Current Report Filing (8-k)
January 23 2020 - 5:30PM
Edgar (US Regulatory)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 16, 2020
TARGA RESOURCES PARTNERS LP
(Exact name of registrant as specified in its charter)
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Delaware
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001-33303
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65-1295427
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation or organization)
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File Number)
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Identification No.)
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811 Louisiana, Suite 2100
Houston, TX 77002
(Address of principal executive office and Zip Code)
(713) 584-1000
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
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Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading symbol(s)
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Name of each exchange on which registered
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9.0% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units
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NGLS/PA
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New York Stock Exchange
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of
1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an
emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act. ☐
Item 5.02
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Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.
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(e) Targa Resources Corp. 2020 Annual Incentive Compensation
Plan. On January 16, 2020, the Compensation Committee (the Committee) of the Board of Directors of Targa Resources Corp. (the Company), which is the indirect parent of the general partner of Targa
Resources Partners LP (the Partnership), approved the Companys 2020 Annual Incentive Compensation Plan (the Bonus Plan). The Bonus Plan is an annual cash bonus plan available to all of the Companys
employees, including its executive officers, who also serve as executive officers of the Partnerships general partner. The purpose of the Bonus Plan is to reward employees for contributions toward the Companys business priorities
(including business priorities with respect to the Partnership) approved by the Committee and to aid the Company in retaining and motivating employees. Under the Bonus Plan, the level of funding of the cash bonus pool is based on the Companys
achievement of certain business priorities, including financial, operational, sustainability and safety objectives.
The
Committee has established the following key business priorities for 2020:
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Category
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What it includes
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Why is
it important
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Financial
Performance
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Adjusted EBITDA
Growth compared to internal plan and public expectations
Balance sheet management
Reducing Debt / Adjusted EBITDA
Funding and liquidity
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Adjusted EBITDA and balance sheet management together emphasize the importance of profitable growth grounded in prudent fiscal management
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Operational Performance
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Project execution
Operational execution
Volume growth
Commercial execution
Capital discipline
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Stresses the importance of operational excellence and optimization of asset utilization through increasing volumes, while focused on commercial execution and capital
discipline key drivers of value creation
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Sustainability
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Talent management
Environmental, social and governance (ESG)
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Promotes focus on investment in human capital and on incorporating the interests of all key stakeholders in the execution of our business strategy to help ensure that annual
performance leads to sustainable long-term growth
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Safety
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A
holistic scorecard including quantitative and qualitative evaluation of incident rates, severity, process improvement, etc.
Operates outside plan as a modifier that can reduce plan payout if performance is below
expectations
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Stresses critical nature of safe operations and reinforces philosophy that strong safety performance is an expectation and not a
justification for increased incentive compensation
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The Committee has targeted a total cash bonus pool for achievement of the business priorities based on the sum
of individual employee market-based target bonus opportunities, which are based on a percentage of each employees eligible earnings. Generally, eligible earnings are an employees base salary and overtime pay. Near or following the end of
the year, the Chief Executive Officer (CEO) recommends to the Committee the total amount of cash to be allocated to the bonus pool based upon overall performance of the Company relative to the established objectives, generally
ranging from 0 to 2x the aggregate target bonus opportunities for all employees in the pool. Upon receipt of the CEOs recommendation, the Committee, in its sole discretion, determines the total amount of cash to be allocated to the bonus pool.
The Committee has discretion to adjust the cash bonus pool attributable to the achievement of business priorities based on accomplishment of the applicable objectives as determined by the Committee and the CEO. Additionally, the Committee, in its
sole discretion, determines the amount of the cash bonus award to each of the Companys executive officers, including the CEO. The executive officers determine the amount of the cash bonus pool to be allocated to the Companys departments,
groups and employees (other than the executive
officers of the Company) based on performance and upon the recommendation of their supervisors, managers and line officers. A copy of the Bonus Plan is filed as Exhibit 10.1 to this Form 8-K and incorporated herein by reference.
Item 9.01
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Financial Statements and Exhibits.
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(d) Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
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TARGA RESOURCES PARTNERS LP
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By:
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Targa Resources GP LLC,
its general
partner
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Dated: January 23, 2020
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By:
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/s/ Jennifer R. Kneale
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Jennifer R. Kneale
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Chief Financial Officer
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