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| R | ANNUAL      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 |
|--------|--------------------------------------------------------------------------------------------------------------|

TARGA RESOURCES, INC.

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

|                     |   |                                           |
|--------------------------|--------|------------------------------------------------|
| Title      of Each Class |   | Name      of Each Exchange on Which Registered |
| None                     |   | Not      applicable                            |

| Large      accelerated filer * | Accelerated filer * | Non-accelerated      filer R | Smaller      reporting company * |
|--------------------------------|---------------------|------------------------------|----------------------------------|

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TABLE OF CONTENTS

|   |         |                                                                                                                         |           |   |
|--------|--------------|------------------------------------------------------------------------------------------------------------------------------|----------------|--------|
|   |    | PART I                                                                                                                  |      |   |
|   |         |                                                                                                                         |
| 1.     |    | BUSINESS                                                                                                                     |   3  |   |
| 1A.    |    | RISK FACTORS                                                                                                                 |   29 |   |
| 1B.    |    | UNRESOLVED STAFF COMMENTS                                                                                                    |   41 |   |
| 2.     |    | PROPERTIES                                                                                                                   |   41 |   |
| 3.     |    | LEGAL PROCEEDINGS                                                                                                            |   41 |   |
| 4.     |    | SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS                                                                     |   41 |   |
|   |         |                                                                                                                         |
|   |    | PART II                                                                                                                 |      |   |
|   |         |                                                                                                                         |
| 5.     |    | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED      STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY      SECURITIES |   42 |   |
| 6.     |    | SELECTED FINANCIAL DATA                                                                                                      |   42 |   |
| 7.     |    | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION      AND RESULTS OF OPERATIONS                             |   46 |   |
| 7A.    |    | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK                                                              |   65 |   |
| 8.     |    | FINANCIAL STATEMENTS AND SUPPLEMENTARY      DATA                                                                             |   68 |   |
| 9.     |    | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON      ACCOUNTING AND FINANCIAL DISCLOSURE                                    |   68 |   |
| 9A.    |    | CONTROLS AND PROCEDURES                                                                                                      |   69 |   |
| 9B.    |    | OTHER INFORMATION                                                                                                            |   69 |   |
|   |         |                                                                                                                         |
|   |    | PART III                                                                                                                |      |   |
|   |         |                                                                                                                         |
| 10.    |    | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE      GOVERNANCE                                                                  |   70 |   |
| 11.    |    | EXECUTIVE COMPENSATION                                                                                                       |   73 |   |
| 12.    |    | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL      OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS                          |   89 |   |
| 13.    |    | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND      DIRECTOR INDEPENDENCE                                               |   90 |   |
| 14.    |    | PRINCIPAL ACCOUNTANT FEES ANDSERVICES                                                                                        |   94 |   |
|   |         |                                                                                                                         |
|   |    | PART IV                                                                                                                 |      |   |
|   |         |                                                                                                                         |
| 15.    |    | EXHIBITS AND FINANCIAL STATEMENT      SCHEDULES                                                                         |   95 |   |

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Part 1

| ·   | 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; |
|--------------------|--------------------------------------------------------------------------|

| ·   | 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 (“NGL”)      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 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 elsewhere in this Annual Report on Form 10-K (“Annual      Report”). |
|--------------------|-----------------------------------------------------------------------------------------------------------|

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|                        |         |                                                                          |
|-----------------------------|--------------|-------------------------------------------------------------------------------|
| Bbl                         |    | Barrels      (equal to 42 gallons)                                            |
| BBtu                        |    | Billion British thermal units,      a measure of heating value |
| Bcf                         |    | Billion      cubic feet                                                       |
| Btu                         |    | British      thermal unit, a measure of heating value                         |
| /d                          |    | Per      day                                                                  |
| Gal                         |    | Gallons                                                                       |
| MBbl                        |    | Thousand      barrels                                                         |
| Mcf                         |    | Thousand      cubic feet                                                      |
| MMBbl                       |    | Million      barrels                                                          |
| MMBtu                       |    | Million      British thermal units                                            |
| MMcf                        |    | Million      cubic feet                                                       |
|                        |
| Price      IndexDefinitions |
| 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                           |
| NY-HH                       |    | NYMEX,      Henry Hub Natural Gas                                             |
| NY-WTI                      |    | NYMEX,      West Texas Intermediate Crude Oil                                 |
| OPIS-MB                     |    | Oil      Price Information Service, Mont Belvieu,Texas                        |

 Item 1.  Business

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approximately 21,900 square miles and 22 natural gas processingplants with access to natural gas supplies in the Permian Basin, North Texas,the onshore region of the Louisiana Gulf Coast and the Gulf of Mexico.Additionally, we have an integrated NGL logistics and marketing business, withnet NGL fractionation capacity of approximately 300 MBbl/d, 36 owned andoperated storage wells with a net storage capacity of approximately 65 MMBbl,and 17 storage, marine and transport terminals with above ground NGL storagecapacity of approximately 900 MBbl.

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| ·   | Significant scale of      operations.  We own interests in or operate approximately      11,000 miles of natural gas pipelines and approximately 800 miles of NGL      pipelines, with natural gas gathering systems covering approximately      21,900 square miles and 22 natural gas processing plants with access to      natural gas supplies in the Permian Basin, the Fort Worth Basin, the      onshore region of the Louisiana Gulf Coast and the Gulf of Mexico.      Additionally, we have an integrated NGL logistics and marketing business      with net NGL fractionation capacity of approximately 300 MBbl/d, 36 owned      and operated storage wells with a net storage capacity of approximately      65 MMBbl, and 17 storage, marine and transport terminals with above      ground NGL storage capacity of approximately 900 MBbl. Due to the high      cost of obtaining permits for and constructing midstream assets and the      difficulty of developing the expertise necessary to operate them, the      barriers to enter the midstream natural gas sector on a scale competitive      with ours are high. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Multiple producing      basins.  Our major gathering and processing systems      source natural gas volumes from four producing areas: the Permian Basin,      the Fort Worth Basin, the onshore region of The Louisiana Gulf Coast, and      the Gulf of Mexico basin. In aggregate, these basins are a significant      contributor to current domestic natural gas production, favorably      positioning us to access large, diverse and important sources of domestic      natural gas supply. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Large and diverse customer      base.  We focus on providing high-quality services at      competitive costs, which we believe has allowed us to attract and retain a      large, diverse customer base. Our customer base includes a large portfolio      of natural gas producers in our regions of operations as well as      purchasers and consumers of NGLs. While we have commercial relationships      with large, diversified energy companies, we also provide services to a      number of other customers, which reduces our dependence on any one customer. As of December 31, 2008, other than      Chevron Corporation (“Chevron”) (including the Chevron Phillips Chemical      Company LLC joint venture, “CPC”), no single customer accounted for more      than 10% of our consolidated revenue. We expect to continue to strengthen      and grow our customer relationships due to our broad service offerings,      well-positioned assets, competitive cost of service, market access, and      commitment to providing high-quality customer  service. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Broad service and product      offering. We offer a wide range of midstream natural gas gathering      and processing services and NGL logistics and marketing services. We      believe the breadth and scope of our assets allow us to attract customers      due to our ability to deliver products and services across the value chain      and due to our well-positioned assets and markets. We believe this breadth      and asset positioning, combined with our singular midstream focus, gives      us a competitive advantage over other midstream companies and divisions of      larger companies. In addition, we believe this diversity of assets and      services diversifies cash flows by reducing our dependency on any      particular line of business. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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 without significant capital investments. We believe that asdomestic demand for natural gas and NGL grows over the long term ourinfrastructure will increase in value as such infrastructure takes on increasingimportance in meeting that demand.

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The following table sets forth key ownership and operationalinformation regarding our operating gathering systems and natural gas processingplants:

| Facility                  |   | %      Owned |   | Location |                 | Approximate      Gross Processing Capacity (MMcf/d) |    |   | 2008      ApproximateGross      Inlet ThroughputVolume      (MMcf/d) |   |   | 2008      ApproximateGross      NGL Production (MBbl/d) |   | ProcessType      (1) |
|---------------------------|--------|--------------|--------|----------|----------------------|-----------------------------------------------------|---------|--------|----------------------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|----------------------|
| Targa                     |   |         |   |     |                 |                                                |    |   |                                                                 |   |   |                                                    |   |                 |
|                      |   |         |   |     |                 |                                                |    |   |                                                                 |   |   |                                                    |   |                 |
| Permian      Basin        |   |         |   |     |                 |                                                |    |   |                                                                 |   |   |                                                    |   |                 |
| Sand      Hills           |   |         | 100.0  |     | Crane,      TX       |                                                |    | 150    |                                                                 |   |   | 105.8                                                   |   |                 |   | 13.1 |   | Cryo |
| Saunders      (2)         |   |         | 63.0   |     | Lea,      NM         |                                                |    | 70     |                                                                 |   |   | 55.4                                                    |   |                 |   | 5.9 |   | Cryo |
| Eunice      (2)           |   |         | 63.0   |     | Lea,      NM         |                                                |    | 120    |                                                                 |   |   | 85.0                                                    |   |                 |   | 9.3 |   | Cryo |
| Monument      (2)         |   |         | 63.0   |     | Lea,      NM         |                                                |    | 90     |                                                                 |   |   | 70.6                                                    |   |                 |   | 6.3 |   | Cryo |
| Area      Total           |   |         | 430    |     |                 |                                                | 316.8   |   |                                                                 |   | 34.6   |                                                    |   |
| Louisiana      Gulf Coast |   |         |   |     |                 |                                                |    |   |                                                                 |   |   |                                                    |   |                 |   |   |   |   |
| Barracuda                 |   |         | 100.0  |     | Cameron,      LA     |                                                |    | 200    |                                                                 |   |   | 109.2                                                   |   |                 |   | 2.7 |   | Cryo |
| Lowry                     |   |         | 100.0  |     | Cameron,      LA     |                                                |    | 265    |                                                                 |   |   | 158.8                                                   |   |                 |   | 4.4 |   | Cryo |
| Stingray                  |   |         | 100.0  |     | Cameron,      LA     |                                                |    | 300    |                                                                 |   |   | 175.8                                                   |   |                 |   | 2.8 |   | RA |
| Calumet(3)                |   |         | 35.0   |     | St.      Mary, LA    |                                                |    | 1,650  |                                                                 |   |   | 107.1                                                   |   |                 |   | 2.7 |   | RA |
| Yscloskey(3)              |   |         | 29.3   |     | St.      Bernard, LA |                                                |    | 1,850  |                                                                 |   |   | 276.7                                                   |   |                 |   | 2.5 |   | RA |
| VESCO(4)                  |   |         | 76.8   |     | Plaquemines,      LA |                                                |    | 725    |                                                                 |   |   | 395.6                                                   |   |                 |   | 6.8 |   | Cryo |
| Bluewater(3)              |   |         | 21.8   |     | Acadia,      LA      |                                                |    | 425    |                                                                 |   |   | 18.7                                                    |   |                 |   | 0.6 |   | Cryo |
| Terrebonne(3)             |   |         | 5.8    |     | Terrebonne,      LA  |                                                |    | 950    |                                                                 |   |   | 25.9                                                    |   |                 |   | 0.8 |   | RA |
| Toca(3)                   |   |         | 10.4   |     | St.      Bernard, LA |                                                |    | 1,000  |                                                                 |   |   | 53.1                                                    |   |                 |   | 1.1 |   | Cryo/RA |
| Iowa      (5)             |   |         | 52.7   |     | Jeff.      Davis, LA |                                                |    | 500    |                                                                 |   |   | -                                                       |   |                 |   | - |   | Cryo |
| Sea      Robin            |   |         | 0.8    |     | Vermillion,      LA  |                                                |    | 700    |                                                                 |   |   | 24.8                                                    |   |                 |   | 0.8 |   | Cryo |
| Area      Total           |   |         | 8,565  |     |                 |                                                | 1,345.7 |   |                                                                 |   | 25.2   |                                                    |   |
|                      |   |         |   |     |                 |                                                |    |   |                                                                 |   |   |                                                    |   |                 |   |   |   |   |
| The      Partnership      |   |         |   |     |                 |                                                |    |   |                                                                 |   |   |                                                    |   |                 |   |   |   |   |
|                      |   |         |   |     |                 |                                                |    |   |                                                                 |   |   |                                                    |   |                 |   |   |   |   |
| North      Texas System   |   |         |   |     |                 |                                                |    |   |                                                                 |   |   |                                                    |   |                 |   |   |   |   |
| Chico      (6)            |   |         | 100.0  |     | Wise,      TX        |                                                |    | 265    |                                                                 |   |   |                                                    |   |                 |   |   |   | Cryo |
| Shackelford               |   |         | 100.0  |     | Shackelford,TX       |                                                |    | 13     |                                                                 |   |   |                                                    |   |                 |   |   |   | Cryo |
| Area      Total           |   |         | 278    |     |                 |                                                | 162.8   |   |                                                                 |   | 19.0   |                                                    |   |
|                      |
| SAOU      System          |   |         |   |     |                 |                                                |    |   |                                                                 |   |   |                                                    |   |                 |   |   |   |   |
| Mertzon                   |   |         | 100.0  |     | Irion,      TX       |                                                |    | 48     |                                                                 |   |   |                                                    |   |                 |   |   |   | Cryo |
| Sterling                  |   |         | 100.0  |     | Sterling,      TX    |                                                |    | 62     |                                                                 |   |   |                                                    |   |                 |   |   |   | Cryo |
| Conger      (7)           |   |         | 100.0  |     | Sterling,      TX    |                                                |    | 25     |                                                                 |   |   |                                                    |   |                 |   |   |   | Cryo |
| Area      Total           |   |         | 135    |     |                 |                                                | 90.3    |   |                                                                 |   | 14.1   |                                                    |   |
| LOU      System           |   |         |   |     |                 |                                                |    |   |                                                                 |   |   |                                                    |   |                 |   |   |   |   |
| Gillis      (6)           |   |         | 100.0  |     | Calcasieu,LA         |                                                |    | 180    |                                                                 |   |   |                                                    |   |                 |   |   |   | Cryo |
| Acadia                    |   |         | 100.0  |     | Acadia,      LA      |                                                |    | 80     |                                                                 |   |   |                                                    |   |                 |   |   |   | Cryo |
| Area      Total           |   |         | 260    |     |                 |                                                | 168.1   |   |                                                                 |   | 9.0    |                                                    |   |

| (1)   | Cryo—Cryogenic      Processing; RA—Refrigerated Absorption  Processing. |
|-----------------|-------------------------------------------------------------------------------------|

| (2)   | These      plants are part of our Versado Gas Processors L.L.C. joint venture with      Chevron (“Versado”). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

| (3)   | Our      ownership is adjustable and subject to annual    redetermination. |
|-----------------|----------------------------------------------------------------------------|

| (4)   | On      July 31, 2008, we acquired Chevron’s ownership interest in Venice Energy      Services Company (“VESCO”), thereby increasing our ownership interest from      22.9% to 76.8%. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | The      Iowa plant is currently shut down. |
|-----------------|---------------------------------------------|

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| (6)   | The      Chico and Gillis plants have fractionation capacities of approximately 15      MBbl/d and 13 MBbl/d. |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| (7)   | The      Conger plant is not currently operating, but is on standby and can be      quickly reactivated on short notice and minimal incremental cost to meet      additional needs for processingcapacity. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Permian Basin Assets

Mexico shelf. The Seahawk gathering system alsogathers some natural gas from the onshore regions of the Louisiana Gulf Coast.Additionally, we have an interest in the Venice gathering system, an offshoregathering system, regulated as an interstate pipeline by the Federal EnergyRegulatory Commission (“FERC”), which supplies a portion of the natural gas toVESCO.

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| Facility                                              |   | %      Owned |   |   | Maximum      Gross Capacity (MBbls/d) |   |   | 2008      Gross Throughput (MBbls/d) |   |
|-------------------------------------------------------|--------|--------------|--------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
| Operated      Fractionation Facilities: (1)           |   |         |   |   |                                  |   |   |                                 |   |
| Lake      Charles Fractionator (Lake Charles, LA)     |   |         | 100.0  |   |                                  |   | 55     |                                 |   |   | 26.3 |   |
| Cedar      Bayou Fractionator (Mont Belvieu, TX) (2)  |   |         | 88.0   |   |                                  |   | 215    |                                 |   |   | 185.9 |   |
|                                                  |   |         |   |   |                                  |   |   |                                 |   |   |   |   |
| Equity      Fractionation Facilities (non-operated):  |   |         |   |   |                                  |   |   |                                 |   |   |   |   |
| Gulf      Coast Fractionator (Mont Belvieu, TX)       |   |         | 38.8   |   |                                  |   | 109    |                                 |   |   | 105.2 |   |
|                                                  |   |         |   |   |                                  |   |   |                                 |   |   |   |   |
| Partnership      Operated Fractionation Facilities:   |   |         |   |   |                                  |   |   |                                 |   |   |   |   |
| Gillis      Plant Fractionator (Lake Charles, LA) (3) |   |         | 100.0  |   |                                  |   | 13     |                                 |   |   | 10.0 |   |
| Chico      Plant Fractionator (Wise, TX) (3)          |   |         | 100.0  |   |                                  |   | 15     |                                 |   |   | 3.4 |   |

| (1)   | Excludes      operating data for our Chico and Gillis fractionation      facilities. |
|-----------------|--------------------------------------------------------------------------------------|

| (2)   | Includes      ownership through our 88% interest in Downstream Energy Ventures Co,      LLC. |
|-----------------|----------------------------------------------------------------------------------------------|

| (3)   | Included      in our Natural Gas Gathering and Processing  division. |
|-----------------|----------------------------------------------------------------------|

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|                                  |   |                   |   |                |                 |                             |   |   |                                   |   |
|---------------------------------------|--------|------------------------|--------|---------------------|----------------------|----------------------------------|--------|--------|----------------------------------------|--------|
|                                  |   | NGL Storage Facilities |   |
| Facility                              |   | % Owned                |   | County/Parish State |                 | Number of      Active Wells |   |   | Gross      Storage Capacity    (MMBbl) |   |
| Hackberry      Storage (Lake Charles) |   |                   | 100.0  |                | Cameron,      LA     |                             |   | 12     | (2)                                    |   |   | 20.0 |   |
| Mont      Belvieu Storage             |   |                   | 100.0  |                | Chambers,      TX    |                             |   | 20     | (3)                                    |   |   | 41.4 |   |
| Easton      Storage                   |   |                   | 100.0  |                | Evangeline,      LA  |                             |   | 1      |                                   |   |   | 0.8 |   |
| Hattiesburg      Storage              |   |                   | 50.0   |                | Forrest,      MS     |                             |   | 3      |                                   |   |   | 4.5 |   |
| VESCO      (1)                        |   |                   | 76.8   |                | Plaquemines,      LA |                             |   | 0      |                                   |   |   | - |   |
| Versado      (1)                      |   |                   | 63.0   |                | Lea,      NM         |                             |   | 0      |                                   |   |   | - |   |

| (1)   | Not      in service. |
|-----------------|----------------------|

| (2)   | Four      of the twelve owned wells are leased to Citgo Petroleum Corporation      (“Citgo”) under a long-term lease; one of the twelve wells is being      permitted for hydrocarbon service. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | We      own and operate 20 wells and operate 6 wells owned by  CPC. |
|-----------------|---------------------------------------------------------------------|

|                           |   | Terminal Facilities |   |
|--------------------------------|--------|---------------------|--------|
|                           |   | %Owned              |   | County/Parish, State | Description |   | 2008      Throughput (million      gallons) |   |
| Galena      Park Terminal      |   |                | 100    |   | Harris,      TX | NGL      import/export terminal |   |   | 899.0 |   |
| Calvert      City Terminal     |   |                | 100    |   | Marshall,      KY | Propane      terminal |   |   | 49.6 |   |
| Greenville      Terminal (1)   |   |                | 100    |   | Washington,      MS | Marine      propane terminal |   |   | 18.3 |   |
| Pt.      Everglades Terminal   |   |                | 100    |   | Broward,      FL | Marine      propane terminal |   |   | 25.9 |   |
| Tampa      Terminal            |   |                | 100    |   | Hillsborough,      FL | Marine      propane terminal |   |   | - |   |
| Tyler      Terminal            |   |                | 100    |   | Smith,      TX | Propane      terminal |   |   | 7.9 |   |
| Abilene      Transport (2)     |   |                | 100    |   | Taylor,      TX | Raw      NGL transport terminal |   |   | 14.7 |   |
| Bridgeport      Transport (2)  |   |                | 100    |   | Jack,      TX | Raw      NGL transport terminal |   |   | 69.2 |   |
| Gladewater      Transport (2)  |   |                | 100    |   | Gregg,      TX | Raw      NGL transport terminal |   |   | 63.3 |   |
| Hammond      Transport         |   |                | 100    |   | Tangipahoa,      LA | Transport      terminal |   |   | 33.1 |   |
| Chattanooga      Terminal      |   |                | 100    |   | Hamilton,      TN | Propane      terminal |   |   | 23.2 |   |
| Mont      Belvieu Terminal (3) |   |                | 100    |   | Chambers,      TX | Transport      and storage terminal |   |   | 2,910.4 |   |
| Venice      Terminal           |   |                | 77     |   | Plaquemines,      LA | Storage      terminal |   |   | 0.7 |   |
| Hackberry      Terminal        |   |                | 100    |   | Cameron,      LA | Storage      terminal |   |   | 316.9 |   |
| Sparta      Terminal           |   |                | 100    |   | Sparta,      NJ | Propane      terminal |   |   | 11.3 |   |
| Hattiesburg      Terminal      |   |                | 50     |   | Forrest,      MS | Propane      terminal |   |   | 147.2 |   |
| Winona      Terminal (4)       |   |                | 100    |   | Flagstaff,      AZ | Propane      terminal |   |   | - |   |

| (1)   | Volumes      reflect total import and export across the  dock/terminal. |
|-----------------|-------------------------------------------------------------------------|

| (2)   | Volumes      reflect total transport and injectionvolumes. |
|-----------------|------------------------------------------------------------|

| (3)   | Volumes      reflect total transport and terminal throughput  volumes. |
|-----------------|------------------------------------------------------------------------|

| (4)   | Anticipated      commencement of operations in second quarter of  2009. |
|-----------------|-------------------------------------------------------------------------|

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| ·   | approximately      770 railcars that we lease and      manage; |
|--------------------|---------------------------------------------------------------------|

| ·   | approximately      70 owned and leased transport tractors and approximately 100 company-owned      tank trailers; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | 21      company-owned pressurized NGL barges with more than      320,000 barrels of capacity.  |
|--------------------|----------------------------------------------------------------------------------------------------------|

 processes. Undertypical net-back contracts, we generally retain a portion of the resale price ofNGL sales or receive a fixed minimum fee per gallon on products sold. Undernet-back contracts, fees are earned for locating and supplying NGL feedstocks tothe refineries based on a percentage of the cost to obtain such supply or aminimum fee per gallon. In 2008, we bought and sold an average of approximately26 MBbl/d of NGLs through this refinery services business.

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Item 1A.  RiskFactors

| ·   | the      impact of seasonality and weather; |
|--------------------|---------------------------------------------|

| ·   | general      economic conditions and economic conditions impacting our primary      markets; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | the      economic conditions of ourcustomers; |
|--------------------|-----------------------------------------------|

| ·   | the      level of domestic crude oil and natural gas production and      consumption; |
|--------------------|---------------------------------------------------------------------------------------|

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| ·   | the      availability of imported natural gas, liquefied natural gas, NGLs and      crude oil; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | actions      taken by foreign oil and gas producingnations; |
|--------------------|-------------------------------------------------------------|

| ·   | the      availability of local, intrastate and interstate transportation systems      and storage for residue natural gas andNGLs; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      availability and marketing of competitive fuels and/or      feedstocks; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | the      impact of energy conservation efforts;and |
|--------------------|----------------------------------------------------|

| ·   | the      extent of governmental regulation andtaxation. |
|--------------------|---------------------------------------------------------|

whichever is applicable, as the price of natural gas, NGLs andcrude oil fluctuates. For additional information regarding our hedgingactivities, see “Item 7A. Quantitative and Qualitative Disclosures aboutMarket Risk—Commodity Price Risk”.

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 which we operate cansignificantly decrease the total volume of propane we sell. Lack of consumerdemand for propane may also adversely affect the retailers we transact with inour wholesale propane marketing operations, exposing us to their inability tosatisfy their contractual obligations tous.

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Isobutane.Isobutane is predominantly used in refineries to produce alkylates toenhance octane levels. Accordingly, any action that reduces demand for motorgasoline or demand for isobutane to produce alkylates for octane enhancementmight reduce demand for isobutane.

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| §   | damage      to pipelines, plants, logistical assets and related equipment and      surrounding properties caused by hurricanes, tornadoes, floods, fires and      other natural disasters, explosions and acts of  terrorism; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | inadvertent      damage from third parties, including from construction, farm and utility      equipment; |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| §   | leaks      of natural gas, NGLs and other hydrocarbons or losses of natural gas or      NGLs as a result of the malfunction of equipment or facilities;      and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | other      hazards that could also result in personal injury and loss of life,      pollution and suspension of operations.  |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

 following hurricanes Katrinaand Rita, insurance premiums, deductibles and co-insurance requirementsincreased substantially, and terms were generally less favorable than terms thatwere obtained prior to such hurricanes. The insurance market conditions haveworsened as a result of industry losses sustained from hurricanes Gustav and Ikein September 2008, and of volatile conditions in the financial markets. As aresult, we expect to experience further increases in deductibles and premiums,and further reductions in coverage and limits, with some coverages potentiallyunavailable at any cost.

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| ·   | perform      ongoing assessments of pipelineintegrity; |
|--------------------|--------------------------------------------------------|

| ·   | identify      and characterize applicable threats to pipeline segments that could impact      a high consequence area; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | improve      data collection, integration andanalysis; |
|--------------------|--------------------------------------------------------|

| ·   | repair      and remediate the pipeline as necessary;and |
|--------------------|---------------------------------------------------------|

| ·   | implement      preventive and mitigating actions. |
|--------------------|---------------------------------------------------|

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| §   | our      ability to obtain additional financing, if necessary, for working capital,      capital expenditures, acquisitions or other purposes may be impaired or      such financing may not be available on favorable  terms; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | satisfying      our obligations with respect to our indebtedness may be more difficult and      any failure to comply with the obligations of any of our debt instruments      could result in an event of default under the agreements governing our      indebtedness; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | we      will need a portion of our cash flow to make interest payments on our      debt, reducing the funds that would otherwise be available for operations      and future business opportunities; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | our      debt level will make us more vulnerable to competitive pressures or a      downturn in our business or the economy generally;  and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| §   | our      debt level may limit our flexibility in planning for, or responding to,      changing business and economic conditions.  |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

The terms of our senior secured credit facilities and theindenture governing our senior notes may restrict our current and futureoperations, particularly our ability to respond to changes in our business or totake certain actions.

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| §   | incur      or guarantee additional indebtedness or issue preferred    stock; |
|--------------------|------------------------------------------------------------------------------|

| §   | pay      dividends on our capital stock or redeem, repurchase or retire our capital      stock or subordinated indebtedness; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| §   | make      investments; |
|--------------------|------------------------|

| §   | create      restrictions on the payment of dividends or other distributions to us from      our non-guarantor restrictedsubsidiaries; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| §   | engage      in transactions with ouraffiliates; |
|--------------------|-------------------------------------------------|

| §   | sell      assets, including capital stock of the  subsidiaries; |
|--------------------|-----------------------------------------------------------------|

| §   | make      certain acquisitions; |
|--------------------|---------------------------------|

| §   | transfer      assets; |
|--------------------|-----------------------|

| §   | enter      into sale and lease backtransactions; |
|--------------------|--------------------------------------------------|

| §   | consolidate      or merge; and |
|--------------------|--------------------------------|

| §   | incur      liens.  |
|--------------------|-------------------------|

| §   | prepay,      redeem and repurchase certain debt, other than loans under the senior      secured credit facilities; |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| §   | make      capital expenditures; |
|--------------------|---------------------------------|

| §   | amend      debt and other material agreements;and |
|--------------------|---------------------------------------------------|

| §   | change      business activities conducted byus. |
|--------------------|-------------------------------------------------|

We may not be able to obtain funding or obtain funding onacceptable terms because of the deterioration of the credit and capital markets.This may hinder or prevent us from meeting our future capitalneeds.

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Item 1B.  Unresolved StaffComments

Item 2.  Properties

Item 3.  LegalProceedings

 Item 4.  Submission of Matters to a Vote ofSecurity Holders

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PART II

 Item 5.  Market for Registrant’s CommonEquity, Related Stockholder Matters and Issuer Purchases of Equity Securities

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|                                                         |   | Targa Resources, Inc.                                |    |   | Predecessor |   |
|--------------------------------------------------------------|--------|------------------------------------------------------|---------|--------|-------------|--------|
|                                                         |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |   | Three      and a Half Months Ended April 15, |   |
|                                                         |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |
|                                                         |   | Year Ended December 31,                              |    |
|                                                         |   | 2008                                                 |    |   | 2007        |   |   | 2006 |   |   | 2005 (1) |   |   | 2004 (2) |   |   | 2004 |   |
|                                                         |   | (In      millions, except operating and price data ) |    |
| Statement      of Operations data:                           |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                     |   | $                                                    | 7,970.2 |   |        | $      | 7,269.7 |   |   | $ | 6,132.9 |   |   | $ | 1,829.0 |   |   | $ | 602.4 |   |    | $ | 232.8 |   |
| Costs      and expenses                                      |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product      purchases                                       |   |                                                 | 7,189.8 |   |        |   | 6,498.0 |   |   |   | 5,440.8 |   |   |   | 1,631.9 |   |   |   | 545.0 |   |   |   | 212.3 |   |
| Operating      expenses (3)                                  |   |                                                 | 275.2   |   |        |   | 247.1 |   |   |   | 224.2 |   |   |   | 52.1 |   |   |   | 15.3 |   |   |   | 9.3 |   |
| Depreciation      and amortization expense                   |   |                                                 | 160.9   |   |        |   | 148.1 |   |   |   | 149.7 |   |   |   | 27.1 |   |   |   | 10.6 |   |   |   | 3.8 |   |
| General      and administrative expense                      |   |                                                 | 95.9    |   |        |   | 96.1 |   |   |   | 82.2 |   |   |   | 28.3 |   |   |   | 11.1 |   |    |   | 0.8 |   |
| Casualty      loss                                           |   |                                                 | 19.3    |   |        |   | - |   |   |   | - |   |   |   | - |   |   |   | - |  |    |   | - |   |
| Loss      (gain) on sale of assets                           |   |                                                 | (5.9    | )      |        |   | (0.1 | ) |   |   | 0.2 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      costs and expenses                                |   |                                                 | 7,735.2 |   |        |   | 6,989.2 |   |   |   | 5,897.1 |   |   |   | 1,739.4 |   |   |   | 582.0 |   |   |   | 226.2 |   |
| Income      from operations                                  |   |                                                 | 235.0   |   |        |   | 280.5 |   |   |   | 235.8 |   |   |   | 89.6 |   |   |   | 20.4 |   |   |   | 6.6 |   |
| Other      income (expense):                                 |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense, net                                   |   |                                                 | (102.0  | )      |        |   | (142.6 | ) |   |   | (180.2 | ) |   |   | (39.9 | ) |   |   | (6.4 | ) |   |   | - |   |
| Equity      in earnings of unconsolidated investments (5)    |   |                                                 | 14.0    |   |        |   | 10.1 |   |   |   | 10.0 |   |   |   | (3.8 | ) |   |   | 2.4 |   |   |   | - |   |
| Minority      interest                                       |   |                                                 | (33.1   | )      |        |   | (28.7 | ) |   |   | (26.0 | ) |   |   | (7.4 | ) |   |   | - |   |   |   | - |   |
| Non-controlling      interest in Targa Resources Partners LP |   |                                                 | (64.9   | )      |        |   | (19.4 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other                                                        |   |                                                 | 30.2    |   |        |   | - |   |   |   | - |   |   |   | (59.2 | ) |   |   | - |   |   |   | - |   |
| Income      (loss) before income taxes                       |   |                                                 | 79.2    |   |        |   | 99.9 |   |   |   | 39.6 |   |   |   | (20.7 | ) |   |   | 16.4 |   |   |   | 6.6 |   |
| Income      tax (expense) benefit                            |   |                                                 | (26.3   | )      |        |   | (31.3 | ) |   |   | (16.2 | ) |   |   | 6.5 |   |   |   | (5.2 | ) |   |   | (2.6 | ) |
| Net      income (loss)                                       |   |                                                 | 52.9    |   |        |   | 68.6 |   |   |   | 23.4 |   |   |   | (14.2 | ) |   |   | 11.2 |   |   |   | 4.0 |   |
| Dividends      on redeemable preferred stock                 |   |                                                 | -       |   |        |   | - |   |   |   | - |   |   |   | (7.2 | ) |   |   | (5.9 | ) |   |   | - |   |
| Net      income (loss) to common stock                       |   | $                                                    | 52.9    |   |        | $      | 68.6 |   |   | $ | 23.4 |   |   | $ | (21.4 | ) |   | $ | 5.3 |   |   | $ | 4.0 |   |
| Financial      and Operating data:                           |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial      data:                                         |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      margin                                        |   | $                                                    | 505.2   |   |        | $      | 524.6 |   |   | $ | 467.9 |   |   | $ | 145.0 |   |   | $ | 42.1 |   |   | $ | 11.2 |   |
| Adjusted      EBITDA (4)                                     |   |                                                 | 364.9   |   |        |   | 375.8 |   |   |   | 344.9 |   |   |   | 120.7 |   |   |   | 33.5 |   |   |   | 10.4 |   |
|                                                         |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      data (5):                                     |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gathering      throughout, MMcf/d                            |   |                                                 | 1,886.7 |   |        |   | 2,025.9 |   |   |   | 1,999.2 |   |   |   | 477.9 |   |   |   | 285.6 |   |   |   | 316.5 |   |
| Plant      natural gas inlet, MMcf/d                         |   |                                                 | 1,846.4 |   |        |   | 1,982.8 |   |   |   | 1,863.3 |   |   |   | 400.8 |   |   |   | 262.6 |   |   |   | 313.5 |   |
| Gross      NGL production, MBbl/d                            |   |                                                 | 101.9   |   |        |   | 106.6 |   |   |   | 106.8 |   |   |   | 31.8 |   |   |   | 22.8 |   |   |   | 24.8 |   |
| Natural      gas sales, BBtu/d                               |   |                                                 | 532.1   |   |        |   | 526.5 |   |   |   | 501.2 |   |   |   | 313.5 |   |   |   | 252.7 |   |   |   | 297.4 |   |
| NGL      sales, MBbl/d                                       |   |                                                 | 286.9   |   |        |   | 320.8 |   |   |   | 300.2 |   |   |   | 58.2 |   |   |   | 22.8 |   |   |   | 24.8 |   |
| Condensate      sales, MBbl/d                                |   |                                                 | 3.8     |   |        |   | 3.9 |   |   |   | 3.8 |   |   |   | 1.6 |   |   |   |   |   |   |   |   |   |
| Average      realized prices:                                |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural      gas, $/MMBtu                                    |   |                                                 | 8.20    |   |        |   | 6.56 |   |   |   | 6.79 |   |   |   | 8.45 |   |   |   | 6.45 |   |   |   | 5.42 |   |
| NGL,      $/gal                                              |   |                                                 | 1.38    |   |        |   | 1.18 |   |   |   | 1.02 |   |   |   | 0.84 |   |   |   | 0.70 |   |   |   | 0.55 |   |
| Condensate,      $/Bbl                                       |   |                                                 | 91.28   |   |        |   | 70.01 |   |   |   | 63.67 |   |   |   | 55.17 |   |   |   |   |   |   |   |   |   |
| Balance      Sheet data (at year end):                       |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property      plant and equipment, net                       |   | $                                                    | 2,617.4 |   |        | $      | 2,430.1 |   |   | $ | 2,464.5 |   |   | $ | 2,436.6 |   |   | $ | 240.2 |   |   | $ | 266.0 |   |
| Total      assets                                            |   |                                                 | 3,648.6 |   |        |   | 3,790.0 |   |   |   | 3,458.0 |   |   |   | 3,396.6 |   |   |   | 443.2 |   |   |   | 288.8 |   |
| Long-term      debt, less current maturities                 |   |                                                 | 1,552.4 |   |        |   | 1,398.5 |   |   |   | 1,471.9 |   |   |   | 2,184.4 |   |   |   | 157.5 |   |   |   | - |   |
| Redeemable      preferred stock                              |   |                                                 | -       |   |        |   | - |   |   |   | - |   |   |   | - |   |   |   | 135.1 |   |   |   | - |   |
| Total      stockholders’ equity (6)                    |   |                                                 | 579.6   |   |        |   | 492.4 |   |   |   | 514.3 |   |   |   | 434.4 |   |   |   | 7.0 |   |   |   | 170.9 |   |
| Cash      Flow data:                                         |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash provided by (used in):                         |   |                                                 |    |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      activities                                    |   | $                                                    | 300.7   |   |        | $      | 142.6 |   |   | $ | 233.3 |   |   | $ | 108.9 |   |   | $ | 33.1 |   |   | $ | 11.5 |   |
| Investing      activities                                    |   |                                                 | (223.31 | )      |        |   | (95.9 | ) |   |   | (117.8 | ) |   |   | (2,328.9 | ) |   |   | (353.2 | ) |   |   | (1.2 | ) |
| Financing      activities                                    |   |                                                 | 107.3   |   |        |   | (11.5 | ) |   |   | (14.2 | ) |   |   | 2,250.6 |   |   |   | 330.7 |   |   |   | (10.3 | ) |

| (1)   | Reflects      acquisition of DMS effective October 31,  2005. |
|-----------------|--------------------------------------------------------------------|

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| (2)   | Targa      commenced operations on April 16, 2004 with the closing of the      acquisition of certain assets in Texas and Louisiana from ConocoPhillips.      Prior to April 16, 2004, certain investors in Targa had previous      investments in Pipeco, f.k.a. Targa Resources, Inc., f.k.a. Warburg Pincus      VIII Development Company, Inc. Pipeco was the entity that performed due      diligence and other acquisition-specific activities associated with the      asset acquisitions fromConocoPhillips. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Includes      taxes other than income taxes for the predecessor’s financial      information. |
|-----------------|-----------------------------------------------------------------------------------------------------|

| (4)   | We      define Adjusted EBITDA as net income before interest, income taxes,      depreciation, and amortization and non-cash income or loss related to      derivative instruments. We define operating margin as total operating      revenues, which consist of natural gas and NGL sales plus service fee      revenues, less product purchases, which consist primarily of producer      payments and other natural gas and NGL purchases, less operating expense.      See “Non-GAAP Financial Measures—Adjusted EBITDA” and “Non-GAAP Financial      Measures—Operating Margin,” included in this  Item 6. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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      period and the denominator is the number of calendar days during the      period. Volumes from assets acquired in the DMS acquisition are included      from the acquisition date, October 31, 2005. NGL-related statistics      included in this Item 6. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | The      comparable line-item in the predecessor’s historical financial statements      is “Parent company investment”. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      financial performance of our assets without regard to financing methods,      capital structure or historical costbasis; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      operating performance and return on capital as compared to other companies      in the midstream energy sector, without regard to financing or capital      structure; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      viability of acquisitions and capital expenditure projects and the overall      rates of return on alternative investment  opportunities. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | the      financial performance of our assets without regard to financing methods,      capital structure or historical costbasis; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      operating performance and return on capital as compared to other companies      in the midstream energy sector, without regard to financing or capital      structure; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      viability of acquisitions and capital expenditure projects and the overall      rates of return on alternative investment opportunities. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                      |   | Targa Resources, Inc.   |   |   | Predecessor |   |
|-------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-------------|--------|
|                                                                                      |   |                    |   |   |        |   |   |   |   |   |   |   |   |   |   |   | Three      and a |   |
|                                                                                      |   |                    |   |   |        |   |   |   |   |   |   |   |   |   |   |   | Half      Months |   |
|                                                                                      |   | Year Ended December 31, |   |   | Ended       |   |
|                                                                                      |   |                    |   |   |        |   |   |   |   |   |   |   |   |   |   |   | April      15, |   |
|                                                                                      |   | 2008                    |   |   | 2007        |   |   | 2006 |   |   | 2005 (1) |   |   | 2004 (2) |   |   | 2004 |   |
|                                                                                      |   | (In      millions)      |   |
| Reconciliation      of net cash provided by operating activities to Adjusted      EBITDA: |   |                    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash provided by operating activities                                            |   | $                       | 300.7  |   |        | $      | 142.6 |   |   | $ | 233.3 |   |   | $ | 108.9 |   |   | $ | 33.1 |   |   | $ | 11.5 |   |
| Interest      expense, net                                                                |   |                    | 102.0  |   |        |   | 142.6 |   |   |   | 180.2 |   |   |   | 39.9 |   |   |   | 6.4 |   |   |   | - |   |
| Amortization      in interest expense                                                     |   |                    | (8.4   | )      |        |   | (12.9 | ) |   |   | (13.0 | ) |   |   | (6.7 | ) |   |   | (1.0 | ) |   |   | - |   |
| Amortization      of issue discount                                                       |   |                    | -      |   |        |   | - |   |   |   | - |   |   |   | (0.5 | ) |   |   | (0.1 | ) |   |   | - |   |
| Gain      on debt extinguishment                                                          |   |                    | 13.1   |   |        |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Early      termination of commodity derivatives                                           |   |                    | 87.4   |   |        |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Current      income tax expense                                                           |   |                    | 1.2    |   |        |   | 0.2 |   |   |   | - |   |   |   | 0.2 |   |   |   | - |   |   |   | 3.2 |   |
| Other                                                                                     |   |                    | 26.7   |   |        |   | 28.0 |   |   |   | 15.0 |   |   |   | 3.9 |   |   |   | 2.1 |   |   |   | (0.5 | ) |
| Changes      in operating assets and liabilities which used (provided)      cash:         |   |                    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable and other assets                                                 |   |                    | (674.5 | )      |        |   | 362.0 |   |   |   | (33.6 | ) |   |   | 113.9 |   |   |   | 78.2 |   |   |   | (25.2 | ) |
| Accounts      payable and other liabilities                                               |   |                    | 516.7  |   |        |   | (286.7 | ) |   |   | (37.0 | ) |   |   | (138.9 | ) |   |   | (85.2 | ) |   |   | 21.4 |   |
| Adjusted      EBITDA                                                                      |   | $                       | 364.9  |   |        | $      | 375.8 |   |   | $ | 344.9 |   |   | $ | 120.7 |   |   | $ | 33.5 |   |   | $ | 10.4 |   |
|                                                                                      |   |                    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reconciliation      of net income (loss) to Adjusted EBITDA:                              |   |                    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                    |   | $                       | 52.9   |   |        | $      | 68.6 |   |   | $ | 23.4 |   |   | $ | (14.2 | ) |   | $ | 11.2 |   |   | $ | 4.0 |   |
| Add:                                                                                      |   |                    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense, net                                                                |   |                    | 102.0  |   |        |   | 142.6 |   |   |   | 180.2 |   |   |   | 39.9 |   |   |   | 6.4 |   |   |   | - |   |
| Income      tax expense (benefit)                                                         |   |                    | 26.3   |   |        |   | 31.3 |   |   |   | 16.2 |   |   |   | (6.5 | ) |   |   | 5.2 |   |   |   | 2.6 |   |
| Depreciation      and amortization expense                                                |   |                    | 160.9  |   |        |   | 148.1 |   |   |   | 149.7 |   |   |   | 27.1 |   |   |   | 10.6 |   |   |   | 3.8 |   |
| Non-cash      (gain) loss related to derivatives                                          |   |                    | 22.8   |   |        |   | (14.8 | ) |   |   | (24.6 | ) |   |   | 74.4 |   |   |   | 0.1 |   |   |   | - |   |
| Adjusted      EBITDA                                                                      |   | $                       | 364.9  |   |        | $      | 375.8 |   |   | $ | 344.9 |   |   | $ | 120.7 |   |   | $ | 33.5 |   |   | $ | 10.4 |   |
| Reconciliation      of net income (loss) to operating margin:                             |   |                    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                    |   | $                       | 52.9   |   |        | $      | 68.6 |   |   | $ | 23.4 |   |   | $ | (14.2 | ) |   | $ | 11.2 |   |   | $ | 4.0 |   |
| Add:                                                                                      |   |                    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization expense                                                |   |                    | 160.9  |   |        |   | 148.1 |   |   |   | 149.7 |   |   |   | 27.1 |   |   |   | 10.6 |   |   |   | 3.8 |   |
| Income      tax expense (benefit)                                                         |   |                    | 26.3   |   |        |   | 31.3 |   |   |   | 16.2 |   |   |   | (6.5 | ) |   |   | 5.2 |   |   |   | 2.6 |   |
| Other,      net                                                                           |   |                    | 67.2   |   |        |   | 37.9 |   |   |   | 16.2 |   |   |   | 70.4 |   |   |   | (2.4 | ) |   |   | - |   |
| Interest      expense, net                                                                |   |                    | 102.0  |   |        |   | 142.6 |   |   |   | 180.2 |   |   |   | 39.9 |   |   |   | 6.4 |   |   |   | - |   |
| General      and administrative expense                                                   |   |                    | 95.9   |   |        |   | 96.1 |   |   |   | 82.2 |   |   |   | 28.3 |   |   |   | 11.1 |   |   |   | 0.8 |   |
| Operating      margin                                                                     |   | $                       | 505.2  |   |        | $      | 524.6 |   |   | $ | 467.9 |   |   | $ | 145.0 |   |   | $ | 42.1 |   |   | $ | 11.2 |   |

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| (1)   | Reflects      acquisition of DMS effective October 31,  2005. |
|-----------------|--------------------------------------------------------------------|

| (2)   | Targa      commenced operations on April 16, 2004 with the closing of the      acquisition of certain assets in Texas and Louisiana from ConocoPhillips.      Prior to April 16, 2004, certain investors in Targa had previous      investments in Pipeco, f.k.a. Targa Resources, Inc., f.k.a. Warburg Pincus      VIII Development Company, Inc. Pipeco was the entity that performed due      diligence and other acquisition-specific activities associated with the      asset acquisitions fromConocoPhillips. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Management’sDiscussion

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Table of Contents

|                                          |   | Percent      of |   |   |                                  |
|-----------------------------------------------|--------|-----------------|--------|--------|---------------------------------------|
|  Contract Type                           |   | Throughput      |   |   |  Impact of Commodity      Prices |
| Percent-of-Proceeds      / Percent-of-Liquids |   |            | 55     | %      |                                  | Decreases      in natural gas and or NGL prices generate decreases in operating      margins |
|                                          |   |            |   |   |                                  |   |
| Fee-Based                                     |   |            | 17     | %      |                                  | No      direct impact from commodity price movements |
|                                          |   |            |   |   |                                  |   |
| Wellhead      Purchases /Keep-Whole           |   |            | 7      | %      |                                  | Decreases      in NGL prices relative to natural gas prices generate decreases in      operating margins |
|                                          |   |            |   |   |                                  |   |
| Hybrid                                        |   |            | 21     | %      |                                  | In      periods of favorable processing economics, similar to percent-of-liquids      (or wellhead purchases/keep-whole in some circumstances, if economically      advantageous to the processor). In periods of unfavorable processing      economics, similar tofee-based |

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| ·   | the      financial performance of our assets without regard to financing methods,      capital structure or historical costbasis; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      operating performance and return on capital as compared to other companies      in the midstream energy sector, without regard to financing or capital      structure; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      viability of acquisitions and capital expenditure projects and the overall      rates of return on alternative investment    opportunities.  |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      financial performance of our assets without regard to financing methods,      capital structure or historical costbasis; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      operating performance and return on capital as compared to other companies      in the midstream energy sector, without regard to financing or capital      structure; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      viability of acquisitions and capital expenditure projects and the overall      rates of return on alternative investment  opportunities. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                              |   | Year      Ended December 31, |   |
|-----------------------------------------------------------------------------------|--------|------------------------------|--------|
| Reconciliation      of net cash provided by                                       |   | 2008                         |   |   | 2007 |   |   | 2006 |   |
| operating      activities to Adjusted EBITDA:                                     |   | (In      millions)           |   |
| Net      cash provided by operating activities                                    |   | $                            | 300.7  |   |   | $ | 142.6 |   |   | $ | 233.3 |   |
| Interest      expense, net                                                        |   |                         | 102.0  |   |   |   | 142.6 |   |   |   | 180.2 |   |
| Amortization      in interest expense                                             |   |                         | (8.4   | ) |   |   | (12.9 | ) |   |   | (13.0 | ) |
| Gain      on debt extinguishment                                                  |   |                         | 13.1   |   |   |   | - |   |   |   | - |   |
| Early      termination of commodity derivatives                                   |   |                         | 87.4   |   |   |   | - |   |   |   | - |   |
| Current      income tax expense                                                   |   |                         | 1.2    |   |   |   | 0.2 |   |   |   | - |   |
| Other                                                                             |   |                         | 26.7   |   |   |   | 28.0 |   |   |   | 15.0 |   |
| Changes      in operating assets and liabilities which used (provided)      cash: |   |                         |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable and other assets                                         |   |                         | (674.5 | ) |   |   | 362.0 |   |   |   | (33.6 | ) |
| Accounts      payable and other liabilities                                       |   |                         | 516.7  |   |   |   | (286.7 | ) |   |   | (37.0 | ) |
| Adjusted      EBITDA                                                              |   | $                            | 364.9  |   |   | $ | 375.8 |   |   | $ | 344.9 |   |
|                                                                              |   |                         |   |   |   |   |   |   |   |   |   |   |
| Reconciliation      of net income to Adjusted EBITDA:                             |   |                         |   |   |   |   |   |   |   |   |   |   |
|                                                                              |   |                         |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                   |   | $                            | 52.9   |   |   | $ | 68.6 |   |   | $ | 23.4 |   |
| Add:                                                                              |   |                         |   |   |   |   |   |   |   |   |   |   |
| Interest      expense, net                                                        |   |                         | 102.0  |   |   |   | 142.6 |   |   |   | 180.2 |   |
| Income      tax expense                                                           |   |                         | 26.3   |   |   |   | 31.3 |   |   |   | 16.2 |   |
| Depreciation      and amortization                                                |   |                         | 160.9  |   |   |   | 148.1 |   |   |   | 149.7 |   |
| Non-cash      (gain) loss related to derivatives                                  |   |                         | 22.8   |   |   |   | (14.8 | ) |   |   | (24.6 | ) |
| Adjusted      EBITDA                                                              |   | $                            | 364.9  |   |   | $ | 375.8 |   |   | $ | 344.9 |   |

|                                                   |   | Year Ended December 31, |   |
|--------------------------------------------------------|--------|-------------------------|--------|
|                                                   |   | 2008                    |   |   | 2007 |   |   | 2006 |   |
| Reconciliation      of net income to operating margin: |   | (In      millions)      |   |
| Net      income                                        |   | $                       | 52.9   |   |   | $ | 68.6 |   |   | $ | 23.4 |   |
| Add:                                                   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization expense             |   |                    | 160.9  |   |   |   | 148.1 |   |   |   | 149.7 |   |
| Income      tax benefit                                |   |                    | 26.3   |   |   |   | 31.3 |   |   |   | 16.2 |   |
| Other,      net                                        |   |                    | 67.2   |   |   |   | 37.9 |   |   |   | 16.2 |   |
| Interest      expense, net                             |   |                    | 102.0  |   |   |   | 142.6 |   |   |   | 180.2 |   |
| General      and administrative expense                |   |                    | 95.9   |   |   |   | 96.1 |   |   |   | 82.2 |   |
| Operating      margin                                  |   | $                       | 505.2  |   |   | $ | 524.6 |   |   | $ | 467.9 |   |

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|                                         |   | Year      Ended December 31, |   |
|----------------------------------------------|--------|------------------------------|--------|
|                                         |   | 2008                         |   |   | 2007 |   |   | 2006 |   |
|                                         |   | (In      millions)           |   |
| Natural      Gas Gathering and Processing    |   | $                            | 423.9  |   |   | $ | 406.7 |   |   | $ | 404.9 |   |
| Logistics      Assets                        |   |                         | 49.6   |   |   |   | 39.6 |   |   |   | 42.4 |   |
| NGL      Distribution and Marketing Services |   |                         | 18.5   |   |   |   | 55.5 |   |   |   | 10.6 |   |
| Wholesale      Marketing                     |   |                         | 13.2   |   |   |   | 22.8 |   |   |   | 10.0 |   |
|                                         |   | $                            | 505.2  |   |   | $ | 524.6 |   |   | $ | 467.9 |   |

|                                                      |   | Year Ended December 31,                             |    |
|-----------------------------------------------------------|--------|-----------------------------------------------------|---------|
|                                                      |   | 2008                                                |    |   | 2007 |   |   | 2006 |   |
|                                                      |   | (In      millions, except operating and price data) |    |
| Revenues      (1)                                         |   | $                                                   | 7,970.2 |   |   | $ | 7,269.7 |   |   | $ | 6,132.9 |   |
| Product      purchases                                    |   |                                                | 7,189.8 |   |   |   | 6,498.0 |   |   |   | 5,440.8 |   |
| Operating      expenses                                   |   |                                                | 275.2   |   |   |   | 247.1 |   |   |   | 224.2 |   |
| Depreciation      and amortization expense                |   |                                                | 160.9   |   |   |   | 148.1 |   |   |   | 149.7 |   |
| General      and administrative expense                   |   |                                                | 95.9    |   |   |   | 96.1 |   |   |   | 82.2 |   |
| Casualty      loss                                        |   |                                                | 19.3    |   |   |   | - |   |   |   | - |   |
| Loss      (gain) on sales of assets                       |   |                                                | (5.9    | ) |   |   | (0.1 | ) |   |   | 0.2 |   |
| Income      from operations                               |   |                                                | 235.0   |   |   |   | 280.5 |   |   |   | 235.8 |   |
| Interest      expense, net                                |   |                                                | (102.0  | ) |   |   | (142.6 | ) |   |   | (180.2 | ) |
| Gain      on insurance claims                             |   |                                                | 18.6    |   |   |   | - |   |   |   | - |   |
| Equity      in earnings of unconsolidated investments (2) |   |                                                | 14.0    |   |   |   | 10.1 |   |   |   | 10.0 |   |
| Minority      interest / non-controlling interest         |   |                                                | (98.0   | ) |   |   | (48.1 | ) |   |   | (26.0 | ) |
| Other                                                     |   |                                                | 11.6    |   |   |   | - |   |   |   | - |   |
| Income      tax expense                                   |   |                                                | (26.3   | ) |   |   | (31.3 | ) |   |   | (16.2 | ) |
| Net      income                                           |   | $                                                   | 52.9    |   |   | $ | 68.6 |   |   | $ | 23.4 |   |
| Financial      data:                                      |   |                                                |    |   |   |   |   |   |   |   |   |   |
| Operating      margin (3)                                 |   | $                                                   | 505.2   |   |   | $ | 524.6 |   |   | $ | 467.9 |   |
| Adjusted      EBITDA (4)                                  |   |                                                | 364.9   |   |   |   | 375.8 |   |   |   | 344.9 |   |
| Operating      statistics:                                |   |                                                |    |   |   |   |   |   |   |   |   |   |
| Gathering      throughput  MMcf/d (5)           |   |                                                | 1,886.7 |   |   |   | 2,025.9 |   |   |   | 1,999.2 |   |
| Plant      natural gas inlet, MMcf/d (6) (7)              |   |                                                | 1,846.4 |   |   |   | 1,982.8 |   |   |   | 1,863.3 |   |
| Gross      NGL production, MBbl/d                         |   |                                                | 101.9   |   |   |   | 106.6 |   |   |   | 106.8 |   |
| Natural      gas sales, BBtu/d (7)                        |   |                                                | 532.1   |   |   |   | 526.5 |   |   |   | 501.2 |   |
| NGL      sales, MBbl/d                                    |   |                                                | 286.9   |   |   |   | 320.8 |   |   |   | 300.2 |   |
| Condensate      sales, MBbl/d                             |   |                                                | 3.8     |   |   |   | 3.9 |   |   |   | 3.8 |   |
| Average      realized prices:                             |   |                                                |    |   |   |   |   |   |   |   |   |   |
| Natural      gas, $/MMBtu                                 |   |                                                | 8.20    |   |   |   | 6.56 |   |   |   | 6.79 |   |
| NGL,      $/gal                                           |   |                                                | 1.38    |   |   |   | 1.18 |   |   |   | 1.02 |   |
| Condensate,      $/Bbl                                    |   |                                                | 91.28   |   |   |   | 70.01 |   |   |   | 63.67 |   |

| (1)   | Includes      business interruption insurance revenues of $32.9 million, $7.3 million      and $10.7 million for 2008, 2007 and2006. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes      business interruption insurance revenues of $4.1 million, $3.1 million and      $2.9 million for 2008, 2007 and2006. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

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| (3)   | Operating      margin is total operating revenues less product purchases and operating      expense. See “Non-GAAP Financial Measures—Operating Margin” included      in this Item 7. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | 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—Adjusted EBITDA”      included in this Item 7. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | 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. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Plant      natural gas inlet represents the volume of natural gas passing through the      meter located at the inlet of a natural gas processing    plant. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Plant      natural gas inlet includes producer take-in-kind volumes, while natural      gas sales exclude producer take-in-kind  volumes.  |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                     |   | Year Ended December 31,                             |     |
|------------------------------------------|--------|-----------------------------------------------------|----------|
|                                     |   | 2008                                                |     |   | 2007 |   |   | 2006 |   |
|                                     |   | (In      millions, except operating and price data) |     |
|                                     |   |                                                |     |   |   |   |   |   |   |
| Revenues      (1)                        |   | $                                                   | 3,440.3  |   |   | $ | 2,917.9 |   |   | $ | 2,591.0 |   |
| Product      purchases                   |   |                                                | (2,880.6 | ) |   |   | (2,387.9 | ) |   |   | (2,067.4 | ) |
| Operating      expenses                  |   |                                                | (135.8   | ) |   |   | (123.3 | ) |   |   | (118.7 | ) |
| Operating      margin (2)                |   | $                                                   | 423.9    |   |   | $ | 406.7 |   |   | $ | 404.9 |   |
| Equity      in earnings of VESCO (3) (4) |   | $                                                   | 10.2     |   |   | $ | 6.6 |   |   | $ | 7.2 |   |
| Operating      statistics: (5)           |   |                                                |     |   |   |   |   |   |   |   |   |   |
| Gathering      throughput, MMcf/d        |   |                                                | 1,886.7  |   |   |   | 2,025.9 |   |   |   | 1,999.2 |   |
| Plant      natural gas inlet, MMcf/d     |   |                                                | 1,846.4  |   |   |   | 1,982.8 |   |   |   | 1,863.3 |   |
| Gross      NGL production, MBbl/d        |   |                                                | 101.9    |   |   |   | 106.6 |   |   |   | 106.8 |   |
| Natural      gas sales, BBtu/d           |   |                                                | 550.0    |   |   |   | 544.6 |   |   |   | 517.8 |   |
| NGL      sales, MBbl/d                   |   |                                                | 85.8     |   |   |   | 91.6 |   |   |   | 88.7 |   |
| Condensate      sales, MBbl/d            |   |                                                | 5.0      |   |   |   | 5.0 |   |   |   | 4.9 |   |
| Average      realized prices:            |   |                                                |     |   |   |   |   |   |   |   |   |   |
| Natural      gas, $/MMBtu                |   |                                                | 8.23     |   |   |   | 6.57 |   |   |   | 6.78 |   |
| NGL,      $/gal                          |   |                                                | 1.20     |   |   |   | 1.05 |   |   |   | 0.88 |   |
| Condensate,      $/Bbl                   |   |                                                | 85.57    |   |   |   | 65.92 |   |   |   | 60.36 |   |

| (1)   | Includes      business interruption insurance revenues of $14.3 million, $2.6 million      and $3.7 million for 2008, 2007 and2006. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | See      “Non-GAAP Financial Measures – Operating Margin” included in this      Item 7. |
|-----------------|----------------------------------------------------------------------------------------------------------------|

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

| (4)   | Includes      business interruption insurance revenues of $4.1 million, $3.1 million and      $2.9 million for 2008, 2007 and2006. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| (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      year and the denominator is the number of calendar days during the      year. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | an      increase in commodity prices that increased revenues by $578.0 million,      consisting of increases in natural gas, NGL, and condensate revenues of      $334.0 million, $208.3 million, and $35.7  million; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | an      offsetting decrease in commodity sales volumes that decreased revenues by      $74.9 million, consisting of decreases in NGL and condensate revenues of      $89.4 million and $1.8 million, partially offset by an increase in natural      gas revenues of $16.3 million; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | an      increase in compression and gathering and other services, which increased      revenues by $7.6 million; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| §   | an      increase of $11.7 million related to business interruption insurance      revenues. |
|--------------------|---------------------------------------------------------------------------------------------|

----

| ·   | an      increase in commodity sales volumes that increased revenues by $108.6      million, consisting of increases in natural gas, NGL, and condensate      revenues of $66.3 million, $38.3 million, and $4.0  million; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an      increase in commodity prices that increased revenues by $212.3 million,      consisting of increases in NGL and condensate revenues of $244.4 million      and $10.2 million, partially offset by a $42.3 million decrease in natural      gas revenue; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an      increase in compression and gathering, processing, and other services,      which increased revenues by $4.9 million;and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | a      decrease of $1.1 million related to business interruption insurance      revenues. |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | increases      in North Texas and New Mexico gas sales volumes due to increased drilling      and connections in those regions; offsetby |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a      decrease in sales from our West Texas operations, resulting from the      fourth quarter 2006 termination of a gas supply contract in the Sand Hills      area. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                               |   | Year Ended December 31,                         |   |
|------------------------------------|--------|-------------------------------------------------|--------|
|                               |   | 2008                                            |   |   | 2007 |   |   | 2006 |   |
|                               |   | (In      millions, except operating statistics) |   |
| Revenues      from services        |   | $                                               | 235.5  |   |   | $ | 195.2 |   |   | $ | 178.1 |   |
| Other      revenues (1)            |   |                                            | 2.5    |   |   |   | - |   |   |   | 0.4 |   |
|                               |   |                                            | 238.0  |   |   |   | 195.2 |   |   |   | 178.5 |   |
| Operating      expenses            |   |                                            | (188.4 | ) |   |   | (155.6 | ) |   |   | (136.1 | ) |
| Operating      margin (2)          |   | $                                               | 49.6   |   |   | $ | 39.6 |   |   | $ | 42.4 |   |
| Equity      in earnings of GCF     |   | $                                               | 3.9    |   |   | $ | 3.5 |   |   | $ | 2.8 |   |
| Operating      statistics:         |   |                                            |   |   |   |   |   |   |   |   |   |   |
| Fractionation      volumes, MBbl/d |   |                                            | 212.2  |   |   |   | 209.2 |   |   |   | 181.9 |   |
| Treating      volumes, MBbl/d (3)  |   |                                            | 20.7   |   |   |   | 9.1 |   |   |   | - |   |

| (1)   | Includes      business interruption insurance revenues of $2.5 million, nil and $0.4      million for 2008, 2007 and 2006. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (2)   | See      “Non-GAAP Financial Measures–Operating Margin” included in this Item      7. |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| (3)   | Consists      of the volumes treated in our low sulfur natural gasoline (“LSNG”) unit,      which began commercial operations in June2007 |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | increased      railcar lease expense as a result of new railcar leases following the      termination of a railcar sharing agreement. Under the railcar sharing      agreement, rail transportation costs were included in product purchases in      our NGL Distribution and Marketing and Wholesale Marketing      Segments; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the June 2007 commencement of      commercial operations at our new LSNG unit, which added to operating      expenses;  |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | increased      fractionation-related expenses due to higher fractionation volumes and      increased fuel costs; |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | higher      barge transportation costs, caused by an increase in tug rates;      and |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | increased terminalling and      storage costs due to the timing of well workovers at Mont      Belvieu.  |
|--------------------|---------------------------------------------------------------------------------------------------------------|

|                           |   | Year Ended December 31,                             |     |
|--------------------------------|--------|-----------------------------------------------------|----------|
|                           |   | 2008                                                |     |   | 2007 |   |   | 2006 |   |
|                           |   | (In      millions, except operating and price data) |     |
| NGL      sales revenues        |   | $                                                   | 5,172.2  |   |   | $ | 4,889.3 |   |   | $ | 3,728.4 |   |
| Other      revenues (1)        |   |                                                | 12.5     |   |   |   | 6.5 |   |   |   | 10.4 |   |
|                           |   |                                                | 5,184.7  |   |   |   | 4,895.8 |   |   |   | 3,738.8 |   |
| Product      purchases         |   |                                                | (5,164.5 | ) |   |   | (4,838.8 | ) |   |   | (3,726.2 | ) |
| Operating      expenses        |   |                                                | (1.7     | ) |   |   | (1.5 | ) |   |   | (2.0 | ) |
| Operating      margin (2)      |   | $                                                   | 18.5     |   |   | $ | 55.5 |   |   | $ | 10.6 |   |
| Operating      data:           |   |                                                |     |   |   |   |   |   |   |   |   |   |
| NGL      sales, MBbl/d         |   |                                                | 244.6    |   |   |   | 275.6 |   |   |   | 246.3 |   |
| NGL      realized price, $/gal |   |                                                | 1.38     |   |   |   | 1.16 |   |   |   | 0.99 |   |

| (1)   | Includes      business interruption insurance revenues of $9.6 million, $3.8 million and      $5.5 million for 2008, 2007 and2006. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | See      “Non-GAAP Financial Measures – Operating Margin” included in this      Item 7. |
|-----------------|----------------------------------------------------------------------------------------------------------------|

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|                           |   | Year Ended December 31,                             |     |
|--------------------------------|--------|-----------------------------------------------------|----------|
|                           |   | 2008                                                |     |   | 2007 |   |   | 2006 |   |
|                           |   | (In      millions, except operating and price data) |     |
| NGL      sales revenues        |   | $                                                   | 1,453.3  |   |   | $ | 1,301.4 |   |   | $ | 1,322.7 |   |
| Other      revenues (1)        |   |                                                | 6.8      |   |   |   | 1.2 |   |   |   | 7.9 |   |
|                           |   |                                                | 1,460.1  |   |   |   | 1,302.6 |   |   |   | 1,330.6 |   |
| Product      purchases         |   |                                                | (1,446.8 | ) |   |   | (1,279.8 | ) |   |   | (1,320.6 | ) |
| Operating      expenses        |   |                                                | (0.1     | ) |   |   | - |   |   |   | - |   |
| Operating      margin (2)      |   | $                                                   | 13.2     |   |   | $ | 22.8 |   |   | $ | 10.0 |   |
| Operating      data:           |   |                                                |     |   |   |   |   |   |   |   |   |   |
| NGL      sales, MBbl/d         |   |                                                | 62.5     |   |   |   | 64.0 |   |   |   | 74.4 |   |
| NGL      realized price, $/gal |   |                                                | 1.51     |   |   |   | 1.33 |   |   |   | 1.16 |   |

| (1)   | Includes      business interruption insurance revenues of $6.5 million, $0.8 million and      $1.1 million for 2008, 2007 and2006. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | See      “Non-GAAP Financial Measures – Operating Margin” included in this      Item 7. |
|-----------------|----------------------------------------------------------------------------------------------------------------|

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|                                 |   | Year      Ended December 31, |   |
|--------------------------------------|--------|------------------------------|--------|
|                                 |   | 2008                         |   |   | 2007 |   |   | 2006 |   |
|                                 |   | (In      millions)           |   |
| Net      cash provided by (used in): |   |                         |   |   |   |   |   |
| Operating      activities            |   | $                            | 300.7  |   |   | $ | 142.6 |   |   | $ | 233.3 |   |
| Investing      activities            |   |                         | (223.1 | ) |   |   | (95.9 | ) |   |   | (117.8 | ) |
| Financing      activities            |   |                         | 107.3  |   |   |   | (11.5 | ) |   |   | (14.2 | ) |

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|                                   |   | Payments due by period |    |
|----------------------------------------|--------|------------------------|---------|
|                                   |   | Total                  |    |   | Less      than1 year |   |   | 1-3 years |   |   | 4-5 years |   |   | More      than5 years |   |
|                                   |   | (In      millions)     |    |
| Debt      obligations (1)              |   | $                      | 1,564.9 |   |   | $ | 12.5 |   |   | $ | 120.9 |   |   | $ | 1,222.4 |   |   | $ | 209.1 |   |
| Interest      on debt obligations (2)  |   |                   | 385.2   |   |   |   | 81.7 |   |   |   | 162.7 |   |   |   | 97.7 |   |   |   | 43.1 |   |
| Operating      lease obligations (3)   |   |                   | 72.9    |   |   |   | 12.3 |   |   |   | 19.6 |   |   |   | 15.9 |   |   |   | 25.1 |   |
| Capacity      payments (4)             |   |                   | 20.0    |   |   |   | 8.2 |   |   |   | 8.2 |   |   |   | 3.6 |   |   |   | - |   |
| Right      of  way           |   |                   | 17.6    |   |   |   | 1.1 |   |   |   | 2.0 |   |   |   | 1.8 |   |   |   | 12.7 |   |
| Asset      retirement obligations      |   |                   | 34.0    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 34.0 |   |
| Other      contractual obligations (5) |   |                   | 0.9     |   |   |   | 0.4 |   |   |   | 0.5 |   |   |   | - |   |   |   | - |   |
|                                   |   | $                      | 2,095.5 |   |   | $ | 116.2 |   |   | $ | 313.9 |   |   | $ | 1,341.4 |   |   | $ | 324.0 |   |

| (1)   | Represents      our scheduled future maturities of consolidated debt obligations for the      periods indicated. See Note 10 of the Notes to Consolidated Financial      Statements included beginning on page F-1 of this Annual Report for      information regarding our debtobligations. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Represents      interest expense on our debt obligations based on interest rates as of      December 31, 2008 and the scheduled future maturities of those debt      obligations. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Operating      lease obligations include minimum lease payment obligations associated      with gas processing plant site leases, railcar leases, office space leases      and pipeline right-of-way. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Consist      of capacity payments for firm transportation  contracts. |
|-----------------|-----------------------------------------------------------------------|

| (5)   | Primarily      consist of information technology contractual  obligations. |
|-----------------|----------------------------------------------------------------------------|

|                                  | Moody'sInvestor Services | Standard      &Poor's |
|---------------------------------------|--------------------------|---------------------------|
| Corporate      rating                 | B1                       | B                         |
| Senior      secured credit facilities | Ba3                      | B+                        |
| Senior      unsecured notes           | B3                       | CCC+                      |

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| ·   | sales      of natural gas, NGLs andcondensate; |
|--------------------|------------------------------------------------|

| ·   | natural      gas processing, from which we generate revenues through the compression,      gathering, treating, and processing of natural gas,  and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | fractionation,      storage, terminalling and transportation of NGLs, from which we generate      fee-based revenue. |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| Asset Group                                                                 |   | Range      of Years |   |
|-----------------------------------------------------------------------------|--------|---------------------|--------|
| Natural      gas gathering systems and processing facilities                |   | 15      to 25       |   |
| Fractionation,      terminalling and natural gas liquids storage facilities |   |                | 25     |   |
| Transportation      assets                                                  |   | 5      to 10        |   |
| Other      property and equipment                                           |   | 3      to 7         |   |

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Quantitative andQualitative

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| Natural      Gas             |   |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |                |   |
|------------------------------|--------|-------------|--------|-----------------|--------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------|--------|
|                         |   |        |   | Avg.      Price |   |   | MMBtu per day |   |   |   |   |
|  Instrument Type        |   |  Index |   | $/MMBtu         |   |   | 2009          |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | Fair Value          |   |
|                         |   |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
|  Natural      Gas Sales |   |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Swap                         |   | IF-Waha     |   |            | 6.62   |   |          |   | 21,918 |   |   |   | -      |   |   |   | -      |   |                |   | - |   |   | $ | 11,010 |   |
| Swap                         |   | IF-Waha     |   |            | 7.40   |   |          |   | -      |   |   |   | 9,300  |   |   |   | -      |   |                |   | - |   |   |   | 3,403 |   |
| Swap                         |   | IF-Waha     |   |            | 7.36   |   |          |   | -      |   |   |   | -      |   |   |   | 5,500  |   |                |   | - |   |   |   | 1,503 |   |
| Swap                         |   | IF-Waha     |   |            | 7.18   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |                |   | 5,500 |   |   |   | 1,197 |   |
| Total      Sales             |   |        |   |            |   |   |          |   | 21,918 |   |   |   | 9,300  |   |   |   | 5,500  |   |                |   | 5,500 |   |   |   |   |   |
|                         |   |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   | $ | 17,113 |   |

| NGLs                                                                                      |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |                |   |
|-------------------------------------------------------------------------------------------|--------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------|--------|
|                                                                                      |   |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|         Instrument Type                                                         |   |  Index |   | $/gal           |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | Fair Value          |   |
|                                                                                      |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
|         NGL      Sales                                                          |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Swap                                                                                      |   | OPIS-MB     |   |            | 0.79   |   |            |   | 3,347  |   |   |   | -      |   |   |   | -      |   |                |   | - |   |   | $ | 9,515 |   |
| Swap                                                                                      |   | OPIS-MB     |   |            | 0.87   |   |            |   | -      |   |   |   | 2,750  |   |   |   | -      |   |                |   | - |   |   |   | 7,388 |   |
| Swap                                                                                      |   | OPIS-MB     |   |            | 0.91   |   |            |   | -      |   |   |   | -      |   |   |   | 1,550  |   |                |   | - |   |   |   | 3,971 |   |
|          Swap                                                              |   | OPIS-MB     |   |            | 0.92   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |                |   | 1,250 |   |   |   | 2,999 |   |
|                 Total      Swaps        |   |        |   |            |   |   |            |   | 3,347  |   |   |   | 2,750  |   |   |   | 1,550  |   |                |   | 1,250 |   |   |   |   |   |
|                                                                                      |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |
|                  Floor             |   | OPIS-MB     |   |            | 1.44   |   |            |   | -      |   |   |   | -      |   |   |   | 54     |   |                |   | - |   |   |   | 490 |   |
|                  Floor             |   | OPIS-MB     |   |            | 1.43   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |                |   | 63 |   |   |   | 527 |   |
|                  Total      Floors |   |        |   |            |   |   |            |   | -      |   |   |   | -      |   |   |   | 54     |   |                |   | 63 |   |   |   |   |   |
|                  Total      Sales  |   |        |   |            |   |   |            |   | 3,347  |   |   |   | 2,750  |   |   |   | 1,604  |   |                |   | 1,313 |   |   |   |   |   |
|                                                                                      |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   | $ | 24,890 |   |

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|        Natural      Gas |   |            |   |                        |   |   |                           |   |   |   |   |
|------------------------------|--------|-----------------|--------|-----------------------------|--------|--------|---------------------------|--------|--------|--------|--------|
|                         |   |            |   |        Avg.      Price |   |   |        MMBtu per day |   |   |   |   |
| Instrument Type              |   | Index           |   | $/MMBtu                     |   |   | 2009                      |   |   | 2010   |   |   | 2011 |   |   | 2012 |   |   | Fair Value |   |
|  Natural      Gas Sales |   |            |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
| Swap                         |   | IF-HSC          |   |                        | 7.39   |   |                      |   | 1,966  |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 1,159 |   |
|                         |   |            |   |                        |   |   |                      |   | 1,966  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
|                         |   |            |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Swap                         |   | IF-NGPL      MC |   |                        | 9.18   |   |                      |   | 6,256  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,466 |   |
| Swap                         |   | IF-NGPL      MC |   |                        | 8.86   |   |                      |   | -      |   |   |   | 5,685 |   |   |   | - |   |   |   | - |   |   |   | 5,129 |   |
| Swap                         |   | IF-NGPL      MC |   |                        | 7.34   |   |                      |   | -      |   |   |   | - |   |   |   | 2,750 |   |   |   | - |   |   |   | 843 |   |
| Swap                         |   | IF-NGPL      MC |   |                        | 7.18   |   |                      |   | -      |   |   |   | - |   |   |   | - |   |   |   | 2,750 |   |   |   | 738 |   |
|                         |   |            |   |                        |   |   |                      |   | 6,256  |   |   |   | 5,685 |   |   |   | 2,750 |   |   |   | 2,750 |   |   |   |   |   |
|                         |   |            |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Swap                         |   | IF-Waha         |   |                        | 8.73   |   |                      |   | 6,936  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,627 |   |
| Swap                         |   | IF-Waha         |   |                        | 7.52   |   |                      |   | -      |   |   |   | 5,709 |   |   |   | - |   |   |   | - |   |   |   | 2,294 |   |
| Swap                         |   | IF-Waha         |   |                        | 7.36   |   |                      |   | -      |   |   |   | - |   |   |   | 3,250 |   |   |   | - |   |   |   | 886 |   |
| Swap                         |   | IF-Waha         |   |                        | 7.18   |   |                      |   | -      |   |   |   | - |   |   |   | - |   |   |   | 3,250 |   |   |   | 708 |   |
|                         |   |            |   |                        |   |   |                      |   | 6,936  |   |   |   | 5,709 |   |   |   | 3,250 |   |   |   | 3,250 |   |   |   |   |   |
| Total      Swaps             |   |            |   |                        |   |   |                      |   | 15,158 |   |   |   | 11,394 |   |   |   | 6,000 |   |   |   | 6,000 |   |   |   |   |   |
| Floor                        |   | IF-NGPL      MC |   |                        | 6.55   |   |                      |   | 850    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 574 |   |
|                         |   |            |   |                        |   |   |                      |   | 850    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Floor                        |   | IF-Waha         |   |                        | 6.55   |   |                      |   | 565    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 326 |   |
|                         |   |            |   |                        |   |   |                      |   | 565    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Total      Floors            |   |            |   |                        |   |   |                      |   | 1,415  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Total      Sales             |   |            |   |                        |   |   |                      |   | 16,573 |   |   |   | 11,394 |   |   |   | 6,000 |   |   |   | 6,000 |   |   |   |   |   |
|                         |   |            |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 30,750 |   |

|        NGL  |   |        |   |            |   |   |            |   |   |   |   |
|-----------------------|--------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|
|                  |   |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|  Instrument Type |   |  Index |   | $/gal           |   |   | 2009            |   |   | 2010   |   |   | 2011 |   |   | 2012 |   |   | Fair Value |   |
|  NGL      Sales  |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
| Swap                  |   | OPIS-MB     |   |            | 1.32   |   |            |   | 6,248  |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 66,137 |   |
| Swap                  |   | OPIS-MB     |   |            | 1.27   |   |            |   | -      |   |   |   | 4,809 |   |   |   | - |   |   |   | - |   |   |   | 39,122 |   |
| Swap                  |   | OPIS-MB     |   |            | 0.92   |   |            |   | -      |   |   |   | - |   |   |   | 3,400 |   |   |   | - |   |   |   | 8,288 |   |
| Swap                  |   | OPIS-MB     |   |            | 0.92   |   |            |   | -      |   |   |   | - |   |   |   | - |   |   |   | 2,700 |   |   |   | 6,018 |   |
| Total      Swaps      |   |        |   |            |   |   |            |   | 6,248  |   |   |   | 4,809 |   |   |   | 3,400 |   |   |   | 2,700 |   |   |   |   |   |
|                  |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Floor                 |   | OPIS-MB     |   |            | 1.44   |   |            |   | -      |   |   |   | - |   |   |   | 199 |   |   |   | - |   |   |   | 1,807 |   |
| Floor                 |   | OPIS-MB     |   |            | 1.43   |   |            |   | -      |   |   |   | - |   |   |   | - |   |   |   | 231 |   |   |   | 1,932 |   |
| Total      Floors     |   |        |   |            |   |   |            |   | -      |   |   |   | - |   |   |   | 199 |   |   |   | 231 |   |   |   |   |   |
| Total      Sales      |   |        |   |            |   |   |            |   | 6,248  |   |   |   | 4,809 |   |   |   | 3,599 |   |   |   | 2,931 |   |   |   |   |   |
|                  |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 123,304 |   |

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|  Condensate            |   |        |   |            |   |   |            |   |   |   |   |
|-----------------------------|--------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|
|                        |   |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|  Instrument Type       |   |  Index |   | $/Bbl           |   |   | 2009            |   |   | 2010   |   |   | 2011 |   |   | 2012 |   |   | Fair Value |   |
|  Condensate      Sales |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
| Swap                        |   | NY-WTI      |   |            | 69.00  |   |            |   | 322    |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 1,655 |   |
| Swap                        |   | NY-WTI      |   |            | 68.10  |   |            |   | -      |   |   |   | 301 |   |   |   | - |   |   |   | - |   |   |   | 431 |   |
| Total      Swaps            |   |        |   |            |   |   |            |   | 322    |   |   |   | 301 |   |   |   | - |   |   |   | - |   |   |   |   |   |
|                        |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Floor                       |   | NY-WTI      |   |            | 60.00  |   |            |   | 50     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 239 |   |
| Total      Floors           |   |        |   |            |   |   |            |   | 50     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Total      Sales            |   |        |   |            |   |   |            |   | 372    |   |   |   | 301 |   |   |   | - |   |   |   | - |   |   |   |   |   |
|                        |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 2,325 |   |

|                  |   |   |   |         |                         |                |   |
|-----------------------|--------|--------|--------|--------------|------------------------------|---------------------|--------|
| Expiration            |   | Fixed  |   | Notional     |                         |                |   |
|  Date            |   | Rate   |   |  Amount |                         | Fair Value          |   |
|                  |   |   |   |         |                         | (In      thousands) |   |
| January      24, 2011 |   |   | 4.00   | %            | $100      million            |                | $      | (5,282 | ) |
| January      24, 2012 |   |   | 3.75   | %            |   200      million |                |   | (12,294 | ) |
|                  |   |   |   |         |                         |                | $      | (17,576 | ) |

FinancialStatements

F-1 ofthis Annual Report

Change

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Controls

information requiredto be disclosed by the Company in the reports that it files or submits under theExchange Act is recorded, processed, summarized and reported, within the timeperiods specified in the Commission’s rules and forms, and accumulated andcommunicated to the Company’s management, including the chief executive officerand chief financial officer, as appropriate to allow timely decisions regardingrequired disclosure.

OtherInformation

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Part III

Directors, Officers and

|                      |         |   |         |                                                                                  |
|---------------------------|--------------|--------|--------------|---------------------------------------------------------------------------------------|
| Name                      |         | Age    |         | Position                                                                              |
| Rene      R. Joyce        |    | 61     |    | Chief Executive Officer and Director                              |
| Joe      Bob Perkins      |    | 48     |    | President                                                                             |
| James      W. Whalen      |    | 67     |    | President-Finance      and Administration and Director                                |
| Roy      E. Johnson       |    | 64     |    | Executive      Vice President                                                         |
| Michael      A. Heim      |    | 60     |    | Executive Vice President and Chief Operating Officer    |
| Jeffrey      J. McParland |    | 54     |    | Executive      Vice President and Chief Financial Officer                             |
| Paul      W. Chung        |    | 48     |    | Executive Vice President, General Counsel and Secretary |
| Charles      R. Crisp     |    | 61     |    | Director                                                                              |
| Joe      B. Foster        |    | 74     |    | Director                                                                              |
| In      Seon Hwang        |    | 32     |    | Director                                                                              |
| Chansoo      Joung        |    | 48     |    | Director                                                                              |
| Peter      R. Kagan       |    | 40     |    | Director                                                                              |
| Chris      Tong           |    | 52     |    | Director                                                                              |

Between January 2002 and October 2002, he was the Chief FinancialOfficer of Diversified Diagnostic Products, Inc. He served as Chief CommercialOfficer of Coral from February 1998 through January 2000. Previously, he servedas Chief Financial Officer for Tejas from 1992 to 1998. Mr. Whalen is alsoa director of Parker Drilling Company and Equitable Resources,Inc.

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between 1988 and 1996, as Presidentand Chief Operating Officer of Tejas. Mr. Crisp is also a director of AGLResources Inc., EOG Resources Inc. and IntercontinentalExchange,Inc.

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the board of directors and committees thereof. However, for auditcommittee purposes, we would be subject to the committee independencerequirements of the Securities Exchange Act of 1934.

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Executive

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| • | Provide      a competitive total compensation program that enables us to attract and      retain key executives; |
|---------|------------------------------------------------------------------------------------------------------------------|

| • | Ensure      an alignment between our strategic and financial performance and the total      compensation received by our named executive  officers; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Provide      compensation for performance relative to expectations and our peer      group; |
|---------|---------------------------------------------------------------------------------------------|

| • | Ensure      a balance between short-term and long-term compensation while emphasizing      at-risk, or variable, compensation as a valuable means of supporting our      strategic goals and aligning the interests of our named executive officers      with those of ourshareholders; and |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Ensure      that our total compensation program supports our business objectives and      priorities. |
|---------|-------------------------------------------------------------------------------------------------------|

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| Rene      R. Joyce        |   | $      | 247,500 |   |
|---------------------------|--------|--------|---------|--------|
| Jeffrey      J. McParland |   |   | 194,250 |   |
| Joe      Bob Perkins      |   |   | 222,750 |   |
| James      W. Whalen      |   |   | 222,750 |   |
| Michael      A. Heim      |   |   | 206,250 |   |

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Table of Contents

|                            |                  |               |
|---------------------------------|-----------------------|--------------------|
| The      Compensation Committee |
|                            |                  |               |
| Peter      R. Kagan, Chairman   | Charles      R. Crisp | Joe      B. Foster |

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Table of Contents

|                              | Summary Compensation Table for      2008 |   |
|-----------------------------------|------------------------------------------|--------|
|                              |                                     |   |   |   |   |   |   |   |   |   |   | Non-Equity |   |   |   |   |   |   |   |
|                              |                                     |   |   |   |   | Stock |   |   | Option |   |   | Incentive      Plan |   |   | All      Other |   |   | Total |   |
|  Name                        |  Year                               |   | Salary |   |   | Awards ($)(1) |   |   | Awards ($)(2) |   |   | Compensation |   |   | Compensation(3) |   |   | Compensation |   |
| Rene      R. Joyce                | 2008                                     |   | $ | 322,500 |   |   | $ | 148,218 |   |   | $ | 1,524 |   |   | $ | 247,500 |   |   | $ | 19,205 |   |   | $ | 738,947 |   |
| Chief      Executive Officer      | 2007                                     |   |   | 293,750 |   |   |   | 459,769 |   |   |   | 3,244 |   |   |   | 300,000 |   |   |   | 817,963 |   |   |   | 1,874,726 |   |
|                              | 2006                                     |   |   | 266,530 |   |   |   | 312,513 |   |   |   | 3,244 |   |   |   | 264,000 |   |   |   | 25,236 |   |   |   | 871,523 |   |
|                              |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Jeffrey      J. McParland         | 2008                                     |   |   | 253,000 |   |   |   | 114,247 |   |   |   | 1,524 |   |   |   | 194,250 |   |   |   | 19,031 |   |   |   | 582,052 |   |
| Executive      Vice President and | 2007                                     |   |   | 230,000 |   |   |   | 316,770 |   |   |   | 3,244 |   |   |   | 235,000 |   |   |   | 674,292 |   |   |   | 1,459,306 |   |
| Chief      Financial Officer      | 2006                                     |   |   | 210,280 |   |   |   | 236,720 |   |   |   | 3,244 |   |   |   | 206,400 |   |   |   | 23,086 |   |   |   | 679,730 |   |
|                              |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Joe      Bob Perkins              | 2008                                     |   |   | 290,250 |   |   |   | 126,228 |   |   |   | 1,524 |   |   |   | 222,750 |   |   |   | 19,124 |   |   |   | 659,876 |   |
| President                         | 2007                                     |   |   | 265,000 |   |   |   | 366,318 |   |   |   | 3,244 |   |   |   | 270,000 |   |   |   | 817,888 |   |   |   | 1,722,450 |   |
|                              | 2006                                     |   |   | 244,030 |   |   |   | 260,294 |   |   |   | 3,244 |   |   |   | 240,000 |   |   |   | 23,174 |   |   |   | 770,742 |   |
|                              |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| James      W. Whalen              | 2008                                     |   |   | 290,250 |   |   |   | 66,488 |   |   |   | - |   |   |   | 222,750 |   |   |   | 18,871 |   |   |   | 598,359 |   |
| President—Finance      and  | 2007                                     |   |   | 265,000 |   |   |   | 224,796 |   |   |   | - |   |   |   | 270,000 |   |   |   | 817,888 |   |   |   | 1,577,684 |   |
| Administration                    | 2006                                     |   |   | 244,030 |   |   |   | 227,546 |   |   |   | - |   |   |   | 240,000 |   |   |   | 21,926 |   |   |   | 733,502 |   |
|                              |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Michael      A. Heim              | 2008                                     |   |   | 268,750 |   |   |   | 127,172 |   |   |   | 1,524 |   |   |   | 206,250 |   |   |   | 19,071 |   |   |   | 622,767 |   |
| Executive      Vice President and | 2007                                     |   |   | 243,750 |   |   |   | 366,318 |   |   |   | 3,244 |   |   |   | 250,000 |   |   |   | 817,838 |   |   |   | 1,681,150 |   |
| Chief      Operating Officer      | 2006                                     |   |   | 217,791 |   |   |   | 260,294 |   |   |   | 3,244 |   |   |   | 216,000 |   |   |   | 23,111 |   |   |   | 720,440 |   |

| (1) | Amounts      represent expense recognized for financial statement reporting purposes in      accordance with SFAS 123(R) with respect to restricted stock awards      and performance unit awards, disregarding any estimate of forfeitures      related to service-based vesting conditions. No stock awards or      performance unit awards granted to the named executive officers were      forfeited during 2008. No stock awards were granted to the named executive      officers during 2008.  Detailed information about the amount      recognized for specific awards is reported in the table under “Outstanding      Equity Awards at 2008 Fiscal Year-End” below. For a discussion of the      assumptions and methodologies used to value the awards reported in this      column, please see the discussions of share-based compensation and stock      and performance unit awards in Note 2 and Note 12 to our Consolidated      Financial Statements included in this Annual  Report. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Amounts      represent expense recognized for financial statement reporting purposes in      accordance with SFAS 123(R) with respect to option awards,      disregarding any estimate of forfeitures related to service-based vesting      conditions. No option awards granted to the named executive officers were      forfeited during 2008. No option awards were granted to the named      executive officers during 2008. Detailed information about the amount      recognized for specific awards is reported in the table under “Outstanding      Equity Awards at 2008 Fiscal Year-End” below. For a discussion of the      assumptions and methodologies used to value the awards reported in this      column, please see the discussion of option awards in Note 12 to our      Consolidated Financial Statements included in this Annual      Report. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | For      2008 “All Other Compensation” includes the (i) aggregate value of      matching and non-matching contributions to our 401(k) plan and      (ii) the dollar value of life insurance  coverage. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| Name                      |   | 401(k) and Profit Sharing    Plan |   |   | Dollar Value of Life    Insurance |   |   | Total  |   |
|---------------------------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|--------|--------|--------|
| Rene      R. Joyce        |   | $                                 | 18,400 |   |                              | $      | 805    |   |   | $ | 19,205 |   |
| Jeffrey      J. McParland |   |                              | 18,400 |   |                              |   | 631    |   |   |   | 19,031 |   |
| Joe      Bob Perkins      |   |                              | 18,400 |   |                              |   | 724    |   |   |   | 19,124 |   |
| James      W. Whalen      |   |                              | 18,400 |   |                              |   | 471    |   |   |   | 18,871 |   |
| Michael      A. Heim      |   |                              | 18,400 |   |                              |   | 671    |   |   |   | 19,071 |   |

|               |   |       |   |   | Estimated      Possible Payouts Under Non-Equity Incentive Plan Awards (1) |   | Estimated      Future Payouts Under Equity Incentive Plan      Awards(2) |   |   |   |
|--------------------|--------|------------|--------|--------|----------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|--------|--------|
|  Name         |   | Grant Date |   |   | Threshold                                                                  |   |                                                                     | Target |   |   | 2X Target |   |  Threshold |   | Target (Units) |   |  Maximum |   | Grant      Date Fair Value of Stock and Option      Awards(3) |   |
| Mr.      Joyce     |   |       | N/A    |   |                                                                       | $      | 82,500                                                                   |   |   | $      | 165,000 |   |   | $ | 330,000 |   |   |   |   |   |   |   |   |   |
|               |   | 01/17/08   |   |   |                                                                       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   | 4,000 |   |   |   | $ | 148,400 |   |
| Mr.      McParland |   |       | N/A    |   |                                                                       |   | 58,750                                                                   |   |   |   | 117,500 |   |   |   | 259,000 |   |   |   |   |   |   |   |   |   |   |   |
|               |   | 01/17/08   |   |   |                                                                       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   | 2,700 |   |   |   |   | 100,170 |   |
| Mr.      Perkins   |   |       | N/A    |   |                                                                       |   | 74,250                                                                   |   |   |   | 148,500 |   |   |   | 297,000 |   |   |   |   |   |   |   |   |   |   |   |
|               |   | 01/17/08   |   |   |                                                                       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   | 3,500 |   |   |   |   | 129,850 |   |
| Mr.      Whalen    |   |       | N/A    |   |                                                                       |   | 74,250                                                                   |   |   |   | 148,500 |   |   |   | 297,000 |   |   |   |   |   |   |   |   |   |   |   |
|               |   | 01/17/08   |   |   |                                                                       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   | 3,500 |   |   |   |   | 129,850 |   |
| Mr.      Heim      |   |       | N/A    |   |                                                                       |   | 68,750                                                                   |   |   |   | 137,500 |   |   |   | 275,000 |   |   |   |   |   |   |   |   |   |   |   |
|               |   | 01/17/08   |   |   |                                                                       |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   | 3,500 |   |   |   |   | 129,850 |   |

| (1) | These      awards were granted under the Bonus Plan. At the time the Bonus Plan was      adopted, the estimated future payouts in the above table under the heading      “Estimated Possible Payouts Under Non-Equity Incentive Plan Awards”      represented the cash bonus pool available for awards to the named      executive officers under the BonusPlan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | These      performance unit awards were granted under the Targa Investments Long-Term      Incentive Plan and are discussed in more detail under the heading      “Compensation Discussion & Analysis — Application of      Compensation Elements — Long-Term Cash  Incentives.” |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The      dollar amounts shown are determined by multiplying the number of units      reported in the table by $37.10 (the per unit fair value under SFAS 123(R)      on the grant date) and assume full payout under the awards at the time of      vesting. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                      |   |                                                   |    |              |                 |   |   |                       |   |                        |   |                                                |   |     |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |
|---------------------------|--------|--------------------------------------------------------|---------|-------------------|----------------------|--------|--------|----------------------------|--------|-----------------------------|--------|-----------------------------------------------------|--------|----------|--------------------------------------------------------------|--------|---------|-----------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------|---------|--------|--------|
|                      |   | Outstanding      Equity Awards at 2008 Fiscal Year-End |    |
|                      |   | Option      Awards                                     |    | Stock      Awards |                 |
| Name                      |   | #      Exercisable                                     |    |              | #      Unexercisable |   |   | Option      Exercise Price |   | Option      Expiration Date |   | Number      of Shares of Stock That Have Not Vested |   |     | Market      Value of Shares of Stock That Have Not Vested(7) |   |    | Equity      Incentive Plan Awards: Number of Unearned Performance Units That Have      Not Vested(8) |   |   | Equity      Incentive Plan Awards: Market or Payout Value of Unearned Performance      Units That Have Not Vested(9) |    |
| Rene      R. Joyce        |   |                                                   | 17,417  |              |                 |   | 4,355  | (1                         | )      |                        | $      | 0.75                                                |   | 10/31/15 |                                                         |   | 146,840 | (4                                                                                                        | )      |   | $                                                                                                                    | 132,156 |   |   |   | 19,000 |   |   | $ | 194,962 |   |
|                      |   |                                                   | 233,101 |              |                 |   | 58,275 | (1                         | )      |                        |   | 3.00                                                |   | 10/31/15 |                                                         |   | 1,423   | (5                                                                                                        | )      |   |                                                                                                                 | 1,281   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 197,239 |              |                 |   | 49,310 | (1                         | )      |                        |   | 15.00                                               |   | 10/31/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 2,405   |              |                 |   | 601    | (2                         | )      |                        |   | 3.00                                                |   | 12/20/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 2,047   |              |                 |   | 512    | (2                         | )      |                        |   | 15.00                                               |   | 12/20/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
| Jeffrey      J. McParland |   |                                                   | 17,417  |              |                 |   | 4,355  | (1                         | )      |                        |   | 0.75                                                |   | 10/31/15 |                                                         |   | 111,024 | (4                                                                                                        | )      |   |                                                                                                                 | 99,922  |   |   |   | 10,900 |   |   |   | 111,505 |   |
|                      |   |                                                   | 174,825 |              |                 |   | 43,707 | (1                         | )      |                        |   | 3.00                                                |   | 10/31/15 |                                                         |   | 1,067   | (5                                                                                                        | )      |   |                                                                                                                 | 960     |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 147,929 |              |                 |   | 36,983 | (1                         | )      |                        |   | 15.00                                               |   | 10/31/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 1,803   |              |                 |   | 451    | (2                         | )      |                        |   | 3.00                                                |   | 12/20/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 1,535   |              |                 |   | 384    | (2                         | )      |                        |   | 15.00                                               |   | 12/20/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
| Joe      Bob Perkins      |   |                                                   | 17,417  |              |                 |   | 4,355  | (1                         | )      |                        |   | 0.75                                                |   | 10/31/15 |                                                         |   | 122,336 | (4                                                                                                        | )      |   |                                                                                                                 | 110,102 |   |   |   | 14,300 |   |   |   | 146,322 |   |
|                      |   |                                                   | 188,811 |              |                 |   | 47,203 | (1                         | )      |                        |   | 3.00                                                |   | 10/31/15 |                                                         |   | 1,153   | (5                                                                                                        | )      |   |                                                                                                                 | 1,038   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 159,765 |              |                 |   | 39,940 | (1                         | )      |                        |   | 15.00                                               |   | 10/31/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 1,949   |              |                 |   | 486    | (2                         | )      |                        |   | 3.00                                                |   | 12/20/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 1,658   |              |                 |   | 415    | (2                         | )      |                        |   | 15.00                                               |   | 12/20/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
| James      W. Whalen      |   |                                                   | 45,454  |              |                 |   | 45,454 | (3                         | )      |                        |   | 3.00                                                |   | 11/01/15 |                                                         |   | 101,139 | (6                                                                                                        | )      |   |                                                                                                                 | 91,026  |   |   |   | 14,300 |   |   |   | 146,322 |   |
|                      |   |                                                   | 153,847 |              |                 |   | 38,461 | (3                         | )      |                        |   | 15.00                                               |   | 11/01/15 |                                                         |   | 1,110   | (5                                                                                                        | )      |   |                                                                                                                 | 999     |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 469     |              |                 |   | 468    | (2                         | )      |                        |   | 3.00                                                |   | 12/20/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 1,597   |              |                 |   | 399    | (2                         | )      |                        |   | 15.00                                               |   | 12/20/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
| Michael      A. Heim      |   |                                                   | 17,417  |              |                 |   | 4,355  | (1                         | )      |                        |   | 0.75                                                |   | 10/31/15 |                                                         |   | 122,336 | (4                                                                                                        | )      |   |                                                                                                                 | 110,102 |   |   |   | 13,500 |   |   |   | 137,971 |   |
|                      |   |                                                   | 188,811 |              |                 |   | 47,203 | (1                         | )      |                        |   | 3.00                                                |   | 10/31/15 |                                                         |   | 1,153   | (5                                                                                                        | )      |   |                                                                                                                 | 1,038   |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 159,765 |              |                 |   | 39,940 | (1                         | )      |                        |   | 15.00                                               |   | 10/31/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 1,949   |              |                 |   | 486    | (2                         | )      |                        |   | 3.00                                                |   | 12/20/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |
|                      |   |                                                   | 1,658   |              |                 |   | 415    | (2                         | )      |                        |   | 15.00                                               |   | 12/20/15 |                                                         |   |    |                                                                                                      |   |   |                                                                                                                 |    |   |   |   |   |   |   |   |   |   |

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| (1) | Represents      options to purchase shares of Targa Investments common stock awarded on      October 31, 2005. These options vest on October 31,      2009. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents      options to purchase shares of Targa Investments common stock awarded on      December 20, 2005. These options vest on December 20,      2009. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents      options to purchase shares of Targa Investments common stock awarded on      November 1, 2005. These options vest on November 1,      2009. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Represents      shares of restricted common stock of Targa Investments awarded on      October 31, 2005. These shares vest on October 31,      2009. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Represents      shares of restricted common stock of Targa Investments awarded on      December 20, 2005. These shares vest on December 20,      2009. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Represents      shares of restricted common stock of Targa Investments awarded on      October 31, 2005 (544 shares) and November 1, 2005      (100,595 shares). These shares vest on October 31, 2009 (with      respect to the October 31, 2005 awards) and November 1, 2009      (with respect to the November 1, 2005  awards). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | The      dollar amounts shown are determined by multiplying the number of shares or      units reported in the table by $0.90 (the value      determined by an independent consultant pursuant to a valuation of Targa      Investments’ common stock as of December 31, 2008, which management      believes is a reasonable approximation of the value of such stock as of      December 31, 2008. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Represents      the number of performance units awarded on February 8, 2007 and      January 17, 2008 under the Targa Investments Long-Term Incentive Plan.      These awards vest in August 2010 and June 2011, based on the Partnership’s      performance over the applicable period measured against a peer group of      companies. These awards are discussed in more detail under the heading      “Compensation Discussion & Analysis — Application of      Compensation Elements — Long-Term Cash  Incentives.” |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | The      dollar amounts shown are determined by multiplying the number of      performance units reported in the table by the sum of the closing price of      a common unit of the Partnership on December 31, 2008      ($7.75) and the related distribution equivalent rights for each award      and assume full payout under the awards at the time of      vesting. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                      |   | Option Exercises and Stock Vested for      2008 |    |
|---------------------------|--------|-------------------------------------------------|---------|
|                      |   | Option Awards                                   |    |   | Stock Awards |   |
|  Name                |   | Number of Shares Acquired on      Exercise(1)   |    |   | Value Realized on Exercise |   |   | Number of Shares Acquired on      Vesting |   |   | Value Realized onVesting(6) |   |
| Rene      R. Joyce        |   |                                            |    |   |   |   |   | 677,162 |   | (2 | ) |   | $ | 2,537,948 |   |
| Jeffrey      J. McParland |   |                                            |    |   |   |   |   |   | 517,456 |   | (3 | ) |   |   | 1,937,667 |   |
| Joe      Bob Perkins      |   |                                            |    |   |   |   |   |   | 578,065 |   | (4 | ) |   |   | 2,162,061 |   |
| James      W. Whalen      |   |                                            | 137,772 |   |   | $ | 475,313 |   |   |   | 127,389 |   | (5 | ) |   |   | 700,227 |   |
| Michael      A. Heim      |   |                                            |    |   |   |   |   |   |   |   | 578,065 |   | (4 | ) |   |   | 2,162,061 |   |

| (1)   | At      the time of exercise of the stock options, the common stock acquired upon      exercise had a value of $3.45 per share. This value was determined by an      independent consultant pursuant to a valuation of Targa Investments common      stock as of October 24, 2007. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The      shares vested as follows: 67,288 shares on January 2, 2008, 16,822 shares      on April 16, 2008, 513,939 shares on April 30, 2008, 4,981 shares on June      20, 2008, 73,420 shares on October 31, 2008 and 712 shares on      December 20, 2008. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The      shares vested as follows: 55,272 shares on January 2, 2008, 13,818 shares      on April 16, 2008, 388,584 shares on April 30, 2008, 3,736 shares on June      20, 2008, 55,512 shares on October 31, 2008 and 534 shares on      December 20, 2008. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| (4)   | The      shares vested as follows: 67,288 shares on January 2, 2008, 16,822 shares      on April 16, 2008, 428,176 shares on April 30, 2008, 4,035 shares on June      20, 2008, 61,168 shares on October 31, 2008 and 576 shares on      December 20, 2008. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | The      shares vested as follows: 20,112 shares on January 2, 2008, 5,028 shares      on April 16, 2008, 544 shares on October 31, 2008, 100,595 shares on      November 1, 2008, and 1,110 shares on December 20,    2008. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | The      value realized on vesting used a per share price based on the estimated      market price of Targa Investments common stock on such      date.  These values were determined by an independent consultant      pursuant to valuations of Targa Investments common stock prepared at      various times during 2007 and 2008, which management believes are      reasonable approximations of the value of such stock as of the applicable      dates. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Change of Control      means, in one transaction or a series of related transactions, a      consolidation, merger or any other form of corporate reorganization      involving Targa Investments or a sale of Preferred Stock (or a sale of      Targa Investments’ common stock following conversion of the Preferred      Stock) by stockholders of Targa Investments with the result immediately      after such merger, consolidation, corporate reorganization or sale that      (A) a single person, together with its affiliates, owns, if prior to      any firm commitment underwritten offering by Targa Investments of its      common stock to the public pursuant to an effective registration statement      under the Securities Act (x) for which the aggregate cash proceeds to      be received by Targa Investments from such offering (without deducting      underwriting discounts, expenses, and commissions) are at least      $35,000,000, and (y) pursuant to which Targa Investments’ common      stock is listed for trading on the New York Stock Exchange or is admitted      to trading and quoted on the NASDAQ National Market System (a “Qualified      Public Offering”), either a greater number of shares of    Targa |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| • | Management Stock means      the shares of Targa Investments’ common stock granted pursuant to the      terms of the 2005 Incentive Plan, any such shares transferred to a      permitted transferee and any and all securities of any kind whatsoever of      Targa Investments which may be issued in respect of, in exchange for, or      upon conversion of such shares of common stock pursuant to a merger,      consolidation, stock split, stock dividend, recapitalization of Targa      Investments or otherwise; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Liquidation Event means      the voluntary or involuntary liquidation, dissolution, or winding up of      the affairs of Targa Investments; provided that neither the merger or      consolidation of Targa Investments with or into another entity, nor the      merger or consolidation of another entity with or into Targa Investments,      nor the sale of all or substantially all of the assets of Targa      Investments shall be deemed to be a Liquidation  Event; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Cause means discharge      by Targa Investments based on (A) an employee’s gross negligence or      willful misconduct in the performance of duties, (B) conviction of a      felony or other crime involving moral turpitude; (C) an employee’s      willful refusal, after fifteen days’ written notice from the Targa      Investments Board, to perform the material lawful duties or      responsibilities required of him; (D) willful and material breach of      any corporate policy or code of conduct established by Targa Investments;      and (E) willfully engaging in conduct that is known or should be      known to be materially injurious to Targa Investments or any of its      subsidiaries; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Capital Stock means any      and all shares of capital stock of, or other equity interests in, Targa      Investments, and any and all warrants, options, or other rights to      purchase or acquire any of theforegoing; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Original Cost means,      with respect to a particular share of Capital Stock, the cash amount      originally paid to Targa Investments to purchase such share (or if such      share was issued in respect of other shares of Targa Investments issued in      connection with the merger of one of Targa Investments’ subsidiaries with      and into us, then the cash amount originally paid to us to purchase such      other shares), subject to adjustment for subdivisions, combinations or      stock dividends involving such Capital Stock, or, if no cash amount was      originally paid to Targa Investments to purchase such share, then no      consideration (or if such share was issued in respect of other shares of      Targa Investments issued in connection with the merger of one of Targa      Investments’ subsidiaries with and into us and such other shares were      issued by us for no cash consideration, then no      consideration); and |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Fair Market Value means      the value determined by the unanimous resolution of all directors of the      Targa Investments Board, provided that if the Targa Investments Board does      not or is unable to make such a determination, Fair Market Value means the      value determined by an investment banking firm of recognized national      standing selected by a majority of the directors of the Targa Investments      Board. |
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| Name                      |   | Change of Control |    |   | Termination for Death or      Disability |   |
|---------------------------|--------|-------------------|---------|--------|------------------------------------------|--------|
| Rene      R. Joyce        |   | $                 | 134,090 |   | (1                                       | )      |   | $ | 134,090 |   | (1 | ) |
| Jeffrey      J. McParland |   |              | 101,535 |   | (2                                       | )      |   |   | 101,535 |   | (2 | ) |
| Joe      Bob Perkins      |   |              | 111,793 |   | (3                                       | )      |   |   | 111,793 |   | (3 | ) |
| James      W. Whalen      |   |              | 92,025  |   | (4                                       | )      |   |   | 92,025 |   | (4 | ) |
| Michael      A. Heim      |   |              | 111,793 |   | (5                                       | )      |   |   | 111,793 |   | (5 | ) |

| (1) | Of      this amount, $132,156 relates to the unvested shares of restricted stock      of Targa Investments granted on October 31, 2005; $1,281 relates to      the unvested shares of restricted stock of Targa Investments granted on      December 20, 2005; and $653 relates to the unvested options to      purchase Targa Investments common stock granted on October 31,      2005. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Of      this amount, $99,922 relates to the unvested shares of restricted stock of      Targa Investments granted on October 31, 2005; $960 relates to the      unvested shares of restricted stock of Targa Investments granted on      December 20, 2005; and $653 relates to the unvested options to      purchase Targa Investments common stock granted on October 31,      2005. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Of      this amount, $110,102 relates to the unvested shares of restricted stock      of Targa Investments granted on October 31, 2005; $1,038 relates to      the unvested shares of restricted stock of Targa Investments granted on      December 20, 2005; $653 relates to the unvested options to purchase      Targa Investments common stock granted on October 31,      2005. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Of      this amount, $490 relates to the unvested shares of restricted stock of      Targa Investments granted on October 31, 2005; $90,536 relates to the      unvested shares of restricted stock of Targa Investments granted on      November 1, 2005; and $999 relates to the unvested shares of      restricted stock of Targa Investments granted on December 20,      2005. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Of      this amount, $110,102 relates to the unvested shares of restricted stock      of Targa Investments granted on October 31, 2005; $1,038 relates to      the unvested shares of restricted stock of Targa Investments granted on      December 20, 2005;  and $653 relates to the unvested      options to purchase Targa Investments common stock granted on      October 31, 2005. |
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|   | • | Change of Control means      (i) any “person” or “group” within the meaning of those terms as used in      Sections 13(d) and 14(d)(2) of the Exchange Act, other than an affiliate      of Targa Investments, becoming the beneficial owner, by way of merger,      consolidation, recapitalization, reorganization or otherwise, of 50% or      more of the combined voting power of the equity interests in the      Partnership or its general partner, (ii) the limited partners of the      Partnership approving, in one or a series of transactions, a plan of      complete liquidation of the Partnership, (iii) the sale or other      disposition by either the Partnership or its general partner of all or      substantially all of its assets in one or more transactions to any person      other than the Partnership’s general partner or one of such general      partner’s affiliates, or (iv) a transaction resulting in a person other      than the Partnership’s general partner or one of such general partner’s      affiliates being the general partner of the Partnership. With respect to      an award subject to Section 409A of the Code, Change of Control will mean      a “change of control event” as defined in the regulations and guidance      issued under Section 409A of theCode. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Fair Market Value means      the closing sales price of a common unit of the Partnership on the      principal national securities exchange or other market in which trading in      such common units occurs on the applicable date (or if there is not      trading in the common units on such date, on the next preceding date on      which there was trading) as reported in The Wall Street Journal (or other      reporting service approved by the TRII Compensation Committee). In the      event the common units are not traded on a national securities exchange or      other market at the time a determination of fair market value is required      to be made, the determination of fair market value shall be made in good      faith by the TRII CompensationCommittee. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Cause means (i) failure      to perform assigned duties and responsibilities, (ii) engaging in conduct      which is injurious (monetarily of otherwise) to Targa Investments or its      affiliates, (iii) breach of any corporate policy or code of conduct      established by Targa Investments or its affiliates or breach of any      agreement between the named executive officer and Targa Investments or its      affiliates, or (iv) conviction of a misdemeanor involving moral turpitude      or a felony. If the named executive officer is a party to an agreement      with Targa Investments or its affiliates in which this term is defined,      then that definition will apply for purposes of the Long-Term Incentive      Plan and the Performance UnitAgreement. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                      |   | Change of Control |    |   | Termination for Death or      Disability |   |
|---------------------------|--------|-------------------|---------|--------|------------------------------------------|--------|
| Rene      R. Joyce        |   | $                 | 194,962 |   | (1                                       | )      |   | $ | 194,962 |   | (1 | ) |
| Jeffrey      J. McParland |   |              | 111,505 |   | (2                                       | )      |   |   | 111,505 |   | (2 | ) |
| Joe      Bob Perkins      |   |              | 146,322 |   | (3                                       | )      |   |   | 146,322 |   | (3 | ) |
| James      W. Whalen      |   |              | 146,322 |   | (3                                       | )      |   |   | 146,322 |   | (3 | ) |
| Michael      A. Heim      |   |              | 137,971 |   | (4                                       | )      |   |   | 137,971 |   | (4 | ) |

| (1) | Of      this amount, $116,250 and $40,332 relate to the performance units and      related distribution equivalent rights granted on February 7, 2007,      respectively; and $31,000 and $7,380 relate to the performance units and      related distribution equivalent rights granted on January 17, 2008,      respectively. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Of      this amount, $63,550 and $22,048 relate to the performance units and      related distribution equivalent rights granted on February 7, 2007,      respectively; and $20,925 and $4,982 relate to the performance units and      related distribution equivalent rights granted on January 17, 2008,      respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Of      this amount, $83,700 and $29,039 relate to the performance units and      related distribution equivalent rights granted on February 7, 2007,      respectively; and $27,125 and $6,458 relate to the performance units and      related distribution equivalent rights granted on January 17, 2008,      respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (4) | Of      this amount, $77,500 and $26,888 relate to the performance units and      related distribution equivalent rights granted on February 7, 2007,      respectively; and $27,125 and $6,458 relate to the performance units and      related distribution equivalent rights granted on January 17, 2008,      respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                      |   | Change of Control |    |   | Termination for Death or      Disability |   |
|---------------------------|--------|-------------------|---------|--------|------------------------------------------|--------|
| Rene      R. Joyce        |   | $                 | 329,052 |   |                                     | $      | 329,052 |   |
| Jeffrey      J. McParland |   |              | 213,040 |   |                                     |   | 213,040 |   |
| Joe      Bob Perkins      |   |              | 258,115 |   |                                     |   | 258,115 |   |
| James      W. Whalen      |   |              | 238,347 |   |                                     |   | 238,347 |   |
| Michael      A. Heim      |   |              | 249,764 |   |                                     |   | 249,764 |   |

| Name                          |   | Fees Earned or Paid in Cash |   |   | Stock Awards ($)(1) |   |   | Option Awards ($)(2) |   |   | All Other Compensation(6) |   |   | Total Compensation |   |
|-------------------------------|--------|-----------------------------|--------|--------|---------------------|--------|--------|----------------------|--------|--------|---------------------------|--------|--------|--------------------|--------|
| Charles      R. Crisp (3)(5)  |   | $                           | 47,500 |   |                | $      | 46,642 |                 |   | $      | 786                       |   |   | $                  | 6,585  |   |   | $ | 101,513 |   |
| Joe      B. Foster (3)(5)     |   |                        | 46,000 |   |                |   | 46,642 |                 |   |   | 786                       |   |   |               | 6,585  |   |   |   | 100,013 |   |
| In      Seon Hwang            |   |                        | -      |   |                |   | -      |                 |   |   | -                         |   |   |               | -      |   |   |   | - |   |
| Chansoo      Joung (3)(4)(5)  |   |                        | -      |   |                |   | -      |                 |   |   | -                         |   |   |               | -      |   |   |   | - |   |
| Peter      R. Kagan (3)(4)(5) |   |                        | -      |   |                |   | -      |                 |   |   | -                         |   |   |               | -      |   |   |   | - |   |
| Chris      Tong (3)(5)        |   |                        | 64000  |   |                |   | 45378  |                 |   |   | 1350                      |   |   |               | 6,585  |   |   |   | 117,313 |   |

| (1) | Amounts      represent expense recognized for financial statement reporting purposes in      accordance with SFAS 123(R) with respect to stock awards for fiscal year      2008, disregarding any estimate of forfeitures related to service-based      vesting conditions. No stock awards granted to the directors were      forfeited during 2008.  For a discussion of the assumptions and      methodologies used to value the awards reported in these columns, see the      discussion of stock awards contained in the Notes to Consolidated      Financial Statements at Note 12 included in this annual      report. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Amounts      represent expense recognized for financial statement reporting purposes in      accordance with SFAS 123(R) with respect to option awards for fiscal year      2008, disregarding any estimate of forfeitures related to service-based      vesting conditions. No option awards granted to the directors were      forfeited during 2008.   For a discussion of the      assumptions and methodologies used to value the awards reported in these      columns, see the discussion of stock awards contained in the Notes to      Consolidated Financial Statements at Note 12 included in this annual      report. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | On      March 25, 2008 Messrs. Crisp, Foster and Tong each received 2,000      common units of the Partnership in connection with their service on the      Targa Board and Messrs. Joung and Kagan each received 2,000 common units      of the Partnership in connection with their service on the Board of      Directors of the Partnership’s general partner.  The grant date      fair value of the 2,000 common units granted to each of these named      individuals was $22.86, based on the closing price of the common units on      the day prior to the grant date. During 2008, each      of the directors received $6,585 in distributions on the common units of      the Partnership that were awarded to them. The Partnership also recognized      $6,585 of expense for each of the stock awards held by Messrs. Joung and      Kagan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Messrs.      Joung and Kagan each earned $49,000 in fees for service on the board of      directors of the Partnership’s generalpartner. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

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| (5) | At      December 31, 2008, Mr. Crisp held 9,709 shares of preferred      stock, 153,799 shares of common stock, 87,018 options to purchase shares      of common stock and 5,100 common units of the Partnership.  At      December 31, 2008, Mr. Foster held 28,591 shares of preferred      stock, 120,535 shares of common stock, 87,018 options to purchase shares      of common stock and 8,700 common units of the Partnership. At      December 31, 2008, Mr. Tong held 89,358 shares of common stock,      51,672 options to purchase shares of common stock and 146,900 common units      of the Partnership.  At December 31, 2008, Mr. Joung      and Kagan each held 4,000 common units of the  Partnership. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | For      2008 “All Other Compensation” consists of the distributions paid on common      units of the Partnership from unitawards. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

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SecurityOwnership

| ·   | Each      person who beneficially owns 5% or more of our outstanding common stock      (only with respect to our commonstock); |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | All      of the directors of Targa Resources,Inc. |
|--------------------|---------------------------------------------------|

| ·   | Each      named executive officer of Targa Resources, Inc.;  and |
|--------------------|------------------------------------------------------------------|

| ·   | All      directors and executive officers of Targa Resources, Inc. as a      group. |
|--------------------|-------------------------------------------------------------------------------------|

|                                                                                                                    |   | Targa Resources, Inc.              |   |   | Targa Resources Partners LP                        |   |   | Targa Resources Investments      Inc. |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|----------------------------------------------------|--------|--------|---------------------------------------|--------|
| Name of Beneficial Owner(1)                                                                                             |   | Common Stock Beneficially    Owned |   |   | Percentage of Common Stock Beneficially      Owned |   |   | Common Units Beneficially    Owned    |   |   | Percentage of Common Units Beneficially      Owned |   |   | Subordinated Units Beneficially Owned      (3) |   |   | Percentage of Subordinated Units Beneficially      Owned |   |   | Percentage of Total Common and Subordinated Units      Beneficially Owned |   |   | Series B Preferred Stock |   |   | Restricted CommonStock |   |   |   |   | Percentage of Series B Preferred Stock      Beneficially Owned |   |   | Percentage of Restricted Common Stock Beneficially      Owned |   |
| Targa      Resources Investments      Inc.                                                                         |   |                               | 1,000  |   |                                               |   | 100    | %                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   | - |   |   |   | - |   |
| Rene      R. Joyce                                                                                                      |   |                               | -      |   |                                               |   | -      |                                  |   |   | 81,000 |   |   |   | * |   |   |   | 294,107 |   |   |   | 2.55 | % |   |   | * |   |   |   | 56,208 |   |   |   | 1,277,634 |   | (4 | ) |   |   | * |   |   |   | 15.9 | % |
| Joe      Bob Perkins                                                                                                    |   |                               | -      |   |                                               |   | -      |                                  |   |   | 32,100 |   |   |   | * |   |   |   | 247,672 |   |   |   | 2.15 | % |   |   | * |   |   |   | 47,632 |   |   |   | 1,071,154 |   | (5 | ) |   |   | * |   |   |   | 13.5 | % |
| Michael      A. Heim                                                                                                    |   |                               | -      |   |                                               |   | -      |                                  |   |   | 8,000 |   |   |   | * |   |   |   | 234,164 |   |   |   | 2.03 | % |   |   | * |   |   |   | 39,192 |   |   |   | 1,071,154 |   | (5 | ) |   |   | * |   |   |   | 13.5 | % |
| Jeffrey      J. McParland                                                                                               |   |                               | -      |   |                                               |   | -      |                                  |   |   | 16,500 |   |   |   | * |   |   |   | 208,398 |   |   |   | 1.81 | % |   |   | * |   |   |   | 32,856 |   |   |   | 973,056 |   | (6 | ) |   |   | * |   |   |   | 12.3 | % |
| James      W. Whalen                                                                                                    |   |                               | -      |   |                                               |   | -      |                                  |   |   | 111,152 |   |   |   | * |   |   |   | 164,483 |   |   |   | 1.43 | % |   |   | * |   |   |   | 14,978 |   |   |   | 875,525 |   | (7 | ) |   |   | * |   |   |   | 11.3 | % |
| Charles      R Crisp                                                                                                    |   |                               | -      |   |                                               |   | -      |                                  |   |   | 9,100 |   |   |   | * |   |   |   | 46,186 |   |   |   | * |   |   |   | * |   |   |   | 9,709 |   |   |   | 190,151 |   | (8 | ) |   |   | * |   |   |   | 2.5 | % |
| Joe      B. Foster                                                                                                      |   |                               | -      |   |                                               |   | -      |                                  |   |   | 12,700 |   |   |   | * |   |   |   | 76,512 |   |   |   | * |   |   |   | * |   |   |   | 28,591 |   |   |   | 190,151 |   | (9 | ) |   |   | * |   |   |   | 2.5 | % |
| In      Seon Hwang (2)                                                                                                  |   |                               | -      |   |                                               |   | -      |                                  |   |   | - |   |   |   | * |   |   |   | - |   |   |   | * |   |   |   | * |   |   |   | - |   |   |   | - |   |   |   |   |   | - |   |   |   | - |   |
| Chansoo      Joung (2)                                                                                                  |   |                               | -      |   |                                               |   | -      |                                  |   |   | 8,000 |   |   |   | * |   |   |   | - |   |   |   | * |   |   |   | * |   |   |   | - |   |   |   | - |   |   |   |   |   | - |   |   |   | - |   |
| Peter      R. Kagan (2)                                                                                                 |   |                               | -      |   |                                               |   | -      |                                  |   |   | 8,000 |   |   |   | * |   |   |   | - |   |   |   | * |   |   |   | * |   |   |   | - |   |   |   | - |   |   |   |   |   | - |   |   |   | - |   |
| Chris      Tong                                                                                                         |   |                               | -      |   |                                               |   | -      |                                  |   |   | 20,900 |   |   |   | * |   |   |   | 18,318 |   |   |   | * |   |   |   | * |   |   |   | - |   |   |   | 113,903 |   | (10 | ) |   |   | - |   |   |   | 1.5 | % |
| All      directors and executive      officers     as      a group (13      persons) |   |                               | -      |   |                                               |   | -      |                                  |   |   | 334,952 |   |   |   | * |   |   |   | 1,683,922 |   |   |   | 14.61 | % |   |   | 4.37 | % |   |   | 279,414 |   |   |   | 7,720,957 |   | (11 | ) |   |   | 4.4 | % |   |   | 76.6 | % |

| (1)   | Unless      otherwise indicated, the address for all beneficial owners in this table      is 1000 Louisiana, Suite 4300, Houston, Texas 77002. The nature of the      beneficial ownership for all the equity securities is sole voting and      investment power. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Warburg      Pincus Private Equity VIII, L.P., a Delaware limited partnership, and two      affiliated partnerships (“WP VIII”), and Warburg Pincus Private Equity IX,      L.P., a Delaware limited partnership (“WP IX”), in the aggregate own      approximately 74% of Targa Resources Investments Inc. The general partner      of WP VIII is Warburg Pincus Partners, LLC, a New York limited liability      company (“WP Partners LLC”) and the general partner of WP IX is Warburg      Pincus IX, LLC, a New York limited liability company, of which WP Partners      LLC is the sole member. Warburg Pincus & Co., a New York general      partnership (“WP”) is the managing member of WP Partners LLC. WP VIII and      WP IX are managed by Warburg Pincus LLC, a New York limited liability      company (“WP LLC”). The address of the Warburg Pincus entities is 466      Lexington Avenue, New York, New York 10017. Messrs. Kagan , and Joung,      directors of Targa Resources Partners LP, are Partners of WP and Managing      Directors and Members of WP LLC. Charles R. Kaye and Joseph P. Landy are      Managing General Partners of WP and Managing Members and Co-Presidents of      WP LLC and may be deemed to control the Warburg Pincus entities. Messrs.      Joung, Kagan, Kaye and Landy disclaim beneficial ownership of all shares      held by the Warburg Pincusentities. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (3)   | The      subordinated units of the Partnership presented as being beneficially      owned by our directors and executive officers represent the number of      units held indirectly by Targa Resources Investments Inc. that are      attributable to such directors and officers based on their ownership of      equity interests in Targa Resources Investments Inc. Targa Resources      Investments Inc. indirectly holds all 11,528,231 subordinated units of the      Partnership. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Of      this amount, 452,209 shares of restricted common stock reflect options      that are currently exercisable for shares of restricted common      stock. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Of      this amount, 369,600 shares of restricted common stock reflect options      that are currently exercisable for shares of restricted common      stock. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Of      this amount, 343,509 shares of restricted common stock reflect options      that are currently exercisable for shares of restricted common      stock. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Of      this amount, 201,367 shares of restricted common stock reflect options      that are currently exercisable for shares of restricted common      stock. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | Of      this amount, 36,352 shares of restricted common stock reflect options that      are currently exercisable for shares of restricted common      stock. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)   | Of      this amount, 69,616 shares of restricted common stock reflect options that      are currently exercisable for shares of restricted common      stock. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10)   | Of      this amount, 24,545 shares of restricted common stock reflect options that      are currently exercisable for shares of restricted common      stock. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11)   | Of      this amount, 2,515,656 shares of restricted common stock reflect options      that are currently exercisable for shares of restricted common      stock. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Item 13.Certain      Relationships and Related Transactions, and Director      Independence |
|--------------------------------------------------------------------------------------------------------|

| Period                   |  Commodity  |   | Daily Volumes |   | Average Price |  Index |
|--------------------------|------------------|--------|---------------|--------|---------------|-------------|
| Jan      2009 - Dec 2009 | Natural      gas |   |          | 21,918 |          | MMBtu       |   | $ | 6.62 |   | per      MMBtu | IF-Waha |
|                     |             |   |          |   |          |        |   |   |   |   |   |   |
| Jan      2009 - Dec 2009 | NGL              |   |          | 2,847  |          |  Bbl   |   |   | 0.74 |   | per      gallon | OPIS-MB |

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The Partnership had the following open commodityderivatives with MLCI as of December 31, 2008:

| Period                   |  Commodity  |   | Daily Volumes |   | Average Price |  Index |
|--------------------------|------------------|--------|---------------|--------|---------------|-------------|
| Jan      2009 - Dec 2009 | Natural      gas |   |          | 3,556  |          | MMBtu       |   | $ | 8.07 |   | per      MMBtu | IF-Waha |
| Jan      2009 - Dec 2009 | Natural      gas |   |          | 575    |          | MMBtu       |   |   | 7.83 |   | per      MMBtu | NY-HH |
| Jan      2010 - Dec 2010 | Natural      gas |   |          | 3,289  |          | MMBtu       |   |   | 7.39 |   | per      MMBtu | IF-Waha |
| Jan      2010 - Dec 2010 | Natural      gas |   |          | 247    |          | MMBtu       |   |   | 8.17 |   | per      MMBtu | NY-HH |
|                     |             |   |          |   |          |        |   |   |   |   |   |   |
| Jan      2009 - Dec 2009 | NGL              |   |          | 3,000  |          |  Bbl   |   |   | 1.18 |   | per      gallon | OPIS-MB |
|                     |             |   |          |   |          |        |   |   |   |   |   |   |
| Jan      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 |

|                              |   | Year      Ended December 31, |    |
|-----------------------------------|--------|------------------------------|---------|
|                              |   | 2008                         |    |   | 2007 |   |   | 2006 |   |
|                              |   | (In      thousands)          |    |
| Included in Revenues              |   |                         |    |   |   |   |   |   |   |
| GCF                               |   | $                            | 469     |   |   | $ | 4,514 |   |   | $ | 1,366 |   |
| VESCO      (1)                    |   |                         | 690     |   |   |   | 4,771 |   |   |   | 2,628 |   |
|                              |   | $                            | 1,159   |   |   | $ | 9,285 |   |   | $ | 3,994 |   |
|                              |   |                         |    |   |   |   |   |   |   |   |   |   |
| Included in Costs and    Expenses |   |                         |    |   |   |   |   |   |   |
| GCF                               |   | $                            | 3,501   |   |   | $ | 3,316 |   |   | $ | 3,336 |   |
| VESCO      (1)                    |   |                         | 178,098 |   |   |   | 145,806 |   |   |   | 132,798 |   |
|                              |   | $                            | 181,599 |   |   | $ | 149,122 |   |   | $ | 136,134 |   |

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| §   | general      and administrative expenses, which are capped at $5 million annually      for three years (ending February 2010), subject to increases based on      increases in the Consumer Price Index and subject to further increases in      connection with expansions of the Partnership’s operations through the      acquisition or construction of new assets or businesses with the      concurrence of its conflicts committee; thereafter, the general partner      will determine the general and administrative expenses to be allocated to      the Partnership in accordance with the partnership      agreement; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | operations      and certain direct expenses, which are not subject to the $5 million      cap for general and administrativeexpenses. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| §   | general      and administrative expenses, which are not capped, allocated to the SAOU      and LOU systems according to our allocation    practice; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | operating      and certain direct expenses, which are not  capped. |
|--------------------|--------------------------------------------------------------------|

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Natural GasPurchase Agreements. We have entered into market-based natural gaspurchase agreements with the Partnership. These agreements have an initial termof 15 years and automatically extend for a term of five years, unless theagreements are otherwise terminated by either party. Furthermore, either partymay elect to terminate the agreements if either party ceases to be one of ouraffiliates. In addition, we manage the Partnership’s natural gas sales to thirdparties under contracts that remain in the name of thePartnership.

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Table of Contents

| Item 14.Principal Accountant Fees andServices |
|----------------------------------------------------|

|                    |   | Year Ended December 31, |    |
|-------------------------|--------|-------------------------|---------|
|                    |   | 2008                    |    |   | 2007 |   |
|                    |   | (In      thousands)     |    |
| Audit      Fees (1)     |   | $                       | 5,129.1 |   |   | $ | 6,707.7 |   |
| Tax      Fees (2)       |   |                    | 534.2   |   |   |   | 303.8 |   |
| All      Other Fees (3) |   |                    | 7.2     |   |   |   | 4.3 |   |
|                    |   | $                       | 5,670.5 |   |   | $ | 7,015.8 |   |

| (1)   | Audit      fees represent amounts billed for each of the years presented for      professional services rendered in connection with (i) the audit of      our annual financial statements, (ii) the review of our quarterly      financial statements or (iii) those services normally provided in      connection with statutory and regulatory filings or engagements including      comfort letters, consents and other services related to SEC matters. This      information is presented as of the latest practicable date for this Annual      Report on Form 10-K. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Tax      fees represent amounts we were billed in each of the years presented for      professional services rendered in connection with tax compliance, tax      advice, and tax planning. This category primarily includes services      relating to the preparation of unitholder annual K-1 statements      regarding the Partnership. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | All      other fees represent amounts we were billed in each of the years presented      for services not classifiable under the other categories listed in the      table above. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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PART IV

|  Item 15.Exhibits      and Financial StatementSchedules |
|-------------------------------------------------------------------|

| 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 October 31, 2005 among Targa Resources, Inc., Targa Resources      Finance Corporation, the Guarantors named therein and Wells Fargo Bank,      National Association (incorporated by reference to Exhibit 4.3 to Targa      Resources, Inc.’s Registration Statement on Form S-4 filed October 31,      2007 (File No. 333-147066)). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Supplemental      Indenture dated October 31, 2008, among Targa Permian Intrastate LLC, a      subsidiary of Targa Resources, Inc., Targa Resources Finance Corporation,      the other Subsidiary Guarantors and Wells Fargo Bank, National      Association. (incorporated by reference to Exhibit 4.1 to Targa Resources,      Inc.’s Quarterly Report on Form 10-Q filed November 12. 2008 (File No.      333-147066)). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3* | Supplemental      Indenture dated February 14, 2007, among Targa Resources GP LLC, a      subsidiary of Targa Resources, Inc., Targa Resources Finance Corporation,      the other Subsidiary Guarantors and Wells Fargo Bank, National      Association. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4* | Supplemental      Indenture dated March 15, 2006, among Targa LSNG GP LLC and Targa LSNG LP,      subsidiaries of Targa Resources, Inc., Targa Resources Finance      Corporation, the other Subsidiary Guarantors and Wells Fargo Bank,      National Association. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5* | Supplemental      Indenture dated December 22, 2005, among Targa GP Inc., Targa LP Inc.,      Targa North Texas GP LLC, Targa Versado GP LLC, Targa Straddle GP LLC,      Targa Permian GP LLC, Targa Downstream GP LLC, Targa North Texas LP, Targa      Versado LP, Targa Straddle LP, Targa Permian LP, and Targa Downstream LP,      subsidiaries of Targa Resources, Inc., Targa Resources Finance      Corporation, the other Subsidiary Guarantors and Wells Fargo Bank,      National Association. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 4.6* | Supplemental      Indenture dated December 14, 2005, among Targa Gas Marketing LLC, a      subsidiary of Targa Resources, Inc., Targa Resources Finance Corporation,      the other Subsidiary Guarantors and Wells Fargo Bank, National      Association. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.7 | Registration      Rights Agreement, dated as of October 31, 2005, among Targa Resources,      Inc., Targa Resources Finance Corporation, the Guarantors named therein      and the Initial Purchasers named therein (incorporated by reference to      Exhibit 4.4 to Targa Resources, Inc.’s Registration Statement on Form S-4      filed October 31, 2007 (File No.333-147066)). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.8 | Indenture      dated June 18, 2008, among Targa Resources Partners LP, Targa Resources      Partners Finance Corporation, the Guarantors named therein and U.S. Bank      National Association (incorporated by reference to Exhibit 4.1 to Targa      Resources, Inc.’s Form 10-Q filed August 11, 2008 (File No.      333-147066)). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.9 | Registration      Rights Agreement dated June 18, 2008, among Targa Resources Partners LP,      Targa Resources Partners Finance Corporations, the Guarantors named      therein and the initial purchasers named therein (incorporated by      reference to Exhibit 4.2 to Targa Resources, Inc.’s Quarterly Report on      Form 10-Q filed August 11, 2008 (File No.  333-147066)). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Credit      Agreement dated October 31, 2005 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 10.1 to Targa Resources, Inc.’s Registration      Statement on Form S-4 filed October 31, 2007 (File No.      333-147066)). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Targa      Resources Investments Inc. Amended and Restated Stockholders’ Agreement      dated as of October 31, 2005 (incorporated by reference to Exhibit 10.2 to      Targa Resources, Inc.’s Registration Statement on Form S-4/A filed      December 18, 2007 (File No.333-147066)). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | First      Amendment to Amended and Restated Stockholders’ Agreement, dated January      26, 2006 (incorporated by reference to Exhibit 10.3 to Targa Resources,      Inc.’s Registration Statement on Form S-4/A filed December 18, 2007 (File      No. 333-147066)). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Second      Amendment to Amended and Restated Stockholders’ Agreement dated March 30,      2007 (incorporated by reference to Exhibit 10.4 to Targa Resources, Inc.’s      Registration Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | Third      Amendment to Amended and Restated Stockholders’ Agreement dated      May 1, 2007 (incorporated by reference to Exhibit 10.5 to Targa      Resources, Inc.’s Registration Statement on Form S-4/A filed      December 18, 2007 (File No.333-147066)). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6 | Fourth      Amendment to Amended and Restated Stockholders’ Agreement dated December      7, 2007 (incorporated by reference to Exhibit 10.6 to Targa Resources,      Inc.’s Registration Statement on Form S-4/A filed December 18, 2007 (File      No. 333-147066)). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7+ | Targa      Resources, Inc. 2004 Stock Incentive Plan (incorporated by reference to      Exhibit 10.7 to Targa Resources, Inc.’s Registration Statement on Form      S-4/A filed December 18, 2007 (File No.  333-147066)). |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 10.8+ | Amendment      to and Assumption of Targa Resources, Inc. 2004 Stock Incentive Plan      (incorporated by reference to Exhibit 10.8 to Targa Resources, Inc.’s      Registration Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.9+ | Amendment      to Targa Resources, Inc. 2004 Stock Incentive Plan (as Assumed and      Amended) (incorporated by reference to Exhibit 10.9 to Targa Resources,      Inc.’s Registration Statement on Form S-4/A filed December 18, 2007 (File      No. 333-147066)). |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.10+ | Targa      Resources Investments Inc. 2005 Stock Incentive Plan (incorporated by      reference to Exhibit 10.10 to Targa Resources, Inc.’s Registration      Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11+ | First      Amendment to Targa Resources Investments Inc. 2005 Stock Incentive Plan      (incorporated by reference to Exhibit 10.11 to Targa Resources, Inc.’s      Registration Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12+ | Second      Amendment to Targa Resources Investments Inc. 2005 Stock Incentive Plan      (incorporated by reference to Exhibit 10.12 to Targa Resources, Inc.’s      Registration Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13+ | Form      of Targa Resources Investments Inc. Nonstatutory Stock Option Agreement      (Non-Employee Director) (incorporated by reference to Exhibit 10.13 to      Targa Resources, Inc.’s Registration Statement on Form S-4/A filed      December 18, 2007 (File No.333-147066)). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14+ | Form      of Targa Resources Investments Inc. Nonstatutory Stock Option Agreement      (Non-Director Management and Other Employees) (incorporated by reference      to Exhibit 10.14 to Targa Resources, Inc.’s Registration Statement on Form      S-4/A filed December 18, 2007 (File No.  333-147066)). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15+ | Form      of Targa Resources Investments Inc. Incentive Stock Option Agreement      (incorporated by reference to Exhibit 10.15 to Targa Resources, Inc.’s      Registration Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16+ | Form      of Targa Resources Investments Inc. Restricted Stock Agreement      (incorporated by reference to Exhibit 10.16 to Targa Resources, Inc.’s      Registration Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17+ | Form      of Targa Resources Investments Inc. Restricted Stock Agreement (relating      to preferred stock option exchange for directors) (incorporated by      reference to Exhibit 10.17 to Targa Resources, Inc.’s Registration      Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.18+ | Form      of Targa Resources Investments Inc. Restricted Stock Agreement (relating      to preferred stock option exchange for employees) (incorporated by      reference to Exhibit 10.18 to Targa Resources, Inc.’s Registration      Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.19+ | Targa      Resources, Inc. Bonus Plan (incorporated by reference to Exhibit 10.19 to      Targa Resources, Inc.’s Registration Statement on Form S-4/A filed      December 18, 2007 (File No.333-147066)). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.20+ | Form      of Targa Resources, Inc. Bonus Agreement (for directors) (incorporated by      reference to Exhibit 10.20 to Targa Resources, Inc.’s Registration      Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.21+ | Form      of Targa Resources, Inc. Bonus Agreement (for executives) (incorporated by      reference to Exhibit 10.21 to Targa Resources, Inc.’s Registration      Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 10.22+ | Targa      Resources Investments Inc. Change of Control Executive Officer Severance      Program (incorporated by reference to Exhibit 10.22 to Targa Resources,      Inc.’s Registration Statement on Form S-4/A filed December 18, 2007      (File No. 333-147066)). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23+ | Targa      Resources, Inc. 2008 Annual Incentive Plan (incorporated by reference to      Exhibit 10.25 to Targa Resources, Inc.’s Annual Report on Form 10-K filed      March 31, 2008 (File No.333-147006)). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.24+* | Targa      Resources, Inc. 2009 Annual IncentivePlan |
|---------|------------------------------------------------------|

| 10.25+ | Targa      Resources Partners LP Long-Term Incentive Plan (incorporated by reference      to Exhibit 10.25 to Targa Resources, Inc.’s Registration Statement on      Form S-4/A filed December 18, 2007 (File No.  333-147066)). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.26+* | Amendment      to Targa Resources Partners LP Long-Term Incentive Plan dated December 18,      2008. |
|---------|------------------------------------------------------------------------------------------------------|

| 10.27+ | Form      of Restricted Unit Grant Agreement (incorporated by reference to Exhibit      10.26 to Targa Resources, Inc.’s Registration Statement on Form S-4/A      filed December 18, 2007 (File No.333-147066)). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.28+ | Targa      Resources Investments Inc. Long-Term Incentive Plan (incorporated by      reference to Exhibit 10.27 to Targa Resources, Inc.’s Registration      Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.29+ | Form      of Performance Unit Grant Agreement (incorporated by reference to Exhibit      10.2 .to      Targa Resources, Inc.’s Current Report on Form 8-K filed January 28, 2009      (File No. 333-147066)). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.30 | Credit      Agreement, dated February 14, 2007, by and among Targa Resources Partners      LP, as Borrower, Bank of America, N.A., as Administrative Agent, Wachovia      Bank, N.A., as Syndication Agent, Merrill Lynch Capital, Royal Bank of      Canada and The Royal Bank of Scotland PLC, as Co-Documentation Agents, and      the other lenders part thereto (incorporated by reference to Exhibit 10.29      to Targa Resources, Inc.’s Registration Statement on Form S-4/A filed      December 18, 2007 (File No.333-147066)). |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.31 | First      Amendment to Credit Agreement dated October 24, 2007 by and among Targa      Resources Partners LP, as Borrower, Bank of America, N.A., as      Administrative Agent, Collateral Agent, Swing Line Lender and L/C Issuer      and the other lenders party thereto (incorporated by reference to Exhibit      10.30 to Targa Resources, Inc.’s Registration Statement on Form S-4/A      filed December 18, 2007 (File No.333-147066)). |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.32 | Commitment      Increase Supplement made as of October 24, 2007 by and among Targa      Resources Partners LP, Bank of America, N.A., as Administrative Agent,      Collateral Agent, Swing Line Lender and L/C Issuer and the other parties      thereto (incorporated by reference to Exhibit 10.31 to Targa Resources,      Inc.’s Registration Statement on Form S-4/A filed December 18, 2007 (File      No. 333-147066)). |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.33 | Commitment      Increase Supplement, dated June 18, 2008, by and among Targa Resources      Partners LP, Bank of America, N.A. and other parties signatory thereto      (incorporated by reference to Exhibit 10.1 to Targa Resources, Inc.’s      Quarterly Report on Form 10-Q filed August 11, 2008 (File No.      333-147066)). |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.34* | Amended      and Restated Omnibus Agreement, dated October 24, 2007, by and among Targa      Resources Partners LP, Targa Resources, Inc., Targa Resources LLC and      Targa Resources GP LLC. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.1* | Subsidiaries      of Targa Resources, Inc. |
|-------|--------------------------------------------|

| 31.1* | Certification of the Chief Executive      Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange      Act of 1934. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------|

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| 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 of2002. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 of2002. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | +      Management contract or compensation plan or  arrangement. |
|--------|------------------------------------------------------------------|

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

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

|                                   |   |                                                                                            |
|----------------------------------------|--------|-------------------------------------------------------------------------------------------------|
| Targa      Resources, Inc.(Registrant) |
|                                   |   |
| By:                                    |   | /s/    JEFFREY J. MCPARLAND         |
|                                   |   | Jeffrey      J. McParland                                                                       |
|                                   |   | Executive      Vice President                                                                   |
|                                   |   | and      Chief Financial Officer                                                                |
|                                   |   | (Principal      Financial Officer)                                                              |

|                                                                                                                     |         |                                                                                         |
|--------------------------------------------------------------------------------------------------------------------------|--------------|----------------------------------------------------------------------------------------------|
| Signature                                                                                                                |    | Title                                                                                        |
|                                                                                                                     |         |
| /s/    RENE R. JOYCE        Rene      R. Joyce               |    | Chief      Executive Officer and Director (Principal Executive      Officer)            |
|                                                                                                                     |         |
| /s/    JEFFREY J. MCPARLAND        Jeffrey      J. McParland |    | Executive      Vice President and Chief Financial Officer (Principal Financial      Officer) |
|                                                                                                                     |         |
| /s/    JOHN ROBERT SPARGER        John      Robert Sparger   |    | Senior      Vice President and Chief Accounting Officer (Principal Accounting      Officer)  |
|                                                                                                                     |         |
| /s/    CHARLES R. CRISP        Charles      R. Crisp         |    | Director                                                                                     |
|                                                                                                                     |         |
| /s/    JOE B. FOSTER        Joe      B. Foster               |    | Director                                                                                     |
|                                                                                                                     |         |
| /s/    IN SEON HWANG        In      Seon Hwang               |    | Director                                                                                     |
|                                                                                                                     |         |
| /s/    CHANSOO JOUNG        Chansoo      Joung               |    | Director                                                                                     |
|                                                                                                                     |         |
| /s/    PETER R. KAGAN        Peter      R. Kagan             |    | Director                                                                                     |
|                                                                                                                     |         |
| /s/    CHRIS TONG        Chris      Tong                     |    | Director                                                                                     |
|                                                                                                                     |         |
| /s/    JAMES W. WHALEN        James      W. Whalen           |    | Director                                                                                     |

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TARGA RESOURCES, INC. INDEX TO FINANCIALSTATEMENTS

|                                                                                                                           |         |
|--------------------------------------------------------------------------------------------------------------------------------|--------------|
| Report of Independent Registered Public Accounting      Firm                                                                   |    | F-2 |
|                                                                                                                           |         |
| Consolidated Balance Sheets as of December 31, 2008 and      2007                                                         |    | F-3 |
|                                                                                                                           |         |
| Consolidated Statements of Operations for the Years Ended      December 31, 2008, 2007 and 2006                           |    | F-4 |
|                                                                                                                           |         |
| Consolidated Statements of Comprehensive Income (Loss) for the      Years Ended December 31, 2008, 2007 and 2006          |    | F-5 |
|                                                                                                                           |         |
| Consolidated Statement of Changes in Stockholder’s Equity for      the Years Ended December 31, 2008, 2007 and 2006 |    | F-6 |
|                                                                                                                           |         |
| Consolidated Statements of Cash Flows for the Years Ended      December 31, 2008, 2007 and 2006                           |    | F-7 |
|                                                                                                                           |         |
| Notes to Consolidated Financial Statements                                                                                     |    | F-8 |
| Note 1 – Organization and Operations                                                                                     |         | F-8 |
| Note 2 – Accounting Policies and Related      Matters                                                                    |         | F-8 |
| Note 3 – Inventory                                                                                                       |         | F-15 |
| Note 4 – Partnership Units and Related    Matters                                                                        |         | F-15 |
| Note 5 – Property, Plant and Equipment                                                                                   |         | F-16 |
| Note 6 – Fair Value Measurements                                                                                         |         | F-17 |
| Note 7 – Investment in Debt Securities of Targa      Investments                                                         |         | F-18 |
| Note 8 – Unconsolidated    Investments                                                                                   |         | F-18 |
| Note 9 – Asset Retirement Obligations                                                                                    |         | F-19 |
| Note 10 – Debt Obligations                                                                                               |         | F-20 |
| Note 11 – Insurance Claims                                                                                               |         | F-26 |
| Note 12 – Stock and Other Compensation    Plans                                                                          |         | F-27 |
| Note 13 – Derivative Instruments and Hedging      Activities                                                             |         | F-29 |
| Note 14 – Income Taxes                                                                                                   |         | F-34 |
| Note 15 – Commitments and      Contingencies                                                                             |         | F-36 |
| Note 16 – Related-Party Transactions                                                                                     |         | F-37 |
| Note 17 – Fair Value of Financial      Instruments                                                                       |         | F-40 |
| Note 18 – Supplemental Cash Flow      Information                                                                        |         | F-40 |
| Note 19 – Segment Information                                                                                            |         | F-40 |
| Note 20 – Significant Risks and      Uncertainties                                                                       |         | F-43 |
| Note 21 – Consolidating Financial      Statements                                                                        |         | F-44 |

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 Reportof Independent Registered Public Accounting Firm

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| TARGA RESOURCES, INC.                                                                                 |   |
|-------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                           |   |
|                                                                                                  |   | December      31, |   |
|                                                                                                  |   | 2008 |   |   | 2007 |   |
|                                                                                                  |   | (In      thousands) |   |
| ASSETS                                                                                                |   |
| Current      assets:                                                                                  |   |   |   |   |   |   |
|  Cash      and cash equivalents                                                                  |   | $ | 362,769 |   |   | $ | 177,949 |   |
|  Trade      receivables, net of allowances of   $9,380      and  $1,115 |   |   | 303,904 |   |   |   | 836,044 |   |
|  Inventory                                                                                       |   |   | 68,519 |   |   |   | 143,185 |   |
|  Deferred      income taxes                                                                      |   |   | - |   |   |   | 25,071 |   |
|  Assets      from risk management activities                                                     |   |   | 112,341 |   |   |   | 9,487 |   |
|  Other      current assets                                                                       |   |   | 9,615 |   |   |   | 70,640 |   |
|  Total      current assets                                                                       |   |   | 857,148 |   |   |   | 1,262,376 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Property,      plant and equipment, at cost                                                           |   |   | 3,093,264 |   |   |   | 2,764,230 |   |
| Accumulated      depreciation                                                                         |   |   | (475,895 | ) |   |   | (334,160 | ) |
|  Property,      plant and equipment, net                                                         |   |   | 2,617,369 |   |   |   | 2,430,070 |   |
| Unconsolidated      investments                                                                       |   |   | 18,465 |   |   |   | 48,005 |   |
| Long-term      assets from risk management activities                                                 |   |   | 89,774 |   |   |   | 4,279 |   |
| Investment      in debt obligations of Targa Resources Investments Inc.                               |   |   | 10,953 |   |   |   | - |   |
| Other      assets                                                                                     |   |   | 54,868 |   |   |   | 45,235 |   |
|  Total      assets                                                                               |   | $ | 3,648,577 |   |   | $ | 3,789,965 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDER'S EQUITY                                                             |   |
| Current      liabilities:                                                                             |   |   |   |   |   |   |   |   |
| Accounts      payable                                                                                 |   |   | 153,756 |   |   | $ | 470,860 |   |
| Accrued      liabilities                                                                              |   |   | 253,384 |   |   |   | 379,245 |   |
| Current      maturities of debt                                                                       |   |   | 12,500 |   |   |   | 12,500 |   |
| Liabilities      from risk management activities                                                      |   |   | 11,664 |   |   |   | 75,568 |   |
| Deferred      income taxes                                                                            |   |   | 36,240 |   |   |   | - |   |
|  Total      current liabilities                                                                  |   |   | 467,544 |   |   |   | 938,173 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Long-term      debt, less current maturities                                                          |   |   | 1,552,440 |   |   |   | 1,398,475 |   |
| Long-term      liabilities from risk management activities                                            |   |   | 9,679 |   |   |   | 81,019 |   |
| Deferred      income taxes                                                                            |   |   | 40,027 |   |   |   | 29,501 |   |
| Other      long-term obligations                                                                      |   |   | 49,638 |   |   |   | 35,267 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Minority      interest                                                                                |   |   | 126,685 |   |   |   | 100,826 |   |
| Non-controlling      interest in Targa Resources Partners LP                                          |   |   | 822,923 |   |   |   | 714,300 |   |
| Commitments      and contingencies (see Note 15)                                                      |   |   |   |   |   |   |   |   |
| Stockholder's      equity:                                                                            |   |   |   |   |   |   |   |   |
| Common      stock ($0.001 par value, 1,000 shares authorized, issued,                                 |   |   |   |   |   |   |   |   |
| and      outstanding at December 31, 2008 and 2007,                                                   |   |   |   |   |   |   |   |   |
| collateral      for Targa Resources Investments Inc. debt, see Note 10)                               |   |   | - |   |   |   | - |   |
| Additional      paid-in capital                                                                       |   |   | 420,067 |   |   |   | 473,784 |   |
| Retained      earnings                                                                                |   |   | 127,640 |   |   |   | 74,736 |   |
| Accumulated      other comprehensive income (loss)                                                    |   |   | 31,934 |   |   |   | (56,116 | ) |
| Total      stockholder's equity                                                                       |   |   | 579,641 |   |   |   | 492,404 |   |
| Total      liabilities and stockholder's equity                                                       |   | $ | 3,648,577 |   |   | $ | 3,789,965 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements                                                   |   |

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| TARGA RESOURCES, INC.                                        |   |
|--------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                        |   |
|                                                         |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |
|                                                         |   | Year Ended December 31, |   |
|                                                         |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                         |   | (In      thousands) |   |
|                                                         |   |   |   |   |   |   |   |   |   |
| Revenues                                                     |   | $ | 7,970,167 |   |   | $ | 7,269,660 |   |   | $ | 6,132,881 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs      and expenses:                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Product      purchases                                       |   |   | 7,189,811 |   |   |   | 6,497,983 |   |   |   | 5,440,832 |   |
| Operating      expenses                                      |   |   | 275,202 |   |   |   | 247,066 |   |   |   | 224,169 |   |
| Depreciation      and amortization expense                   |   |   | 160,948 |   |   |   | 148,101 |   |   |   | 149,687 |   |
| General      and administrative expense                      |   |   | 95,898 |   |   |   | 96,053 |   |   |   | 82,182 |   |
| Casualty      loss                                           |   |   | 19,310 |   |   |   | - |   |   |   | - |   |
| Loss      (gain) on sale of assets                           |   |   | (5,936 | ) |   |   | (99 | ) |   |   | 169 |   |
|                                                         |   |   | 7,735,233 |   |   |   | 6,989,104 |   |   |   | 5,897,039 |   |
| Income      from operations                                  |   |   | 234,934 |   |   |   | 280,556 |   |   |   | 235,842 |   |
| Other      income (expense):                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense, net                                   |   |   | (102,030 | ) |   |   | (142,632 | ) |   |   | (180,189 | ) |
| Equity      in earnings of unconsolidated investments        |   |   | 14,039 |   |   |   | 10,108 |   |   |   | 9,968 |   |
| Gain      on insurance claims                                |   |   | 18,566 |   |   |   | - |   |   |   | - |   |
| Gain      on debt extinguishment                             |   |   | 13,061 |   |   |   | - |   |   |   | - |   |
| Loss      on mark-to-market derivative instruments           |   |   | (1,311 | ) |   |   | - |   |   |   | - |   |
| Minority      interest                                       |   |   | (33,110 | ) |   |   | (28,713 | ) |   |   | (25,998 | ) |
| Non-controlling      interest in Targa Resources Partners LP |   |   | (64,916 | ) |   |   | (19,416 | ) |   |   | - |   |
| Income      before income taxes                              |   |   | 79,233 |   |   |   | 99,903 |   |   |   | 39,623 |   |
| Income      tax expense:                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                      |   |   | (1,245 | ) |   |   | (175 | ) |   |   | (34 | ) |
| Deferred                                                     |   |   | (25,084 | ) |   |   | (31,156 | ) |   |   | (16,175 | ) |
|                                                         |   |   | (26,329 | ) |   |   | (31,331 | ) |   |   | (16,209 | ) |
| Net      income                                              |   | $ | 52,904 |   |   | $ | 68,572 |   |   | $ | 23,414 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements          |   |

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| TARGA RESOURCES, INC.                                       |   |
|-------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME      (LOSS) |   |
|                                                        |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |
|                                                        |   | Year Ended December 31, |   |
|                                                        |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                        |   | (In      thousands) |   |
|                                                        |   |   |   |   |   |   |
| Net      income                                             |   | $ | 52,904 |   |   | $ | 68,572 |   |   | $ | 23,414 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income (loss):                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity      hedging contracts:                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in non-controlling partners' share of other     |   |   |   |   |   |   |   |   |   |   |   |   |
| comprehensive      income of Targa Resources Partners LP    |   |   | 120,343 |   |   |   | 54,415 |   |   |   | - |   |
| Change      in fair value                                   |   |   | (34,123 | ) |   |   | (200,821 | ) |   |   | 120,283 |   |
| Reclassification      adjustment for settled periods        |   |   | 65,125 |   |   |   | (4,126 | ) |   |   | (31,243 | ) |
| Related      income taxes                                   |   |   | (54,892 | ) |   |   | 58,594 |   |   |   | (35,376 | ) |
| Interest      rate swaps:                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in non-controlling partners' share of other     |   |   |   |   |   |   |   |   |   |   |   |   |
| comprehensive      income of Targa Resources Partners LP    |   |   | (12,019 | ) |   |   | 906 |   |   |   | - |   |
| Change      in fair value                                   |   |   | 5,002 |   |   |   | (473 | ) |   |   | 2,606 |   |
| Reclassification      adjustment for settled periods        |   |   | 2,693 |   |   |   | (2,191 | ) |   |   | (1,005 | ) |
| Related      income taxes                                   |   |   | 1,463 |   |   |   | 699 |   |   |   | (639 | ) |
| Available      for sale securities:                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in fair value                                   |   |   | (6,700 | ) |   |   | - |   |   |   | - |   |
| Related      income taxes                                   |   |   | 2,286 |   |   |   | - |   |   |   | - |   |
| Foreign      currency items:                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation adjustment                |   |   | (1,820 | ) |   |   | 1,925 |   |   |   | 59 |   |
| Related      income taxes                                   |   |   | 692 |   |   |   | (727 | ) |   |   | (21 | ) |
| Other      comprehensive income (loss)                      |   |   | 88,050 |   |   |   | (91,799 | ) |   |   | 54,664 |   |
| Comprehensive      income (loss)                            |   | $ | 140,954 |   |   | $ | (23,227 | ) |   | $ | 78,078 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements         |   |

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| TARGA RESOURCES, INC.                                          |   |
|----------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDER'S      EQUITY |   |
|                                                           |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                           |   |   |   |   |   |   | Additional |   |   |   |   | Other |   |   |   |   |
|                                                           |   | Common Stock |   | Paid-in |   | Retained |   |   | Comprehensive |   |   |   |   |
|                                                           |   | Shares |   | Amount |   | Capital |   | Earnings (Deficit) |   |   | Income (Loss) |   |   | Total |   |
|                                                           |   | (In      thousands) |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2005                                |   |   | 1 |   |   | $ | - |   | $ | 470,608 |   | $ | (17,250 | ) |   | $ | (18,981 | ) |   | $ | 434,377 |   |
| Distributions      to parent                                   |   |   | - |   |   |   | - |   |   | (969 | ) |   | - |   |   |   | - |   |   |   | (969 | ) |
| Tax      benefit on vesting of common stock                    |   |   | - |   |   |   | - |   |   | 7 |   |   | - |   |   |   | - |   |   |   | 7 |   |
| Contribution      of noncash compensation                      |   |   | - |   |   |   | - |   |   | 2,777 |   |   | - |   |   |   | - |   |   |   | 2,777 |   |
| Other      comprehensive income                                |   |   | - |   |   |   | - |   |   | - |   |   | - |   |   |   | 54,664 |   |   |   | 54,664 |   |
| Net      income                                                |   |   | - |   |   |   | - |   |   | - |   |   | 23,414 |   |   |   | - |   |   |   | 23,414 |   |
| Balance,      December 31, 2006                                |   |   | 1 |   |   |   | - |   |   | 472,423 |   |   | 6,164 |   |   |   | 35,683 |   |   |   | 514,270 |   |
| Distributions      to parent                                   |   |   | - |   |   |   | - |   |   | (991 | ) |   | - |   |   |   | - |   |   |   | (991 | ) |
| Contribution      of noncash compensation                      |   |   | - |   |   |   | - |   |   | 2,040 |   |   | - |   |   |   | - |   |   |   | 2,040 |   |
| Tax      benefit on vesting of common stock                    |   |   | - |   |   |   | - |   |   | 312 |   |   | - |   |   |   | - |   |   |   | 312 |   |
| Other      comprehensive loss                                  |   |   | - |   |   |   | - |   |   | - |   |   | - |   |   |   | (91,799 | ) |   |   | (91,799 | ) |
| Net      income                                                |   |   | - |   |   |   | - |   |   | - |   |   | 68,572 |   |   |   | - |   |   |   | 68,572 |   |
| Balance,      December 31, 2007                                |   |   | 1 |   |   |   | - |   |   | 473,784 |   |   | 74,736 |   |   |   | (56,116 | ) |   |   | 492,404 |   |
| Distributions      to parent                                   |   |   | - |   |   |   | - |   |   | (53,861 | ) |   | - |   |   |   | - |   |   |   | (53,861 | ) |
| Amortization      of equity awards                             |   |   | - |   |   |   | - |   |   | 1,191 |   |   | - |   |   |   | - |   |   |   | 1,191 |   |
| Tax      expense on vesting of common stock                    |   |   | - |   |   |   | - |   |   | (1,047 | ) |   | - |   |   |   | - |   |   |   | (1,047 | ) |
| Other      comprehensive income                                |   |   | - |   |   |   | - |   |   | - |   |   | - |   |   |   | 88,050 |   |   |   | 88,050 |   |
| Net      income                                                |   |   | - |   |   |   | - |   |   | - |   |   | 52,904 |   |   |   | - |   |   |   | 52,904 |   |
| Balance,      December 31, 2008                                |   |   | 1 |   |   | $ | - |   | $ | 420,067 |   | $ | 127,640 |   |   | $ | 31,934 |   |   | $ | 579,641 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      notes to consolidated financial statements            |   |

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| TARGA RESOURCES, INC.                                                                      |   |
|--------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                      |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |
|                                                                                       |   | Year Ended December 31, |   |
|                                                                                       |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                                       |   | (In      thousands) |   |
| Cash      flows from operating activities                                                  |   |   |   |   |   |   |   |   |   |
| Net      income                                                                            |   | $ | 52,904 |   |   | $ | 68,572 |   |   | $ | 23,414 |   |
| Adjustments      to reconcile net income to net cash provided                              |   |   |   |   |   |   |   |   |   |   |   |   |
| by      operating activities:                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization      in interest expense                                                      |   |   | 8,351 |   |   |   | 12,872 |   |   |   | 13,001 |   |
| Interest      income on paid-in-kind investment                                            |   |   | (953 | ) |   |   | - |   |   |   | - |   |
| Amortization      in general and administrative expense                                    |   |   | 1,471 |   |   |   | 2,220 |   |   |   | 2,777 |   |
| Depreciation      and amortization expense                                                 |   |   | 160,948 |   |   |   | 148,101 |   |   |   | 149,687 |   |
| Accretion      of asset retirement obligations                                             |   |   | 1,943 |   |   |   | 987 |   |   |   | 888 |   |
| Deferred      income tax expense                                                           |   |   | 25,084 |   |   |   | 31,156 |   |   |   | 16,175 |   |
| Equity      in earnings of unconsolidated investments, net of      distributions           |   |   | (9,389 | ) |   |   | (6,233 | ) |   |   | (7,662 | ) |
| Minority      interest expense, net of distributions                                       |   |   | (1,485 | ) |   |   | (702 | ) |   |   | (11,186 | ) |
| Non-controlling      interest in the Partnership, net of income distributions              |   |   | 989 |   |   |   | - |   |   |   | - |   |
| Risk      management activities                                                            |   |   | (64,532 | ) |   |   | (39,024 | ) |   |   | (24,618 | ) |
| Loss      (gain) on sale of assets                                                         |   |   | (5,936 | ) |   |   | (99 | ) |   |   | 169 |   |
| Gain      on debt extinguishment                                                           |   |   | (13,061 | ) |   |   | - |   |   |   | - |   |
| Gain      on property damage insurance settlement (See Note 11)                            |   |   | (18,566 | ) |   |   | - |   |   |   | - |   |
| Asset      impairment charges                                                              |   |   | 5,112 |   |   |   | - |   |   |   | - |   |
| Changes      in operating assets and liabilities, net of assets    acquired:               |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable and other assets                                                  |   |   | 601,652 |   |   |   | (335,754 | ) |   |   | (2,912 | ) |
| Inventory                                                                                  |   |   | 72,826 |   |   |   | (26,229 | ) |   |   | 36,510 |   |
| Accounts      payable and other liabilities                                                |   |   | (516,696 | ) |   |   | 286,735 |   |   |   | 37,043 |   |
|    Net      cash provided by operating activities                           |   |   | 300,662 |   |   |   | 142,602 |   |   |   | 233,286 |   |
| Cash      flows from investing activities                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|     Purchases      of property, plant and equipment                    |   |   | (132,289 | ) |   |   | (118,421 | ) |   |   | (136,325 | ) |
|     Acquisitions,      net of cash acquired                            |   |   | (124,938 | ) |   |   | - |   |   |   | (340 | ) |
|     Proceeds      from property insurance                              |   |   | 48,294 |   |   |   | 24,900 |   |   |   | 27,221 |   |
|     Investment      in debt obligations of Targa Investments           |   |   | (16,400 | ) |   |   | - |   |   |   | - |   |
|     Investment      in unconsolidated affiliates                       |   |   | - |   |   |   | (4,648 | ) |   |   | (9,102 | ) |
|     Other                                                              |   |   | 2,201 |   |   |   | 2,280 |   |   |   | 734 |   |
|    Net      cash used in investing activities                               |   |   | (223,132 | ) |   |   | (95,889 | ) |   |   | (117,812 | ) |
| Cash      flows from financing activities                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|     Senior      secured credit agreement:                              |   |   |   |   |   |   |   |   |   |   |   |   |
|    Borrowings      under credit facility                                    |   |   | 95,920 |   |   |   | - |   |   |   | - |   |
|    Repayments      of senior secured debt                                   |   |   | (12,500 | ) |   |   | (1,399,700 | ) |   |   | (12,500 | ) |
|     Senior      secured credit facility of the Partnership:            |   |   |   |   |   |   |   |   |   |   |   |   |
|    Borrowings                                                               |   |   | 185,265 |   |   |   | 721,300 |   |   |   | - |   |
|    Repayments                                                               |   |   | (323,800 | ) |   |   | (95,000 | ) |   |   | - |   |
|     Proceeds      from issuance of senior notes of the Partnership     |   |   | 250,000 |   |   |   | - |   |   |   | - |   |
| Repurchases      of senior notes of the Partnership                                        |   |   | (26,832 | ) |   |   | - |   |   |   | - |   |
|     Distribution      to non-controlling interest in the Partnership   |   |   |   |   |   |   |   |   |   |   |   |   |
|        in      excess of cumulative earnings            |   |   | - |   |   |   | (1,455 | ) |   |   | - |   |
|     Contribution      from non-controlling interest in the Partnership |   |   | - |   |   |   | 771,834 |   |   |   | - |   |
| Contribution      from minority interest                                                   |   |   | 300 |   |   |   | - |   |   |   | - |   |
|     Distribution      to Targa Resources Investments Inc.              |   |   | (53,861 | ) |   |   | (991 | ) |   |   | (969 | ) |
|     Costs      incurred in connection with financing arrangements:     |   |   | (7,202 | ) |   |   | (7,491 | ) |   |   | (693 | ) |
|    Net      cash provided by (used in) financing activities                 |   |   | 107,290 |   |   |   | (11,503 | ) |   |   | (14,162 | ) |
| Net      increase in cash and cash equivalents                                             |   |   | 184,820 |   |   |   | 35,210 |   |   |   | 101,312 |   |
| Cash      and cash equivalents, beginning of year                                          |   |   | 177,949 |   |   |   | 142,739 |   |   |   | 41,427 |   |
| Cash      and cash equivalents, end of year                                                |   | $ | 362,769 |   |   | $ | 177,949 |   |   | $ | 142,739 |   |
| See      notes to consolidated financial statements                                        |   |

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NOTES 

Note 1

Note 2

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|                               |   | Year Ended December 31, |   |
|------------------------------------|--------|-------------------------|--------|
|                               |   | 2008                    |   |   | 2007 |   |   | 2006 |   |
|                               |   | (In      thousands)     |   |
| Balance      at beginning of year  |   | $                       | 1,115  |   |   | $ | 781 |   |   | $ | 1,641 |   |
| Additions                          |   |                    | 8,226  |   |   |   | 415 |   |   |   | 546 |   |
| Acquisition-related      additions |   |                    | 39     |   |   |   | - |   |   |   | - |   |
| Deductions                         |   |                    | -      |   |   |   | (81 | ) |   |   | (1,406 | ) |
| Balance      at end of year        |   | $                       | 9,380  |   |   | $ | 1,115 |   |   | $ | 781 |   |

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|                                      |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| %      of consolidated revenues:          |   |   |   |   |   |   |   |   |   |
| Chevron      and CPC                      |   |   | 22     | %      |   |   | 26     | %      |   |   | 28 | % |
| %      of consolidated product purchases: |   |   |   |   |   |   |   |   |   |   |   |   |
| Chevron      and CPC                      |   |   | 9      | %      |   |   | 13     | %      |   |   | 20 | % |

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| Asset Group                                                                 |   | Range      of Years |   |
|-----------------------------------------------------------------------------|--------|---------------------|--------|
| Natural      gas gathering systems and processing facilities                |   | 15      to 25       |   |
| Fractionation,      terminalling and natural gas liquids storage facilities |   |                | 25     |   |
| Transportation      assets                                                  |   | 5      to 10        |   |
| Other      property and equipment                                           |   | 3      to 7         |   |

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| ·   | sales      of natural gas, NGLs andcondensate; |
|--------------------|------------------------------------------------|

| ·   | natural      gas processing, from which we generate revenues through the compression,      gathering, treating, and processing of natural gas;  and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | fractionation,      storage, terminalling and transportation of NGLs, from which we generate      fee-based revenue. |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

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Note 3

|                        |   | December 31,        |   |
|-----------------------------|--------|---------------------|--------|
|                        |   | 2008                |   |   | 2007 |   |
|                        |   | (In      thousands) |   |
| Natural      gas and NGL    |   | $                   | 67,833 |   |   | $ | 142,650 |   |
| Materials      and supplies |   |                | 686    |   |   |   | 535 |   |
|                        |   | $                   | 68,519 |   |   | $ | 143,185 |   |

Note 4

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|                      |   |                   |   | Distributions Paid                           |   |   | Distributions |   |
|---------------------------|--------|------------------------|--------|----------------------------------------------|--------|--------|---------------|--------|
|                      |   |                   |   | Common                                       |   |   | Subordinated  |   |   | General Partner |   |   |   |   |   | per      limited |   |
|   Date Declared |   | Date Paid              |   | Units                                        |   |   | Units         |   |   | Incentive |   |   |   | 2 | % |   | Total |   |   | partner unit |   |
|                      |   |                   |   | (In      thousands, except per unit amounts) |   |
| October      24, 2008     |   | November      14, 2008 |   | $                                            | 17,934 |   |          | $      | 5,966 |   |   | $ | 1,931 |   |   | $ | 527 |   |   | $ | 26,358 |   |   | $ | 0.51750 |   |
| July      23, 2008        |   | August      14, 2008   |   |                                         | 17,759 |   |          |   | 5,908 |   |   |   | 1,711 |   |   |   | 518 |   |   |   | 25,896 |   |   |   | 0.51250 |   |
| April      23, 2008       |   | May      15, 2008      |   |                                         | 14,467 |   |          |   | 4,813 |   |   |   | 208 |   |   |   | 398 |   |   |   | 19,886 |   |   |   | 0.41750 |   |
| January      23, 2008     |   | February      14, 2008 |   |                                         | 13,768 |   |          |   | 4,582 |   |   |   | 66 |   |   |   | 376 |   |   |   | 18,792 |   |   |   | 0.39750 |   |
| October      24, 2007     |   | November      14, 2007 |   |                                         | 11,082 |   |          |   | 3,891 |   |   |   | - |   |   |   | 305 |   |   |   | 15,278 |   |   |   | 0.33750 |   |
| July      24, 2007        |   | August      14, 2007   |   |                                         | 6,526  |   |          |   | 3,890 |   |   |   | - |   |   |   | 212 |   |   |   | 10,628 |   |   |   | 0.33750 |   |
| April      23, 2007       |   | May      15, 2007      |   |                                         | 3,263  |   |          |   | 1,945 |   |   |   | - |   |   |   | 107 |   |   |   | 5,315 |   |   |   | 0.16875 |   |

Note 5

|                                                         |   | December 31,        |      |
|--------------------------------------------------------------|--------|---------------------|-----------|
|                                                         |   | 2008                |      |   | 2007 |   |
|                                                         |   | (In      thousands) |      |
| Natural gas gathering systems                                |   | $                   | 1,513,567 |   |   |   | 1,407,165 |   |
| Processing      and fractionation facilities                 |   |                | 911,389   |   |   |   | 869,416 |   |
| Terminalling      and natural gas liquids storage facilities |   |                | 234,270   |   |   |   | 221,370 |   |
| Transportation      assets                                   |   |                | 264,613   |   |   |   | 150,389 |   |
| Other      property and equipment                            |   |                | 63,131    |   |   |   | 37,087 |   |
| Land                                                         |   |                | 52,207    |   |   |   | 52,130 |   |
| Construction      in progress                                |   |                | 54,087    |   |   |   | 26,673 |   |
|                                                         |   |                | 3,093,264 |   |   |   | 2,764,230 |   |
| Accumulated      depreciation                                |   |                | (475,895  | ) |   |   | (334,160 | ) |
|                                                         |   | $                   | 2,617,369 |   |   | $ | 2,430,070 |   |

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Note 6

|                                                             |   | Total               |    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|------------------------------------------------------------------|--------|---------------------|---------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                                                             |   | (In      thousands) |    |
|  Assets      from commodity derivative contracts            |   | $                   | 202,115 |   |    | $      | -      |    |   | $      | 53,921  |   |   | $ | 148,194 |   |
|  Available-for-sale      securities (1)                     |   |                | 9,700   |   |    |   | -      |    |   |   | -       |   |   |   | 9,700 |   |
|        Total      assets      |   | $                   | 211,815 |   |    | $      | -      |    |   | $      | 53,921  |   |   | $ | 157,894 |   |
|                                                             |   |                |    |   |    |   |   |    |   |   |    |   |   |   |   |   |
|  Liabilities      from commodity derivative contracts       |   | $                   | 3,767   |   |    | $      | -      |    |   | $      | 3,767   |   |   | $ | - |   |
|  Liabilities      from interest rate derivatives            |   |                | 17,576  |   |    |   | -      |    |   |   | 17,576  |   |   |   | - |   |
|        Total      liabilities |   | $                   | 21,343  |   |    | $      | -      |    |   | $      | 21,343  |   |   | $ | - |   |

| (1)   | Excludes      $1.0 million of interest paid in-kind and $0.3 million in discount      amortization. |
|-----------------|-----------------------------------------------------------------------------------------------------|

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|                                                               |   |                |     |   | Available     |   |   |   |   |
|--------------------------------------------------------------------|--------|---------------------|----------|--------|---------------|--------|--------|--------|--------|
|                                                               |   | Derivatives         |     |   | For      Sale |   |   |   |   |
|                                                               |   | Contracts           |     |   | Securities    |   |   | Total  |   |
|                                                               |   | (In      thousands) |     |
|  Balance,      December 31, 2007                              |   | $                   | (124,282 | )      |          | $      | -      |   |   | $ | (124,282 | ) |
|  Total      gains or losses (realized/unrealized)             |   |                |     |   |          |   |   |   |   |   |   |   |
|  Included      in loss on mark-to-market derivatives          |   |                | (1,311   | )      |          |   | -      |   |   |   | (1,311 | ) |
|  Included      in OCI                                         |   |                | 77,344   |   |          |   | (6,700 | )      |   |   | 70,644 |   |
|  Included      in non-controlling interest in the Partnership |   |                | 73,590   |   |          |   | -      |   |   |   | 73,590 |   |
|  Purchases                                                    |   |                | 3,315    |   |          |   | 16,400 |   |   |   | 19,715 |   |
|  Terminations                                                 |   |                | 77,792   |   |          |   | -      |   |   |   | 77,792 |   |
|  Settlements                                                  |   |                | 41,746   |   |          |   | -      |   |   |   | 41,746 |   |
| Balance,      December 31, 2008                                    |   | $                   | 148,194  |   |          | $      | 9,700  |   |   | $ | 157,894 |   |

Note 7

Note 8

|                                              |   | December      31,   |   |
|---------------------------------------------------|--------|---------------------|--------|
|                                              |   | 2008                |   |   | 2007 |   |
|                                              |   | (In      thousands) |   |
| Natural      Gas Gathering and Processing - VESCO |   | $                   | -      |   |   | $ | 28,767 |   |
|                                              |   |                |   |   |   |   |   |   |
| Logistics      Assets - GCF                       |   |                | 18,465 |   |   |   | 19,238 |   |
|                                              |   | $                   | 18,465 |   |   | $ | 48,005 |   |

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|                        |   | Year      Ended December 31, |   |
|-----------------------------|--------|------------------------------|--------|
|                        |   | 2008                         |   |   | 2007 |   |   | 2006 |   |
|                        |   | (In      thousands)          |   |
| Equity      in earnings of: |   |                         |   |   |   |   |   |   |   |
| VESCO      (1)              |   | $                            | 10,161 |   |   | $ | 6,597 |   |   | $ | 7,214 |   |
| GCF                         |   |                         | 3,878  |   |   |   | 3,511 |   |   |   | 2,754 |   |
|                        |   | $                            | 14,039 |   |   | $ | 10,108 |   |   | $ | 9,968 |   |
|                        |   |                         |   |   |   |   |   |   |   |   |   |   |
| Cash      contributions:    |   |                         |   |   |   |   |   |   |   |   |   |   |
| VESCO                       |   | $                            | -      |   |   | $ | 4,648 |   |   | $ | 9,102 |   |
|                        |   |                         |   |   |   |   |   |   |   |   |   |   |
| Cash      distributions:    |   |                         |   |   |   |   |   |   |   |   |   |   |
| GCF                         |   | $                            | 4,650  |   |   | $ | 3,875 |   |   | $ | 2,306 |   |

| (1)   | For      2008, our equity in earnings of VESCO includes only our share of their      results for the seven months ended July 31,  2008. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

Note 9

|                                  |   | Year Ended December 31, |   |
|---------------------------------------|--------|-------------------------|--------|
|                                  |   | 2008                    |   |   | 2007 |   |   | 2006 |   |
|                                  |   | (In      thousands)     |   |
| Beginning      of period              |   | $                       | 12,608 |   |   | $ | 11,621 |   |   | $ | 14,104 |   |
| Liabilities      incurred (1)         |   |                    | 16,932 |   |   |   | - |   |   |   | - |   |
| Liabilities      settled              |   |                    | (230   | ) |   |   | - |   |   |   | (6 | ) |
| Change      in cash flow estimate (2) |   |                    | 2,732  |   |   |   | - |   |   |   | (3,365 | ) |
| Accretion      expense                |   |                    | 1,943  |   |   |   | 987 |   |   |   | 888 |   |
| End      of period                    |   | $                       | 33,985 |   |   | $ | 12,608 |   |   | $ | 11,621 |   |

| (1)   | The      entire amount relates to our consolidation of  VESCO. |
|-----------------|----------------------------------------------------------------|

| (2)   | The      change in cash flow estimate is primarily from a reassessment of      abandonment cost estimates for our offshore gathering    systems. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

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Note 10

|                                                                                     |   | December      31,   |      |
|------------------------------------------------------------------------------------------|--------|---------------------|-----------|
|                                                                                     |   | 2008                |      |   | 2007 |   |
|                                                                                     |   | (In      thousands) |      |
| Long-term      debt:                                                                     |   |                |      |   |   |   |
| Obligations      of Targa:                                                               |   |                |      |   |   |   |
| Senior      secured term loan facility, variable rate, due October2012                   |   | $                   | 522,175   |   |   | $ | 534,675 |   |
| Senior      unsecured notes, 81⁄2% fixed rate, due November 2013                      |   |                | 250,000   |   |   |   | 250,000 |   |
| Senior      secured revolving credit facility, variable rate, due October 2011      (1)  |   |                | 95,920    |   |   |   | - |   |
| Obligations      of the Partnership: (2)                                                 |   |                |      |   |   |   |   |   |
| Senior      secured revolving credit facility, variable rate, due February 2012      (3) |   |                | 487,765   |   |   |   | 626,300 |   |
| Senior      unsecured notes, 81⁄4% fixed rate, due July 2016                          |   |                | 209,080   |   |   |   | - |   |
| Total      debt                                                                          |   |                | 1,564,940 |   |   |   | 1,410,975 |   |
| Current      maturities of debt                                                          |   |                | (12,500   | ) |   |   | (12,500 | ) |
| Total      long-term debt                                                                |   | $                   | 1,552,440 |   |   | $ | 1,398,475 |   |
| Irrevocable      standby letters of credit:                                              |   |                |      |   |   |   |   |   |
| Letters      of credit outstanding under synthetic letter of credit facility      (4)    |   | $                   | 114,019   |   |   | $ | 272,409 |   |
| Letters      of credit outstanding under senior secured revolvingcredit                  |   |                |      |   |   |   |   |   |
| facility      of the Partnership                                                         |   |                | 9,651     |   |   |   | 25,900 |   |
|                                                                                     |   | $                   | 123,670   |   |   | $ | 298,309 |   |

| (1)   | As      of December 31, 2008, we had availability under this facility of $143.9      million, after giving effect to outstanding borrowings of $95.9 million      and the Lehman Commercial Paper Inc. (“Lehman Paper”) default. In October      2008, Lehman Paper, a lender under our senior secured credit facility      (“credit facility”), defaulted on a borrowing request. As a result of the      default, we believe the availability under the facility has been      effectively reduced by $10.2million. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | 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 thePartnership. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | As      of December 31, 2008, availability under the Partnership credit facility      was $342.5 million, after giving effect to outstanding borrowings of      $487.8 million and $9.7 million in outstanding letters of credit and the      Lehman Brothers Commercial Bank (“Lehman Bank”) default. In October 2008,      Lehman Bank, a lender under the Partnership credit facility defaulted on a      borrowing request. As a result of the default, we believe the availability      under the Partnership credit facility has been effectively reduced by      approximately $10.0 million. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | The      $300 million senior secured synthetic letter of credit facility terminates      in October 2012. As of December 31, 2008, we had $186 million available      under this facility. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                             |  Range      of interest ratespaid |   | Weighted      average interest rate      paid |   |
|------------------------------------------------------------------|----------------------------------------|--------|-----------------------------------------------|--------|
| Senior      secured term loan facility                           | 3.5%      to 6.9%                      |   |                                          | 5.9    | % |
| Senior      secured revolving credit facility                    | 2.7%      to 6.2%                      |   |                                          | 4.3    | % |
| Senior      secured revolving credit facility of the Partnership | 1.5%      to 6.4%                      |   |                                          | 4.4    | % |

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|       |   | Targa               |    |   | Partnership |   |    | Total  |   |
|------------|--------|---------------------|---------|--------|-------------|--------|---------|--------|--------|
|       |   | (In      thousands) |    |
| 2009       |   | $                   | 12,500  |   |        | $      | -       |   |   | $ | 12,500 |   |
| 2010       |   |                | 12,500  |   |        |   | -       |   |   |   | 12,500 |   |
| 2011       |   |                | 108,420 |   |        |   | -       |   |   |   | 108,420 |   |
| 2012       |   |                | 484,675 |   |        |   | 487,765 |   |   |   | 972,440 |   |
| 2013       |   |                | 250,000 |   |        |   | -       |   |   |   | 250,000 |   |
| Thereafter |   |                | -       |   |        |   | 209,080 |   |   |   | 209,080 |   |
|       |   | $                   | 868,095 |   |        | $      | 696,845 |   |   | $ | 1,564,940 |   |

| ·   | $1,250 million      senior secured term loan facility; |
|--------------------|-------------------------------------------------------------|

| ·   | $700 million      senior secured asset sale bridge loanfacility; |
|--------------------|-----------------------------------------------------------------------|

| ·   | $250 million      senior secured revolving credit facility (the “credit      facility”); and |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | $300 million      senior secured synthetic letter of credit  facility. |
|--------------------|-----------------------------------------------------------------------------|

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| ·   | 50%      of our annual excess cash flow (which percentage will be reduced to 25% if      our total leverage ratio is no more than 4.00 to 1.00 and to 0% if our      total leverage ratio is no more than 3.00 to 1.00 commencing with the      fiscal year-end December 31,2006); |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 100%      of the net cash proceeds of all non-ordinary course asset sales,      transfers, or other dispositions of property, subject to certain      exceptions; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 100%      of the net cash proceeds of any incurrence of debt, other than debt      permitted under the senior secured credit  agreement. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a      pledge of the capital stock and other equity interests held by us or any      guarantor (except that we will not pledge more than 65% of the voting      stock and other voting equity interests of any foreign      subsidiary); and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a      security interest in, and mortgages on, our and our guarantors’ tangible      and intangible assets. |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | assets      (including equity interests of a subsidiary or other entity) to one or      more master limited partnerships (“MLPs”) and/or one or more subsidiaries      of any MLP; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | equity      interests in an MLP, or, in certain circumstances, the general partner of      an MLP. |
|--------------------|----------------------------------------------------------------------------------------------------|

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| ·   | are      our unsecured senior obligations; |
|--------------------|--------------------------------------------|

| ·   | rank      pari passu in right of payment with all our existing and future senior      indebtedness, including indebtedness under our credit      agreement; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | are      effectively subordinated to all our secured indebtedness to the extent of      the value of the collateral securing such indebtedness, including      indebtedness under the senior secured credit  facilities; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | are      structurally subordinated to all existing and future claims of creditors      (including trade creditors) and holders of preferred stock of our      subsidiaries that do not guarantee theNotes; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | rank      senior in right of payment to any of our future subordinated      indebtedness; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | are      guaranteed on a senior unsecured basis by the subsidiary guarantors that      guarantee the senior secured credit  facilities; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | incur      indebtedness; |
|--------------------|--------------------------|

| ·   | grant      liens; and |
|--------------------|----------------------------|

| ·   | engage      in transactions with affiliates. |
|--------------------|----------------------------------------------|

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

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

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

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

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| (1)   | at      least 65% of the aggregate principal amount of the Notes (excluding Notes      held by the Partnership) remains outstanding immediately after the      occurrence of such redemption; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | the      redemption occurs within 90 days of the date of the closing of such equity      offering. |
|-----------------|----------------------------------------------------------------------------------------------------|

| Year                     |   | Percentage |    |
|--------------------------|--------|------------|---------|
| 2012                     |   |       | 104.125 | % |
| 2013                     |   |       | 102.063 | % |
| 2014      and thereafter |   |       | 100.000 | % |

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Note 11

|                                                              |   | Year Ended December 31, |   |
|-------------------------------------------------------------------|--------|-------------------------|--------|
|                                                              |   | 2008                    |   |   | 2007 |   |   | 2006 |   |
|                                                              |   | (In      thousands)     |   |
| Included      in revenues                                         |   |                    |   |   |   |   |   |   |   |
| Natural      Gas Gathering and Processing (1)                     |   | $                       | 14,269 |   |   | $ | 2,643 |   |   | $ | 3,721 |   |
| Logistics      Assets                                             |   |                    | 2,554  |   |   |   | (32 | ) |   |   | 383 |   |
| NGL      Distribution and Marketing                               |   |                    | 9,577  |   |   |   | 3,834 |   |   |   | 5,505 |   |
| Wholesale      Marketing (1)                                      |   |                    | 6,516  |   |   |   | 826 |   |   |   | 1,110 |   |
|                                                              |   | $                       | 32,916 |   |   | $ | 7,271 |   |   | $ | 10,719 |   |
|                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |
| Included      in equity in earnings of unconsolidated investments |   |                    |   |   |   |   |   |   |   |   |   |   |
| Natural      Gas Gathering and Processing                         |   | $                       | 4,108  |   |   | $ | 3,088 |   |   | $ | 2,856 |   |
|                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |
|                                                              |   | $                       | 37,024 |   |   | $ | 10,359 |   |   | $ | 13,575 |   |

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Note 12

|                                  |   | Number      of Options |      |   | Weighted      Average ExercisePrice |   |  Weighted      Average Remaining Contractual Term(in years) |
|---------------------------------------|--------|------------------------|-----------|--------|-------------------------------------|--------|------------------------------------------------------------------|
| Outstanding      at December 31, 2005 |   |                   | 5,108,114 |   |                                | $      | 7.64                                                             |   |   |
| Granted                               |   |                   | 51,672    |   |                                |   | 8.50                                                             |   |   |
| Forfeited                             |   |                   | (54,474   | )      |                                |   | 8.50                                                             |   |   |
| Outstanding      at December 31, 2006 |   |                   | 5,105,312 |   |                                |   | 7.64                                                             |   |   |
| Granted                               |   |                   | 120,825   |   |                                |   | 6.91                                                             |   |   |
| Exercised                             |   |                   | (135,740  | )      |                                |   | 0.75                                                             |   |   |
| Forfeited                             |   |                   | (28,317   | )      |                                |   | 8.50                                                             |   |   |
| Outstanding      at December 31, 2007 |   |                   | 5,062,080 |   |                                |   | 7.80                                                             |   |   |
| Granted                               |   |                   | 180,000   |   |                                |   | 3.59                                                             |   |   |
| Exercised                             |   |                   | (368,113  | )      |                                |   | 2.41                                                             |   |   |
| Repurchased                           |   |                   | (77,601   | )      |                                |   | 7.80                                                             |   |   |
| Forfeited                             |   |                   | (51,736   | )      |                                |   | 7.80                                                             |   |   |
| Outstanding      at December 31, 2008 |   |                   | 4,744,630 |   |                                |   | 8.06                                                             |   |  6.97 |
| Exercisable      at December 31, 2008 |   |                   | 3,528,284 |   |                                |   | 8.39                                                             |   |  6.89 |

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|                                                  |   | Year ended December 31, |       |
|-------------------------------------------------------|--------|-------------------------|------------|
|                                                  |   | 2008                    |       |   | 2007 |   |   | 2006 |   |
| Outstanding      at beginning of period               |   |                    | 5,467,154  |   |   |   | 4,887,848 |   |   |   | 5,501,132 |   |
| Granted      (1)                                      |   |                    | 20,000     |   |   |   | 1,188,549 |   |   |   | 72,564 |   |
| Vested                                                |   |                    | (4,163,020 | ) |   |   | (609,243 | ) |   |   | (612,799 | ) |
| Forfeited                                             |   |                    | (75,018    | ) |   |   | - |   |   |   | (73,049 | ) |
| Outstanding      at end of period                     |   |                    | 1,249,116  |   |   |   | 5,467,154 |   |   |   | 4,887,848 |   |
| Weighted      average grant date fair value per share |   | $                       | 1.19       |   |   | $ | 1.15 |   |   | $ | 1.16 |   |

| (1)   | On      May 1, 2007, each outstanding option on Targa Investments’ Series B      preferred stock was exchanged for 10 shares of Targa Investments’      non-vested common stock (representing a total of 1,115,500 shares) and the      right to receive a cash payment from Targa Investments of $27.69 on      January 2, 2008. The exchange resulted in no additional compensation      costs. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Note 13

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| Natural      Gas             |   |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |                |   |
|------------------------------|--------|-------------|--------|-----------------|--------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------|--------|
|                         |   |        |   | Avg.      Price |   |   | MMBtu per day |   |   |   |   |
|  Instrument Type        |   |  Index |   | $/MMBtu         |   |   | 2009          |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | Fair Value          |   |
|                         |   |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
|  Natural      Gas Sales |   |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Swap                         |   | IF-Waha     |   |            | 6.62   |   |          |   | 21,918 |   |   |   | -      |   |   |   | -      |   |                |   | - |   |   | $ | 11,010 |   |
| Swap                         |   | IF-Waha     |   |            | 7.40   |   |          |   | -      |   |   |   | 9,300  |   |   |   | -      |   |                |   | - |   |   |   | 3,403 |   |
| Swap                         |   | IF-Waha     |   |            | 7.36   |   |          |   | -      |   |   |   | -      |   |   |   | 5,500  |   |                |   | - |   |   |   | 1,503 |   |
| Swap                         |   | IF-Waha     |   |            | 7.18   |   |          |   | -      |   |   |   | -      |   |   |   | -      |   |                |   | 5,500 |   |   |   | 1,197 |   |
| Total      Sales             |   |        |   |            |   |   |          |   | 21,918 |   |   |   | 9,300  |   |   |   | 5,500  |   |                |   | 5,500 |   |   |   |   |   |
|                         |   |        |   |            |   |   |          |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   | $ | 17,113 |   |

| NGLs                                                                                      |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |                |   |
|-------------------------------------------------------------------------------------------|--------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------------|--------|
|                                                                                      |   |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|         Instrument Type                                                         |   |  Index |   | $/gal           |   |   | 2009            |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | Fair Value          |   |
|                                                                                      |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
|         NGL      Sales                                                          |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Swap                                                                                      |   | OPIS-MB     |   |            | 0.79   |   |            |   | 3,347  |   |   |   | -      |   |   |   | -      |   |                |   | - |   |   | $ | 9,515 |   |
| Swap                                                                                      |   | OPIS-MB     |   |            | 0.87   |   |            |   | -      |   |   |   | 2,750  |   |   |   | -      |   |                |   | - |   |   |   | 7,388 |   |
| Swap                                                                                      |   | OPIS-MB     |   |            | 0.91   |   |            |   | -      |   |   |   | -      |   |   |   | 1,550  |   |                |   | - |   |   |   | 3,971 |   |
|          Swap                                                              |   | OPIS-MB     |   |            | 0.92   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |                |   | 1,250 |   |   |   | 2,999 |   |
|                 Total      Swaps        |   |        |   |            |   |   |            |   | 3,347  |   |   |   | 2,750  |   |   |   | 1,550  |   |                |   | 1,250 |   |   |   |   |   |
|                                                                                      |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   |   |   |   |
|                  Floor             |   | OPIS-MB     |   |            | 1.44   |   |            |   | -      |   |   |   | -      |   |   |   | 54     |   |                |   | - |   |   |   | 490 |   |
|                  Floor             |   | OPIS-MB     |   |            | 1.43   |   |            |   | -      |   |   |   | -      |   |   |   | -      |   |                |   | 63 |   |   |   | 527 |   |
|                  Total      Floors |   |        |   |            |   |   |            |   | -      |   |   |   | -      |   |   |   | 54     |   |                |   | 63 |   |   |   |   |   |
|                  Total      Sales  |   |        |   |            |   |   |            |   | 3,347  |   |   |   | 2,750  |   |   |   | 1,604  |   |                |   | 1,313 |   |   |   |   |   |
|                                                                                      |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |                |   |   |   |   | $ | 24,890 |   |

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Table of Contents

| Natural      Gas             |   |            |   |                        |   |   |                           |   |   |   |   |
|------------------------------|--------|-----------------|--------|-----------------------------|--------|--------|---------------------------|--------|--------|--------|--------|
|                         |   |            |   |        Avg.      Price |   |   |        MMBtu per day |   |   |   |   |
| Instrument Type              |   | Index           |   | $/MMBtu                     |   |   | 2009                      |   |   | 2010   |   |   | 2011 |   |   | 2012 |   |   | Fair Value |   |
|  Natural      Gas Sales |   |            |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
| Swap                         |   | IF-HSC          |   |                        | 7.39   |   |                      |   | 1,966  |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 1,159 |   |
|                         |   |            |   |                        |   |   |                      |   | 1,966  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
|                         |   |            |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Swap                         |   | IF-NGPL      MC |   |                        | 9.18   |   |                      |   | 6,256  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,466 |   |
| Swap                         |   | IF-NGPL      MC |   |                        | 8.86   |   |                      |   | -      |   |   |   | 5,685 |   |   |   | - |   |   |   | - |   |   |   | 5,129 |   |
| Swap                         |   | IF-NGPL      MC |   |                        | 7.34   |   |                      |   | -      |   |   |   | - |   |   |   | 2,750 |   |   |   | - |   |   |   | 843 |   |
| Swap                         |   | IF-NGPL      MC |   |                        | 7.18   |   |                      |   | -      |   |   |   | - |   |   |   | - |   |   |   | 2,750 |   |   |   | 738 |   |
|                         |   |            |   |                        |   |   |                      |   | 6,256  |   |   |   | 5,685 |   |   |   | 2,750 |   |   |   | 2,750 |   |   |   |   |   |
|                         |   |            |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Swap                         |   | IF-Waha         |   |                        | 8.73   |   |                      |   | 6,936  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,627 |   |
| Swap                         |   | IF-Waha         |   |                        | 7.52   |   |                      |   | -      |   |   |   | 5,709 |   |   |   | - |   |   |   | - |   |   |   | 2,294 |   |
| Swap                         |   | IF-Waha         |   |                        | 7.36   |   |                      |   | -      |   |   |   | - |   |   |   | 3,250 |   |   |   | - |   |   |   | 886 |   |
| Swap                         |   | IF-Waha         |   |                        | 7.18   |   |                      |   | -      |   |   |   | - |   |   |   | - |   |   |   | 3,250 |   |   |   | 708 |   |
|                         |   |            |   |                        |   |   |                      |   | 6,936  |   |   |   | 5,709 |   |   |   | 3,250 |   |   |   | 3,250 |   |   |   |   |   |
| Total      Swaps             |   |            |   |                        |   |   |                      |   | 15,158 |   |   |   | 11,394 |   |   |   | 6,000 |   |   |   | 6,000 |   |   |   |   |   |
| Floor                        |   | IF-NGPL      MC |   |                        | 6.55   |   |                      |   | 850    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 574 |   |
|                         |   |            |   |                        |   |   |                      |   | 850    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Floor                        |   | IF-Waha         |   |                        | 6.55   |   |                      |   | 565    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 326 |   |
|                         |   |            |   |                        |   |   |                      |   | 565    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Total      Floors            |   |            |   |                        |   |   |                      |   | 1,415  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Total      Sales             |   |            |   |                        |   |   |                      |   | 16,573 |   |   |   | 11,394 |   |   |   | 6,000 |   |   |   | 6,000 |   |   |   |   |   |
|                         |   |            |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 30,750 |   |

|        NGL  |   |        |   |            |   |   |            |   |   |   |   |
|-----------------------|--------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|
|                  |   |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|  Instrument Type |   |  Index |   | $/gal           |   |   | 2009            |   |   | 2010   |   |   | 2011 |   |   | 2012 |   |   | Fair Value |   |
|  NGL      Sales  |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
| Swap                  |   | OPIS-MB     |   |            | 1.32   |   |            |   | 6,248  |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 66,137 |   |
| Swap                  |   | OPIS-MB     |   |            | 1.27   |   |            |   | -      |   |   |   | 4,809 |   |   |   | - |   |   |   | - |   |   |   | 39,122 |   |
| Swap                  |   | OPIS-MB     |   |            | 0.92   |   |            |   | -      |   |   |   | - |   |   |   | 3,400 |   |   |   | - |   |   |   | 8,288 |   |
| Swap                  |   | OPIS-MB     |   |            | 0.92   |   |            |   | -      |   |   |   | - |   |   |   | - |   |   |   | 2,700 |   |   |   | 6,018 |   |
| Total      Swaps      |   |        |   |            |   |   |            |   | 6,248  |   |   |   | 4,809 |   |   |   | 3,400 |   |   |   | 2,700 |   |   |   |   |   |
|                  |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Floor                 |   | OPIS-MB     |   |            | 1.44   |   |            |   | -      |   |   |   | - |   |   |   | 199 |   |   |   | - |   |   |   | 1,807 |   |
| Floor                 |   | OPIS-MB     |   |            | 1.43   |   |            |   | -      |   |   |   | - |   |   |   | - |   |   |   | 231 |   |   |   | 1,932 |   |
| Total      Floors     |   |        |   |            |   |   |            |   | -      |   |   |   | - |   |   |   | 199 |   |   |   | 231 |   |   |   |   |   |
| Total      Sales      |   |        |   |            |   |   |            |   | 6,248  |   |   |   | 4,809 |   |   |   | 3,599 |   |   |   | 2,931 |   |   |   |   |   |
|                  |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 123,304 |   |

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Table of Contents

| Condensate                  |   |        |   |            |   |   |            |   |   |   |   |
|-----------------------------|--------|-------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|
|                        |   |        |   | Avg.      Price |   |   | Barrels per day |   |   |   |   |
|  Instrument Type       |   |  Index |   | $/Bbl           |   |   | 2009            |   |   | 2010   |   |   | 2011 |   |   | 2012 |   |   | Fair Value |   |
|  Condensate      Sales |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   | (In      thousands) |   |
| Swap                        |   | NY-WTI      |   |            | 69.00  |   |            |   | 322    |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 1,655 |   |
| Swap                        |   | NY-WTI      |   |            | 68.10  |   |            |   | -      |   |   |   | 301 |   |   |   | - |   |   |   | - |   |   |   | 431 |   |
| Total      Swaps            |   |        |   |            |   |   |            |   | 322    |   |   |   | 301 |   |   |   | - |   |   |   | - |   |   |   |   |   |
|                        |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Floor                       |   | NY-WTI      |   |            | 60.00  |   |            |   | 50     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 239 |   |
| Total      Floors           |   |        |   |            |   |   |            |   | 50     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Total      Sales            |   |        |   |            |   |   |            |   | 372    |   |   |   | 301 |   |   |   | - |   |   |   | - |   |   |   |   |   |
|                        |   |        |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 2,325 |   |

| Period                   |   |  Commodity  |   |  Instrument Type |   | Daily Volume |   | Average Price |   |  Index |   | Fair Value |   |
|--------------------------|--------|------------------|--------|-----------------------|--------|--------------|--------|---------------|--------|-------------|--------|------------|--------|
| Purchases                |   |             |   |                  |   |         |   |          |   |        |   |       |   |   |   | (In      thousands) |   |
| Jan      2009 - Dec 2009 |   | Natural      gas |   | Swap                  |   |         | 6,005  |          | MMBtu  |        | $      | 7.50       |   | per      MMBtu |   | NY-HH |   | $ | (3,644 | ) |
| Jan      2010 - Jun 2010 |   | Natural      gas |   | Swap                  |   |         | 1,304  |          | MMBtu  |        |   | 8.03       |   | per      MMBtu |   | NY-HH |   |   | (113 | ) |
| Sales                    |   |             |   |                  |   |         |   |          |   |        |   |       |   |   |   |   |   |   |   |   |
| Jan      2009 - Dec 2009 |   | Natural      gas |   | Fixed      price sale |   |         | 6,005  |          | MMBtu  |        |   | 7.50       |   | per      MMBtu |   | NY-HH |   |   | 3,610 |   |
| Jan      2010 - Jun 2010 |   | Natural      gas |   | Fixed      price sale |   |         | 1,304  |          | MMBtu  |        |   | 8.03       |   | per      MMBtu |   | NY-HH |   |   | 113 |   |
|                     |   |             |   |                  |   |         |   |          |   |        |   |       |   |   |   |   |   | $ | (34 | ) |

----

Table of Contents

|                  |   |   |   |         |                         |                |   |
|-----------------------|--------|--------|--------|--------------|------------------------------|---------------------|--------|
| Expiration            |   | Fixed  |   | Notional     |                         |                |   |
|  Date            |   | Rate   |   |  Amount |                         | Fair Value          |   |
|                  |   |   |   |         |                         | (In      thousands) |   |
| January      24, 2011 |   |   | 4.00   | %            | $100      million            |                | $      | (5,282 | ) |
| January      24, 2012 |   |   | 3.75   | %            |   200      million |                |   | (12,294 | ) |
|                  |   |   |   |         |                         |                | $      | (17,576 | ) |

|                               | Asset      Derivatives |   |                |    |               |   |                | Liability      Derivatives |   |                           |   |   |   |   |
|------------------------------------|------------------------|--------|---------------------|---------|--------------------|--------|---------------------|----------------------------|--------|--------------------------------|--------|--------|--------|--------|
|                               | Balance      Sheet     |   | Fair Value          |    | Balance      Sheet |   | Fair Value          |                       |
|                               | Location               |   | 2008                |    |               | 2007   |                | Location                   |   | 2008                           |   |   | 2007   |   |
| Derivatives      designated as     |                   |   | (In      thousands) |    |               |   | (In      thousands) |                       |
| hedging      instruments under     |                   |   |                |    |               |   |                |                       |   |                           |   |   |   |   |
| Statement      133                 |                   |   |                |    |               |   |                |                       |   |                           |   |   |   |   |
|                               |                   |   |                |    |               |   |                |                       |   |                           |   |   |   |   |
|  Commodity      contracts     | Current      assets    |   | $                   | 108,731 |               |   | $                   | 9,202                      |   |  Current      liabilities |   | $      | -      |   |   | $ | 75,026 |   |
|                               | Other      assets      |   |                | 89,774  |               |   |                | 4,279                      |   |  Other      liabilities   |   |   | 123    |   |   |   | 80,044 |   |
|                               |                   |   |                |    |               |   |                |                       |   |                           |   |   |   |   |   |   |   |   |
|  Interest      rate contracts | Current      assets    |   |                | -       |               |   |                | -                          |   |  Current      liabilities |   |   | 8,020  |   |   |   | 257 |   |
|                               | Other      assets      |   |                | -       |               |   |                | -                          |   |  Other      liabilities   |   |   | 9,556  |   |   |   | 975 |   |
| Total                              |                   |   |                | 198,505 |               |   |                | 13,481                     |   |                           |   |   | 17,699 |   |   |   | 156,302 |   |
|                               |                   |   |                |    |               |   |                |                       |   |                           |   |   |   |   |   |   |   |   |
| Derivatives      not designated as |                   |   |                |    |               |   |                |                       |   |                           |   |   |   |   |   |   |   |   |
| hedging      instruments under     |                   |   |                |    |               |   |                |                       |   |                           |   |   |   |   |   |   |   |   |
| Statement      133                 |                   |   |                |    |               |   |                |                       |   |                           |   |   |   |   |   |   |   |   |
|                               |                   |   |                |    |               |   |                |                       |   |                           |   |   |   |   |   |   |   |   |
|  Commodity      contracts     | Current      assets    |   |                | 3,610   |               |   |                | 285                        |   |  Current      liabilities |   |   | 3,644  |   |   |   | 285 |   |
|                               | Other      assets      |   |                | -       |               |   |                | -                          |   |  Other      liabilities   |   |   | -      |   |   |   | - |   |
| Total                              |                   |   |                | 3,610   |               |   |                | 285                        |   |                           |   |   | 3,644  |   |   |   | 285 |   |
|                               |                   |   |                |    |               |   |                |                       |   |                           |   |   |   |   |   |   |   |   |
| Total      derivatives             |                   |   | $                   | 202,115 |               |   | $                   | 13,766                     |   |                           |   | $      | 21,343 |   |   | $ | 156,587 |   |

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Table of Contents

|                         |   | Amount      of Gain (Loss)            |   |
|------------------------------|--------|---------------------------------------|--------|
|                         |   | Amount      of Gain (Loss)            |   |   |   | Reclassified      from |   |
| Derivatives      in          |   | Recognized      in OCI on Derivatives |   | Location      of Gain (Loss) |   | Accumulated      OCI into |   |
| Statement      133           |   | (Effective      Portion)              |   | Reclassified      from |   | Income      (Effective Portion) |   |
| Cash      Flow Hedging       |   | Year      Ended December 31,          |   | Accumulated      OCI into |   | Year      Ended December 31, |   |
| Relationships                |   | 2008                                  |   |   | 2007 |   |   | 2006 |   | Income (Effective Portion) |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                         |   | (In      thousands)                   |   |   |   | (In      thousands) |   |
| Interest      rate contracts |   | $                                     | (7,017 | ) |   | $ | 433 |   |   | $ | 2,606 |   | Interest      expense, net |   | $ | (2,693 | ) |   | $ | 2,191 |   |   | $ | 1,005 |   |
| Commodity      contracts     |   |                                  | 86,220 |   |   |   | (146,406 | ) |   |   | 120,283 |   | Revenues |   |   | (65,125 | ) |   |   | 4,126 |   |   |   | 31,243 |   |
|                         |   | $                                     | 79,203 |   |   | $ | (145,973 | ) |   | $ | 122,889 |   |   |   | $ | (67,818 | ) |   | $ | 6,317 |   |   | $ | 32,248 |   |

| Derivatives      Not         |                         | Amount      of Gain (Loss) Recognized |
|------------------------------|------------------------------|---------------------------------------|
| Designated      as Hedging   | Location      of Gain (Loss) | in Income on Derivatives              |
|  Instruments      Under | Recognized      in Income    | Year      Ended December 31,          |
| Statement 133                | on Derivatives               | 2008                                  | 2007 | 2006 |
|                         |                         |                                  | (In      thousands) |
| Commodity      contracts     | Other      income (expense)  |  $(1,311)                        |  $- |  $- |

Note 14

|                  |   | Year Ended December 31, |   |
|-----------------------|--------|-------------------------|--------|
|                  |   | 2008                    |   |   | 2007 |   |   | 2006 |   |
|                  |   | (In      thousands)     |   |
| Current      expense  |   | $                       | 1,245  |   |   | $ | 175 |   |   | $ | 34 |   |
| Deferred      expense |   |                    | 25,084 |   |   |   | 31,156 |   |   |   | 16,175 |   |
|                  |   | $                       | 26,329 |   |   | $ | 31,331 |   |   | $ | 16,209 |   |

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Table of Contents

|                                                                    |   | December 31,        |     |
|-------------------------------------------------------------------------|--------|---------------------|----------|
|                                                                    |   | 2008                |     |   | 2007 |   |
|                                                                    |   | (In      thousands) |     |
| Deferred      tax assets:                                               |   |                |     |   |   |   |
| Net      operating loss                                                 |   | $                   | 71,673   |   |   | $ | 26,730 |   |
| Commodity      hedging contracts and other                              |   |                | -        |   |   |   | 35,619 |   |
| Tax      credits                                                        |   |                | 16,798   |   |   |   | 10,690 |   |
|                                                                    |   |                | 88,471   |   |   |   | 73,039 |   |
| Deferred      tax liabilities:                                          |   |                |     |   |   |   |   |   |
| Investments      (1)                                                    |   |                | (125,853 | ) |   |   | (77,469 | ) |
| Commodity      hedging contracts and other                              |   |                | (38,885  | ) |   |   | - |   |
|                                                                    |   |                | (164,738 | ) |   |   | (77,469 | ) |
| Net      deferred tax liability                                         |   | $                   | (76,267  | ) |   | $ | (4,430 | ) |
|                                                                    |   |                |     |   |   |   |   |   |
| Federal                                                                 |   | $                   | (85,779  | ) |   | $ | (12,074 | ) |
| Foreign                                                                 |   |                | 438      |   |   |   | 831 |   |
| State                                                                   |   |                | 9,074    |   |   |   | 6,813 |   |
|                                                                    |   | $                   | (76,267  | ) |   | $ | (4,430 | ) |
| Balance      sheet classification of deferred tax assets (liabilities): |   |                |     |   |   |   |   |   |
| Current      asset                                                      |   | $                   | -        |   |   | $ | 25,071 |   |
| Long-term      asset                                                    |   |                | -        |   |   |   | - |   |
| Current      liability                                                  |   |                | (36,240  | ) |   |   | - |   |
| Long-term      liability                                                |   |                | (40,027  | ) |   |   | (29,501 | ) |
|                                                                    |   | $                   | (76,267  | ) |   | $ | (4,430 | ) |

|                                                     |   | Year Ended December 31, |   |
|----------------------------------------------------------|--------|-------------------------|--------|
|                                                     |   | 2008                    |   |   | 2007 |   |   | 2006 |   |
|                                                     |   | (In      thousands)     |   |
| U.S.      federal income tax provision at statutory rate |   | $                       | 27,532 |   |   | $ | 34,966 |   |   | $ | 13,868 |   |
| State      income taxes (1)                              |   |                    | 920    |   |   |   | (4,433 | ) |   |   | 2,743 |   |
| Other                                                    |   |                    | (2,123 | ) |   |   | 798 |   |   |   | (402 | ) |
| Income      tax provision                                |   | $                       | 26,329 |   |   | $ | 31,331 |   |   | $ | 16,209 |   |

| (1)   | During      2007 we recognized a deferred tax asset of $8.3 million related to a      computational change of the temporary credit related to the Texas margin      tax. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

Note 15

|                                   |   | Payments Due by Period |    |
|----------------------------------------|--------|------------------------|---------|
|                                   |   | Total                  |    |   | 2009 |   |   | 2010 |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | Thereafter |   |
|                                   |   | (In      thousands)    |    |
| Operating      leases (1)              |   | $                      | 72,847  |   |   | $ | 12,317 |   |   | $ | 10,897 |   |   | $ | 8,672 |   |   | $ | 8,199 |   |   | $ | 7,671 |   |   | $ | 25,091 |   |
| Capacity      payments (2)             |   |                   | 20,043  |   |   |   | 8,187 |   |   |   | 4,800 |   |   |   | 3,408 |   |   |   | 2,574 |   |   |   | 1,074 |   |   |   | - |   |
| Right-of      -way                     |   |                   | 17,683  |   |   |   | 1,086 |   |   |   | 1,036 |   |   |   | 974 |   |   |   | 957 |   |   |   | 892 |   |   |   | 12,738 |   |
| Asset      retirement obligations      |   |                   | 33,991  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6 |   |   |   | - |   |   |   | 33,985 |   |
| Other      contractual obligations (3) |   |                   | 905     |   |   |   | 375 |   |   |   | 280 |   |   |   | 237 |   |   |   | 13 |   |   |   | - |   |   |   | - |   |
|                                   |   | $                      | 145,469 |   |   | $ | 21,965 |   |   | $ | 17,013 |   |   | $ | 13,291 |   |   | $ | 11,749 |   |   | $ | 9,637 |   |   | $ | 71,814 |   |

| (1)   | Operating      lease obligations include minimum lease payment obligations associated      with gas processing plant site leases, railcar leases, and office space      leases. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Consist      of capacity payments for firm transportation  contracts. |
|-----------------|-----------------------------------------------------------------------|

| (3)   | Primarily      consist of information technology contractual  obligations |
|-----------------|---------------------------------------------------------------------------|

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Note 16

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Table of Contents

| Period                   |  Commodity  |   | Daily Volumes |   | Average Price |  Index |
|--------------------------|------------------|--------|---------------|--------|---------------|-------------|
| Jan      2009 - Dec 2009 | Natural      gas |   |          | 21,918 |          | MMBtu       |   | $ | 6.62 |   | per      MMBtu | IF-Waha |
|                     |             |   |          |   |          |        |   |   |   |   |   |   |
| Jan      2009 - Dec 2009 | NGL              |   |          | 2,847  |          |  Bbl   |   |   | 0.74 |   | per      gallon | OPIS-MB |

| Period                   |  Commodity  |   | Daily Volumes |   | Average Price |  Index |
|--------------------------|------------------|--------|---------------|--------|---------------|-------------|
| Jan      2009 - Dec 2009 | Natural      gas |   |          | 3,556  |          | MMBtu       |   | $ | 8.07 |   | per      MMBtu | IF-Waha |
| Jan      2009 - Dec 2009 | Natural      gas |   |          | 575    |          | MMBtu       |   |   | 7.83 |   | per      MMBtu | NY-HH |
| Jan      2010 - Dec 2010 | Natural      gas |   |          | 3,289  |          | MMBtu       |   |   | 7.39 |   | per      MMBtu | IF-Waha |
| Jan      2010 - Dec 2010 | Natural      gas |   |          | 247    |          | MMBtu       |   |   | 8.17 |   | per      MMBtu | NY-HH |
|                     |             |   |          |   |          |        |   |   |   |   |   |   |
| Jan      2009 - Dec 2009 | NGL              |   |          | 3,000  |          |  Bbl   |   |   | 1.18 |   | per      gallon | OPIS-MB |
|                     |             |   |          |   |          |        |   |   |   |   |   |   |
| Jan      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 |

----

Table of Contents

|                              |   | Year      Ended December 31, |    |
|-----------------------------------|--------|------------------------------|---------|
|                              |   | 2008                         |    |   | 2007 |   |   | 2006 |   |
|                              |   | (In      thousands)          |    |
| Included in Revenues              |   |                         |    |   |   |   |   |   |   |
| GCF                               |   | $                            | 469     |   |   | $ | 4,514 |   |   | $ | 1,366 |   |
| VESCO      (1)                    |   |                         | 690     |   |   |   | 4,771 |   |   |   | 2,628 |   |
|                              |   | $                            | 1,159   |   |   | $ | 9,285 |   |   | $ | 3,994 |   |
|                              |   |                         |    |   |   |   |   |   |   |   |   |   |
| Included in Costs and    Expenses |   |                         |    |   |   |   |   |   |   |
| GCF                               |   | $                            | 3,501   |   |   | $ | 3,316 |   |   | $ | 3,336 |   |
| VESCO      (1)                    |   |                         | 178,098 |   |   |   | 145,806 |   |   |   | 132,798 |   |
|                              |   | $                            | 181,599 |   |   | $ | 149,122 |   |   | $ | 136,134 |   |

----

Table of Contents

Note 17

|                                                                |   | As of December 31,  |    |
|---------------------------------------------------------------------|--------|---------------------|---------|
|                                                                |   | 2008                |    |   | 2007 |   |
|                                                                |   | Carrying Amount     |    |   | Fair Value |   |   | Carrying Amount |   |   | Fair Value |   |
|                                                                |   | (In      thousands) |    |
| Senior      secured term loan facility                              |   | $                   | 522,175 |   |   | $ | 331,581 |   |   | $ | 534,675 |   |   | $ | 521,308 |   |
| Senior      unsecured notes, 81⁄2% fixed rate                    |   |                | 250,000 |   |   |   | 134,375 |   |   |   | 250,000 |   |   |   | 241,250 |   |
| Senior      unsecured notes of the Partnership, 81⁄4% fixed rate |   |                | 209,080 |   |   |   | 128,333 |   |   |   | - |   |   |   | - |   |

Note 18

|                                                     |   | Year      Ended December 31, |   |
|----------------------------------------------------------|--------|------------------------------|--------|
|                                                     |   | 2008                         |   |   | 2007 |   |   | 2006 |   |
|                                                     |   | (In      thousands)          |   |
| Cash:                                                    |   |                         |   |   |   |   |   |   |   |
| Interest      paid                                       |   | $                            | 93,742 |   |   | $ | 144,868 |   |   | $ | 170,928 |   |
| Income      taxes paid                                   |   |                         | 1,608  |   |   |   | 3,573 |   |   |   | 59 |   |
| Business      interruption insurance receipts            |   |                         | 15,903 |   |   |   | 11,706 |   |   |   | 14,926 |   |
| Non-cash:                                                |   |                         |   |   |   |   |   |   |   |   |   |   |
| Like-kind      exchange of property, plant and equipment |   |                         | 4,353  |   |   |   | - |   |   |   | - |   |
| Settlement      of Partnership notes                     |   |                         | 14,088 |   |   |   | - |   |   |   | - |   |
| Distribution      of property to minority interest       |   |                         | 14,811 |   |   |   | - |   |   |   | - |   |

Note 19

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Table of Contents

| Year Ended December 31,      2008                     |   |
|-------------------------------------------------------|--------|
|                                                  |   | Natural Gas Gathering and      Processing |   |   | Logistics Assets |   |   | NGL Distribution and Marketing      Services |   |   | Wholesale Marketing |   |   | Eliminations and Other |   |   | Total |   |
|                                                  |   | (In      thousands) |   |
| Revenues                                              |   | $ | 1,835,266 |   |   | $ | 106,016 |   |   | $ | 4,613,423 |   |   | $ | 1,415,462 |   |   | $ | - |   |   | $ | 7,970,167 |   |
| Intersegment      revenues                            |   |   | 1,605,053 |   |   |   | 131,995 |   |   |   | 571,296 |   |   |   | 44,587 |   |   |   | (2,352,931 | ) |   |   | - |   |
| Revenues                                              |   |   | 3,440,319 |   |   |   | 238,011 |   |   |   | 5,184,719 |   |   |   | 1,460,049 |   |   |   | (2,352,931 | ) |   |   | 7,970,167 |   |
| Product      purchases                                |   |   | 2,844,465 |   |   |   | (101 | ) |   |   | 3,445,263 |   |   |   | 900,186 |   |   |   |   |   |   |   | 7,189,811 |   |
| Intersegment      product purchases                   |   |   | 36,147 |   |   |   | 101 |   |   |   | 1,719,177 |   |   |   | 546,705 |   |   |   | (2,302,130 | ) |   |   | - |   |
| Product      purchases                                |   |   | 2,880,612 |   |   |   | - |   |   |   | 5,164,440 |   |   |   | 1,446,890 |   |   |   | (2,302,131 | ) |   |   | 7,189,811 |   |
| Operating      expenses                               |   |   | 134,959 |   |   |   | 138,439 |   |   |   | 1,746 |   |   |   | 58 |   |   |   | - |   |   |   | 275,202 |   |
| Intersegment      operating expenses                  |   |   | 812 |   |   |   | 49,989 |   |   |   | - |   |   |   | - |   |   |   | (50,801 | ) |   |   | - |   |
| Operating      expenses                               |   |   | 135,771 |   |   |   | 188,428 |   |   |   | 1,746 |   |   |   | 58 |   |   |   | (50,801 | ) |   |   | 275,202 |   |
| Selling      expense                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Operating      margin                                 |   | $ | 423,936 |   |   | $ | 49,583 |   |   | $ | 18,533 |   |   | $ | 13,102 |   |   | $ | - |   |   | $ | 505,154 |   |
| General      and administrative                       |   | $ | 50,911 |   |   | $ | 20,186 |   |   | $ | 11,764 |   |   | $ | 14,333 |   |   | $ | (1,296 | ) |   | $ | 95,898 |   |
| Equity      in earnings of unconsolidated investments |   | $ | 10,162 |   |   | $ | 3,877 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 14,039 |   |
| Identifiable      assets                              |   | $ | 2,403,893 |   |   | $ | 572,298 |   |   | $ | 148,449 |   |   | $ | 115,670 |   |   | $ | 408,267 |   |   | $ | 3,648,577 |   |
| Unconsolidated      investments                       |   |   | - |   |   |   | 18,465 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 18,465 |   |
| Capital      expenditures                             |   |   | 99,003 |   |   |   | 41,460 |   |   |   | - |   |   |   | - |   |   |   | 5,086 |   |   |   | 145,549 |   |

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| Year Ended December 31,2007                           |   |
|-------------------------------------------------------|--------|
|                                                  |   | Natural Gas Gathering and      Processing |   |   | Logistics Assets |   |   | NGL Distribution and Marketing      Services |   |   | Wholesale Marketing |   |   | Eliminations and Other |   |   | Total |   |
|                                                  |   | (In      thousands) |   |
| Revenues                                              |   | $ | 1,494,905 |   |   | $ | 83,262 |   |   | $ | 4,419,636 |   |   | $ | 1,271,857 |   |   | $ | - |   |   | $ | 7,269,660 |   |
| Intersegment      revenues                            |   |   | 1,423,012 |   |   |   | 111,968 |   |   |   | 476,178 |   |   |   | 30,795 |   |   |   | (2,041,953 | ) |   |   | - |   |
| Revenues                                              |   |   | 2,917,917 |   |   |   | 195,230 |   |   |   | 4,895,814 |   |   |   | 1,302,652 |   |   |   | (2,041,953 | ) |   |   | 7,269,660 |   |
| Product      purchases                                |   |   | 2,385,338 |   |   |   | - |   |   |   | 3,322,534 |   |   |   | 790,111 |   |   |   | - |   |   |   | 6,497,983 |   |
| Intersegment      product purchases                   |   |   | 2,571 |   |   |   | - |   |   |   | 1,516,288 |   |   |   | 489,707 |   |   |   | (2,008,566 | ) |   |   | - |   |
| Product      purchases                                |   |   | 2,387,909 |   |   |   | - |   |   |   | 4,838,822 |   |   |   | 1,279,818 |   |   |   | (2,008,566 | ) |   |   | 6,497,983 |   |
| Operating      expenses                               |   |   | 122,344 |   |   |   | 123,129 |   |   |   | 1,562 |   |   |   | 31 |   |   |   | - |   |   |   | 247,066 |   |
| Intersegment      operating expenses                  |   |   | 937 |   |   |   | 32,473 |   |   |   | (23 | ) |   |   | - |   |   |   | (33,387 | ) |   |   | - |   |
| Operating      expenses                               |   |   | 123,281 |   |   |   | 155,602 |   |   |   | 1,539 |   |   |   | 31 |   |   |   | (33,387 | ) |   |   | 247,066 |   |
| Operating      margin                                 |   | $ | 406,727 |   |   | $ | 39,628 |   |   | $ | 55,453 |   |   | $ | 22,803 |   |   | $ | - |   |   | $ | 524,611 |   |
| General      and administrative                       |   | $ | 48,170 |   |   | $ | 18,030 |   |   | $ | 9,818 |   |   | $ | 18,355 |   |   | $ | 1,680 |   |   | $ | 96,053 |   |
| Equity      in earnings of unconsolidated investments |   | $ | 6,597 |   |   | $ | 3,511 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 10,108 |   |
| Identifiable      assets                              |   | $ | 2,375,589 |   |   | $ | 554,801 |   |   | $ | 594,604 |   |   | $ | 239,734 |   |   | $ | 25,237 |   |   | $ | 3,789,965 |   |
| Unconsolidated      investments                       |   |   | 28,767 |   |   |   | 19,238 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 48,005 |   |
| Capital      expenditures                             |   |   | 81,504 |   |   |   | 35,179 |   |   |   | - |   |   |   | - |   |   |   | 2,045 |   |   |   | 118,728 |   |

| Year Ended December 31,2006                           |   |
|-------------------------------------------------------|--------|
|                                                  |   | Natural Gas Gathering and      Processing |   |   | Logistics Assets |   |   | NGL Distribution and Marketing      Services |   |   | Wholesale Marketing |   |   | Eliminations and Other |   |   | Total |   |
|                                                  |   | (In      thousands) |   |
| Revenues                                              |   | $ | 1,486,081 |   |   | $ | 63,813 |   |   | $ | 3,315,535 |   |   | $ | 1,267,452 |   |   | $ | - |   |   | $ | 6,132,881 |   |
| Intersegment      revenues                            |   |   | 1,104,938 |   |   |   | 114,700 |   |   |   | 423,234 |   |   |   | 63,106 |   |   |   | (1,705,978 | ) |   |   | - |   |
| Revenues                                              |   |   | 2,591,019 |   |   |   | 178,513 |   |   |   | 3,738,769 |   |   |   | 1,330,558 |   |   |   | (1,705,978 | ) |   |   | 6,132,881 |   |
| Product      purchases                                |   |   | 2,064,436 |   |   |   | 3 |   |   |   | 2,496,448 |   |   |   | 879,945 |   |   |   | - |   |   |   | 5,440,832 |   |
| Intersegment      product purchases                   |   |   | 2,939 |   |   |   | (3 | ) |   |   | 1,229,673 |   |   |   | 440,646 |   |   |   | (1,673,255 | ) |   |   | - |   |
| Product      purchases                                |   |   | 2,067,375 |   |   |   | - |   |   |   | 3,726,121 |   |   |   | 1,320,591 |   |   |   | (1,673,255 | ) |   |   | 5,440,832 |   |
| Operating      expenses                               |   |   | 118,123 |   |   |   | 103,992 |   |   |   | 2,044 |   |   |   | 10 |   |   |   | - |   |   |   | 224,169 |   |
| Intersegment      operating expenses                  |   |   | 617 |   |   |   | 32,106 |   |   |   | - |   |   |   | - |   |   |   | (32,723 | ) |   |   | - |   |
| Operating      expenses                               |   |   | 118,740 |   |   |   | 136,098 |   |   |   | 2,044 |   |   |   | 10 |   |   |   | (32,723 | ) |   |   | 224,169 |   |
| Operating      margin                                 |   | $ | 404,904 |   |   | $ | 42,415 |   |   | $ | 10,604 |   |   | $ | 9,957 |   |   | $ | - |   |   | $ | 467,880 |   |
| General      and administrative                       |   | $ | 40,602 |   |   | $ | 14,043 |   |   | $ | 9,504 |   |   | $ | 17,818 |   |   | $ | 215 |   |   | $ | 82,182 |   |
| Equity      in earnings of unconsolidated investments |   | $ | 7,214 |   |   | $ | 2,754 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 9,968 |   |
| Identifiable      assets                              |   | $ | 2,375,589 |   |   | $ | 542,718 |   |   | $ | 352,900 |   |   | $ | 158,015 |   |   | $ | 28,803 |   |   | $ | 3,458,025 |   |
| Unconsolidated      investments                       |   |   | 20,610 |   |   |   | 19,602 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 40,212 |   |
| Capital      expenditures                             |   |   | 115,261 |   |   |   | 23,167 |   |   |   | - |   |   |   | - |   |   |   | 4,474 |   |   |   | 142,902 |   |

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Table of Contents

|                                                   |   | Year Ended December 31, |     |
|--------------------------------------------------------|--------|-------------------------|----------|
|                                                   |   | 2008                    |     |   | 2007 |   |   | 2006 |   |
| Reconciliation      of operating margin to net income: |   | (In      thousands)     |     |
| Operating      margin                                  |   | $                       | 505,154  |   |   | $ | 524,611 |   |   | $ | 467,880 |   |
| Depreciation      and amortization expense             |   |                    | (160,948 | ) |   |   | (148,101 | ) |   |   | (149,687 | ) |
| Income      tax expense                                |   |                    | (26,329  | ) |   |   | (31,331 | ) |   |   | (16,209 | ) |
| Other,      net                                        |   |                    | (67,045  | ) |   |   | (37,922 | ) |   |   | (16,199 | ) |
| Interest      income, net                              |   |                    | (102,030 | ) |   |   | (142,632 | ) |   |   | (180,189 | ) |
| General      and administrative expense                |   |                    | (95,898  | ) |   |   | (96,053 | ) |   |   | (82,182 | ) |
| Net      income                                        |   | $                       | 52,904   |   |   | $ | 68,572 |   |   | $ | 23,414 |   |

Note 20

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Table of Contents

Note 21

| ·   | The      parent company only (“Parent”); |
|--------------------|------------------------------------------------------|

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

| ·   | The      Non-Guarantor Subsidiaries; |
|--------------------|--------------------------------------|

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

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

----

Table of Contents

| Targa      Resources, Inc.                               |   |
|----------------------------------------------------------|--------|
| Condensed      Consolidating Balance Sheet               |   |
| December      31, 2008                                   |   |
| (In      thousands)                                      |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|   Assets                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current      assets:                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash      and cash equivalents                     |   | $ | - |   |   | $ | 219,620 |   |   | $ | 143,149 |   |   | $ | - |   |   | $ | 362,769 |   |
|  Trade      receivables and other current assets    |   |   | 298 |   |   |   | 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 |   |   |   | - |   |   |   | (113,183 | ) |   |   | - |   |
|  Advance      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 |   |   | $ | (113,183 | ) |   | $ | 3,648,577 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Liabilities      and stockholder's 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      liabilities:                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  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 |   |
|  Minority      interest/Non-controlling interest    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 949,608 |   |   |   | 949,608 |   |
|  Stockholder's      equity:                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Stockholder's      equity                          |   |   | 547,707 |   |   |   | (249,161 | ) |   |   | 1,184,538 |   |   |   | (935,377 | ) |   |   | 547,707 |   |
|  Accumulated      other comprehensive income (loss) |   |   | 31,934 |   |   |   | 55,168 |   |   |   | 72,245 |   |   |   | (127,414 | ) |   |   | 31,934 |   |
|  Total      stockholder's equity                    |   |   | 579,641 |   |   |   | (193,993 | ) |   |   | 1,256,783 |   |   |   | (1,062,791 | ) |   |   | 579,641 |   |
|  Total      liabilities and stockholder's equity    |   | $ | (224,445 | ) |   | $ | 1,825,970 |   |   | $ | 2,160,234 |   |   | $ | (113,183 | ) |   | $ | 3,648,577 |   |

----

Table of Contents

| Targa Resources, Inc.                                    |   |
|----------------------------------------------------------|--------|
| Condensed      Consolidating Balance Sheet               |   |
| December      31, 2007                                   |   |
| (In      thousands)                                      |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|  Assets                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current      assets:                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash      and cash equivalents                     |   | $ | - |   |   | $ | 88,303 |   |   | $ | 89,646 |   |   | $ | - |   |   | $ | 177,949 |   |
|  Trade      receivables and other current assets    |   |   | 25,130 |   |   |   | 954,910 |   |   |   | 104,387 |   |   |   | - |   |   |   | 1,084,427 |   |
|  Total      current assets                          |   |   | 25,130 |   |   |   | 1,043,213 |   |   |   | 194,033 |   |   |   | - |   |   |   | 1,262,376 |   |
|  Property,      plant, and equipment, at cost       |   |   | - |   |   |   | 743,652 |   |   |   | 2,020,578 |   |   |   | - |   |   |   | 2,764,230 |   |
|  Accumulated      depreciation                      |   |   | - |   |   |   | 94,265 |   |   |   | (428,425 | ) |   |   | - |   |   |   | (334,160 | ) |
|  Property,      plant, and equipment, net           |   |   | - |   |   |   | 837,917 |   |   |   | 1,592,153 |   |   |   | - |   |   |   | 2,430,070 |   |
|  Unconsolidated      investments                    |   |   | - |   |   |   | 48,005 |   |   |   | - |   |   |   | - |   |   |   | 48,005 |   |
|  Investment      in subsidiaries                    |   |   | (258,084 | ) |   |   | 186,773 |   |   |   | - |   |   |   | 71,311 |   |   |   | - |   |
|  Advances      to (from) subsidiaries               |   |   | 66,953 |   |   |   | (172,735 | ) |   |   | 105,782 |   |   |   | - |   |   |   | - |   |
|  Other      assets                                  |   |   | 134,215 |   |   |   | (97,599 | ) |   |   | 12,898 |   |   |   | - |   |   |   | 49,514 |   |
|  Total      assets                                  |   | $ | (31,786 | )  |   | $ | 1,845,574 |   |   | $ | 1,904,866 |   |   | $ | 71,311 |   |   | $ | 3,789,965 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Liabilities      and stockholders' equity          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Current      liabilities:                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Accounts      payable and other liabilities        |   | $ | 11,043 |   |   | $ | 657,736 |   |   | $ | 256,894 |   |   | $ | - |   |   | $ | 925,673 |   |
|  Current      maturities of debt                    |   |   | 12,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,500 |   |
|  Total      current liabilities                     |   |   | 23,543 |   |   |   | 657,736 |   |   |   | 256,894 |   |   |   | - |   |   |   | 938,173 |   |
|  Long-term      liabilities:                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Long-term      debt, net of current maturities     |   |   | (573,231 | ) |   |   | 1,345,406 |   |   |   | 626,300 |   |   |   | - |   |   |   | 1,398,475 |   |
|  Other      long-term obligations                   |   |   | 25,498 |   |   |   | 100,516 |   |   |   | 19,773 |   |   |   | - |   |   |   | 145,787 |   |
|  Total      long-term liabilities                   |   |   | (547,733 | ) |   |   | 1,445,922 |   |   |   | 646,073 |   |   |   | - |   |   |   | 1,544,262 |   |
|  Minority      interest                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 100,826 |   |   |   | 100,826 |   |
|  Noncontrolling      interest in TRP LP             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 714,300 |   |   |   | 714,300 |   |
|  Stockholders'      equity:                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
|  Stockholders'      equity                          |   |   | 548,520 |   |   |   | (185,979 | ) |   |   | 1,075,149 |   |   |   | (889,170 | ) |   |   | 548,520 |   |
|  Accumulated      other comprehensive income (loss) |   |   | (56,116 | ) |   |   | (72,105 | ) |   |   | (73,250 | ) |   |   | 145,355 |   |   |   | (56,116 | ) |
|  Total      stockholder's equity                    |   |   | 492,404 |   |   |   | (258,084 | ) |   |   | 1,001,899 |   |   |   | (743,815 | ) |   |   | 492,404 |   |
|  Total      liabilities and stockholders' equity    |   | $ | (31,786 |  ) |   | $ | 1,845,574 |   |   | $ | 1,904,866 |   |   | $ | 71,311 |   |   | $ | 3,789,965 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

| Targa      Resources, Inc.                                  |   |
|-------------------------------------------------------------|--------|
| Condensed      Consolidating Statement of Operations        |   |
| Year      Ended December 31, 2008                           |   |
| (In      thousands)                                         |   |
|                                                        |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Revenues                                              |   | $ | - |   |   | $ | 7,162,547 |   |   | $ | 2,810,479 |   |   | $ | (2,002,859 | ) |   | $ | 7,970,167 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating      costs and expenses:                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Product      purchases                                |   |   | - |   |   |   | 6,860,201 |   |   |   | 2,272,592 |   |   |   | (1,942,982 | ) |   |   | 7,189,811 |   |
|  Operating      expenses                               |   |   | - |   |   |   | 146,260 |   |   |   | 188,819 |   |   |   | (59,877 | ) |   |   | 275,202 |   |
|  Depreciation      and amortization expense            |   |   | - |   |   |   | 51,313 |   |   |   | 109,635 |   |   |   | - |   |   |   | 160,948 |   |
|  General      and administrative and other             |   |   | (1,297 | ) |   |   | 37,947 |   |   |   | 72,622 |   |   |   | - |   |   |   | 109,272 |   |
|                                                        |   |   | (1,297 | ) |   |   | 7,095,721 |   |   |   | 2,643,668 |   |   |   | (2,002,859 | ) |   |   | 7,735,233 |   |
|  Income      from operations                           |   |   | 1,297 |   |   |   | 66,826 |   |   |   | 166,811 |   |   |   | - |   |   |   | 234,934 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other      income (expense):                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest      expense, net                            |   |   | 87,816 |   |   |   | (152,197 | ) |   |   | (37,649 | ) |   |   | - |   |   |   | (102,030 | ) |
|  Equity      in earnings of unconsolidated investments |   |   | - |   |   |   | 14,039 |   |   |   | - |   |   |   | - |   |   |   | 14,039 |   |
|  Equity      in earnings of subsidiaries               |   |   | (27,047 | ) |   |   | 44,578 |   |   |   | - |   |   |   | (17,531 | ) |   |   | - |   |
|  Minority      interest/non-controlling interest       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (98,026 | ) |   |   | (98,026 | ) |
|  Other      income (expense)                           |   |   | 17,167 |   |   |   | (293 | ) |   |   | 13,442 |   |   |   | - |   |   |   | 30,316 |   |
|  Income      before income tax                         |   |   | 79,233 |   |   |   | (27,047 | ) |   |   | 142,604 |   |   |   | (115,557 | ) |   |   | 79,233 |   |
|  Income      tax (expense) benefit                     |   |   | (26,329 | ) |   |   | - |   |   |   | (1,400 | ) |   |   | 1,400 |   |   |   | (26,329 | ) |
|  Net      income (loss)                                |   | $ | 52,904 |   |   | $ | (27,047 | ) |   | $ | 141,204 |   |   | $ | (114,157 | ) |   | $ | 52,904 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

| Targa      Resources, Inc.                                  |   |
|-------------------------------------------------------------|--------|
| Condensed      Consolidating Statement of Operations        |   |
| Year      Ended December 31, 2007                           |   |
| (In      thousands)                                         |   |
|                                                        |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Revenues:                                             |   | $ | - |   |   | $ | 6,647,004 |   |   | $ | 2,258,305 |   |   | $ | (1,635,649 | ) |   | $ | 7,269,660 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating      costs and expenses:                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Product      purchases                                |   |   | - |   |   |   | 6,294,234 |   |   |   | 1,796,416 |   |   |   | (1,592,667 | ) |   |   | 6,497,983 |   |
|  Operating      expenses                               |   |   | - |   |   |   | 135,823 |   |   |   | 154,225 |   |   |   | (42,982 | ) |   |   | 247,066 |   |
|  Depreciation      and amortization expense            |   |   | - |   |   |   | 49,183 |   |   |   | 98,918 |   |   |   | - |   |   |   | 148,101 |   |
|  General      and administrative and other             |   |   | 925 |   |   |   | 75,071 |   |   |   | 19,958 |   |   |   | - |   |   |   | 95,954 |   |
|                                                        |   |   | 925 |   |   |   | 6,554,311 |   |   |   | 2,069,517 |   |   |   | (1,635,649 | ) |   |   | 6,989,104 |   |
|  Income      (loss) from operations                    |   |   | (925 | ) |   |   | 92,693 |   |   |   | 188,788 |   |   |   | - |   |   |   | 280,556 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other      income (expense):                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest      income (expense), net                   |   |   | (1,914 | ) |   |   | (110,010 | ) |   |   | (30,708 | ) |   |   | - |   |   |   | (142,632 | ) |
|  Equity      in earnings of unconsolidated investments |   |   | - |   |   |   | 10,108 |   |   |   | - |   |   |   | - |   |   |   | 10,108 |   |
|  Equity      in earnings of subsidiaries               |   |   | 102,300 |   |   |   | 109,411 |   |   |   | - |   |   |   | (211,711 | ) |   |   | - |   |
|  Minority      interest/non-controlling interest       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (48,129 | ) |   |   | (48,129 | ) |
|  Income      before income taxes                       |   |   | 99,461 |   |   |   | 102,202 |   |   |   | 158,080 |   |   |   | (259,840 | ) |   |   | 99,903 |   |
|  Income      tax (expense) benefit                     |   |   | (30,889 | ) |   |   | 98 |   |   |   | (1,479 | ) |   |   | 939 |   |   |   | (31,331 | ) |
|  Net      income                                       |   | $ | 68,572 |   |   | $ | 102,300 |   |   | $ | 156,601 |   |   | $ | (258,901 | ) |   | $ | 68,572 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

| Targa      Resources, Inc.                                  |   |
|-------------------------------------------------------------|--------|
| Condensed      Consolidating Statement of Operations        |   |
| Year      Ended December 31, 2006                           |   |
| (In      thousands)                                         |   |
|                                                        |   | Parent |   |   | Guarantor      Subsidiaries |   |   | Non-Guarantor      Subsidiaries |   |   | Intercompany      Eliminations |   |   | Consolidated |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Revenues:                                             |   | $ | - |   |   | $ | 5,343,654 |   |   | $ | 2,293,765 |   |   | $ | (1,504,538 | ) |   | $ | 6,132,881 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Operating      costs and expenses:                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Product      purchases                                |   |   | - |   |   |   | 5,041,129 |   |   |   | 1,863,201 |   |   |   | (1,463,498 | ) |   |   | 5,440,832 |   |
|  Operating      expenses                               |   |   | - |   |   |   | 116,085 |   |   |   | 149,124 |   |   |   | (41,040 | ) |   |   | 224,169 |   |
|  Depreciation      and amortization expense            |   |   | - |   |   |   | 52,185 |   |   |   | 97,502 |   |   |   | - |   |   |   | 149,687 |   |
|  General      and administrative and other             |   |   | 161 |   |   |   | 65,820 |   |   |   | 16,370 |   |   |   | - |   |   |   | 82,351 |   |
|                                                        |   |   | 161 |   |   |   | 5,275,219 |   |   |   | 2,126,197 |   |   |   | (1,504,538 | ) |   |   | 5,897,039 |   |
|  Income      (loss) from operations                    |   |   | (161 | ) |   |   | 68,435 |   |   |   | 167,568 |   |   |   | - |   |   |   | 235,842 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other      income (expense):                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Interest      income (expense), net                   |   |   | - |   |   |   | (181,417 | ) |   |   | 1,228 |   |   |   | - |   |   |   | (180,189 | ) |
|  Equity      in earnings of unconsolidated investments |   |   | - |   |   |   | 9,968 |   |   |   | - |   |   |   | - |   |   |   | 9,968 |   |
|  Equity      in earnings of subsidiaries               |   |   | 39,784 |   |   |   | 139,872 |   |   |   | - |   |   |   | (179,656 | ) |   |   | - |   |
|  Minority      interest                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (25,998 | ) |   |   | (25,998 | ) |
|  Income      before income taxes                       |   |   | 39,623 |   |   |   | 36,858 |   |   |   | 168,796 |   |   |   | (205,654 | ) |   |   | 39,623 |   |
|  Income      tax (expense) benefit                     |   |   | (16,209 | ) |   |   | 2,926 |   |   |   | (2,926 | ) |   |   | - |   |   |   | (16,209 | ) |
|  Net      income                                       |   | $ | 23,414 |   |   | $ | 39,784 |   |   | $ | 165,870 |   |   | $ | (205,654 | ) |   | $ | 23,414 |   |

----

Table of Contents

| Targa      Resources, Inc.                                        |   |
|-------------------------------------------------------------------|--------|
| Condensed      Consolidating Statement of Cash Flows              |   |
| Year      Ended December 31, 2008                                 |   |
| (In      thousands)                                               |   |
|                                                              |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|  Cash      flows from operating activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      income (loss)                                      |   | $ | 52,904 |   |   | $ | (27,047 | ) |   | $ | 141,204 |   |   | $ | (114,157 | ) |   | $ | 52,904 |   |
|  Adjustments      to reconcile net income (loss) to net cash |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  provided      by (used in)operating activities:             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation,      amortization and accretion                     |   |   | 6,473 |   |   |   | 52,058 |   |   |   | 113,229 |   |   |   | - |   |   |   | 171,760 |   |
| Deferred      income taxes                                        |   |   | 25,084 |   |   |   | - |   |   |   | 1,400 |   |   |   | (1,400 | )  |   |   | 25,084 |   |
| Earnings      (loss) from unconsolidated investments              |   |   | - |   |   |   | (14,039 | ) |   |   | - |   |   |   | - |   |   |   | (14,039 | ) |
| Equity      in earnings of subsidiaries                           |   |   | 27,047 |   |   |   | (44,578 | ) |   |   | - |   |   |   | 17,531 |   |   |   | - |   |
| Other                                                             |   |   | (18,566 | ) |   |   | (36,640 | ) |   |   | (135,649 | ) |   |   | 98,026 |   |   |   | (92,829 | ) |
| Changes      in operating assets and liabilities:                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      receivable and other assets                         |   |   | 9,553 |   |   |   | 531,331 |   |   |   | 60,768 |   |   |   | - |   |   |   | 601,652 |   |
| Inventory                                                         |   |   | - |   |   |   | 72,339 |   |   |   | 487 |   |   |   | - |   |   |   | 72,826 |   |
| Accounts      payable and other liabilities                       |   |   | (5,451 | )  |   |   | (443,276 | ) |   |   | (67,969 | ) |   |   | - |   |   |   | (516,696 | ) |
| Net      cash provided by (used in) operating activities          |   |   | 97,044 |   |   |   | 90,148 |   |   |   | 113,470 |   |   |   | - |   |   |   | 300,662 |   |
|  Cash      flows from investing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Purchases      of property and equipment                    |   |   | - |   |   |   | (53,498 | ) |   |   | (78,791 | ) |   |   | - |   |   |   | (132,289 | ) |
|  Other                                                       |   |   | (16,400 | ) |   |   | 22,048 |   |   |   | (96,491 | ) |   |   | - |   |   |   | (90,843 | ) |
| Net      cash used in investing activities                        |   |   | (16,400 | ) |   |   | (31,450 | ) |   |   | (175,282 | ) |   |   | - |   |   |   | (223,132 | ) |
|  Cash      flows from financing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings                                                        |   |   | 95,920 |   |   |   | - |   |   |   | 435,265 |   |   |   | - |   |   |   | 531,185 |   |
| Repayments      and repurchases                                   |   |   | (12,500 | ) |   |   | - |   |   |   | (350,632 | ) |   |   | - |   |   |   | (363,132 | ) |
| Other                                                             |   |   | (123 | ) |   |   | 300 |   |   |   | (7,079 | ) |   |   | - |   |   |   | (6,902 | ) |
| Receipts      from (payments to) subsidiaries                     |   |   | (163,941 | ) |   |   | 72,319 |   |   |   | 37,761 |   |   |   | - |   |   |   | (53,861 | ) |
| Net      cash provided by (used in) financing activities          |   |   | (80,644 | ) |   |   | 72,619 |   |   |   | 115,315 |   |   |   | - |   |   |   | 107,290 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents         |   |   | - |   |   |   | 131,317 |   |   |   | 53,503 |   |   |   | - |   |   |   | 184,820 |   |
| Cash      and cash equivalents, beginning of period               |   |   | - |   |   |   | 88,303 |   |   |   | 89,646 |   |   |   | - |   |   |   | 177,949 |   |
| Cash      and cash equivalents, end of period                     |   | $ | - |   |   | $ | 219,620 |   |   | $ | 143,149 |   |   | $ | - |   |   | $ | 362,769 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

| Targa      Resources, Inc.                                        |   |
|-------------------------------------------------------------------|--------|
| Condensed      Consolidating Statement of Cash Flows              |   |
| Year      Ended December 31, 2007                                 |   |
| (In      thousands)                                               |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   | Parent |   |   | Guarantor Subsidiaries |   |   | Non-Guarantor Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|  Cash      flows from operating activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      income (loss)                                      |   | $ | 68,572 |   |   | $ | 102,300 |   |   | $ | 156,601 |   |   | $ | (258,901 | ) |   | $ | 68,572 |   |
|  Adjustments      to reconcile net income (loss) to net cash |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  provided      by (used in)operating activities:             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation,      amortization and accretion                     |   |   | 11,969 |   |   |   | 49,628 |   |   |   | 100,363 |   |   |   | - |   |   |   | 161,960 |   |
| Deferred      income taxes                                        |   |   | 30,616 |   |   |   | - |   |   |   | 1,479 |   |   |   | (939 | ) |   |   | 31,156 |   |
| Earnings      (loss) from unconsolidated investments              |   |   | - |   |   |   | (10,108 | ) |   |   | - |   |   |   | - |   |   |   | (10,108 | ) |
| Equity      in earnings (losses) of subsidiaries                  |   |   | (102,300 | ) |   |   | (109,411 | ) |   |   | - |   |   |   | 211,711 |   |   |   | - |   |
| Minority      interest/Non-controlling interest                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 48,129 |   |   |   | 48,129 |   |
| Other                                                             |   |   | 2,040 |   |   |   | (35,482 | ) |   |   | (48,417 | ) |   |   | - |   |   |   | (81,859 | ) |
| Changes      in operating assets and liabilities:                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Accounts      receivable and other assets                         |   |   | (286,342 | ) |   |   | (38,041 | ) |   |   | (11,371 | ) |   |   | - |   |   |   | (335,754 | ) |
| Inventory                                                         |   |   | - |   |   |   | (26,068 | ) |   |   | (161 | ) |   |   | - |   |   |   | (26,229 | ) |
| Accounts      payable and other liabilities                       |   |   | (131,453 | ) |   |   | 386,450 |   |   |   | 49,738 |   |   |   | - |   |   |   | 286,735 |   |
| Net      cash provided by (used in) operating activities          |   |   | (406,898 | ) |   |   | 301,268 |   |   |   | 248,232 |   |   |   | - |   |   |   | 142,602 |   |
|  Cash      flows from investing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Purchases      of property and equipment                    |   |   | - |   |   |   | (51,999 | ) |   |   | (66,422 | ) |   |   | - |   |   |   | (118,421 | ) |
|  Other                                                       |   |   | - |   |   |   | 22,180 |   |   |   | 352 |   |   |   | - |   |   |   | 22,532 |   |
| Net      cash used in investing activities                        |   |   | - |   |   |   | (29,819 | ) |   |   | (66,070 | ) |   |   | - |   |   |   | (95,889 | ) |
|  Cash      flows from financing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior      secured credit facility:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings                                                        |   |   | - |   |   |   | - |   |   |   | 721,300 |   |   |   | - |   |   |   | 721,300 |   |
| Repayments                                                        |   |   | (1,399,700 | ) |   |   | - |   |   |   | (95,000 | ) |   |   | - |   |   |   | (1,494,700 | ) |
| Non-controlling      investment in Targa Resources Partners LP    |   |   | - |   |   |   | - |   |   |   | 771,834 |   |   |   | - |   |   |   | 771,834 |   |
| Other                                                             |   |   | (991 | ) |   |   | - |   |   |   | (8,946 | ) |   |   | - |   |   |   | (9,937 | ) |
| Receipts      from (payments to) subsidiaries                     |   |   | 1,807,589 |   |   |   | (300,807 | ) |   |   | (1,506,782 | ) |   |   | - |   |   |   | - |   |
| Net      cash provided by (used in) financing activities          |   |   | 406,898 |   |   |   | (300,807 | ) |   |   | (117,594 | ) |   |   | - |   |   |   | (11,503 | ) |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Net      increase in cash and cash equivalents                    |   |   | - |   |   |   | (29,358 | ) |   |   | 64,568 |   |   |   | - |   |   |   | 35,210 |   |
| Cash      and cash equivalents, beginning of year                 |   |   | - |   |   |   | 117,661 |   |   |   | 25,078 |   |   |   | - |   |   |   | 142,739 |   |
| Cash      and cash equivalents, end of year                       |   | $ | - |   |   | $ | 88,303 |   |   | $ | 89,646 |   |   | $ | - |   |   | $ | 177,949 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

| Targa      Resources, Inc.                                        |   |
|-------------------------------------------------------------------|--------|
| Condensed      Consolidating Statement of Cash Flows              |   |
| Year      Ended December 31, 2006                                 |   |
| (In      thousands)                                               |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   | Parent |   |   | Guarantor      Subsidiaries |   |   | Non-Guarantor      Subsidiaries |   |   | Intercompany Eliminations |   |   | Consolidated |   |
|  Cash      flows from operating activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      income (loss)                                      |   | $ | 23,414 |   |   | $ | 39,784 |   |   | $ | 165,870 |   |   | $ | (205,654 | ) |   | $ | 23,414 |   |
|  Adjustments      to reconcile net income (loss) to net cash |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  provided      by (used in)operating activities:             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation,      amortization and accretion                     |   |   | - |   |   |   | 85,717 |   |   |   | 77,859 |   |   |   | - |   |   |   | 163,576 |   |
| Deferred      income taxes                                        |   |   | 16,141 |   |   |   | (2,892 | ) |   |   | 2,926 |   |   |   | - |   |   |   | 16,175 |   |
| Earnings      (loss) from unconsolidated investments              |   |   | - |   |   |   | (9,968 | ) |   |   | - |   |   |   | - |   |   |   | (9,968 | ) |
| Equity      in earnings (losses) of subsidiaries                  |   |   | (39,784 | ) |   |   | (139,872 | ) |   |   | - |   |   |   | 179,656 |   |   |   | - |   |
| Minority      interest/Non-controlling interest                   |   |   | - |   |   |   |   |   |   |   | (25,998 | ) |   |   | - |   |   |   | (25,998 | ) |
| Other                                                             |   |   | - |   |   |   | (38,252 | ) |   |   | 7,700 |   |   |   | 25,998 |   |   |   | (4,554 | ) |
| Changes      in operating assets and liabilities:                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Accounts      receivable and other assets                         |   |   | 347 |   |   |   | (79,104 | ) |   |   | 75,845 |   |   |   | - |   |   |   | (2,912 | ) |
| Inventory                                                         |   |   | - |   |   |   | 34,328 |   |   |   | 2,182 |   |   |   | - |   |   |   | 36,510 |   |
| Accounts      payable and other liabilities                       |   |   | (18,243 | ) |   |   | 106,188 |   |   |   | (50,902 | ) |   |   | - |   |   |   | 37,043 |   |
| Net      cash provided by (used in) operating activities          |   |   | (18,125 | ) |   |   | (4,071 | ) |   |   | 255,482 |   |   |   | - |   |   |   | 233,286 |   |
|  Cash      flows from investing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Purchases      of property and equipment                    |   |   | - |   |   |   | (95,557 | ) |   |   | (41,108 | ) |   |   | - |   |   |   | (136,665 | ) |
|  Proceeds      from property insurance                       |   |   | - |   |   |   | 27,221 |   |   |   | - |   |   |   | - |   |   |   | 27,221 |   |
|  Investment      in unconsolidated affiliate                 |   |   | - |   |   |   | (9,102 | ) |   |   | - |   |   |   | - |   |   |   | (9,102 | ) |
|  Other                                                       |   |   | - |   |   |   | 1,008 |   |   |   | (274 | ) |   |   | - |   |   |   | 734 |   |
| Net      cash used in investing activities                        |   |   | - |   |   |   | (76,430 | ) |   |   | (41,382 | ) |   |   | - |   |   |   | (117,812 | ) |
|  Cash      flows from financing activities                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior      secured credit facility:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings                                                        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Repayments                                                        |   |   | (12,500 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (12,500 | ) |
| Proceeds      from issuance of long-term debt                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Repayment      of long-term debt                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Parent      contributions (distributions)                         |   |   | - |   |   |   | 173,364 |   |   |   | (174,333 | ) |   |   | - |   |   |   | (969 | ) |
| Receipts      from (payments to) subsidiaries                     |   |   | 31,318 |   |   |   | 15,174 |   |   |   | (46,492 | ) |   |   | - |   |   |   | - |   |
| Costs      incurred in connection with financing arrangements     |   |   | (693 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (693 | ) |
| Net      cash provided by financing activities                    |   |   | 18,125 |   |   |   | 188,538 |   |   |   | (220,825 | ) |   |   | - |   |   |   | (14,162 | ) |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      increase in cash and cash equivalents                    |   |   | - |   |   |   | 108,037 |   |   |   | (6,725 | ) |   |   | - |   |   |   | 101,312 |   |
| Cash      and cash equivalents, beginning of year                 |   |   | - |   |   |   | 9,624 |   |   |   | 31,803 |   |   |   | - |   |   |   | 41,427 |   |
| Cash      and cash equivalents, end of year                       |   | $ | - |   |   | $ | 117,661 |   |   | $ | 25,078 |   |   | $ | - |   |   | $ | 142,739 |   |

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Table of Contents

| 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 October 31, 2005 among Targa Resources, Inc., Targa Resources      Finance Corporation, the Guarantors named therein and Wells Fargo Bank,      National Association (incorporated by reference to Exhibit 4.3 to Targa      Resources, Inc.’s Registration Statement on Form S-4 filed October 31,      2007 (File No. 333-147066)). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Supplemental      Indenture dated October 31, 2008, among Targa Permian Intrastate LLC, a      subsidiary of Targa Resources, Inc., Targa Resources Finance Corporation,      the other Subsidiary Guarantors and Wells Fargo Bank, National      Association. (incorporated by reference to Exhibit 4.1 to Targa Resources,      Inc.’s Quarterly Report on Form 10-Q filed November 12. 2008 (File No.      333-147066)). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3* | Supplemental      Indenture dated February 14, 2007, among Targa Resources GP LLC, a      subsidiary of Targa Resources, Inc., Targa Resources Finance Corporation,      the other Subsidiary Guarantors and Wells Fargo Bank, National      Association. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4* | Supplemental      Indenture dated March 15, 2006, among Targa LSNG GP LLC and Targa LSNG LP,      subsidiaries of Targa Resources, Inc., Targa Resources Finance      Corporation, the other Subsidiary Guarantors and Wells Fargo Bank,      National Association. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5* | Supplemental      Indenture dated December 22, 2005, among Targa GP Inc., Targa LP Inc.,      Targa North Texas GP LLC, Targa Versado GP LLC, Targa Straddle GP LLC,      Targa Permian GP LLC, Targa Downstream GP LLC, Targa North Texas LP, Targa      Versado LP, Targa Straddle LP, Targa Permian LP, and Targa Downstream LP,      subsidiaries of Targa Resources, Inc., Targa Resources Finance      Corporation, the other Subsidiary Guarantors and Wells Fargo Bank,      National Association. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6* | Supplemental      Indenture dated December 14, 2005, among Targa Gas Marketing LLC, a      subsidiary of Targa Resources, Inc., Targa Resources Finance Corporation,      the other Subsidiary Guarantors and Wells Fargo Bank, National      Association. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| 4.7 | Registration      Rights Agreement, dated as of October 31, 2005, among Targa Resources,      Inc., Targa Resources Finance Corporation, the Guarantors named therein      and the Initial Purchasers named therein (incorporated by reference to      Exhibit 4.4 to Targa Resources, Inc.’s Registration Statement on Form S-4      filed October 31, 2007 (File No.333-147066)). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.8 | Indenture      dated June 18, 2008, among Targa Resources Partners LP, Targa Resources      Partners Finance Corporation, the Guarantors named therein and U.S. Bank      National Association (incorporated by reference to Exhibit 4.1 to Targa      Resources, Inc.’s Form 10-Q filed August 11, 2008 (File No.      333-147066)). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.9 | Registration      Rights Agreement dated June 18, 2008, among Targa Resources Partners LP,      Targa Resources Partners Finance Corporations, the Guarantors named      therein and the initial purchasers named therein (incorporated by      reference to Exhibit 4.2 to Targa Resources, Inc.’s Quarterly Report on      Form 10-Q filed August 11, 2008 (File No.  333-147066)). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Credit      Agreement dated October 31, 2005 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 10.1 to Targa Resources, Inc.’s Registration      Statement on Form S-4 filed October 31, 2007 (File No.      333-147066)). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Targa      Resources Investments Inc. Amended and Restated Stockholders’ Agreement      dated as of October 31, 2005 (incorporated by reference to Exhibit 10.2 to      Targa Resources, Inc.’s Registration Statement on Form S-4/A filed      December 18, 2007 (File No.333-147066)). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3 | First      Amendment to Amended and Restated Stockholders’ Agreement, dated January      26, 2006 (incorporated by reference to Exhibit 10.3 to Targa Resources,      Inc.’s Registration Statement on Form S-4/A filed December 18, 2007 (File      No. 333-147066)). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Second      Amendment to Amended and Restated Stockholders’ Agreement dated March 30,      2007 (incorporated by reference to Exhibit 10.4 to Targa Resources, Inc.’s      Registration Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | Third      Amendment to Amended and Restated Stockholders’ Agreement dated      May 1, 2007 (incorporated by reference to Exhibit 10.5 to Targa      Resources, Inc.’s Registration Statement on Form S-4/A filed      December 18, 2007 (File No.333-147066)). |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6 | Fourth      Amendment to Amended and Restated Stockholders’ Agreement dated December      7, 2007 (incorporated by reference to Exhibit 10.6 to Targa Resources,      Inc.’s Registration Statement on Form S-4/A filed December 18, 2007 (File      No. 333-147066)). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7+ | Targa      Resources, Inc. 2004 Stock Incentive Plan (incorporated by reference to      Exhibit 10.7 to Targa Resources, Inc.’s Registration Statement on Form      S-4/A filed December 18, 2007 (File No.  333-147066)). |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.8+ | Amendment      to and Assumption of Targa Resources, Inc. 2004 Stock Incentive Plan      (incorporated by reference to Exhibit 10.8 to Targa Resources, Inc.’s      Registration Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.9+ | Amendment      to Targa Resources, Inc. 2004 Stock Incentive Plan (as Assumed and      Amended) (incorporated by reference to Exhibit 10.9 to Targa Resources,      Inc.’s Registration Statement on Form S-4/A filed December 18, 2007 (File      No. 333-147066)). |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| 10.10+ | Targa      Resources Investments Inc. 2005 Stock Incentive Plan (incorporated by      reference to Exhibit 10.10 to Targa Resources, Inc.’s Registration      Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.11+ | First      Amendment to Targa Resources Investments Inc. 2005 Stock Incentive Plan      (incorporated by reference to Exhibit 10.11 to Targa Resources, Inc.’s      Registration Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.12+ | Second      Amendment to Targa Resources Investments Inc. 2005 Stock Incentive Plan      (incorporated by reference to Exhibit 10.12 to Targa Resources, Inc.’s      Registration Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.13+ | Form      of Targa Resources Investments Inc. Nonstatutory Stock Option Agreement      (Non-Employee Director) (incorporated by reference to Exhibit 10.13 to      Targa Resources, Inc.’s Registration Statement on Form S-4/A filed      December 18, 2007 (File No.333-147066)). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.14+ | Form      of Targa Resources Investments Inc. Nonstatutory Stock Option Agreement      (Non-Director Management and Other Employees) (incorporated by reference      to Exhibit 10.14 to Targa Resources, Inc.’s Registration Statement on Form      S-4/A filed December 18, 2007 (File No.  333-147066)). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.15+ | Form      of Targa Resources Investments Inc. Incentive Stock Option Agreement      (incorporated by reference to Exhibit 10.15 to Targa Resources, Inc.’s      Registration Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.16+ | Form      of Targa Resources Investments Inc. Restricted Stock Agreement      (incorporated by reference to Exhibit 10.16 to Targa Resources, Inc.’s      Registration Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.17+ | Form      of Targa Resources Investments Inc. Restricted Stock Agreement (relating      to preferred stock option exchange for directors) (incorporated by      reference to Exhibit 10.17 to Targa Resources, Inc.’s Registration      Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.18+ | Form      of Targa Resources Investments Inc. Restricted Stock Agreement (relating      to preferred stock option exchange for employees) (incorporated by      reference to Exhibit 10.18 to Targa Resources, Inc.’s Registration      Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.19+ | Targa      Resources, Inc. Bonus Plan (incorporated by reference to Exhibit 10.19 to      Targa Resources, Inc.’s Registration Statement on Form S-4/A filed      December 18, 2007 (File No.333-147066)). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.20+ | Form      of Targa Resources, Inc. Bonus Agreement (for directors) (incorporated by      reference to Exhibit 10.20 to Targa Resources, Inc.’s Registration      Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.21+ | Form      of Targa Resources, Inc. Bonus Agreement (for executives) (incorporated by      reference to Exhibit 10.21 to Targa Resources, Inc.’s Registration      Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| 10.22+ | Targa      Resources Investments Inc. Change of Control Executive Officer Severance      Program (incorporated by reference to Exhibit 10.22 to Targa Resources,      Inc.’s Registration Statement on Form S-4/A filed December 18, 2007      (File No. 333-147066)). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.23+ | Targa      Resources, Inc. 2008 Annual Incentive Plan (incorporated by reference to      Exhibit 10.25 to Targa Resources, Inc.’s Annual Report on Form 10-K filed      March 31, 2008 (File No.333-147006)). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.24+* | Targa      Resources, Inc. 2009 Annual IncentivePlan |
|---------|------------------------------------------------------|

| 10.25+ | Targa      Resources Partners LP Long-Term Incentive Plan (incorporated by reference      to Exhibit 10.25 to Targa Resources, Inc.’s Registration Statement on      Form S-4/A filed December 18, 2007 (File No.  333-147066)). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.26+* | Amendment      to Targa Resources Partners LP Long-Term Incentive Plan dated December 18,      2008. |
|---------|------------------------------------------------------------------------------------------------------|

| 10.27+ | Form      of Restricted Unit Grant Agreement (incorporated by reference to Exhibit      10.26 to Targa Resources, Inc.’s Registration Statement on Form S-4/A      filed December 18, 2007 (File No.333-147066)). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.28+ | Targa      Resources Investments Inc. Long-Term Incentive Plan (incorporated by      reference to Exhibit 10.27 to Targa Resources, Inc.’s Registration      Statement on Form S-4/A filed December 18, 2007 (File No.      333-147066)). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.29+ | Form      of Performance Unit Grant Agreement (incorporated by reference to Exhibit      10.2 .to      Targa Resources, Inc.’s Current Report on Form 8-K filed January 28, 2009      (File No. 333-147066)). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.30 | Credit      Agreement, dated February 14, 2007, by and among Targa Resources Partners      LP, as Borrower, Bank of America, N.A., as Administrative Agent, Wachovia      Bank, N.A., as Syndication Agent, Merrill Lynch Capital, Royal Bank of      Canada and The Royal Bank of Scotland PLC, as Co-Documentation Agents, and      the other lenders part thereto (incorporated by reference to Exhibit 10.29      to Targa Resources, Inc.’s Registration Statement on Form S-4/A filed      December 18, 2007 (File No.333-147066)). |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.31 | First      Amendment to Credit Agreement dated October 24, 2007 by and among Targa      Resources Partners LP, as Borrower, Bank of America, N.A., as      Administrative Agent, Collateral Agent, Swing Line Lender and L/C Issuer      and the other lenders party thereto (incorporated by reference to Exhibit      10.30 to Targa Resources, Inc.’s Registration Statement on Form S-4/A      filed December 18, 2007 (File No.333-147066)). |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.32 | Commitment      Increase Supplement made as of October 24, 2007 by and among Targa      Resources Partners LP, Bank of America, N.A., as Administrative Agent,      Collateral Agent, Swing Line Lender and L/C Issuer and the other parties      thereto (incorporated by reference to Exhibit 10.31 to Targa Resources,      Inc.’s Registration Statement on Form S-4/A filed December 18, 2007 (File      No. 333-147066)). |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.33 | Commitment      Increase Supplement, dated June 18, 2008, by and among Targa Resources      Partners LP, Bank of America, N.A. and other parties signatory thereto      (incorporated by reference to Exhibit 10.1 to Targa Resources, Inc.’s      Quarterly Report on Form 10-Q filed August 11, 2008 (File No.      333-147066)). |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.34* | Amended      and Restated Omnibus Agreement, dated October 24, 2007, by and among Targa      Resources Partners LP, Targa Resources, Inc., Targa Resources LLC and      Targa Resources GP LLC. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.1* | Subsidiaries      of Targa Resources, Inc. |
|-------|--------------------------------------------|

| 31.1* | Certification      of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the      Securities Exchange Act of 1934. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

| 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. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | +      Management contract or compensation plan or  arrangement. |
|--------|------------------------------------------------------------------|

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