Earnings per Common Share

6 Months Ended

Jun. 30, 2021

Note 10 — Earnings per Common Share

The following table sets forth a reconciliation of net income and weighted average shares outstanding used in computing basic and diluted net income per common share:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(In millions, except per share amounts)
Net income (loss) attributable to Targa Resources Corp.	$	56.2	$	81.0	$	202.6	$	(1,656.8	)
Less: Dividends on Series A Preferred Stock		21.8		22.9		43.7		45.8
Less: Deemed dividends on Series A Preferred Stock		—		9.2		—		18.2
Net income (loss) attributable to common shareholders for basic earnings per share	$	34.4	$	48.9	$	158.9	$	(1,720.8	)

Weighted average shares outstanding - basic		228.6		233.1		228.5		233.1
Dilutive effect of unvested stock awards		2.7		0.7		2.4		—
Weighted average shares outstanding - diluted		231.3		233.8		230.9		233.1

Net income (loss) available per common share - basic	$	0.15	$	0.21	$	0.70	$	(7.38	)
Net income (loss) available per common share - diluted	$	0.15	$	0.21	$	0.69	$	(7.38	)

The following potential common stock equivalents are excluded from the determination of diluted earnings per share because the inclusion of such shares would have been anti-dilutive (in millions on a weighted-average basis):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Unvested restricted stock awards		0.3		3.2		0.3		0.8
Series A Preferred Stock (1)		44.3		46.5		44.3		46.5

(1)

The Series A Preferred has no mandatory redemption date, but is redeemable at our election for a 10% premium to the liquidation preference on or prior to March 16, 2022 and for a 5% premium to the liquidation preference thereafter. If the Series A Preferred is not redeemed prior to March 16, 2028, the investors have the right to convert the Series A Preferred into TRC common stock.