--------|--------|-------------|---------|
|                                                            |   |   |      |   |     |   |    | Other         |   |   | Additional |   |   | Non-        |    |
|                                                            |   |   |      |   | Retained |   |    | Comprehensive |   |   | Paid-in    |   |   | controlling |    |
|  Six Months Ended June 30, 2008                            |   | Total  |      |   | Earnings |   |    | Loss          |   |   | Capital    |   |   | interest    |    |
|                                                            |   |   |      |
| Balance, December 31, 2007                                      |   | $      | 1,307,530 |   |     | $      | 74,736  |          |   | $      | (56,116    | )      |   | $           | 473,784 |   |   | $ | 815,126 |   |
| Distributions                                                   |   |   | (96,232   | )      |     |   | -       |          |   |   | -          |   |   |        | (53,752 | ) |   |   | (42,480 | ) |
| Amortization of equity awards                                   |   |   | 883       |   |     |   | -       |          |   |   | -          |   |   |        | 763     |   |   |   | 120 |   |
| Tax expense on vesting of common stock                          |   |   | (526      | )      |     |   | -       |          |   |   | -          |   |   |        | (526    | ) |   |   | - |   |
|      Subtotal                          |   |   | 1,211,655 |   |     |   | 74,736  |          |   |   | (56,116    | )      |   |        | 420,269 |   |   |   | 772,766 |   |
| Comprehensive income (loss):                                    |   |   |      |   |     |   |    |          |   |   |       |   |   |        |    |   |   |   |   |   |
| Net income                                                      |   |   | 121,453   |   |     |   | 64,614  |          |   |   |       |   |   |        |    |   |   |   | 56,839 |   |
| Other comprehensive income (loss):                              |   |   |      |   |     |   |    |          |   |   |       |   |   |        |    |   |   |   |   |   |
| Change in fair value:                                           |   |   |      |   |     |   |    |          |   |   |       |   |   |        |    |   |   |   |   |   |
| Commodity hedging contracts                                     |   |   | (362,384  | )      |     |   |    |          |   |   | (200,416   | )      |   |        |    |   |   |   | (161,968 | ) |
| Interest rate swaps                                             |   |   | (270      | )      |     |   |    |          |   |   | (72        | )      |   |        |    |   |   |   | (198 | ) |
| Available for sale securities                                   |   |   | (1,900    | )      |     |   |    |          |   |   | (1,900     | )      |   |        |    |   |   |   | - |   |
| Reclassification adjustment for settled periods:                |   |   |      |   |     |   |    |          |   |   |       |   |   |        |    |   |   |
| Commodity hedging contracts                                     |   |   | 52,401    |   |     |   |    |          |   |   | 30,551     |   |   |        |    |   |   |   | 21,850 |   |
| Interest rate swaps                                             |   |   | 616       |   |     |   |    |          |   |   | 163        |   |   |        |    |   |   |   | 453 |   |
| Foreign currency translation adjustment                         |   |   | (242      | )      |     |   |    |          |   |   | (242       | )      |   |        |    |   |   |   | - |   |
| Related income taxes                                            |   |   | 63,408    |   |     |   | -       |          |   |   | 63,408     |   |   |        | -       |   |   |   | - |   |
|      Total comprehensive income (loss) |   |   | (126,918  | )      |     |   | 64,614  |          |   |   | (108,508   | )      |   |        | -       |   |   |   | (83,024 | ) |
| Balance, June 30, 2008                                          |   | $      | 1,084,737 |   |     | $      | 139,350 |          |   | $      | (164,624   | )      |   | $           | 420,269 |   |   | $ | 689,742 |   |

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TABLE OF CONTENTS

|                            |   | Three Months Ended June 30, |   |   | Six MonthsEnded June 30, |   |
|--------------------------------------|--------|-----------------------------|--------|--------|--------------------------|--------|
|                                 |   | 2009                        |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
| Included in revenues                 |   |                        |   |   |                     |   |   |   |   |   |   |   |
| Natural Gas Gathering and Processing |   | $                           | 1,374  |   |                     | $      | 2,540 |   |   |   | 2,574 |   |   |   | 2,540 |   |
| Logistics Assets                     |   |                        | 1,926  |   |                     |   | 441 |   |   |   | 1,926 |   |   |   | 441 |   |
| NGL Distribution and Marketing       |   |                        | -      |   |                     |   | 8,602 |   |   |   | - |   |   |   | 8,602 |   |
| Wholesale Marketing (1)              |   |                        | -      |   |                     |   | 5,920 |   |   |   | 500 |   |   |   | 5,920 |   |
|                                 |   | $                           | 3,300  |   |                     | $      | 17,503 |   |   | $ | 5,000 |   |   | $ | 17,503 |   |

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TABLE OF CONTENTS

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TABLE OF CONTENTS

|                          | Asset Derivatives |   | Liability Derivatives |    |
|-------------------------------|-------------------|--------|-----------------------|---------|
|                          |  Balance     |   | Fair Value as of      |    |  Balance |   | Fair Value as of |   |
|                          |  Sheet       |   | June 30,              |    |   | December 31, |   |  Sheet |   | June 30, |   |   | December 31, |   |
|                          | Location          |   | 2009                  |    |   | 2008 |   | Location |   | 2009 |   |   | 2008 |   |
| Derivatives designated as     |              |   |                  |    |   |   |   |   |   |   |   |   |   |   |
| hedging instruments under     |              |   |                  |    |   |   |   |   |   |   |   |   |   |   |
| SFAS 133                      |              |   |                  |    |   |   |   |   |   |   |   |   |   |   |
|  Commodity contracts     | Current assets    |   | $                     | 78,784  |   |   | $ | 108,731 |   |  Current liabilities |   | $ | 1,706 |   |   | $ | - |   |
|                          | Other assets      |   |                  | 45,461  |   |   |   | 89,774 |   |  Other liabilities |   |   | 16,863 |   |   |   | 123 |   |
|                          |              |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest rate contracts | Current assets    |   |                  | 2,352   |   |   |   | - |   |  Current liabilities |   |   | 9,222 |   |   |   | 8,020 |   |
|                          | Other assets      |   |                  | 2,350   |   |   |   | - |   |  Other liabilities |   |   | 4,190 |   |   |   | 9,556 |   |
| Total                         |              |   |                  | 128,947 |   |   |   | 198,505 |   |   |   |   | 31,981 |   |   |   | 17,699 |   |
|                          |              |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as |              |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| hedging instruments under     |              |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SFAS 133                      |              |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Commodity contracts     | Current assets    |   |                  | 2,982   |   |   |   | 3,610 |   |  Current liabilities |   |   | 2,993 |   |   |   | 3,644 |   |
|                          | Other assets      |   |                  | -       |   |   |   | - |   |  Other liabilities |   |   | - |   |   |   | - |   |
| Total                         |              |   |                  | 2,982   |   |   |   | 3,610 |   |   |   |   | 2,993 |   |   |   | 3,644 |   |
|                          |              |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total derivatives             |              |   | $                     | 131,929 |   |   | $ | 202,115 |   |   |   | $ | 34,974 |   |   | $ | 21,343 |   |

|                    |   | Gain (Loss)                     |    |
|-------------------------|--------|---------------------------------|---------|
| Derivatives in          |   | Recognized in OCI on            |    |
| SFAS 133                |   | Derivatives (Effective Portion) |    |
| Cash Flow Hedging       |   | Three Months Ended June 30,     |    |
| Relationships           |   | 2009                            |    |   | 2008 |   |
| Interest rate contracts |   | $                               | 10,434  |   |   | $ | 9,165 |   |
| Commodity contracts     |   |                            | (56,203 | ) |   |   | (268,996 | ) |
|                    |   | $                               | (45,769 | ) |   | $ | (259,831 | ) |

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TABLE OF CONTENTS

|                    |   | Gain (Loss)                     |    |
|-------------------------|--------|---------------------------------|---------|
| Derivatives in          |   | Recognized in OCI on            |    |
| SFAS 133                |   | Derivatives (Effective Portion) |    |
| Cash Flow Hedging       |   | Six Months Ended June 30,       |    |
| Relationships           |   | 2009                            |    |   | 2008 |   |
| Interest rate contracts |   | $                               | 3,846   |   |   | $ | (270 | ) |
| Commodity contracts     |   |                            | (26,317 | ) |   |   | (362,384 | ) |
|                    |   | $                               | (22,471 | ) |   | $ | (362,654 | ) |

|                    |   | Amount of Gain (Loss)       |   |   | Amount of Gain (Loss)             |   |
|-------------------------|--------|-----------------------------|--------|--------|-----------------------------------|--------|
| Location of Gain (Loss) |   | Reclassified from OCI into  |   |   | Recognized in Income on           |   |
| Reclassified from       |   | Income (Effective Portion)  |   |   | Derivatives (Ineffective Portion) |   |
| Accumulated OCI         |   | Three Months Ended June 30, |   |   | Three Months Ended June 30,       |   |
| into Income             |   | 2009                        |   |   | 2008                              |   |   | 2009 |   |   | 2008 |   |
| Interest expense, net   |   | $                           | (3,858 | )      |                              | $      | (849 | ) |   | $ | - |   |   | $ | - |   |
| Revenues                |   |                        | 20,926 |   |                              |   | (36,357 | ) |   |   | (373 | ) |   |   | - |   |
|                    |   | $                           | 17,068 |   |                              | $      | (37,206 | ) |   | $ | (373 | ) |   | $ | - |   |

|                    |   | Amount of Gain (Loss)      |   |   | Amount of Gain (Loss)             |   |
|-------------------------|--------|----------------------------|--------|--------|-----------------------------------|--------|
| Location of Gain (Loss) |   | Reclassified from OCI into |   |   | Recognized in Income on           |   |
| Reclassified from       |   | Income (Effective Portion) |   |   | Derivatives (Ineffective Portion) |   |
| Accumulated OCI         |   | Six Months Ended June 30,  |   |   | Six Months Ended June 30,         |   |
| into Income             |   | 2009                       |   |   | 2008                              |   |   | 2009 |   |   | 2008 |   |
| Interest expense, net   |   | $                          | (6,380 | )      |                              | $      | (616 | ) |   | $ | - |   |   | $ | - |   |
| Revenues                |   |                       | 36,718 |   |                              |   | (52,401 | ) |   |   | - |   |   |   | - |   |
|                    |   | $                          | 30,338 |   |                              | $      | (53,017 | ) |   | $ | - |   |   | $ | - |   |

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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 |   |
|  Sales                                                              |        |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
| Swap                                                                     | IF-Waha     |   |       | 6.62   |   |          |   | 21,918 |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 11,517 |   |
| Swap                                                                     | IF-Waha     |   |       | 6.69   |   |          |   | -      |   |   |   | 16,300 |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 6,608 |   |
| Swap                                                                     | IF-Waha     |   |       | 6.46   |   |          |   | -      |   |   |   | -      |   |   |   | 12,500 |   |   |   | -      |       |   |   | - |   |   |   | 439 |   |
| Swap                                                                     | IF-Waha     |   |       | 7.18   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 5,500  |       |   |   | - |   |   |   | 921 |   |
|                                                                     |        |   |       |   |   |          |   | 21,918 |   |   |   | 16,300 |   |   |   | 12,500 |   |   |   | 5,500  |       |   |   | - |   |   |   |   |   |
|                                                                     |        |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Swap                                                                     | IF-PB       |   |       | 5.42   |   |          |   | -      |   |   |   | 2,000  |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | (32 | ) |
| Swap                                                                     | IF-PB       |   |       | 5.42   |   |          |   | -      |   |   |   | -      |   |   |   | 2,000  |   |   |   |   |       |   |   | - |   |   |   | (528 | ) |
| Swap                                                                     | IF-PB       |   |       | 5.54   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 4,000  |       |   |   | - |   |   |   | (1,274 | ) |
| Swap                                                                     | IF-PB       |   |       | 5.54   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | 4,000 |   |   |   | (1,542 | ) |
|                                                                     |        |   |       |   |   |          |   | -      |   |   |   | 2,000  |   |   |   | 2,000  |   |   |   | 4,000  |       |   |   | 4,000 |   |   |   |   |   |
| Total Sales                                                              |        |   |       |   |   |          | 21,918 |   |   |   | 18,300 |   |   |   | 14,500 |   |   |   | 9,500  |   |       |   | 4,000 |   |   |   |   |   |
| Basis Swap Jul-Aug 2009 Rec NYMEX, pay IF-HSC plus $.0825, 20,000 MMBtu  |        |   |       |   |   |          |   | 12     |   |
| Basis Swap Jul-Aug 2009 Rec IF-Waha, pay NYMEX less $.5175, 20,000 MMBtu |        |   |       |   |   |          |   | (477   | )      |
|                                                                     |        |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | 15,644 |   |

| NGLs         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
|--------------|-------------|--------|------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Instrument   |        |   | Avg. Price |   |   | Barrels per day |   |   |   |   |
|  Type   |  Index |   | $/gal      |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value |   |
|  Sales  |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
| Swap         | OPIS-MB     |   |       | 0.79   |   |            |   | 3,347  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | 247 |   |
| Swap         | OPIS-MB     |   |       | 0.87   |   |            |   | -      |   |   |   | 2,750  |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 1,992 |   |
| Swap         | OPIS-MB     |   |       | 0.91   |   |            |   | -      |   |   |   | -      |   |   |   | 1,550  |   |   |   | -      |       |   |   | - |   |   |   | 1,233 |   |
| Swap         | OPIS-MB     |   |       | 0.92   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 1,250  |       |   |   | - |   |   |   | 575 |   |
| Total Swaps  |        |   |       |   |   |            | 3,347  |   |   |   | 2,750  |   |   |   | 1,550  |   |   |   | 1,250  |   |       |   | - |   |   |   |   |   |
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Floor        | OPIS-MB     |   |       | 0.20   |   |            |   | -      |   |   |   | -      |   |   |   | 54     |   |   |   | -      |       |   |   | - |   |   |   | 1,068 |   |
| Floor        | OPIS-MB     |   |       | 0.24   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 63     |       |   |   | - |   |   |   | 1,157 |   |
| Total Floors |        |   |       |   |   |            | -      |   |   |   | -      |   |   |   | 54     |   |   |   | 63     |   |       |   | - |   |   |   |   |   |
| Total Sales  |        |   |       |   |   |            | 3,347  |   |   |   | 2,750  |   |   |   | 1,604  |   |   |   | 1,313  |   |       |   | - |   |   |   |   |   |
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | 6,272 |   |

----

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    |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | (537 | ) |
| Swap        | NY-WTI      |   |       | 71.00  |   |            |   | -      |   |   |   | -      |   |   |   | 200    |   |   |   | -      |       |   |   | - |   |   |   | (508 | ) |
| Swap        | NY-WTI      |   |       | 72.60  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 200    |       |   |   | - |   |   |   | (505 | ) |
| Swap        | NY-WTI      |   |       | 73.80  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | 200 |   |   |   | (508 | ) |
| Total Swaps |        |   |       |   |   |            | -      |   |   |   | 200    |   |   |   | 200    |   |   |   | 200    |   |       |   | 200 |   |   |   |   |   |
| Total Sales |        |   |       |   |   |            | -      |   |   |   | 200    |   |   |   | 200    |   |   |   | 200    |   |       |   | 200 |   |   |   |   |   |
|        |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | (2,058 | ) |

| 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  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | 1,155 |   |
|                                                                        |        |   |       |   |   |          |   | 1,966  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   |   |   |
|                                                                        |        |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Swap                                                                        | IF-NGPL MC  |   |       | 9.18   |   |          |   | 6,256  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 6,109 |   |
| Swap                                                                        | IF-NGPL MC  |   |       | 8.86   |   |          |   | -      |   |   |   | 5,685  |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 6,655 |   |
| Swap                                                                        | IF-NGPL MC  |   |       | 7.34   |   |          |   | -      |   |   |   | -      |   |   |   | 2,750  |   |   |   | -      |       |   |   | - |   |   |   | 866 |   |
| Swap                                                                        | IF-NGPL MC  |   |       | 7.18   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 2,750  |       |   |   | - |   |   |   | 466 |   |
|                                                                        |        |   |       |   |   |          |   | 6,256  |   |   |   | 5,685  |   |   |   | 2,750  |   |   |   | 2,750  |       |   |   | - |   |   |   |   |   |
|                                                                        |        |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Swap                                                                        | IF-Waha     |   |       | 7.79   |   |          |   | 9,936  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 7,115 |   |
| Swap                                                                        | IF-Waha     |   |       | 6.53   |   |          |   | -      |   |   |   | 11,709 |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 4,020 |   |
| Swap                                                                        | IF-Waha     |   |       | 6.10   |   |          |   | -      |   |   |   | -      |   |   |   | 11,250 |   |   |   | -      |       |   |   | - |   |   |   | (973 | ) |
| Swap                                                                        | IF-Waha     |   |       | 6.30   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 7,250  |       |   |   | - |   |   |   | (821 | ) |
| Swap                                                                        | IF-Waha     |   |       | 5.59   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | 4,000 |   |   |   | (1,536 | ) |
|                                                                        |        |   |       |   |   |          |   | 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    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 435 |   |
|                                                                        |        |   |       |   |   |          |   | 850    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   |   |   |
| Floor                                                                       | IF-Waha     |   |       | 6.55   |   |          |   | 565    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 285 |   |
|                                                                        |        |   |       |   |   |          |   | 565    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   |   |   |
| Total Floors                                                                |        |   |       |   |   |          | 1,415  |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |       |   | - |   |   |   |   |   |
| Total Sales                                                                 |        |   |       |   |   |          | 19,573 |   |   |   | 17,394 |   |   |   | 14,000 |   |   |   | 10,000 |   |       |   | 4,000 |   |   |   |   |   |
| Basis Swap Jul 09-May 2011 Rec IF-CGT, Pay NYMEX less $0.11, 20,000 MMBtu/d |        |   |       |   |   |          |   | (668   | )      |
| Fuel cost swap Jul 2009-May2011 Rec IF-CGT, Pay $5.96, 226 MMbtu/d          |        |   |       |   |   |          |   |   |   |   |   | 46     |   |
|                                                                        |        |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | 23,154 |   |

----

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  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | 24,428 |   |
| Swap         | OPIS-MB     |   |       | 1.27   |   |            |   | -      |   |   |   | 4,809  |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 30,359 |   |
| Swap         | OPIS-MB     |   |       | 0.92   |   |            |   | -      |   |   |   | -      |   |   |   | 3,400  |   |   |   | -      |       |   |   | - |   |   |   | 1,844 |   |
| Swap         | OPIS-MB     |   |       | 0.92   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 2,700  |       |   |   | - |   |   |   | 545 |   |
| Total Swaps  |        |   |       |   |   |            | 6,248  |   |   |   | 4,809  |   |   |   | 3,400  |   |   |   | 2,700  |   |       |   | - |   |   |   |   |   |
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Floor        | OPIS-MB     |   |       | 1.44   |   |            |   | -      |   |   |   | -      |   |   |   | 199    |   |   |   | -      |       |   |   | - |   |   |   | 3,937 |   |
| Floor        | OPIS-MB     |   |       | 1.43   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 231    |       |   |   | - |   |   |   | 4,242 |   |
| Total Floors |        |   |       |   |   |            | -      |   |   |   | -      |   |   |   | 199    |   |   |   | 231    |   |       |   | - |   |   |   |   |   |
| Total Sales  |        |   |       |   |   |            | 6,248  |   |   |   | 4,809  |   |   |   | 3,599  |   |   |   | 2,931  |   |       |   | - |   |   |   |   |   |
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | 65,355 |   |

| Condensate   |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
|--------------|-------------|--------|------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |
| Instrument   |        |   | Avg. Price |   |   | Barrels per day |   |   |   |   |
|  Type   |  Index |   | $/Bbl      |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value |   |
|  Sales  |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
| Swap         | NY-WTI      |   |       | 69.00  |   |            |   | 322    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | (149 | ) |
| Swap         | NY-WTI      |   |       | 68.04  |   |            |   | -      |   |   |   | 401    |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | (1,048 | ) |
| Swap         | NY-WTI      |   |       | 71.00  |   |            |   | -      |   |   |   | -      |   |   |   | 200    |   |   |   | -      |       |   |   | - |   |   |   | (508 | ) |
| Swap         | NY-WTI      |   |       | 72.60  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 200    |       |   |   | - |   |   |   | (506 | ) |
| Swap         | NY-WTI      |   |       | 74.00  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | 200 |   |   |   | (495 | ) |
| Total Swaps  |        |   |       |   |   |            | 322    |   |   |   | 401    |   |   |   | 200    |   |   |   | 200    |   |       |   | 200 |   |   |   |   |   |
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Floor        | NY-WTI      |   |       | 60.00  |   |            |   | 50     |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 15 |   |
| Total Floors |        |   |       |   |   |            | 50     |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |       |   | - |   |   |   |   |   |
| Total Sales  |        |   |       |   |   |            | 372    |   |   |   | 401    |   |   |   | 200    |   |   |   | 200    |   |       |   | 200 |   |   |   |   |   |
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | (2,691 | ) |

| Period              |  Commodity |  Instrument Type |   | Daily Volume |   | Average Price |  Index |   | Fair Value |   |
|---------------------|-----------------|-----------------------|--------|--------------|--------|---------------|-------------|--------|------------|--------|
| Purchases           |            |                  |   |         |   |          |        |   |       |   |   |   |   |   |
| Jan 2009 - Dec 2009 | Natural gas     | Swap                  |   |         | 8,380  |          | MMBtu       |   |       | 5.70   |   | per MMBtu | NY-HH |   | $ | (2,448 | ) |
| Jan 2010 - Jun 2010 | Natural gas     | Swap                  |   |         | 663    |          | MMBtu       |   |       | 8.03   |   | per MMBtu | NY-HH |   |   | (264 | ) |
| Sales               |            |                  |   |         |   |          |        |   |       |   |   |   |   |   |   |   |   |
| Jan 2009 - Dec 2009 | Natural gas     | Fixed price sale      |   |         | 8,380  |          | MMBtu       |   |       | 5.70   |   | per MMBtu | NY-HH |   |   | 2,439 |   |
| Jan 2010 - Jun 2010 | Natural gas     | Fixed price sale      |   |         | 663    |          | MMBtu       |   |       | 8.03   |   | per MMBtu | NY-HH |   |   | 262 |   |
|                |            |                  |   |         |   |          |        |   |       |   |   |   |   |   | $ | (11 | ) |

----

TABLE OF CONTENTS

|               |   | Fixed  |   | Notional     |                    |       |   |
|--------------------|--------|--------|--------|--------------|-------------------------|------------|--------|
|  Period       |   | Rate   |   |  Amount |                    | Fair Value |   |
| 7/1/2009-3/31/2010 |   |   | 1.65   | %            | $400 million            |       | $      | (219 | ) |
| 4/1/2010-3/31/2011 |   |   | 1.65   | %            |   350 million |       |   | (1,488 | ) |
| 4/1/2011-3/31/2012 |   |   | 1.65   | %            |   300 million |       |   | 2,124 |   |
|               |   |   |   |         |                    |       | $      | 417 |   |

|              |   | Fixed  |   | Notional     |                    |       |   |
|-------------------|--------|--------|--------|--------------|-------------------------|------------|--------|
|  Period      |   | Rate   |   |  Amount |                    | Fair Value |   |
| Remainder of 2009 |   |   | 3.03   | %            | $300 million            |       | $      | (4,668 | ) |
| 2010              |   |   | 3.03   | %            |   300 million |       |   | (6,703 | ) |
| 2011              |   |   | 2.84   | %            |   300 million |       |   | (2,048 | ) |
| 2012              |   |   | 2.77   | %            |   300 million |       |   | 1,050 |   |
| 2013              |   |   | 2.75   | %            |   300 million |       |   | 2,318 |   |
| 1/1 - 4/24/2014   |   |   | 2.75   | %            |   300 million |       |   | 924 |   |
|              |   |   |   |         |                    |       | $      | (9,127 | ) |

----

TABLE OF CONTENTS

|                                                        |   | Total  |    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|-------------------------------------------------------------|--------|--------|---------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|  Assets from commodity derivative contracts            |   | $      | 127,227 |   |    | $      | -      |    |   | $      | 52,672  |   |   | $ | 74,555 |   |
|  Available-for-sale securities (1)                     |   |   | 31,510  |   |    |   | -      |    |   |   | -       |   |   |   | 31,510 |   |
|  Assets from interest rate derivatives                 |   |   | 4,702   |   |    |   | -      |    |   |   | 4,702   |   |   |   | - |   |
|        Total assets      |   | $      | 163,439 |   |    | $      | -      |    |   | $      | 57,374  |   |   | $ | 106,065 |   |
|                                                        |   |   |    |   |    |   |   |    |   |   |    |   |   |   |   |   |
|  Liabilities from commodity derivative contracts       |   | $      | 21,562  |   |    | $      | -      |    |   | $      | 18,634  |   |   | $ | 2,928 |   |
|  Liabilities from interest rate derivatives            |   |   | 13,412  |   |    |   | -      |    |   |   | 13,412  |   |   |   | - |   |
|        Total liabilities |   | $      | 34,974  |   |    | $      | -      |    |   | $      | 32,046  |   |   | $ | 2,928 |   |

| (1)   | Excludes $2.3 million of interest paid in-kind and $1.4 million in discount amortization. |
|-----------------|-------------------------------------------------------------------------------------------|

|                                            |   |                  |    |   |   |   |    |        |   |   |      |   |   | Available  |    |   |   |   |
|-------------------------------------------------|--------|-----------------------|---------|--------|--------|--------|---------|-------------|--------|--------|-----------|--------|--------|------------|---------|--------|--------|--------|
|                                            |   | Commodity Derivatives |    |   |   |   |    | Derivatives |   |   | For Sale  |   |   |       |    |
|                                            |   | TRP LP                |    |   | TRI    |   |    | Reclass     |   |   | Contracts |   |   | Securities |    |   | Total  |   |
| Balance, December 31, 2008                      |   | $                     | 123,304 |   |   | $      | 24,890  |        |   |   |      |   | $      | 148,194    |    |   | $      | 9,700  |   |   | $ | 157,894 |   |
|  Unrealized gains (losses) included in OCI |   |                  | (26,557 | )      |   |   | (15,025 | )           |   |   |      |   |   | (41,582    | )       |   |   | 9,571  |   |   |   | (32,011 | ) |
|  Purchases                                 |   |                  | -       |   |   |   | -       |        |   |   | -         |   |   |       | -       |   |   |   | 12,239 |   |   |   | 12,239 |   |
|  Settlements                               |   |                  | (31,392 | )      |   |   | (3,593  | )           |   |   | -         |   |   |       | (34,985 | )      |   |   | - |   |   |   | (34,985 | ) |
| Balance, June 30, 2009                          |   | $                     | 65,355  |   |   | $      | 6,272   |        |   | $      | -         |   |   | $          | 71,627  |   |   | $      | 31,510 |   |   | $ | 103,137 |   |

----

TABLE OF CONTENTS

----

TABLE OF CONTENTS

|                                                           |   | June 30, 2009   |    |   | December 31, 2008 |   |
|----------------------------------------------------------------|--------|-----------------|---------|--------|-------------------|--------|
|                                                           |   | Carrying Amount |    |   | Fair Value        |   |   | Carrying Amount |   |   | Fair Value |   |
|                                                           |   |            |    |
| Senior secured term loan facility                              |   | $               | 515,925 |   |              | $      | 495,288 |   |   | $ | 522,175 |   |   | $ | 331,581 |   |
| Senior unsecured notes, 81⁄2% fixed rate                    |   |            | 250,000 |   |              |   | 187,500 |   |   |   | 250,000 |   |   |   | 134,375 |   |
| Senior unsecured notes of the Partnership, 81⁄4% fixed rate |   |            | 209,080 |   |              |   | 176,673 |   |   |   | 209,080 |   |   |   | 128,333 |   |

| Period              |  Commodity |   | Daily Volumes |   | Average Price |  Index |
|---------------------|-----------------|--------|---------------|--------|---------------|-------------|
| Jul 2009 - Dec 2009 | Natural gas     |   |          | 21,918 |          |  MMBtu |   | $ | 6.62 |   | per MMBtu | IF-Waha |
|                |            |   |          |   |          |        |   |   |   |   |   |   |
| Jul 2009 - Dec 2009 | NGL             |   |          | 2,847  |          |  Bbl   |   |   | 31.42 |   | per gallon | OPIS-MB |

----

TABLE OF CONTENTS

| Period              |  Commodity |   | Daily Volumes |   | Average Price |  Index |
|---------------------|-----------------|--------|---------------|--------|---------------|-------------|
| Jul 2009 - Dec 2009 | Natural gas     |   |          | 3,556  |          |  MMBtu |   | $ | 8.07 |   | per MMBtu | IF-Waha |
| Jul 2009 - Dec 2009 | Natural gas     |   |          | 652    |          |  MMBtu |   |   | 8.06 |   | 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 |
|                |            |   |          |   |          |        |   |   |   |   |   |   |
| Jul 2009 - Dec 2009 | NGL             |   |          | 3,000  |          |  Bbl   |   |   | 1.18 |   | per gallon | OPIS-MB |
|                |            |   |          |   |          |        |   |   |   |   |   |   |
| Jul 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 |

|                           |   | Three MonthsEnded June 30, |   |   | Six MonthsEnded June 30, |   |
|--------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                           |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                           |   |                       |   |
| Included in revenues           |   |                       |   |   |                     |   |   |   |   |   |   |   |
| GCF                            |   | $                          | 33     |   |                     | $      | 35 |   |   | $ | 125 |   |   | $ | 366 |   |
| VESCO (1)                      |   |                       | -      |   |                     |   | 665 |   |   |   | - |   |   |   | 666 |   |
|                           |   | $                          | 33     |   |                     | $      | 700 |   |   | $ | 125 |   |   | $ | 1,032 |   |
|                           |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Included in costs and expenses |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| GCF                            |   | $                          | 62     |   |                     | $      | 1,341 |   |   | $ | 1,268 |   |   | $ | 2,145 |   |
| VESCO (1)                      |   |                       | -      |   |                     |   | 47,231 |   |   |   | - |   |   |   | 100,081 |   |
|                           |   | $                          | 62     |   |                     | $      | 48,572 |   |   | $ | 1,268 |   |   | $ | 102,226 |   |

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

|   | Note 17—Segment Information |
|--------|-----------------------------------|

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TABLE OF CONTENTS

|                                                        |   | Three Months Ended June 30, 2009     |    |
|-------------------------------------------------------------|--------|--------------------------------------|---------|
|                                                        |   | Natural Gas Gathering and Processing |    |   | Logistics Assets |   |   | NGL Distributionand Marketing |   |   | Wholesale Marketing |   |   | Eliminations and Other |   |   | Total |   |
| Revenues                                                    |   | $                                    | 241,154 |   |   | $ | 34,992 |   |   | $ | 607,646 |   |   | $ | 119,860 |   |   | $ | - |   |   | $ | 1,003,652 |   |
| Intersegment revenues                                       |   |                                 | 222,438 |   |   |   | 20,354 |   |   |   | 55,584 |   |   |   | 10,126 |   |   |   | (308,502 | ) |   |   | - |   |
| Revenues                                                    |   |                                 | 463,592 |   |   |   | 55,346 |   |   |   | 663,230 |   |   |   | 129,986 |   |   |   | (308,502 | ) |   |   | 1,003,652 |   |
| Product purchases                                           |   |                                 | 346,235 |   |   |   | - |   |   |   | 410,179 |   |   |   | 73,056 |   |   |   | (684 | ) |   |   | 828,786 |   |
| Intersegment product purchases                              |   |                                 | 5,862   |   |   |   | - |   |   |   | 243,379 |   |   |   | 53,775 |   |   |   | (303,016 | ) |   |   | - |   |
| Product purchases                                           |   |                                 | 352,097 |   |   |   | - |   |   |   | 653,558 |   |   |   | 126,831 |   |   |   | (303,700 | ) |   |   | 828,786 |   |
| Operating expenses                                          |   |                                 | 26,766  |   |   |   | 27,124 |   |   |   | 313 |   |   |   | 10 |   |   |   | - |   |   |   | 54,213 |   |
| Intersegment operating expenses                             |   |                                 | 140     |   |   |   | 5,346 |   |   |   | - |   |   |   | - |   |   |   | (5,486 | ) |   |   | - |   |
| Operating expenses                                          |   |                                 | 26,906  |   |   |   | 32,470 |   |   |   | 313 |   |   |   | 10 |   |   |   | (5,486 | ) |   |   | 54,213 |   |
| Operating margin                                            |   | $                                    | 84,589  |   |   | $ | 22,876 |   |   | $ | 9,359 |   |   | $ | 3,145 |   |   | $ | 684 |   |   | $ | 120,653 |   |
| Equity in earnings of  unconsolidated investments |   | $                                    | -       |   |   | $ | 1,683 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 1,683 |   |
| Unconsolidated investments                                  |   |                                 | -       |   |   |   | 19,494 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 19,494 |   |
| Capital expenditures                                        |   |                                 | 16,000  |   |   |   | 6,064 |   |   |   | - |   |   |   | - |   |   |   | 570 |   |   |   | 22,634 |   |
|                                                        |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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TABLE OF CONTENTS

|                                                        |   | Three Months Ended June 30, 2008     |      |
|-------------------------------------------------------------|--------|--------------------------------------|-----------|
|                                                        |   | Natural Gas Gathering and Processing |      |   | Logistics Assets |   |   | NGL Distributionand Marketing |   |   | Wholesale Marketing |   |   | Eliminations and Other |   |   | Total |   |
| Revenues                                                    |   | $                                    | 543,267   |   |   | $ | 27,630 |   |   | $ | 1,383,963 |   |   | $ | 308,366 |   |   | $ | - |   |   | $ | 2,263,226 |   |
| Intersegment revenues                                       |   |                                 | 516,204   |   |   |   | 38,054 |   |   |   | 116,969 |   |   |   | 8,960 |   |   |   | (680,187 | ) |   |   | - |   |
| Revenues                                                    |   |                                 | 1,059,471 |   |   |   | 65,684 |   |   |   | 1,500,932 |   |   |   | 317,326 |   |   |   | (680,187 | ) |   |   | 2,263,226 |   |
| Product purchases                                           |   |                                 | 904,590   |   |   |   | (33 | ) |   |   | 916,550 |   |   |   | 201,982 |   |   |   | - |   |   |   | 2,023,089 |   |
| Intersegment product purchases                              |   |                                 | 3,550     |   |   |   | 33 |   |   |   | 551,969 |   |   |   | 106,513 |   |   |   | (662,065 | ) |   |   | - |   |
| Product purchases                                           |   |                                 | 908,140   |   |   |   | - |   |   |   | 1,468,519 |   |   |   | 308,495 |   |   |   | (662,065 | ) |   |   | 2,023,089 |   |
| Operating expenses                                          |   |                                 | 34,323    |   |   |   | 36,373 |   |   |   | 517 |   |   |   | 16 |   |   |   | - |   |   |   | 71,229 |   |
| Intersegment operating expenses                             |   |                                 | 385       |   |   |   | 17,737 |   |   |   | - |   |   |   | - |   |   |   | (18,122 | ) |   |   | - |   |
| Operating expenses                                          |   |                                 | 34,708    |   |   |   | 54,110 |   |   |   | 517 |   |   |   | 16 |   |   |   | (18,122 | ) |   |   | 71,229 |   |
| Operating margin                                            |   | $                                    | 116,623   |   |   | $ | 11,574 |   |   | $ | 31,896 |   |   | $ | 8,815 |   |   | $ | - |   |   | $ | 168,908 |   |
| Equity in earnings of  unconsolidated investments |   | $                                    | 6,354     |   |   | $ | 842 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 7,196 |   |
| Unconsolidated investments                                  |   |                                 | 33,389    |   |   |   | 20,389 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 53,778 |   |
| Capital expenditures                                        |   |                                 | 22,125    |   |   |   | 15,774 |   |   |   | - |   |   |   | - |   |   |   | 1,163 |   |   |   | 39,062 |   |

|                                                        | Six Months Ended June 30,  2009                                                                     |
|-------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
|                                                        |  Natural Gas Gathering and Processing                                                                    |  Logistics Assets |  NGL Distributionand Marketing |  Wholesale Marketing |  Eliminations and Other |  Total |
| Revenues                                                    |  $      488,193                                                            |  $        56,778 |  $   1,075,003 |  $      385,569 |  $               - |  $   2,005,543 |
| Intersegment revenues                                       |          413,423                                                 |            42,988 |          175,987 |            33,091 |        (665,489) |                   - |
| Revenues                                                    |          901,616                                                 |            99,766 |       1,250,990 |          418,660 |        (665,489) |       2,005,543 |
| Product purchases                                           |          681,607                                                 |                   - |          759,960 |          233,901 |               (684) |       1,674,784 |
| Intersegment product purchases                              |            10,360                                      |                   - |          466,510 |          177,264 |        (654,134) |                   - |
| Product purchases                                           |          691,967                                                 |                   - |       1,226,470 |          411,165 |        (654,818) |       1,674,784 |
| Operating expenses                                          |            61,634                                      |            56,900 |                 612 |                   21 |                   - |          119,167 |
| Intersegment operating expenses                             |                 338           |            11,017 |                   - |                   - |          (11,355) |                   - |
| Operating expenses                                          |            61,972                                      |            67,917 |                 612 |                   21 |          (11,355) |          119,167 |
| Operating margin                                            |  $      147,677                                                            |  $        31,849 |  $        23,908 |  $          7,474 |  $             684 |  $      211,592 |
| Equity in earnings of  unconsolidated investments |  $               -            |  $          1,804 |  $               - |  $               - |  $               - |  $          1,804 |
| Unconsolidated investments                                  |                   - |            19,494 |                   - |                   - |                   - |            19,494 |
| Capital expenditures                                        |            33,475                                      |            10,783 |                   - |                   - |              1,259 |            45,517 |

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TABLE OF CONTENTS

|                                                        |   | Six Months Ended June 30, 2008  |      |
|-------------------------------------------------------------|--------|--------------------------------------|-----------|
|                                                        |   | Natural Gas Gathering and Processing |      |   | Logistics Assets |   |   | NGL Distribution and Marketing |   |   | Wholesale Marketing |   |   | Eliminations and Other |   |   | Total |   |
| Revenues                                                    |   | $                                    | 982,468   |   |   | $ | 48,448 |   |   | $ | 2,603,076 |   |   | $ | 831,627 |   |   | $ | - |   |   | $ | 4,465,619 |   |
| Intersegment revenues                                       |   |                                 | 950,237   |   |   |   | 68,390 |   |   |   | 317,473 |   |   |   | 29,046 |   |   |   | (1,365,146 | ) |   |   | - |   |
| Revenues                                                    |   |                                 | 1,932,705 |   |   |   | 116,838 |   |   |   | 2,920,549 |   |   |   | 860,673 |   |   |   | (1,365,146 | ) |   |   | 4,465,619 |   |
| Product purchases                                           |   |                                 | 1,628,635 |   |   |   | (33 | ) |   |   | 1,860,936 |   |   |   | 534,992 |   |   |   | - |   |   |   | 4,024,530 |   |
| Intersegment product purchases                              |   |                                 | 9,969     |   |   |   | 33 |   |   |   | 1,018,398 |   |   |   | 307,245 |   |   |   | (1,335,645 | ) |   |   | - |   |
| Product purchases                                           |   |                                 | 1,638,604 |   |   |   | - |   |   |   | 2,879,334 |   |   |   | 842,237 |   |   |   | (1,335,645 | ) |   |   | 4,024,530 |   |
| Operating expenses                                          |   |                                 | 64,343    |   |   |   | 69,421 |   |   |   | 1,016 |   |   |   | 27 |   |   |   | - |   |   |   | 134,807 |   |
| Intersegment operating expenses                             |   |                                 | 533       |   |   |   | 28,968 |   |   |   | - |   |   |   | - |   |   |   | (29,501 | ) |   |   | - |   |
| Operating expenses                                          |   |                                 | 64,876    |   |   |   | 98,389 |   |   |   | 1,016 |   |   |   | 27 |   |   |   | (29,501 | ) |   |   | 134,807 |   |
| Operating margin                                            |   | $                                    | 229,225   |   |   | $ | 18,449 |   |   | $ | 40,199 |   |   | $ | 18,409 |   |   | $ | - |   |   | $ | 306,282 |   |
| Equity in earnings of  unconsolidated investments |   | $                                    | 8,729     |   |   | $ | 1,926 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 10,655 |   |
| Unconsolidated investments                                  |   |                                 | 33,389    |   |   |   | 20,389 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 53,778 |   |
| Capital expenditures                                        |   |                                 | 34,248    |   |   |   | 21,694 |   |   |   | - |   |   |   | - |   |   |   | 2,222 |   |   |   | 58,164 |   |

|                                              |   | Three MonthsEnded June 30, |    |   | Six MonthsEnded June 30, |   |
|---------------------------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
|                                              |   | 2009                       |    |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
| Reconciliation of operating margin to net income  |   |                       |    |   |                     |   |   |   |   |   |   |   |
| attributable to Targa Resources, Inc.:            |   |                       |    |   |                     |   |   |   |   |   |   |   |
| Operating margin                                  |   | $                          | 120,653 |   |                     | $      | 168,908 |   |   | $ | 211,592 |   |   | $ | 306,282 |   |
| Net income attibutable to noncontrolling interest |   |                       | (8,294  | )      |                     |   | (29,955 | ) |   |   | (6,655 | ) |   |   | (56,839 | ) |
| Depreciation and amortization expense             |   |                       | (42,053 | )      |                     |   | (38,750 | ) |   |   | (83,653 | ) |   |   | (76,942 | ) |
| General and administrative expense                |   |                       | (28,196 | )      |                     |   | (27,924 | ) |   |   | (52,049 | ) |   |   | (52,017 | ) |
| Interest expense, net                             |   |                       | (22,050 | )      |                     |   | (23,660 | ) |   |   | (47,752 | ) |   |   | (49,245 | ) |
| Income tax expense                                |   |                       | (6,476  | )      |                     |   | (28,185 | ) |   |   | (6,405 | ) |   |   | (40,291 | ) |
| Other, net                                        |   |                       | (96     | )      |                     |   | 25,764 |   |   |   | 1,001 |   |   |   | 33,666 |   |
| Net income attributable to Targa Resources, Inc.  |   | $                          | 13,488  |   |                     | $      | 46,198 |   |   | $ | 16,079 |   |   | $ | 64,614 |   |
|                                              |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |

|                                   |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|----------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|
|                                   |   | 2009                        |   |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
|                                   |   |                        |   |   |                      |   |   |   |   |   |   |   |
| Abandoned project costs                |   | $                           | 5,589  |   |                      | $      | - |   |   | $ | 5,589 |   |   | $ | - |   |
| Casualty loss adjustment (see Note 11) |   |                        | (3,744 | )      |                      |   | - |   |   |   | (3,744 | ) |   |   | - |   |
| Gain on sale of assets (see Note 20)   |   |                        | (25    | )      |                      |   | (2 | ) |   |   | (38 | ) |   |   | (4,445 | ) |
|                                   |   | $                           | 1,820  |   |                      | $      | (2 | ) |   | $ | 1,807 |   |   | $ | (4,445 | ) |

----

TABLE OF CONTENTS

----

TABLE OF CONTENTS

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

|   | • | The Guarantor Subsidiaries on a consolidated basis; |
|--------|---------|-----------------------------------------------------|

|   | • | 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-Guarantor Subsidiaries; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | • | The Company on a consolidated basis. |
|--------|---------|--------------------------------------|

| Targa Resources, Inc.                                    |   |
|----------------------------------------------------------|--------|
| Condensed Consolidating Balance Sheet                    |   |
| June 30, 2009                                            |   |
|                                                     |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-GuarantorSubsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|  Assets                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current assets:                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash and cash equivalents                          |   | $ | - |   |   | $ | 156,095 |   |   | $ | 61,730 |   |   | $ | - |   |   | $ | 217,825 |   |
|  Trade receivables and other current assets         |   |   | 222 |   |   |   | 342,496 |   |   |   | 125,286 |   |   |   | - |   |   |   | 468,004 |   |
|  Total current assets                               |   |   | 222 |   |   |   | 498,591 |   |   |   | 187,016 |   |   |   | - |   |   |   | 685,829 |   |
|  Property, plant, and equipment, at cost            |   |   | - |   |   |   | 872,397 |   |   |   | 2,276,130 |   |   |   | - |   |   |   | 3,148,527 |   |
|  Accumulated depreciation                           |   |   | - |   |   |   | 31,264 |   |   |   | (590,509 | ) |   |   | - |   |   |   | (559,245 | ) |
|  Property, plant, and equipment, net                |   |   | - |   |   |   | 903,661 |   |   |   | 1,685,621 |   |   |   | - |   |   |   | 2,589,282 |   |
|  Investment in subsidiaries                         |   |   | (214,530 | ) |   |   | 278,617 |   |   |   | - |   |   |   | (64,087 | ) |   |   | - |   |
|  Advance to (from) subsidiaries                     |   |   | (222,507 | ) |   |   | 134,536 |   |   |   | 87,971 |   |   |   | - |   |   |   | - |   |
|  Other assets                                       |   |   | 45,031 |   |   |   | 57,825 |   |   |   | 49,899 |   |   |   | - |   |   |   | 152,755 |   |
|  Total assets                                       |   | $ | (391,784 | ) |   | $ | 1,873,230 |   |   | $ | 2,010,507 |   |   | $ | (64,087 | ) |   | $ | 3,427,866 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Liabilities and stockholder's equity               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current liabilities:                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Accounts payable and other liabilities             |   | $ | 33,011 |   |   | $ | 224,352 |   |   | $ | 148,926 |   |   | $ | - |   |   | $ | 406,289 |   |
|  Current maturities of debt                         |   |   | 12,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,500 |   |
|  Total current liabilities                          |   |   | 45,511 |   |   |   | 224,352 |   |   |   | 148,926 |   |   |   | - |   |   |   | 418,789 |   |
|  Long-term liabilities:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Long-term debt, net of current maturities          |   |   | (1,071,277 | ) |   |   | 1,824,702 |   |   |   | 656,845 |   |   |   | - |   |   |   | 1,410,270 |   |
|  Other long-term obligations                        |   |   | 51,812 |   |   |   | 38,706 |   |   |   | 42,411 |   |   |   | - |   |   |   | 132,929 |   |
|  Total long-term liabilities                        |   |   | (1,019,465 | ) |   |   | 1,863,408 |   |   |   | 699,256 |   |   |   | - |   |   |   | 1,543,199 |   |
|  Total Targa Resources, Inc.'s stockholder's equity |   |   | 582,170 |   |   |   | (214,530 | ) |   |   | 1,162,325 |   |   |   | (947,795 | ) |   |   | 582,170 |   |
|  Noncontrolling interest in subsidiaries            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 883,708 |   |   |   | 883,708 |   |
|  Total stockholders' equity                         |   |   | 582,170 |   |   |   | (214,530 | ) |   |   | 1,162,325 |   |   |   | (64,087 | ) |   |   | 1,465,878 |   |
|  Total liabilities and stockholders' equity         |   | $ | (391,784 | ) |   | $ | 1,873,230 |   |   | $ | 2,010,507 |   |   | $ | (64,087 | ) |   | $ | 3,427,866 |   |

----

TABLE OF CONTENTS

| Targa Resources, Inc.                                    |   |
|----------------------------------------------------------|--------|
| Condensed Consolidating Balance Sheet                    |   |
| December 31, 2008                                        |   |
|                                                     |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Parent |   |   | GuarantorSubsidiaries |   |   | Non-GuarantorSubsidiaries |   |   | IntercompanyEliminations |   |   | Consolidated |   |
|  Assets                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current assets:                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash and cash equivalents                          |   | $ | - |   |   | $ | 219,620 |   |   | $ | 143,149 |   |   | $ | - |   |   | $ | 362,769 |   |
|  Trade receivables and other current assets         |   |   | 298 |   |   |   | 328,517 |   |   |   | 165,564 |   |   |   | - |   |   |   | 494,379 |   |
|  Total current assets                               |   |   | 298 |   |   |   | 548,137 |   |   |   | 308,713 |   |   |   | - |   |   |   | 857,148 |   |
|  Property, plant, and equipment, at cost            |   |   | - |   |   |   | 837,268 |   |   |   | 2,255,996 |   |   |   | - |   |   |   | 3,093,264 |   |
|  Accumulated depreciation                           |   |   | - |   |   |   | 58,095 |   |   |   | (533,990 | ) |   |   | - |   |   |   | (475,895 | ) |
|  Property, plant, and equipment, net                |   |   | - |   |   |   | 895,363 |   |   |   | 1,722,006 |   |   |   | - |   |   |   | 2,617,369 |   |
|  Unconsolidated investments                         |   |   | - |   |   |   | 18,465 |   |   |   | - |   |   |   | - |   |   |   | 18,465 |   |
|  Investment in subsidiaries                         |   |   | (193,993 | ) |   |   | 307,175 |   |   |   | - |   |   |   | (113,182 | ) |   |   | - |   |
|  Advances to (from) subsidiaries                    |   |   | (177,700 | ) |   |   | 131,971 |   |   |   | 45,729 |   |   |   | - |   |   |   | - |   |
|  Other assets                                       |   |   | 146,950 |   |   |   | (75,141 | ) |   |   | 83,786 |   |   |   | - |   |   |   | 155,595 |   |
|  Total assets                                       |   | $ | (224,445 | ) |   | $ | 1,825,970 |   |   | $ | 2,160,234 |   |   | $ | (113,182 | ) |   | $ | 3,648,577 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Liabilities and stockholders' equity               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current liabilities:                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Accounts payable and other liabilities             |   | $ | 50,735 |   |   | $ | 239,929 |   |   | $ | 164,380 |   |   | $ | - |   |   | $ | 455,044 |   |
|  Current maturities of debt                         |   |   | 12,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,500 |   |
|  Total current liabilities                          |   |   | 63,235 |   |   |   | 239,929 |   |   |   | 164,380 |   |   |   | - |   |   |   | 467,544 |   |
|  Long-term debt, net of current maturities          |   |   | (900,976 | ) |   |   | 1,756,571 |   |   |   | 696,845 |   |   |   | - |   |   |   | 1,552,440 |   |
|  Other long-term obligations                        |   |   | 33,655 |   |   |   | 23,463 |   |   |   | 42,226 |   |   |   | - |   |   |   | 99,344 |   |
|  Total long-term liabilities                        |   |   | (867,321 | ) |   |   | 1,780,034 |   |   |   | 739,071 |   |   |   | - |   |   |   | 1,651,784 |   |
|  Total Targa Resources, Inc.'s stockholder's equity |   |   | 579,641 |   |   |   | (193,993 | ) |   |   | 307,175 |   |   |   | (113,182 | ) |   |   | 579,641 |   |
|  Noncontrolling interest in subsidiaries            |   |   | - |   |   |   | - |   |   |   | 949,608 |   |   |   | - |   |   |   | 949,608 |   |
|  Total stockholders' equity                         |   |   | 579,641 |   |   |   | (193,993 | ) |   |   | 1,256,783 |   |   |   | (113,182 | ) |   |   | 1,529,249 |   |
|  Total liabilities and stockholders' equity         |   | $ | (224,445 | ) |   | $ | 1,825,970 |   |   | $ | 2,160,234 |   |   | $ | (113,182 | ) |   | $ | 3,648,577 |   |

----

TABLE OF CONTENTS

| Targa Resources, Inc.                                         |   |
|---------------------------------------------------------------|--------|
| Condensed Consolidating Statement of Operations               |   |
| Three Months Ended June 30, 2009                              |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Revenues                                                |   | $ | - |   |   | $ | 906,927 |   |   | $ | 351,607 |   |   | $ | (254,882 | ) |   | $ | 1,003,652 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating costs and expenses:                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Product purchases                                       |   |   | - |   |   |   | 824,876 |   |   |   | 249,884 |   |   |   | (245,974 | ) |   |   | 828,786 |   |
|  Operating expenses                                      |   |   | - |   |   |   | 30,024 |   |   |   | 33,097 |   |   |   | (8,908 | ) |   |   | 54,213 |   |
|  Depreciation and amortization expense                   |   |   | - |   |   |   | 13,577 |   |   |   | 28,476 |   |   |   | - |   |   |   | 42,053 |   |
|  General and administrative and other                    |   |   | 5,670 |   |   |   | 19,077 |   |   |   | 5,269 |   |   |   | - |   |   |   | 30,016 |   |
|                                                          |   |   | 5,670 |   |   |   | 887,554 |   |   |   | 316,726 |   |   |   | (254,882 | ) |   |   | 955,068 |   |
|  Income (loss) from operations                           |   |   | (5,670 | ) |   |   | 19,373 |   |   |   | 34,881 |   |   |   | - |   |   |   | 48,584 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other income (expense):                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest income (expense), net                          |   |   | 21,990 |   |   |   | (34,275 | ) |   |   | (9,765 | ) |   |   | - |   |   |   | (22,050 | ) |
|  Equity in earnings of unconsolidated investments        |   |   | - |   |   |   | 1,683 |   |   |   | - |   |   |   | - |   |   |   | 1,683 |   |
|  Equity in earnings of subsidiaries                      |   |   | 3,574 |   |   |   | 16,820 |   |   |   | - |   |   |   | (20,394 | ) |   |   | - |   |
|  Other income (expense)                                  |   |   | 70 |   |   |   | (27 | ) |   |   | (2 | ) |   |   | - |   |   |   | 41 |   |
|  Income (loss) before income taxes                       |   |   | 19,964 |   |   |   | 3,574 |   |   |   | 25,114 |   |   |   | (20,394 | ) |   |   | 28,258 |   |
|  Income tax expense                                      |   |   | (6,476 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (6,476 | ) |
|  Net income (loss)                                       |   |   | 13,488 |   |   |   | 3,574 |   |   |   | 25,114 |   |   |   | (20,394 | ) |   |   | 21,782 |   |
|  Net income attributable to noncontrolling interest      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,294 |   |   |   | 8,294 |   |
|  Net income (loss) attributable to Targa Resources, Inc. |   | $ | 13,488 |   |   | $ | 3,574 |   |   | $ | 25,114 |   |   | $ | (28,688 | ) |   | $ | 13,488 |   |

| Targa Resources, Inc.                                   |   |
|---------------------------------------------------------|--------|
| Condensed Consolidating Statement of Operations         |   |
| Three Months Ended June 30, 2008                        |   |
|                                                    |   |
|                                                    |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
| Revenues:                                               |   | $ | - |   |   | $ | 2,038,653 |   |   | $ | 833,414 |   |   | $ | (608,841 | ) |   | $ | 2,263,226 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Product purchases                                 |   |   | - |   |   |   | 1,931,771 |   |   |   | 681,093 |   |   |   | (589,775 | ) |   |   | 2,023,089 |   |
|  Operating expenses                                |   |   | - |   |   |   | 39,263 |   |   |   | 51,032 |   |   |   | (19,066 | ) |   |   | 71,229 |   |
|  Depreciation and amortization expense             |   |   | - |   |   |   | 12,804 |   |   |   | 25,946 |   |   |   | - |   |   |   | 38,750 |   |
|  General and administrative and other              |   |   | 87 |   |   |   | 21,204 |   |   |   | 6,631 |   |   |   | - |   |   |   | 27,922 |   |
|                                                    |   |   | 87 |   |   |   | 2,005,042 |   |   |   | 764,702 |   |   |   | (608,841 | ) |   |   | 2,160,990 |   |
| Income (loss) from operations                           |   |   | (87 | ) |   |   | 33,611 |   |   |   | 68,712 |   |   |   | - |   |   |   | 102,236 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest income (expense), net                    |   |   | (15,841 | ) |   |   | - |   |   |   | (7,819 | ) |   |   | - |   |   |   | (23,660 | ) |
|  Other income                                      |   |   | 18,566 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 18,566 |   |
|  Equity in earnings of unconsolidated investments  |   |   | - |   |   |   | 7,196 |   |   |   | - |   |   |   | - |   |   |   | 7,196 |   |
|  Equity in earnings of subsidiaries                |   |   | 71,192 |   |   |   | 30,575 |   |   |   | - |   |   |   | (101,767 | ) |   |   | - |   |
| Income before income taxes                              |   |   | 73,830 |   |   |   | 71,382 |   |   |   | 60,893 |   |   |   | (101,767 | ) |   |   | 104,338 |   |
| Income tax (expense) benefit                            |   |   | (27,632 | ) |   |   | (190 | ) |   |   | (363 | ) |   |   | - |   |   |   | (28,185 | ) |
| Net income                                              |   |   | 46,198 |   |   |   | 71,192 |   |   |   | 60,530 |   |   |   | (101,767 | ) |   |   | 76,153 |   |
| Less: Net income attibutable to noncontrolling interest |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 29,955 |   |   |   | 29,955 |   |
| Net income attributable to Targa Resources, Inc.        |   | $ | 46,198 |   |   | $ | 71,192 |   |   | $ | 60,530 |   |   | $ | (131,722 | ) |   | $ | 46,198 |   |

----

TABLE OF CONTENTS

| Targa Resources, Inc.                                         |   |
|---------------------------------------------------------------|--------|
| Condensed Consolidating Statement of Operations               |   |
| Six Months Ended June 30, 2009                                |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Revenues                                                |   | $ | - |   |   | $ | 1,826,449 |   |   | $ | 707,363 |   |   | $ | (528,269 | ) |   | $ | 2,005,543 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating costs and expenses:                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Product purchases                                       |   |   | - |   |   |   | 1,666,606 |   |   |   | 518,106 |   |   |   | (509,928 | ) |   |   | 1,674,784 |   |
|  Operating expenses                                      |   |   | - |   |   |   | 59,111 |   |   |   | 78,397 |   |   |   | (18,341 | ) |   |   | 119,167 |   |
|  Depreciation and amortization expense                   |   |   | - |   |   |   | 26,887 |   |   |   | 56,766 |   |   |   | - |   |   |   | 83,653 |   |
|  General and administrative and other                    |   |   | 5,756 |   |   |   | 37,454 |   |   |   | 10,646 |   |   |   | - |   |   |   | 53,856 |   |
|                                                          |   |   | 5,756 |   |   |   | 1,790,058 |   |   |   | 663,915 |   |   |   | (528,269 | ) |   |   | 1,931,460 |   |
|  Income (loss) from operations                           |   |   | (5,756 | ) |   |   | 36,391 |   |   |   | 43,448 |   |   |   | - |   |   |   | 74,083 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other income (expense):                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest income (expense), net                          |   |   | 39,539 |   |   |   | (67,664 | ) |   |   | (19,627 | ) |   |   | - |   |   |   | (47,752 | ) |
|  Equity in earnings of unconsolidated investments        |   |   | - |   |   |   | 1,804 |   |   |   | - |   |   |   | - |   |   |   | 1,804 |   |
|  Equity in earnings of subsidiaries                      |   |   | (11,369 | ) |   |   | 17,891 |   |   |   | - |   |   |   | (6,522 | ) |   |   | - |   |
|  Other income (expense)                                  |   |   | 70 |   |   |   | 209 |   |   |   | 725 |   |   |   | - |   |   |   | 1,004 |   |
|  Income (loss) before income taxes                       |   |   | 22,484 |   |   |   | (11,369 | ) |   |   | 24,546 |   |   |   | (6,522 | ) |   |   | 29,139 |   |
|  Income tax expense                                      |   |   | (6,405 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (6,405 | ) |
|  Net income (loss)                                       |   |   | 16,079 |   |   |   | (11,369 | ) |   |   | 24,546 |   |   |   | (6,522 | ) |   |   | 22,734 |   |
|  Net income attributable to noncontrolling interest      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,655 |   |   |   | 6,655 |   |
|  Net income (loss) attributable to Targa Resources, Inc. |   | $ | 16,079 |   |   | $ | (11,369 | ) |   | $ | 24,546 |   |   | $ | (13,177 | ) |   | $ | 16,079 |   |

| Targa Resources, Inc.                                   |   |
|---------------------------------------------------------|--------|
| Condensed Consolidating Statement of Operations         |   |
| Six Months Ended June 30, 2008                     |   |
|                                                    |   |
|                                                    |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
| Revenues:                                               |   | $ | - |   |   | $ | 4,057,163 |   |   | $ | 1,538,175 |   |   | $ | (1,129,719 | ) |   | $ | 4,465,619 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Product purchases                                 |   |   | - |   |   |   | 3,868,273 |   |   |   | 1,252,986 |   |   |   | (1,096,729 | ) |   |   | 4,024,530 |   |
|  Operating expenses                                |   |   | - |   |   |   | 74,225 |   |   |   | 93,572 |   |   |   | (32,990 | ) |   |   | 134,807 |   |
|  Depreciation and amortization expense             |   |   | - |   |   |   | 25,362 |   |   |   | 51,580 |   |   |   | - |   |   |   | 76,942 |   |
|  General and administrative and other              |   |   | 87 |   |   |   | 35,966 |   |   |   | 11,519 |   |   |   | - |   |   |   | 47,572 |   |
|                                                    |   |   | 87 |   |   |   | 4,003,826 |   |   |   | 1,409,657 |   |   |   | (1,129,719 | ) |   |   | 4,283,851 |   |
| Income (loss) from operations                           |   |   | (87 | ) |   |   | 53,337 |   |   |   | 128,518 |   |   |   | - |   |   |   | 181,768 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest income (expense), net                    |   |   | (32,954 | ) |   |   | - |   |   |   | (16,291 | ) |   |   | - |   |   |   | (49,245 | ) |
|  Other income                                      |   |   | 18,566 |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   | 18,566 |   |
|  Equity in earnings of unconsolidated investments  |   |   | - |   |   |   | 10,655 |   |   |   | - |   |   |   | - |   |   |   | 10,655 |   |
|  Equity in earnings of subsidiaries                |   |   | 118,680 |   |   |   | 54,688 |   |   |   | - |   |   |   | (173,368 | ) |   |   | - |   |
| Income before income taxes                              |   |   | 104,205 |   |   |   | 118,680 |   |   |   | 112,227 |   |   |   | (173,368 | ) |   |   | 161,744 |   |
| Income tax (expense) benefit                            |   |   | (39,591 | ) |   |   | - |   |   |   | (700 | ) |   |   | - |   |   |   | (40,291 | ) |
| Net income                                              |   |   | 64,614 |   |   |   | 118,680 |   |   |   | 111,527 |   |   |   | (173,368 | ) |   |   | 121,453 |   |
| Less: Net income attibutable to noncontrolling interest |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 56,839 |   |   |   | 56,839 |   |
| Net income attributable to Targa Resources, Inc.        |   | $ | 64,614 |   |   | $ | 118,680 |   |   | $ | 111,527 |   |   | $ | (230,207 | ) |   | $ | 64,614 |   |

----

TABLE OF CONTENTS

| Targa Resources, Inc.                                        |   |
|--------------------------------------------------------------|--------|
| Condensed Consolidating Statement of Cash Flows              |   |
| Six Months Ended June 30, 2009                               |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|  Cash flows from operating activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net income (loss)                                      |   | $ | 16,079 |   |   | $ | (11,369 | ) |   | $ | 24,546 |   |   | $ | (6,522 | ) |   | $ | 22,734 |   |
|  Adjustments to reconcile net income (loss) to net cash |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  provided by (used in) operating activities:            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation, amortization and accretion                     |   |   | 2,639 |   |   |   | 25,928 |   |   |   | 59,178 |   |   |   | - |   |   |   | 87,745 |   |
| Deferred income taxes                                        |   |   | 6,289 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,289 |   |
| Loss from unconsolidated investments, net of distributions   |   |   | - |   |   |   | (1,029 | ) |   |   | - |   |   |   | - |   |   |   | (1,029 | ) |
| Equity in earnings of subsidiaries                           |   |   | 11,369 |   |   |   | (17,891 | ) |   |   | - |   |   |   | 6,522 |   |   |   | - |   |
| Other                                                        |   |   | - |   |   |   | (86 | ) |   |   | 29,695 |   |   |   | - |   |   |   | 29,609 |   |
| Changes in operating assets and liabilities:                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts receivable and other assets                         |   |   | (3,179 | ) |   |   | (50,965 | ) |   |   | 17,686 |   |   |   | - |   |   |   | (36,458 | ) |
| Inventory                                                    |   |   | - |   |   |   | 28,474 |   |   |   | (3,381 | ) |   |   | - |   |   |   | 25,093 |   |
| Accounts payable and other liabilities                       |   |   | (7,317 | ) |   |   | (6,319 | ) |   |   | (7,427 | ) |   |   | - |   |   |   | (21,063 | ) |
| Net cash provided by (used in) operating activities          |   |   | 25,880 |   |   |   | (33,257 | ) |   |   | 120,297 |   |   |   | - |   |   |   | 112,920 |   |
|  Cash flows from investing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Purchases of property and equipment                    |   |   | - |   |   |   | (23,731 | ) |   |   | (31,155 | ) |   |   | - |   |   |   | (54,886 | ) |
|  Other                                                  |   |   | 4,700 |   |   |   | (12,190 | ) |   |   | 106 |   |   |   | - |   |   |   | (7,384 | ) |
| Net cash (used in) provided by investing activities          |   |   | 4,700 |   |   |   | (35,921 | ) |   |   | (31,049 | ) |   |   | - |   |   |   | (62,270 | ) |
|  Cash flows from financing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Repayments of debt                                           |   |   | (102,170 | ) |   |   | - |   |   |   | (40,000 | ) |   |   | - |   |   |   | (142,170 | ) |
| Distributions to noncontrolling interest, net                |   |   | - |   |   |   | - |   |   |   | (49,776 | ) |   |   | - |   |   |   | (49,776 | ) |
| Cost incurred in connection with financing arrangements      |   |   | (3,685 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,685 | ) |
| Contribution from Targa Resources Investments Inc.           |   |   | 37 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 37 |   |
| Receipts from (payments to) subsidiaries                     |   |   | 75,238 |   |   |   | 5,653 |   |   |   | (80,891 | ) |   |   | - |   |   |   | - |   |
| Net cash used in financing activities                        |   |   | (30,580 | ) |   |   | 5,653 |   |   |   | (170,667 | ) |   |   | - |   |   |   | (195,594 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net decrease in cash and cash equivalents                    |   |   | - |   |   |   | (63,525 | ) |   |   | (81,419 | ) |   |   | - |   |   |   | (144,944 | ) |
| Cash and cash equivalents, beginning of period               |   |   | - |   |   |   | 219,620 |   |   |   | 143,149 |   |   |   | - |   |   |   | 362,769 |   |
| Cash and cash equivalents, end of period                     |   | $ | - |   |   | $ | 156,095 |   |   | $ | 61,730 |   |   | $ | - |   |   | $ | 217,825 |   |

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| Targa Resources, Inc.                                        |   |
|--------------------------------------------------------------|--------|
| Condensed Consolidating Statement of Cash Flows              |   |
| Six Months Ended June 30, 2008                               |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|  Cash flows from operating activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net income (loss)                                      |   | $ | 64,614 |   |   | $ | 118,680 |   |   | $ | 111,527 |   |   | $ | (173,368 | ) |   | $ | 121,453 |   |
|  Adjustments to reconcile net income (loss) to net cash |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  provided by (used in)operating activities:             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation, amortization and accretion                     |   |   | 4,027 |   |   |   | 25,772 |   |   |   | 52,716 |   |   |   | - |   |   |   | 82,515 |   |
| Deferred income taxes                                        |   |   | 38,354 |   |   |   | - |   |   |   | 700 |   |   |   | - |   |   |   | 39,054 |   |
| Loss from unconsolidated investments, net of distributions   |   |   | - |   |   |   | (9,880 | ) |   |   | - |   |   |   | - |   |   |   | (9,880 | ) |
| Equity in earnings (losses) of subsidiaries                  |   |   | (118,680 | ) |   |   | (54,688 | ) |   |   | - |   |   |   | 173,368 |   |   |   | - |   |
| Other                                                        |   |   | (18,626 | ) |   |   | (3,674 | ) |   |   | (1,887 | ) |   |   | - |   |   |   | (24,187 | ) |
| Changes in operating assets and liabilities:                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts receivable and other assets                         |   |   | 14,979 |   |   |   | 112,107 |   |   |   | (26,215 | ) |   |   | - |   |   |   | 100,871 |   |
| Inventory                                                    |   |   | - |   |   |   | 35,566 |   |   |   | 64 |   |   |   | - |   |   |   | 35,630 |   |
| Accounts payable and other liabilities                       |   |   | (16,211 | ) |   |   | (46,291 | ) |   |   | 91,421 |   |   |   | - |   |   |   | 28,919 |   |
| Net cash provided by (used in) operating activities          |   |   | (31,543 | ) |   |   | 177,592 |   |   |   | 228,326 |   |   |   | - |   |   |   | 374,375 |   |
|  Cash flows from investing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Purchases of property and equipment                    |   |   | - |   |   |   | (25,574 | ) |   |   | (28,237 | ) |   |   | - |   |   |   | (53,811 | ) |
|  Other                                                  |   |   | (16,400 | ) |   |   | 48,306 |   |   |   | (3,815 | ) |   |   | - |   |   |   | 28,091 |   |
| Net cash used in investing activities                        |   |   | (16,400 | ) |   |   | 22,732 |   |   |   | (32,052 | ) |   |   | - |   |   |   | (25,720 | ) |
|  Cash flows from financing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt Repayments                                              |   |   | (6,250 | ) |   |   | - |   |   |   | (301,300 | ) |   |   | - |   |   |   | (307,550 | ) |
| Proceeds from issuance of senior notes of the Partnership    |   |   | - |   |   |   | - |   |   |   | 250,000 |   |   |   | - |   |   |   | 250,000 |   |
| Cost incurred in connection with financing arrangements      |   |   | - |   |   |   | - |   |   |   | (6,590 | ) |   |   | - |   |   |   | (6,590 | ) |
| Distributions to noncontrolling interests                    |   |   | - |   |   |   | - |   |   |   | (42,480 | ) |   |   | - |   |   |   | (42,480 | ) |
| Distributions to Targa Resources Investments Inc.            |   |   | (53,752 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (53,752 | ) |
| Receipts from (payments to) subsidiaries                     |   |   | 107,945 |   |   |   | (21,086 | ) |   |   | (86,859 | ) |   |   | - |   |   |   | - |   |
| Net cash provided by (used in) financing activities          |   |   | 47,943 |   |   |   | (21,086 | ) |   |   | (187,229 | ) |   |   | - |   |   |   | (160,372 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase in cash and cash equivalents                    |   |   | - |   |   |   | 179,238 |   |   |   | 9,045 |   |   |   | - |   |   |   | 188,283 |   |
| Cash and cash equivalents, beginning of period               |   |   | - |   |   |   | 88,303 |   |   |   | 89,646 |   |   |   | - |   |   |   | 177,949 |   |
| Cash and cash equivalents, end of period                     |   | $ | - |   |   | $ | 267,541 |   |   | $ | 98,691 |   |   | $ | - |   |   | $ | 366,232 |   |

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Item 2

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|                                                    |   | Three MonthsEnded June 30,                     |    |   | Six MonthsEnded June 30, |   |
|---------------------------------------------------------|--------|------------------------------------------------|---------|--------|--------------------------|--------|
|                                                    |   | 2009                                           |    |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                                                    |   | (In millions, except operating and price data) |    |
| Revenues (1)                                            |   | $                                              | 1,003.7 |   |                     | $      | 2,263.2 |   |   | $ | 2,005.5 |   |   | $ | 4,465.6 |   |
| Product purchases                                       |   |                                           | 828.8   |   |                     |   | 2,023.1 |   |   |   | 1,674.8 |   |   |   | 4,024.5 |   |
| Operating expenses                                      |   |                                           | 54.2    |   |                     |   | 71.2 |   |   |   | 119.2 |   |   |   | 134.8 |   |
| Depreciation and amortization expense                   |   |                                           | 42.1    |   |                     |   | 38.8 |   |   |   | 83.7 |   |   |   | 76.9 |   |
| General and administrative expense                      |   |                                           | 28.1    |   |                     |   | 27.9 |   |   |   | 51.9 |   |   |   | 52.0 |   |
| Other                                                   |   |                                           | 1.8     |   |                     |   | - |   |   |   | 1.8 |   |   |   | (4.4 | ) |
| Income from operations                                  |   |                                           | 48.7    |   |                     |   | 102.2 |   |   |   | 74.1 |   |   |   | 181.8 |   |
| Interest expense, net                                   |   |                                           | (22.1   | )      |                     |   | (23.7 | ) |   |   | (47.8 | ) |   |   | (49.2 | ) |
| Gain on insurance claims                                |   |                                           | -       |   |                     |   | 18.6 |   |   |   | - |   |   |   | 18.6 |   |
| Equity in earnings of unconsolidated investments        |   |                                           | 1.7     |   |                     |   | 7.2 |   |   |   | 1.8 |   |   |   | 10.6 |   |
| Other                                                   |   |                                           | -       |   |                     |   | 0.1 |   |   |   | 1.0 |   |   |   | (0.1 | ) |
| Income tax expense                                      |   |                                           | (6.5    | )      |                     |   | (28.2 | ) |   |   | (6.4 | ) |   |   | (40.3 | ) |
| Net income                                              |   |                                           | 21.8    |   |                     |   | 76.2 |   |   |   | 22.7 |   |   |   | 121.4 |   |
| Less: Net income attibutable to noncontrolling interest |   |                                           | 8.3     |   |                     |   | 30.0 |   |   |   | 6.6 |   |   |   | 56.8 |   |
| Net income attributable to Targa Resources, Inc.        |   | $                                              | 13.5    |   |                     | $      | 46.2 |   |   | $ | 16.1 |   |   | $ | 64.6 |   |
| Financial data:                                         |   |                                           |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating margin (2)                                    |   | $                                              | 120.7   |   |                     | $      | 168.9 |   |   | $ | 211.5 |   |   | $ | 306.3 |   |
| Adjusted EBITDA (3)                                     |   |                                           | 95.9    |   |                     |   | 137.6 |   |   |   | 183.0 |   |   |   | 229.3 |   |
| Operating statistics:                                   |   |                                           |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Gathering throughput  MMcf/d (4)              |   |                                           | 2,139.4 |   |                     |   | 2,070.1 |   |   |   | 2,050.5 |   |   |   | 2,125.7 |   |
| Plant natural gas inlet, MMcf/d (5) (6)                 |   |                                           | 2,098.0 |   |                     |   | 2,026.3 |   |   |   | 2,008.0 |   |   |   | 2,084.7 |   |
| Gross NGL production, MBbl/d                            |   |                                           | 118.2   |   |                     |   | 104.0 |   |   |   | 113.8 |   |   |   | 104.3 |   |
| Natural gas sales, BBtu/d (6)                           |   |                                           | 588.5   |   |                     |   | 526.6 |   |   |   | 553.5 |   |   |   | 529.8 |   |
| NGL sales, MBbl/d                                       |   |                                           | 287.7   |   |                     |   | 285.9 |   |   |   | 293.2 |   |   |   | 301.7 |   |
| Condensate sales, MBbl/d                                |   |                                           | 5.2     |   |                     |   | 3.7 |   |   |   | 4.8 |   |   |   | 3.7 |   |
| Average realized prices:                                |   |                                           |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas, $/MMBtu                                    |   |                                           | 3.54    |   |                     |   | 10.11 |   |   |   | 3.98 |   |   |   | 9.00 |   |
| NGL, $/gal                                              |   |                                           | 0.68    |   |                     |   | 1.54 |   |   |   | 0.67 |   |   |   | 1.50 |   |
| Condensate, $/Bbl                                       |   |                                           | 54.39   |   |                     |   | 114.15 |   |   |   | 47.65 |   |   |   | 103.88 |   |
|                                                    |   |                                           |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |

| (1) | Includes business interruption insurance revenue of $3.3 million and $5.0 million for the three and six months ended June 30, 2009 and $17.5 million for the three and six months ended June 30, 2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

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|                            |   | Three MonthsEnded June 30, |    |   | Six MonthsEnded June 30, |   |
|---------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
|                            |   | 2009                       |    |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                            |   | ($ in millions)            |    |
| Revenues (1) (2)                |   | $                          | 463.6   |   |                     | $      | 1,059.5 |   |   | $ | 901.6 |   |   | $ | 1,932.7 |   |
| Product purchases               |   |                       | (352.1  | )      |                     |   | (908.2 | ) |   |   | (691.9 | ) |   |   | (1,638.6 | ) |
| Operating expenses              |   |                       | (26.9   | )      |                     |   | (34.7 | ) |   |   | (62.0 | ) |   |   | (64.9 | ) |
| Operating margin (3)            |   | $                          | 84.6    |   |                     | $      | 116.6 |   |   | $ | 147.7 |   |   | $ | 229.2 |   |
| Equity in earnings of VESCO (4) |   | $                          | -       |   |                     | $      | 6.4 |   |   | $ | - |   |   | $ | 8.8 |   |
| Operating statistics: (5)       |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Gathering throughput, MMcf/d    |   |                       | 2,139.4 |   |                     |   | 2,070.1 |   |   |   | 2,050.5 |   |   |   | 2,125.7 |   |
| Plant natural gas inlet, MMcf/d |   |                       | 2,098.0 |   |                     |   | 2,026.3 |   |   |   | 2,008.0 |   |   |   | 2,084.7 |   |
| Gross NGL production, MBbl/d    |   |                       | 118.2   |   |                     |   | 104.0 |   |   |   | 113.8 |   |   |   | 104.3 |   |
| Natural gas sales, BBtu/d       |   |                       | 608.0   |   |                     |   | 546.2 |   |   |   | 571.2 |   |   |   | 548.2 |   |
| NGL sales, MBbl/d               |   |                       | 92.6    |   |                     |   | 91.5 |   |   |   | 92.6 |   |   |   | 90.5 |   |
| Condensate sales, MBbl/d        |   |                       | 5.2     |   |                     |   | 5.0 |   |   |   | 5.1 |   |   |   | 5.0 |   |
| Average realized prices:        |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas, $/MMBtu            |   |                       | 3.54    |   |                     |   | 10.14 |   |   |   | 3.98 |   |   |   | 9.02 |   |
| NGL, $/gal                      |   |                       | 0.66    |   |                     |   | 1.42 |   |   |   | 0.61 |   |   |   | 1.34 |   |
| Condensate, $/Bbl               |   |                       | 54.39   |   |                     |   | 106.24 |   |   |   | 46.50 |   |   |   | 96.14 |   |
|                            |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |

| (1) | Segment operating statistics include the effect of intersegment sales, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes business interruption insurance revenue of $1.4 million and $2.6 million for the three and six months ended June 30, 2009, and $2.5 million for the three and six months ended June 30, 2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Amounts are through June 30, 2008. VESCO was included in our consolidated results effective August 1, 2008. |
|-----|-----------------------------------------------------------------------------------------------------------------------|

| (5) | Segment operating statistics include the effect of intersegment sales, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the quarter and the denominator is the number of calendar days during the quarter. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                          |   | Three MonthsEnded June 30, |   |   | Six MonthsEnded June 30, |   |
|-------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                          |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                          |   | ($ in millions)            |   |
| Revenues from services        |   | $                          | 53.2   |   |                     | $      | 64.6 |   |   | $ | 97.8 |   |   | $ | 115.4 |   |
| Other revenues (1)            |   |                       | 2.0    |   |                     |   | 1.1 |   |   |   | 1.9 |   |   |   | 1.5 |   |
|                          |   |                       | 55.2   |   |                     |   | 65.7 |   |   |   | 99.7 |   |   |   | 116.9 |   |
| Operating expenses            |   |                       | (32.4  | )      |                     |   | (54.1 | ) |   |   | (67.9 | ) |   |   | (98.4 | ) |
| Operating margin (2)          |   | $                          | 22.8   |   |                     | $      | 11.6 |   |   | $ | 31.8 |   |   | $ | 18.5 |   |
| Equity in earnings of GCF     |   | $                          | 1.7    |   |                     | $      | 0.8 |   |   | $ | 1.8 |   |   | $ | 1.9 |   |
| Operating statistics:         |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Fractionation volumes, MBbl/d |   |                       | 230.0  |   |                     |   | 235.2 |   |   |   | 210.0 |   |   |   | 225.6 |   |
| Treating volumes, MBbl/d (3)  |   |                       | 19.5   |   |                     |   | 21.4 |   |   |   | 14.0 |   |   |   | 18.2 |   |
|                          |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |

| (1) | Includes business interruption insurance revenue of $1.9 million for the three and six months ended June 30, 2009, and $0.4 million for the three and six months ended June 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 (“LSNG”) unit. |
|-----|-----------------------------------------------------------------------------------------------|

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|                 |   | Three MonthsEnded June 30, |   |   | Six MonthsEnded June 30, |   |
|---------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                      |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                      |   | ($ in millions)            |   |
| NGL sales revenues        |   | $                          | 662.2  |   |                     | $      | 1,491.6 |   |   | $ | 1,248.8 |   |   | $ | 2,910.4 |   |
| Other revenues (1)        |   |                       | 1.0    |   |                     |   | 9.3 |   |   |   | 2.2 |   |   |   | 10.1 |   |
|                      |   |                       | 663.2  |   |                     |   | 1,500.9 |   |   |   | 1,251.0 |   |   |   | 2,920.5 |   |
| Product purchases         |   |                       | (653.5 | )      |                     |   | (1,468.5 | ) |   |   | (1,226.5 | ) |   |   | (2,879.3 | ) |
| Operating expenses        |   |                       | (0.2   | )      |                     |   | (0.5 | ) |   |   | (0.6 | ) |   |   | (1.0 | ) |
| Operating margin (2)      |   | $                          | 9.5    |   |                     | $      | 31.9 |   |   | $ | 23.9 |   |   | $ | 40.2 |   |
| Operating data:           |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| NGL sales, MBbl/d         |   |                       | 256.4  |   |                     |   | 252.3 |   |   |   | 254.6 |   |   |   | 257.3 |   |
| NGL realized price, $/gal |   |                       | 0.68   |   |                     |   | 1.55 |   |   |   | 0.65 |   |   |   | 1.48 |   |
|                      |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |

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

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

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|                      |   | Three MonthsEnded June 30, |   |   | Six MonthsEnded June 30, |   |
|---------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                      |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                      |   | ($ in millions)            |   |
| NGL sales revenues        |   | $                          | 129.8  |   |                     | $      | 311.4 |   |   | $ | 417.7 |   |   | $ | 854.7 |   |
| Other revenues (1)        |   |                       | 0.2    |   |                     |   | 5.9 |   |   |   | 0.9 |   |   |   | 5.9 |   |
|                      |   |                       | 130.0  |   |                     |   | 317.3 |   |   |   | 418.6 |   |   |   | 860.6 |   |
| Product purchases         |   |                       | (126.9 | )      |                     |   | (308.5 | ) |   |   | (411.2 | ) |   |   | (842.2 | ) |
| Operating margin (2)      |   | $                          | 3.1    |   |                     | $      | 8.8 |   |   | $ | 7.4 |   |   | $ | 18.4 |   |
| Operating data:           |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| NGL sales, MBbl/d         |   |                       | 43.3   |   |                     |   | 46.5 |   |   |   | 61.9 |   |   |   | 66.7 |   |
| NGL realized price, $/gal |   |                       | 0.78   |   |                     |   | 1.75 |   |   |   | 0.89 |   |   |   | 1.68 |   |

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

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|                            |   | Six MonthsEnded June 30, |   |
|---------------------------------|--------|--------------------------|--------|
|                            |   | 2009                     |   |   | 2008 |   |
|                            |   | (In millions)            |   |
| Net cash provided by (used in): |   |                     |   |   |   |   |
| Operating activities            |   | $                        | 112.9  |   |   | $ | 374.4 |   |
| Investing activities            |   |                     | (62.3  | ) |   |   | (25.7 | ) |
| Financing activities            |   |                     | (195.6 | ) |   |   | (160.4 | ) |

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|                                    |   | Three MonthsEnded June 30, |   |   | Six MonthsEnded June 30, |   |
|-----------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                    |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                                    |   | (In millions)              |   |
| Natural Gas Gathering and Processing    |   | $                          | 84.6   |   |                     | $      | 116.6 |   |   | $ | 147.7 |   |   | $ | 229.2 |   |
| Logistics Assets                        |   |                       | 22.8   |   |                     |   | 11.6 |   |   |   | 31.8 |   |   |   | 18.5 |   |
| NGL Distribution and Marketing Services |   |                       | 9.5    |   |                     |   | 31.9 |   |   |   | 23.9 |   |   |   | 40.2 |   |
| Wholesale Marketing                     |   |                       | 3.1    |   |                     |   | 8.8 |   |   |   | 7.4 |   |   |   | 18.4 |   |
| Other                                   |   |                       | 0.7    |   |                     |   | - |   |   |   | 0.7 |   |   |   | - |   |
|                                    |   | $                          | 120.7  |   |                     | $      | 168.9 |   |   | $ | 211.5 |   |   | $ | 306.3 |   |

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|                                                                 |   | Three MonthsEnded June 30, |   |   | Six MonthsEnded June 30, |   |
|----------------------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                                                 |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                                                                 |   | (In millions)              |   |
| Reconciliation of net income attributable to Targa operating margin: |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Resources, Inc. to operating margin:                                 |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Net income attributable to Targa Resources, Inc.                     |   | $                          | 13.5   |   |                     | $      | 46.2 |   |   | $ | 16.1 |   |   | $ | 64.6 |   |
| Add:                                                                 |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net income attibutable to noncontrolling interest                    |   |                       | 8.3    |   |                     |   | 30.0 |   |   |   | 6.6 |   |   |   | 56.8 |   |
| Depreciation and amortization expense                                |   |                       | 42.1   |   |                     |   | 38.8 |   |   |   | 83.7 |   |   |   | 76.9 |   |
| General and administrative expense                                   |   |                       | 28.1   |   |                     |   | 27.9 |   |   |   | 51.9 |   |   |   | 52.0 |   |
| Interest expense, net                                                |   |                       | 22.1   |   |                     |   | 23.7 |   |   |   | 47.8 |   |   |   | 49.2 |   |
| Income tax expense                                                   |   |                       | 6.5    |   |                     |   | 28.2 |   |   |   | 6.4 |   |   |   | 40.3 |   |
| Other, net                                                           |   |                       | 0.1    |   |                     |   | (25.9 | ) |   |   | (1.0 | ) |   |   | (33.5 | ) |
| Operating margin                                                     |   | $                          | 120.7  |   |                     | $      | 168.9 |   |   | $ | 211.5 |   |   | $ | 306.3 |   |

|                                                                    |   | Three MonthsEnded June 30, |   |   | Six MonthsEnded June 30, |   |
|-------------------------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                                                    |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
| Reconciliation of net cash provided by                                  |   | (In millions)              |   |
| operating activities to Adjusted EBITDA:                                |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Net cash provided by operating activities                               |   | $                          | 38.9   |   |                     | $      | 134.6 |   |   | $ | 112.9 |   |   | $ | 374.4 |   |
| Net income attibutable to noncontrolling interest                       |   |                       | (8.3   | )      |                     |   | (30.0 | ) |   |   | (6.6 | ) |   |   | (56.8 | ) |
| Interest expense, net (1)                                               |   |                       | 20.5   |   |                     |   | 21.6 |   |   |   | 44.3 |   |   |   | 45.1 |   |
| Current income tax expense                                              |   |                       | 0.1    |   |                     |   | 0.2 |   |   |   | 0.1 |   |   |   | 1.2 |   |
| Other                                                                   |   |                       | 0.1    |   |                     |   | 24.9 |   |   |   | (0.2 | ) |   |   | 30.8 |   |
| Changes in operating assets and liabilities which used (provided) cash: |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Accounts receivable and other assets                                    |   |                       | 88.1   |   |                     |   | 136.4 |   |   |   | 11.4 |   |   |   | (136.5 | ) |
| Accounts payable and other liabilities                                  |   |                       | (43.5  | )      |                     |   | (150.1 | ) |   |   | 21.1 |   |   |   | (28.9 | ) |
| Adjusted EBITDA                                                         |   | $                          | 95.9   |   |                     | $      | 137.6 |   |   | $ | 183.0 |   |   | $ | 229.3 |   |

| (1)   |   Net of debt issue costs of $1.6 million and $3.5 million for the three and six months ended June 30, 2009, and $2.1 million and $4.1 million for the three and six months ended June 30, 2008. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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TABLE OF CONTENTS

|                                               |   | Three MonthsEnded June 30, |   |   | Six MonthsEnded June 30, |   |
|----------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                               |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                                               |   | (In millions)              |   |
| Reconciliation of net income attributable to Targa |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Resources, Inc. to Adjusted EBITDA:                |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Net income attributable to Targa Resources, Inc.   |   | $                          | 13.5   |   |                     | $      | 46.2 |   |   | $ | 16.1 |   |   | $ | 64.6 |   |
| Add:                                               |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net                              |   |                       | 22.1   |   |                     |   | 23.7 |   |   |   | 47.8 |   |   |   | 49.2 |   |
| Income tax expense (1)                             |   |                       | 5.9    |   |                     |   | 27.9 |   |   |   | 5.8 |   |   |   | 39.8 |   |
| Depreciation and amortization expense              |   |                       | 42.1   |   |                     |   | 38.8 |   |   |   | 83.7 |   |   |   | 76.9 |   |
| Non-cash (gain) loss related to derivatives        |   |                       | 12.3   |   |                     |   | 1.0 |   |   |   | 29.6 |   |   |   | (1.2 | ) |
| Adjusted EBITDA                                    |   | $                          | 95.9   |   |                     | $      | 137.6 |   |   | $ | 183.0 |   |   | $ | 229.3 |   |

| (1)   | Net of income tax expense attributable to noncontrolling interest of $0.2 million and $0.5 million for the three and six months ended June 30, 2009, and $0.2 million and $0.5 million for the three and six months ended June 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 asset obsolete; |
|--------------------|------------------------------------------------------|

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

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

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TABLE OF CONTENTS

Item 3

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TABLE OF CONTENTS

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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 |   |
|  Sales                                                              |        |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
| Swap                                                                     | IF-Waha     |   |       | 6.62   |   |          |   | 21,918 |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 11,517 |   |
| Swap                                                                     | IF-Waha     |   |       | 6.69   |   |          |   | -      |   |   |   | 16,300 |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 6,608 |   |
| Swap                                                                     | IF-Waha     |   |       | 6.46   |   |          |   | -      |   |   |   | -      |   |   |   | 12,500 |   |   |   | -      |       |   |   | - |   |   |   | 439 |   |
| Swap                                                                     | IF-Waha     |   |       | 7.18   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 5,500  |       |   |   | - |   |   |   | 921 |   |
|                                                                     |        |   |       |   |   |          |   | 21,918 |   |   |   | 16,300 |   |   |   | 12,500 |   |   |   | 5,500  |       |   |   | - |   |   |   |   |   |
|                                                                     |        |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Swap                                                                     | IF-PB       |   |       | 5.42   |   |          |   | -      |   |   |   | 2,000  |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | (32 | ) |
| Swap                                                                     | IF-PB       |   |       | 5.42   |   |          |   | -      |   |   |   | -      |   |   |   | 2,000  |   |   |   |   |       |   |   | - |   |   |   | (528 | ) |
| Swap                                                                     | IF-PB       |   |       | 5.54   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 4,000  |       |   |   | - |   |   |   | (1,274 | ) |
| Swap                                                                     | IF-PB       |   |       | 5.54   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | 4,000 |   |   |   | (1,542 | ) |
|                                                                     |        |   |       |   |   |          |   | -      |   |   |   | 2,000  |   |   |   | 2,000  |   |   |   | 4,000  |       |   |   | 4,000 |   |   |   |   |   |
| Total Sales                                                              |        |   |       |   |   |          | 21,918 |   |   |   | 18,300 |   |   |   | 14,500 |   |   |   | 9,500  |   |       |   | 4,000 |   |   |   |   |   |
| Basis Swap Jul-Aug 2009 Rec NYMEX, pay IF-HSC plus $.0825, 20,000 MMBtu  |        |   |       |   |   |          |   | 12     |   |
| Basis Swap Jul-Aug 2009 Rec IF-Waha, pay NYMEX less $.5175, 20,000 MMBtu |        |   |       |   |   |          |   | (477   | )      |
|                                                                     |        |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | 15,644 |   |

| NGLs         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
|--------------|-------------|--------|------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Instrument   |        |   | Avg. Price |   |   | Barrels per day |   |   |   |   |
|  Type   |  Index |   | $/gal      |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value |   |
|  Sales  |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
| Swap         | OPIS-MB     |   |       | 0.79   |   |            |   | 3,347  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | 247 |   |
| Swap         | OPIS-MB     |   |       | 0.87   |   |            |   | -      |   |   |   | 2,750  |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 1,992 |   |
| Swap         | OPIS-MB     |   |       | 0.91   |   |            |   | -      |   |   |   | -      |   |   |   | 1,550  |   |   |   | -      |       |   |   | - |   |   |   | 1,233 |   |
| Swap         | OPIS-MB     |   |       | 0.92   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 1,250  |       |   |   | - |   |   |   | 575 |   |
| Total Swaps  |        |   |       |   |   |            | 3,347  |   |   |   | 2,750  |   |   |   | 1,550  |   |   |   | 1,250  |   |       |   | - |   |   |   |   |   |
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Floor        | OPIS-MB     |   |       | 0.20   |   |            |   | -      |   |   |   | -      |   |   |   | 54     |   |   |   | -      |       |   |   | - |   |   |   | 1,068 |   |
| Floor        | OPIS-MB     |   |       | 0.24   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 63     |       |   |   | - |   |   |   | 1,157 |   |
| Total Floors |        |   |       |   |   |            | -      |   |   |   | -      |   |   |   | 54     |   |   |   | 63     |   |       |   | - |   |   |   |   |   |
| Total Sales  |        |   |       |   |   |            | 3,347  |   |   |   | 2,750  |   |   |   | 1,604  |   |   |   | 1,313  |   |       |   | - |   |   |   |   |   |
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | 6,272 |   |

----

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    |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | (537 | ) |
| Swap        | NY-WTI      |   |       | 71.00  |   |            |   | -      |   |   |   | -      |   |   |   | 200    |   |   |   | -      |       |   |   | - |   |   |   | (508 | ) |
| Swap        | NY-WTI      |   |       | 72.60  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 200    |       |   |   | - |   |   |   | (505 | ) |
| Swap        | NY-WTI      |   |       | 73.80  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | 200 |   |   |   | (508 | ) |
| Total Swaps |        |   |       |   |   |            | -      |   |   |   | 200    |   |   |   | 200    |   |   |   | 200    |   |       |   | 200 |   |   |   |   |   |
| Total Sales |        |   |       |   |   |            | -      |   |   |   | 200    |   |   |   | 200    |   |   |   | 200    |   |       |   | 200 |   |   |   |   |   |
|        |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | (2,058 | ) |

| 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  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | 1,155 |   |
|                                                                        |        |   |       |   |   |          |   | 1,966  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   |   |   |
|                                                                        |        |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Swap                                                                        | IF-NGPL MC  |   |       | 9.18   |   |          |   | 6,256  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 6,109 |   |
| Swap                                                                        | IF-NGPL MC  |   |       | 8.86   |   |          |   | -      |   |   |   | 5,685  |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 6,655 |   |
| Swap                                                                        | IF-NGPL MC  |   |       | 7.34   |   |          |   | -      |   |   |   | -      |   |   |   | 2,750  |   |   |   | -      |       |   |   | - |   |   |   | 866 |   |
| Swap                                                                        | IF-NGPL MC  |   |       | 7.18   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 2,750  |       |   |   | - |   |   |   | 466 |   |
|                                                                        |        |   |       |   |   |          |   | 6,256  |   |   |   | 5,685  |   |   |   | 2,750  |   |   |   | 2,750  |       |   |   | - |   |   |   |   |   |
|                                                                        |        |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Swap                                                                        | IF-Waha     |   |       | 7.79   |   |          |   | 9,936  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 7,115 |   |
| Swap                                                                        | IF-Waha     |   |       | 6.53   |   |          |   | -      |   |   |   | 11,709 |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 4,020 |   |
| Swap                                                                        | IF-Waha     |   |       | 6.10   |   |          |   | -      |   |   |   | -      |   |   |   | 11,250 |   |   |   | -      |       |   |   | - |   |   |   | (973 | ) |
| Swap                                                                        | IF-Waha     |   |       | 6.30   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 7,250  |       |   |   | - |   |   |   | (821 | ) |
| Swap                                                                        | IF-Waha     |   |       | 5.59   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | 4,000 |   |   |   | (1,536 | ) |
|                                                                        |        |   |       |   |   |          |   | 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    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 435 |   |
|                                                                        |        |   |       |   |   |          |   | 850    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   |   |   |
| Floor                                                                       | IF-Waha     |   |       | 6.55   |   |          |   | 565    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 285 |   |
|                                                                        |        |   |       |   |   |          |   | 565    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   |   |   |
| Total Floors                                                                |        |   |       |   |   |          | 1,415  |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |       |   | - |   |   |   |   |   |
| Total Sales                                                                 |        |   |       |   |   |          | 19,573 |   |   |   | 17,394 |   |   |   | 14,000 |   |   |   | 10,000 |   |       |   | 4,000 |   |   |   |   |   |
| Basis Swap Jul 09-May 2011 Rec IF-CGT, Pay NYMEX less $0.11, 20,000 MMBtu/d |        |   |       |   |   |          |   | (668   | )      |
| Fuel cost swap Jul 2009-May2011 Rec IF-CGT, Pay $5.96, 226 MMbtu/d          |        |   |       |   |   |          |   |   |   |   |   | 46     |   |
|                                                                        |        |   |       |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | 23,154 |   |

----

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  |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | 24,428 |   |
| Swap         | OPIS-MB     |   |       | 1.27   |   |            |   | -      |   |   |   | 4,809  |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 30,359 |   |
| Swap         | OPIS-MB     |   |       | 0.92   |   |            |   | -      |   |   |   | -      |   |   |   | 3,400  |   |   |   | -      |       |   |   | - |   |   |   | 1,844 |   |
| Swap         | OPIS-MB     |   |       | 0.92   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 2,700  |       |   |   | - |   |   |   | 545 |   |
| Total Swaps  |        |   |       |   |   |            | 6,248  |   |   |   | 4,809  |   |   |   | 3,400  |   |   |   | 2,700  |   |       |   | - |   |   |   |   |   |
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Floor        | OPIS-MB     |   |       | 1.44   |   |            |   | -      |   |   |   | -      |   |   |   | 199    |   |   |   | -      |       |   |   | - |   |   |   | 3,937 |   |
| Floor        | OPIS-MB     |   |       | 1.43   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 231    |       |   |   | - |   |   |   | 4,242 |   |
| Total Floors |        |   |       |   |   |            | -      |   |   |   | -      |   |   |   | 199    |   |   |   | 231    |   |       |   | - |   |   |   |   |   |
| Total Sales  |        |   |       |   |   |            | 6,248  |   |   |   | 4,809  |   |   |   | 3,599  |   |   |   | 2,931  |   |       |   | - |   |   |   |   |   |
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | 65,355 |   |

| Condensate   |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |
|--------------|-------------|--------|------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |
| Instrument   |        |   | Avg. Price |   |   | Barrels per day |   |   |   |   |
|  Type   |  Index |   | $/Bbl      |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | Fair Value |   |
|  Sales  |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |
| Swap         | NY-WTI      |   |       | 69.00  |   |            |   | 322    |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   | $ | (149 | ) |
| Swap         | NY-WTI      |   |       | 68.04  |   |            |   | -      |   |   |   | 401    |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | (1,048 | ) |
| Swap         | NY-WTI      |   |       | 71.00  |   |            |   | -      |   |   |   | -      |   |   |   | 200    |   |   |   | -      |       |   |   | - |   |   |   | (508 | ) |
| Swap         | NY-WTI      |   |       | 72.60  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | 200    |       |   |   | - |   |   |   | (506 | ) |
| Swap         | NY-WTI      |   |       | 74.00  |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | 200 |   |   |   | (495 | ) |
| Total Swaps  |        |   |       |   |   |            | 322    |   |   |   | 401    |   |   |   | 200    |   |   |   | 200    |   |       |   | 200 |   |   |   |   |   |
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |
| Floor        | NY-WTI      |   |       | 60.00  |   |            |   | 50     |   |   |   | -      |   |   |   | -      |   |   |   | -      |       |   |   | - |   |   |   | 15 |   |
| Total Floors |        |   |       |   |   |            | 50     |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |       |   | - |   |   |   |   |   |
| Total Sales  |        |   |       |   |   |            | 372    |   |   |   | 401    |   |   |   | 200    |   |   |   | 200    |   |       |   | 200 |   |   |   |   |   |
|         |        |   |       |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   | $ | (2,691 | ) |

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TABLE OF CONTENTS

|               |   | Fixed  |   | Notional     |                    |           |   |
|--------------------|--------|--------|--------|--------------|-------------------------|----------------|--------|
|  Period       |   | Rate   |   |  Amount |                    | Fair Value     |   |
|               |   |   |   |         |                    | (In thousands) |   |
| 7/1/2009-3/31/2010 |   |   | 1.65   | %            | $400 million            |           | $      | (219 | ) |
| 4/1/2010-3/31/2011 |   |   | 1.65   | %            |   350 million |           |   | (1,488 | ) |
| 4/1/2011-3/31/2012 |   |   | 1.65   | %            |   300 million |           |   | 2,124 |   |
|               |   |   |   |         |                    |           | $      | 417 |   |

|              |   | Fixed  |   | Notional     |                    |           |   |
|-------------------|--------|--------|--------|--------------|-------------------------|----------------|--------|
|  Period      |   | Rate   |   |  Amount |                    | Fair Value     |   |
|              |   |   |   |         |                    | (In thousands) |   |
| Remainder of 2009 |   |   | 3.03   | %            | $300 million            |           | $      | (4,668 | ) |
| 2010              |   |   | 3.03   | %            |   300 million |           |   | (6,703 | ) |
| 2011              |   |   | 2.84   | %            |   300 million |           |   | (2,048 | ) |
| 2012              |   |   | 2.77   | %            |   300 million |           |   | 1,050 |   |
| 2013              |   |   | 2.75   | %            |   300 million |           |   | 2,318 |   |
| 1/1 - 4/24/2014   |   |   | 2.75   | %            |   300 million |           |   | 924 |   |
|              |   |   |   |         |                    |           | $      | (9,127 | ) |

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TABLE OF CONTENTS

Item 4T

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TABLE OF CONTENTS

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

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

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TABLE OF CONTENTS

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
|--------------|-------------------------------------------------------------|

|   | 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 and 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                                                                                                                                                                       |
|                 |                                                                                                                                                                                                                                                                                                                                                       |
| 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.                                                                                                                                                     |
|                 |                                                                                                                                                                                                                                                                                                                                                       |
| 10.1                 | Second Amendment to Credit Agreement dated May 1, 2009 between Targa Resources Inc., the Lenders named therein and Credit Suisse, as Administrative Agent, Swing Line Lender, Revolving L/C Issuer and Synthetic L/C Issuer (incorporated by reference to Exhibit 10.2 to Targa Resources Inc.’s Form 10-Q filed May 8, 2009 (File No. 333-147066)). |
|                 |                                                                                                                                                                                                                                                                                                                                                       |
| 10.2**               | 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.                                                                                                                                                                                         |
|                 |                                                                                                                                                                                                                                                                                                                                                       |
| 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. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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TABLE OF CONTENTS

|   | 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

Exhibit Index

|  0              |                                                                                                                                                                                                                                                                                                                                                       |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit Number  | Description                                                                                                                                                                                                                                                                                                                                      |
| 2.1*                 | Purchase and Sale Agreement dated July 27, 2009, by and between Targa Resources Partners LP and 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                                                                                                                                                                       |
|                 |                                                                                                                                                                                                                                                                                                                                                       |
| 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.                                                                                                                                                     |
|                 |                                                                                                                                                                                                                                                                                                                                                       |
| 10.1                 | Second Amendment to Credit Agreement dated May 1, 2009 between Targa Resources Inc., the Lenders named therein and Credit Suisse, as Administrative Agent, Swing Line Lender, Revolving L/C Issuer and Synthetic L/C Issuer (incorporated by reference to Exhibit 10.2 to Targa Resources Inc.’s Form 10-Q filed May 8, 2009 (File No. 333-147066)). |
|                 |                                                                                                                                                                                                                                                                                                                                                       |
| 10.2**               | 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.                                                                                                                                                                                         |
|                 |                                                                                                                                                                                                                                                                                                                                                       |
| 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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