Nov 04, 2013 |
Plains All American Pipeline, L.P. Reports Third-Quarter 2013 Results |
Plains All American Pipeline, L.P. (NYSE: PAA)
reported third-quarter 2013 results as summarized below:
Summary Financial Information
(1) |
| |
| |
| |
(in millions, except per unit data)
| | | | | | | |
|
| Three Months Ended September 30, |
| | | Nine Months Ended September 30, | | |
| | | 2013 |
| 2012 |
| % Change | | 2013 |
| 2012 |
| % Change | Net income attributable to Plains | | |
$
|
231
|
|
$
|
165
| |
40
|
%
| |
$
|
1,052
| |
$
|
774
| |
36
|
%
| Diluted net income per limited partner unit | | |
$
|
0.38
| |
$
|
0.27
| |
41
|
%
| |
$
|
2.22
| |
$
|
1.70
| |
31
|
%
| EBITDA | | |
$
|
411
|
|
$
|
470
|
|
-13
|
%
| |
$
|
1,642
|
|
$
|
1,410
|
|
16
|
%
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | Three Months Ended September 30, | | | | Nine Months Ended September 30, | | |
| | | 2013 |
| 2012 |
| % Change | | 2013 |
| 2012 |
| % Change | Adjusted net income attributable to Plains | | |
$
|
284
| |
$
|
322
| |
-12
|
%
| |
$
|
1,096
| |
$
|
985
| |
11
|
%
| Diluted adjusted net income per limited partner unit | | |
$
|
0.53
| |
$
|
0.73
| |
-27
|
%
| |
$
|
2.35
| |
$
|
2.33
| |
1
|
%
| Adjusted EBITDA |
|
|
$
|
480
|
|
$
|
502
|
|
-4
|
%
| |
$
|
1,697
|
|
$
|
1,497
|
|
13
|
%
| Distribution declared for the period |
|
|
$
|
0.6000
|
|
$
|
0.5425
|
|
10.6
|
%
| | | | | | | | | | | | | | | | | | | |
| (1) The Partnership's reported results include the
impact of items that affect comparability between reporting
periods. The impact of these items is excluded from adjusted
results. See the section of this release entitled "Non-GAAP
Financial Measures and Selected Items Impacting Comparability" and
the tables attached hereto for information regarding selected
items that the Partnership believes impact comparability of
financial results between reporting periods, as well as for
information regarding non-GAAP financial measures (such as
adjusted EBITDA) and their reconciliation to the most directly
comparable GAAP measures.
|
|
"PAA continues to deliver solid performance in a variety of market
conditions. For the third quarter of 2013, adjusted EBITDA for each of
our three reporting segments met or exceeded the mid-point of our
guidance and we remain on track to meet or exceed each of our goals for
2013," said Greg L. Armstrong, Chairman and CEO of Plains All American.
"PAA's quarterly distribution payable next week represents a 10.6%
increase over the quarterly distribution paid in November 2012,
exceeding the high end of our 9% to 10% targeted growth range for 2013."
"Additionally, we increased the mid-point of our 2013 guidance range for
adjusted EBITDA by $50 million to $2.24 billion and ended the quarter
well positioned to finance PAA's continued growth with a strong balance
sheet, approximately $2.9 billion in committed liquidity and credit
metrics that compare favorably to our targets. Looking beyond 2013, we
furnished preliminary baseline guidance for 2014, underpinned by a 20%
increase in our fee-based activities, and established a 10% distribution
growth target for next year. We also expect recently completed growth
projects and our multi-billion dollar portfolio of organic growth
capital investments to provide visibility for continued growth beyond
2014."
The following table summarizes selected financial information by segment
for the third quarter and first nine months of 2013:
Summary of Selected Financial Data by
Segment (1) |
|
| |
| |
| |
(in millions)
| | | | | | | | |
|
| Three Months Ended | | | Three Months Ended | | | | September 30, 2013 | | | September 30, 2012 | | | | Transportation |
| Facilities |
| Supply and Logistics |
|
| Transportation |
| Facilities |
| Supply and Logistics |
Reported segment profit
| | |
$
|
198
| |
|
$
|
146
| |
|
$
|
64
| | | |
$
|
184
| |
$
|
140
| |
$
|
142
|
Selected items impacting the comparability of segment profit (2) | | |
|
7
|
| |
|
4
|
| |
|
60
|
| | |
|
6
| |
|
2
| |
|
27
| Adjusted segment profit | | | $ | 205 |
| | $ | 150 |
| | $ | 124 |
| | | $ | 190 | | $ | 142 | | $ | 169 | Percentage change in adjusted segment profit versus 2012 period | | |
| 8 | % | |
| 6 | % | |
| -27 | % | | | | | | | | | | | | | | | | | | | | | |
| | | | Nine Months Ended | | | Nine Months Ended | | | | September 30, 2013 | | | September 30, 2012 | | | | Transportation |
| Facilities |
| Supply and Logistics |
|
| Transportation |
| Facilities |
| Supply and Logistics |
Reported segment profit
| | |
$
|
522
| | |
$
|
445
| | |
$
|
673
| | | |
$
|
516
| |
$
|
344
| |
$
|
544
|
Selected items impacting the comparability of segment profit (2) | | |
|
25
|
| |
|
14
|
| |
|
12
|
| | |
|
27
| |
|
18
| |
|
43
| Adjusted segment profit | | | $ | 547 |
| | $ | 459 |
| | $ | 685 |
| | | $ | 543 | | $ | 362 | | $ | 587 | Percentage change in adjusted segment profit versus 2012 period | | |
| 1 | % | |
| 27 | % | |
| 17 | % | | | | | | | | | | | | | | | | | | | | | |
| (1) The Partnership's reported results include the
impact of items that affect comparability between reporting
periods. The impact of these items is excluded from adjusted
results. See the section of this release entitled "Non-GAAP
Financial Measures and Selected Items Impacting Comparability" and
the tables attached hereto for information regarding selected
items that the Partnership believes impact comparability of
financial results between reporting periods.
| (2) Certain of our non-GAAP financial measures may not
be impacted by each of the selected items impacting comparability.
|
|
Third-quarter 2013 Transportation adjusted segment profit increased 8%
versus comparable 2012 results. This increase was primarily driven by
the benefit of higher pipeline volumes related to crude oil production
increases in basins our assets service, recently completed organic
growth projects and higher average pipeline tariffs. These benefits were
partially offset by lost revenue from weather-related downtime during
the third quarter of 2013.
Third-quarter 2013 Facilities adjusted segment profit increased 6% over
comparable 2012 results. This increase was primarily related to
increased crude oil rail activities.
Third-quarter 2013 Supply and Logistics adjusted segment profit exceeded
our guidance, but represented a 27% decrease relative to comparable 2012
results. This decrease was primarily related to less favorable crude oil
market conditions during the current year quarter, particularly narrower
crude oil differentials, partially offset by stronger net margins in the
NGL business.
The Partnership will hold a conference call on November 5, 2013 (see
details below). Prior to this conference call, the Partnership will
furnish a current report on Form 8-K, which will include material in
this news release as well as financial and operational guidance for the
fourth quarter and full year of 2013. A copy of the Form 8-K will be
available on the Partnership's website at www.paalp.com,
where PAA routinely posts important information about the Partnership.
Conference Call
The Partnership's conference call will be held at 11:00 a.m. EST on
Tuesday, November 5, 2013 to discuss the following items:
1. The Partnership's third-quarter 2013 performance;
2. The status of major expansion projects;
3. Capitalization and liquidity;
4. Financial and operating guidance for the fourth quarter and full year
of 2013;
5. Preliminary 2014 adjusted EBITDA, implied DCF and growth capital
investment guidance;
6. Status of pending purchase of outstanding publicly traded units of
PNG; and
7. The Partnership's outlook for the future.
Conference Call Access Instructions
To access the Internet webcast of the conference call, please go to the
Partnership's website at www.paalp.com,
choose "Investor Relations," and then choose "Events and Presentations."
Following the live webcast, the call will be archived for a period of
sixty (60) days on the Partnership's website.
Alternatively, access to the live conference call is available by
dialing toll free (877) 531-2998. International callers should dial
(612) 332-0228. No password is required. The slide presentation
accompanying the conference call will be available a few minutes prior
to the call under the "Conference Call Summaries" portion of the
"Conference Calls" tab of the "Investor Relations" section of the PAA
website at www.paalp.com.
Telephonic Replay Instructions
To listen to a telephonic replay of the conference call, please dial
(800) 475-6701 or (320) 365-3844 for international callers and enter
replay access code 303548. The replay will be available beginning
Tuesday, November 5, 2013, at approximately 1:00 p.m. EST and will
continue until 12:59 a.m. EST on December 6, 2013.
Non-GAAP Financial Measures and Selected Items Impacting
Comparability
To supplement our financial information presented in accordance with
GAAP, management uses additional measures that are known as "non-GAAP
financial measures" (such as adjusted EBITDA and implied distributable
cash flow) in its evaluation of past performance and prospects for the
future. Management believes that the presentation of such additional
financial measures provides useful information to investors regarding
our performance and results of operations because these measures, when
used in conjunction with related GAAP financial measures, (i) provide
additional information about our core operating performance and ability
to generate and distribute cash flow, (ii) provide investors with the
financial analytical framework upon which management bases financial,
operational, compensation and planning decisions and (iii) present
measurements that investors, rating agencies and debt holders have
indicated are useful in assessing us and our results of operations.
These measures may exclude, for example, (i) charges for obligations
that are expected to be settled with the issuance of equity instruments,
(ii) the mark-to-market of derivative instruments that are related to
underlying activities in another period (or the reversal of such
adjustments from a prior period), (iii) items that are not indicative of
our core operating results and business outlook and/or (iv) other items
that we believe should be excluded in understanding our core operating
performance. We have defined all such items as "selected items impacting
comparability." We consider an understanding of these selected items
impacting comparability to be material to the evaluation of our
operating results and prospects.
Although we present selected items that we consider in evaluating our
performance, you should also be aware that the items presented do not
represent all items that affect comparability between the periods
presented. Variations in our operating results are also caused by
changes in volumes, prices, exchange rates, mechanical interruptions,
acquisitions and numerous other factors. These types of variations are
not separately identified in this release, but will be discussed, as
applicable, in management's discussion and analysis of operating results
in our Quarterly Report on Form 10-Q.
Adjusted EBITDA and other non-GAAP financial measures are reconciled to
the most comparable GAAP measures for the periods presented in the
tables attached to this release, and should be viewed in addition to,
and not in lieu of, our consolidated financial statements and notes
thereto. In addition, the Partnership maintains on its website (www.paalp.com)
a reconciliation of adjusted EBITDA and certain commonly used non-GAAP
financial information to the most comparable GAAP measures. To access
the information, investors should click on the "Investor Relations" link
on the Partnership's home page, select the "Guidance & Non-GAAP
Reconciliations" link and navigate to the "Non-GAAP Reconciliations" tab
on the Investor Relations page.
Forward Looking Statements
Except for the historical information contained herein, the matters
discussed in this release are forward-looking statements that involve
certain risks and uncertainties that could cause actual results to
differ materially from results anticipated in the forward-looking
statements. These risks and uncertainties include, among other things,
failure to implement or capitalize, or delays in implementing or
capitalizing, on planned internal growth projects; unanticipated changes
in crude oil market structure, grade differentials and volatility (or
lack thereof); the successful integration and future performance of
acquired assets or businesses and the risks associated with operating in
lines of business that are distinct and separate from our historical
operations; the occurrence of a natural disaster, catastrophe, terrorist
attack or other event, including attacks on our electronic and computer
systems; tightened capital markets or other factors that increase our
cost of capital or limit our access to capital; maintenance of our
credit rating and ability to receive open credit from our suppliers and
trade counterparties; continued creditworthiness of, and performance by,
our counterparties, including financial institutions and trading
companies with which we do business; the effectiveness of our risk
management activities; environmental liabilities or events that are not
covered by an indemnity, insurance or existing reserves; declines in the
volumes of crude oil, refined product and NGL shipped, processed,
purchased, stored, fractionated and/or gathered at or through the use of
our facilities, whether due to declines in production from existing oil
and gas reserves, failure to develop or slowdown in the development of
additional oil and gas reserves or other factors; shortages or cost
increases of supplies, materials or labor; fluctuations in refinery
capacity in areas supplied by our mainlines and other factors affecting
demand for various grades of crude oil, refined products and natural gas
and resulting changes in pricing conditions or transportation throughput
requirements; the availability of, and our ability to consummate,
acquisition or combination opportunities; our ability to obtain debt or
equity financing on satisfactory terms to fund additional acquisitions,
expansion projects, working capital requirements and the repayment or
refinancing of indebtedness; the impact of current and future laws,
rulings, governmental regulations, accounting standards and statements
and related interpretations; non-utilization of our assets and
facilities; the effects of competition; interruptions in service on
third-party pipelines; increased costs or lack of availability of
insurance; fluctuations in the debt and equity markets, including the
price of our units at the time of vesting under our long-term incentive
plans; the currency exchange rate of the Canadian dollar; weather
interference with business operations or project construction; risks
related to the development and operation of our facilities; factors
affecting demand for natural gas and natural gas storage services and
rates; general economic, market or business conditions and the
amplification of other risks caused by volatile financial markets,
capital constraints and pervasive liquidity concerns; and other factors
and uncertainties inherent in the transportation, storage, terminalling
and marketing of crude oil and refined products, as well as in the
storage of natural gas and the processing, transportation,
fractionation, storage and marketing of natural gas liquids discussed in
the Partnership's filings with the Securities and Exchange Commission.
Plains All American Pipeline, L.P. is a publicly traded master limited
partnership engaged in the transportation, storage, terminalling and
marketing of crude oil and refined products, as well as in the
processing, transportation, fractionation, storage and marketing of
natural gas liquids. Through its general partner interest and majority
equity ownership position in PAA Natural Gas Storage, L.P. (NYSE: PNG),
PAA also owns and operates natural gas storage facilities. PAA is
headquartered in Houston, Texas.
|
|
|
| |
| |
|
| |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL
SUMMARY (unaudited)
| | | | | | | | | | | |
| CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in millions, except per unit data)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | Three Months Ended | | | Nine Months Ended | | | | | September 30, | | | September 30, | | | | | 2013 | | 2012 | | | 2013 | | 2012 | | | | | | | | | | | |
| REVENUES | | | |
$
|
10,703
| | |
$
|
9,354
| | | |
$
|
31,617
| | |
$
|
28,358
| | | | | | | | | | | | |
| COSTS AND EXPENSES | | | | | | | | | | | |
Purchases and related costs
| | | | |
9,909
| | | |
8,524
| | | | |
28,733
| | | |
25,855
| |
Field operating costs
| | | | |
326
| | | |
292
| | | | |
1,010
| | | |
860
| |
General and administrative expenses
| | | | |
79
| | | |
81
| | | | |
276
| | | |
264
| |
Depreciation and amortization
| | | |
|
93
|
| |
|
210
|
| | |
|
265
|
| |
|
356
|
|
Total costs and expenses
| | | |
|
10,407
|
| |
|
9,107
|
| | |
|
30,284
|
| |
|
27,335
|
| | | | | | | | | | | |
| OPERATING INCOME | | | | |
296
| | | |
247
| | | | |
1,333
| | | |
1,023
| | | | | | | | | | | | |
| OTHER INCOME/(EXPENSE) | | | | | | | | | | | |
Equity earnings in unconsolidated entities
| | | | |
19
| | | |
9
| | | | |
42
| | | |
25
| |
Interest expense, net
| | | | |
(72
|
)
| | |
(74
|
)
| | | |
(224
|
)
| | |
(214
|
)
|
Other income, net
| | | |
|
3
|
| |
|
4
|
| | |
|
2
|
| |
|
6
|
| | | | | | | | | | | |
| INCOME BEFORE TAX | | | | |
246
| | | |
186
| | | | |
1,153
| | | |
840
| |
Current income tax expense
| | | | |
(17
|
)
| | |
(10
|
)
| | | |
(69
|
)
| | |
(32
|
)
|
Deferred income tax benefit/(expense)
| | | |
|
8
|
| |
|
(3
|
)
| | |
|
(10
|
)
| |
|
(11
|
)
| | | | | | | | | | | |
| NET INCOME | | | | |
237
| | | |
173
| | | | |
1,074
| | | |
797
| |
Net income attributable to noncontrolling interests
| | | |
|
(6
|
)
| |
|
(8
|
)
| | |
|
(22
|
)
| |
|
(23
|
)
| NET INCOME ATTRIBUTABLE TO PLAINS | | | |
$
|
231
|
| |
$
|
165
|
| | |
$
|
1,052
|
| |
$
|
774
|
| | | | | | | | | | | |
| NET INCOME ATTRIBUTABLE TO PLAINS: | | | | | | | | | | | | LIMITED PARTNERS | | | |
$
|
133
|
| |
$
|
89
|
| | |
$
|
764
|
| |
$
|
554
|
| GENERAL PARTNER | | | |
$
|
98
|
| |
$
|
76
|
| | |
$
|
288
|
| |
$
|
220
|
| | | | | | | | | | | |
| BASIC NET INCOME PER LIMITED PARTNER UNIT | | | |
$
|
0.38
|
| |
$
|
0.27
|
| | |
$
|
2.23
|
| |
$
|
1.71
|
| | | | | | | | | | | |
| DILUTED NET INCOME PER LIMITED PARTNER UNIT | | | |
$
|
0.38
|
| |
$
|
0.27
|
| | |
$
|
2.22
|
| |
$
|
1.70
|
| | | | | | | | | | | |
| BASIC WEIGHTED AVERAGE UNITS OUTSTANDING | | | |
|
343
|
| |
|
329
|
| | |
|
340
|
| |
|
322
|
| | | | | | | | | | | |
| DILUTED WEIGHTED AVERAGE UNITS OUTSTANDING | | | |
|
345
|
| |
|
331
|
| | |
|
342
|
| |
|
325
|
| | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
| ADJUSTED RESULTS: | | | | | | | | | | | |
(in millions, except per unit data)
| | | | Three Months Ended | | | Nine Months Ended | | | | | September 30, | | | September 30, | | | | | 2013 | | 2012 | | | 2013 | | 2012 | | | | | | | | | | | |
| ADJUSTED NET INCOME ATTRIBUTABLE TO PLAINS | | | |
$
|
284
|
| |
$
|
322
|
| | |
$
|
1,096
|
| |
$
|
985
|
| | | | | | | | | | | |
| DILUTED ADJUSTED NET INCOME PER LIMITED PARTNER UNIT | | | |
$
|
0.53
|
| |
$
|
0.73
|
| | |
$
|
2.35
|
| |
$
|
2.33
|
| | | | | | | | | | | |
| ADJUSTED EBITDA | | | |
$
|
480
|
| |
$
|
502
|
| | |
$
|
1,697
|
| |
$
|
1,497
|
|
|
|
| |
|
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL
SUMMARY (unaudited) | | | | | | |
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | | | | | | |
(in millions)
| | | | | | | | | | September 30, | | | December 31, | | | | 2013 | | | 2012 | ASSETS | | | | | | |
Current assets
| | |
$
|
5,245
| | | |
$
|
5,147
| |
Property and equipment, net
| | | |
10,607
| | | | |
9,643
| |
Goodwill
| | | |
2,519
| | | | |
2,535
| |
Linefill and base gas
| | | |
770
| | | | |
707
| |
Long-term inventory
| | | |
218
| | | | |
274
| |
Investments in unconsolidated entities
| | | |
474
| | | | |
343
| |
Other, net
| | |
|
534
|
| | |
|
586
|
|
Total assets
| | |
$
|
20,367
|
| | |
$
|
19,235
|
| | | | | | |
| LIABILITIES AND PARTNERS' CAPITAL | | | | | | |
Current liabilities
| | |
$
|
5,111
| | | |
$
|
5,183
| |
Senior notes, net of unamortized discount
| | | |
6,710
| | | | |
6,010
| |
Long-term debt under credit facilities and other
| | | |
308
| | | | |
310
| |
Other long-term liabilities and deferred credits
| | |
|
554
|
| | |
|
586
|
|
Total liabilities
| | | |
12,683
| | | | |
12,089
| | | | | | | |
|
Partners' capital excluding noncontrolling interests
| | | |
7,150
| | | | |
6,637
| |
Noncontrolling interests
| | |
|
534
|
| | |
|
509
|
|
Total partners' capital
| | |
|
7,684
|
| | |
|
7,146
|
|
Total liabilities and partners' capital
| | |
$
|
20,367
|
| | |
$
|
19,235
|
| | | | | | |
| DEBT CAPITALIZATION RATIOS | | | | | | |
(in millions)
| | | | | | | | | | September 30, | | | December 31, | | | | 2013 | | | 2012 |
Short-term debt
| | |
$
|
619
| | | |
$
|
1,086
| |
Long-term debt
| | |
|
7,018
|
| | |
|
6,320
|
|
Total debt
| | |
$
|
7,637
|
| | |
$
|
7,406
|
| | | | | | |
|
Long-term debt
| | |
$
|
7,018
| | | |
$
|
6,320
| |
Partners' capital
| | |
|
7,684
|
| | |
|
7,146
|
|
Total book capitalization
| | |
$
|
14,702
|
| | |
$
|
13,466
|
|
Total book capitalization, including short-term debt
| | |
$
|
15,321
|
| | |
$
|
14,552
|
| | | | | | |
|
Long-term debt-to-total book capitalization
| | | |
48
|
%
| | | |
47
|
%
|
Total debt-to-total book capitalization, including short-term debt
| | | |
50
|
%
| | | |
51
|
%
|
|
|
| |
| |
| |
|
| |
| |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL
SUMMARY (unaudited)
| | | | | | | | | | | | | | |
| SELECTED FINANCIAL DATA BY SEGMENT |
(in millions)
| | | | | | | | | | | | | | | | | | Three Months Ended | | | Three Months Ended | | | | September 30, 2013 | | | September 30, 2012 | | | | | | | | Supply and | | | | | | | Supply and | | | | Transportation | | Facilities | | Logistics | | | Transportation | | Facilities | | Logistics |
Revenues (1) | | |
$
|
378
| | |
$
|
280
| | |
$
|
10,386
| | | |
$
|
364
| | |
$
|
262
| | |
$
|
9,049
| |
Purchases and related costs (1) | | | |
(35
|
)
| | |
(23
|
)
| | |
(10,189
|
)
| | | |
(36
|
)
| | |
(29
|
)
| | |
(8,776
|
)
|
Field operating costs (excluding equity-indexed compensation
expense) (1) | | | |
(131
|
)
| | |
(92
|
)
| | |
(103
|
)
| | | |
(119
|
)
| | |
(72
|
)
| | |
(101
|
)
|
Equity-indexed compensation expense - operations
| | | |
(3
|
)
| | |
-
| | | |
-
| | | | |
(3
|
)
| | |
-
| | | |
(1
|
)
|
Segment G&A expenses (excluding equity-indexed compensation expense) (2) | | | |
(25
|
)
| | |
(15
|
)
| | |
(25
|
)
| | | |
(23
|
)
| | |
(16
|
)
| | |
(24
|
)
|
Equity-indexed compensation expense - general and administrative
| | | |
(5
|
)
| | |
(4
|
)
| | |
(5
|
)
| | | |
(8
|
)
| | |
(5
|
)
| | |
(5
|
)
|
Equity earnings in unconsolidated entities
| | |
|
19
|
| |
|
-
|
| |
|
-
|
| | |
|
9
|
| |
|
-
|
| |
|
-
|
|
Reported segment profit
| | |
$
|
198
|
| |
$
|
146
|
| |
$
|
64
|
| | |
$
|
184
|
| |
$
|
140
|
| |
$
|
142
|
|
Selected items impacting comparability of segment profit (3) | | |
|
7
|
| |
|
4
|
| |
|
60
|
| | |
|
6
|
| |
|
2
|
| |
|
27
|
|
Segment profit excluding selected items impacting comparability
| | |
$
|
205
|
| |
$
|
150
|
| |
$
|
124
|
| | |
$
|
190
|
| |
$
|
142
|
| |
$
|
169
|
| | | | | | | | | | | | | | |
|
Maintenance capital
| | |
$
|
29
|
| |
$
|
6
|
| |
$
|
7
|
| | |
$
|
26
|
| |
$
|
17
|
| |
$
|
4
|
| | | | | | | | | | | | | | |
| | | | Nine Months Ended | | | Nine Months Ended | | | | September 30, 2013 | | | September 30, 2012 | | | | | | | | Supply and | | | | | | | Supply and | | | | Transportation | | Facilities | | Logistics | | | Transportation | | Facilities | | Logistics |
Revenues (1) | | |
$
|
1,111
| | |
$
|
983
| | |
$
|
30,544
| | | |
$
|
1,043
| | |
$
|
785
| | |
$
|
27,368
| |
Purchases and related costs (1) | | | |
(109
|
)
| | |
(196
|
)
| | |
(29,439
|
)
| | | |
(100
|
)
| | |
(168
|
)
| | |
(26,414
|
)
|
Field operating costs (excluding equity-indexed compensation
expense) (1) | | | |
(402
|
)
| | |
(272
|
)
| | |
(327
|
)
| | | |
(343
|
)
| | |
(204
|
)
| | |
(308
|
)
|
Equity-indexed compensation expense - operations
| | | |
(15
|
)
| | |
(2
|
)
| | |
(2
|
)
| | | |
(12
|
)
| | |
(2
|
)
| | |
(2
|
)
|
Segment G&A expenses (excluding equity-indexed compensation expense) (2) | | | |
(74
|
)
| | |
(48
|
)
| | |
(77
|
)
| | | |
(73
|
)
| | |
(48
|
)
| | |
(77
|
)
|
Equity-indexed compensation expense - general and administrative
| | | |
(31
|
)
| | |
(20
|
)
| | |
(26
|
)
| | | |
(24
|
)
| | |
(19
|
)
| | |
(23
|
)
|
Equity earnings in unconsolidated entities
| | |
|
42
|
| |
|
-
|
| |
|
-
|
| | |
|
25
|
| |
|
-
|
| |
|
-
|
|
Reported segment profit
| | |
$
|
522
| | |
$
|
445
| | |
$
|
673
| | | |
$
|
516
| | |
$
|
344
| | |
$
|
544
| |
Selected items impacting comparability of segment profit (3) | | |
|
25
|
| |
|
14
|
| |
|
12
|
| | |
|
27
|
| |
|
18
|
| |
|
43
|
|
Segment profit excluding selected items impacting comparability
| | |
$
|
547
|
| |
$
|
459
|
| |
$
|
685
|
| | |
$
|
543
|
| |
$
|
362
|
| |
$
|
587
|
| | | | | | | | | | | | | | |
|
Maintenance capital
| | |
$
|
84
|
| |
$
|
23
|
| |
$
|
17
|
| | |
$
|
78
|
| |
$
|
34
|
| |
$
|
11
|
| | | | | | | | | | | | | | |
| (1) Includes intersegment amounts.
| (2) Segment general and administrative expenses (G&A)
reflect direct costs attributable to each segment and an allocation
of other expenses to the segments. The proportional allocations by
segment
require judgment by management and are based on the business
activities that exist during each period. Includes
acquisition-related expenses for the 2012 period.
| (3) Certain non-GAAP financial measures may not be
impacted by each of the selected items impacting comparability.
|
|
|
| |
|
|
| |
|
|
| |
|
|
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL
SUMMARY (unaudited)
| | | | | | | | | | | | | | | |
| | | | Three Months Ended | | | | Nine Months Ended | | | | September 30, | | | | September 30, | OPERATING DATA(1) | | | 2013 | | | | 2012 | | | | 2013 | | | | 2012 | | | | | | | | | | | | | | | |
| Transportation activities (average daily volumes in thousands of
barrels): | | | | | | | | | | | | | | | |
Tariff activities
| | | | | | | | | | | | | | | |
Crude Oil Pipelines
| | | | | | | | | | | | | | | |
All American
| | |
40
| | | |
38
| | | |
39
| | | |
31
|
Bakken Area Systems
| | |
136
| | | |
127
| | | |
130
| | | |
133
|
Basin / Mesa
| | |
731
| | | |
678
| | | |
712
| | | |
676
|
Capline
| | |
147
| | | |
159
| | | |
153
| | | |
144
|
Eagle Ford Area Systems
| | |
119
| | | |
26
| | | |
81
| | | |
17
|
Line 63 / Line 2000
| | |
113
| | | |
131
| | | |
113
| | | |
126
|
Manito
| | |
47
| | | |
51
| | | |
46
| | | |
59
|
Mid-Continent Area Systems
| | |
256
| | | |
281
| | | |
277
| | | |
268
|
Permian Basin Area Systems
| | |
593
| | | |
452
| | | |
540
| | | |
451
|
Rainbow
| | |
128
| | | |
142
| | | |
125
| | | |
147
|
Rangeland
| | |
54
| | | |
57
| | | |
59
| | | |
60
|
Salt Lake City Area Systems
| | |
131
| | | |
156
| | | |
132
| | | |
151
|
South Saskatchewan
| | |
56
| | | |
61
| | | |
50
| | | |
60
|
White Cliffs
| | |
22
| | | |
18
| | | |
22
| | | |
18
|
Other
| | |
738
| | | |
670
| | | |
737
| | | |
700
|
NGL Pipelines
| | | | | | | | | | | | | | | |
Co-Ed
| | |
56
| | | |
60
| | | |
55
| | | |
41
|
Other
| | |
200
| | | |
204
| | | |
190
| | | |
121
|
Refined Products Pipelines
| | |
54
| | | |
112
| | | |
88
| | | |
114
|
Tariff activities total
| | |
3,621
| | | |
3,423
| | | |
3,549
| | | |
3,317
|
Trucking
| | |
120
| | | |
107
| | | |
113
| | | |
103
|
Transportation activities total
| | |
3,741
| | | |
3,530
| | | |
3,662
| | | |
3,420
| | | | | | | | | | | | | | | |
| Facilities activities (average monthly volumes): | | | | | | | | | | | | | | | |
Crude oil, refined products and NGL terminalling and storage
(average monthly capacity in millions of barrels)
| | |
94
| | | |
94
| | | |
94
| | | |
88
|
Rail load / unload volumes
(average throughput in thousands of barrels per day)
| | |
218
| | | |
-
| | | |
221
| | | |
-
|
Natural gas storage
(average monthly capacity in billions of cubic feet)
| | |
97
| | | |
89
| | | |
96
| | | |
82
|
NGL fractionation
(average throughput in thousands of barrels per day)
| | |
106
| | | |
100
| | | |
99
| | | |
73
|
Facilities activities total
(average monthly capacity in millions of barrels) (2) | | |
120
| | | |
111
| | | |
120
| | | |
104
| | | | | | | | | | | | | | | |
| Supply and Logistics activities (average daily volumes in
thousands of barrels): | | | | | | | | | | | | | | | |
Crude oil lease gathering purchases
| | |
856
| | | |
811
| | | |
855
| | | |
808
|
NGL sales
| | |
145
| | | |
179
| | | |
196
| | | |
155
|
Waterborne cargos
| | |
4
| | | |
5
| | | |
5
| | | |
3
|
Supply and Logistics activities total
| | |
1,005
| | | |
995
| | | |
1,056
| | | |
966
| | | | | | | | | | | | | | | |
| (1) Volumes associated with acquisitions represent
total volumes (attributable to our interest) for the number of
days or months we actually owned the assets divided by the number
of days or months in the period.
| (2) Facilities total is calculated as the sum of: (i)
crude oil, refined products and NGL terminalling and storage
capacity; (ii) rail load and unload volumes multiplied by the
number of days in the period and divided by the number of months
in the period; (iii) natural gas storage capacity divided by 6 to
account for the 6:1 mcf of gas to crude Btu equivalent ratio and
further divided by 1,000 to convert to monthly volumes in
millions; and (iv) NGL fractionation volumes multiplied by the
number of days in the period and divided by the number of months
in the period.
|
| |
| |
| |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL
SUMMARY (unaudited)
| | | | | | | |
| COMPUTATION OF BASIC AND DILUTED EARNINGS
PER LIMITED PARTNER UNIT |
(in millions, except per unit data)
| | | | | | | | | Three Months Ended | | Nine Months Ended | | September 30, | | September 30, | | 2013 | | 2012 | | 2013 | | 2012 | Basic Net Income per Limited Partner Unit: | | | | | | | |
Net income attributable to Plains
|
$
|
231
| | |
$
|
165
| | |
$
|
1,052
| | |
$
|
774
| |
Less: General partner's incentive distribution (1) | |
(95
|
)
| | |
(74
|
)
| | |
(272
|
)
| | |
(208
|
)
|
Less: General partner 2% ownership (1) |
|
(3
|
)
| |
|
(2
|
)
| |
|
(16
|
)
| |
|
(12
|
)
|
Net income available to limited partners
| |
133
| | | |
89
| | | |
764
| | | |
554
| |
Less: Undistributed earnings allocated and distributions to
participating securities (1) |
|
(1
|
)
| |
|
(1
|
)
| |
|
(5
|
)
| |
|
(3
|
)
|
Net income available to limited partners in accordance with
application of the two-class method for MLPs
|
$
|
132
|
| |
$
|
88
|
| |
$
|
759
|
| |
$
|
551
|
| | | | | | | |
|
Basic weighted average number of limited partner units outstanding
| |
343
| | | |
329
| | | |
340
| | | |
322
| | | | | | | | |
|
Basic net income per limited partner unit
|
$
|
0.38
|
| |
$
|
0.27
|
| |
$
|
2.23
|
| |
$
|
1.71
|
| | | | | | | |
| Diluted Net Income per Limited Partner Unit: | | | | | | | |
Net income attributable to Plains
|
$
|
231
| | |
$
|
165
| | |
$
|
1,052
| | |
$
|
774
| |
Less: General partner's incentive distribution (1) | |
(95
|
)
| | |
(74
|
)
| | |
(272
|
)
| | |
(208
|
)
|
Less: General partner 2% ownership (1) |
|
(3
|
)
| |
|
(2
|
)
| |
|
(16
|
)
| |
|
(12
|
)
|
Net income available to limited partners
| |
133
| | | |
89
| | | |
764
| | | |
554
| |
Less: Undistributed earnings allocated and distributions to
participating securities (1) |
|
(1
|
)
| |
|
(1
|
)
| |
|
(4
|
)
| |
|
(3
|
)
|
Net income available to limited partners in accordance with
application of the two-class method for MLPs
|
$
|
132
|
| |
$
|
88
|
| |
$
|
760
|
| |
$
|
551
|
| | | | | | | |
|
Basic weighted average number of limited partner units outstanding
| |
343
| | | |
329
| | | |
340
| | | |
322
| |
Effect of dilutive securities: Weighted average LTIP units (2) |
|
2
|
| |
|
2
|
| |
|
2
|
| |
|
3
|
|
Diluted weighted average number of limited partner units outstanding
|
|
345
|
| |
|
331
|
| |
|
342
|
| |
|
325
|
| | | | | | | |
|
Diluted net income per limited partner unit
|
$
|
0.38
|
| |
$
|
0.27
|
| |
$
|
2.22
|
| |
$
|
1.70
|
| | | | | | | |
| (1) We calculate net income available to limited
partners based on the distributions pertaining to the current
period's net income. After adjusting for the appropriate period's
distributions, the remaining undistributed earnings or excess
distributions over earnings, if any, are allocated to the general
partner, limited partners and participating securities in
accordance with the contractual terms of the partnership agreement
and as further prescribed under the two-class method.
| (2) Our Long-term Incentive Plan ("LTIP") awards that
contemplate the issuance of common units are considered dilutive
unless (i) vesting occurs only upon the satisfaction of a
performance condition and (ii) that performance condition has yet
to be satisfied. LTIP awards that are deemed to be dilutive are
reduced by a hypothetical unit repurchase based on the remaining
unamortized fair value, as prescribed by the treasury stock method
in guidance issued by the FASB.
|
|
| |
| |
| |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES | FINANCIAL SUMMARY (unaudited)
| | | | | | | | |
| SELECTED ITEMS IMPACTING COMPARABILITY | | | | | | | | |
(in millions, except per unit data)
| | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2013 | | 2012 | | 2013 | | 2012 | Selected Items Impacting Comparability - Income/(Loss)
(1): | | | | | | | | |
Gains/(losses) from derivative activities net of inventory valuation
adjustments (2) | |
$
|
(59
|
)
| |
$
|
(31
|
)
| |
$
|
(9
|
)
| |
$
|
(18
|
)
|
Asset impairments (3) | | |
-
| | | |
(125
|
)
| | |
-
| | | |
(125
|
)
|
Equity-indexed compensation expense (4) | | |
(12
|
)
| | |
(12
|
)
| | |
(51
|
)
| | |
(50
|
)
|
Net gain/(loss) on foreign currency revaluation
| | |
2
| | | |
11
| | | |
5
| | | |
(6
|
)
|
Tax effect on selected items impacting comparability
| | |
15
| | | |
-
| | | |
8
| | | |
-
| |
Significant acquisition-related expenses
| | |
-
| | | |
-
| | | |
-
| | | |
(13
|
)
|
Other (5) | |
|
1
|
| |
|
-
|
| |
|
3
|
| |
|
1
|
|
Selected items impacting comparability of net income attributable to
Plains
| |
$
|
(53
|
)
| |
$
|
(157
|
)
| |
$
|
(44
|
)
| |
$
|
(211
|
)
| | | | | | | | |
|
Impact to basic net income per limited partner unit
| |
$
|
(0.16
|
)
| |
$
|
(0.46
|
)
| |
$
|
(0.13
|
)
| |
$
|
(0.64
|
)
|
Impact to diluted net income per limited partner unit
| |
$
|
(0.15
|
)
| |
$
|
(0.46
|
)
| |
$
|
(0.13
|
)
| |
$
|
(0.63
|
)
| | | | | | | | |
| (1) Certain of our non-GAAP financial measures may not
be impacted by each of the selected items impacting comparability.
| (2) Includes mark-to-market gains and losses resulting
from derivative instruments that are related to underlying
activities in future periods or the reversal of mark-to-market
gains and losses from the prior period, net of inventory valuation
adjustments.
| (3) Asset impairments are reflected in "Depreciation
and amortization" on our Condensed Consolidated Statements of
Operations and do not impact the comparability of EBITDA.
| (4) Equity-indexed compensation expense above excludes
the portion of equity-indexed compensation expense represented by
grants under LTIP that, pursuant to the terms of the grant, will
be settled in cash only and have no impact on diluted units.
| (5) Includes other immaterial selected items impacting
comparability, as well as the noncontrolling interests' portion of
selected items.
| | |
|
| |
| |
| |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES | FINANCIAL SUMMARY (unaudited)
| | | | | | | | |
| COMPUTATION OF ADJUSTED BASIC AND DILUTED
EARNINGS PER LIMITED PARTNER UNIT |
(in millions, except per unit data)
| | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2013 | | 2012 | | 2013 | | 2012 | Basic Adjusted Net Income per Limited Partner Unit | | | | | | | | |
Net income attributable to Plains
| |
$
|
231
| | |
$
|
165
| | |
$
|
1,052
| | |
$
|
774
| |
Selected items impacting comparability of net income attributable
to Plains (1) | |
|
53
|
| |
|
157
|
| |
|
44
|
| |
|
211
|
|
Adjusted net income attributable to Plains
| | |
284
| | | |
322
| | | |
1,096
| | | |
985
| |
Less: General partner's incentive distribution (2) | | |
(95
|
)
| | |
(74
|
)
| | |
(272
|
)
| | |
(208
|
)
|
Less: General partner 2% ownership (2) | |
|
(4
|
)
| |
|
(5
|
)
| |
|
(16
|
)
| |
|
(16
|
)
|
Adjusted net income available to limited partners
| | |
185
| | | |
243
| | | |
808
| | | |
761
| |
Less: Undistributed earnings allocated and distributions to
participating securities (2) | |
|
(1
|
)
| |
|
(2
|
)
| |
|
(6
|
)
| |
|
(5
|
)
|
Adjusted limited partners' net income
| |
$
|
184
|
| |
$
|
241
|
| |
$
|
802
|
| |
$
|
756
|
| | | | | | | | |
|
Basic weighted average number of limited partner units outstanding
| | |
343
| | | |
329
| | | |
340
| | | |
322
| | | | | | | | | |
|
Basic adjusted net income per limited partner unit
| |
$
|
0.54
|
| |
$
|
0.73
|
| |
$
|
2.36
|
| |
$
|
2.35
|
| | | | | | | | |
| Diluted Adjusted Net Income per Limited Partner Unit | | | | | | | | |
Net income attributable to Plains
| |
$
|
231
| | |
$
|
165
| | |
$
|
1,052
| | |
$
|
774
| |
Selected items impacting comparability of net income attributable
to Plains (1) | |
|
53
|
| |
|
157
|
| |
|
44
|
| |
|
211
|
|
Adjusted net income attributable to Plains
| | |
284
| | | |
322
| | | |
1,096
| | | |
985
| |
Less: General partner's incentive distribution (2) | | |
(95
|
)
| | |
(74
|
)
| | |
(272
|
)
| | |
(208
|
)
|
Less: General partner 2% ownership (2) | |
|
(4
|
)
| |
|
(5
|
)
| |
|
(16
|
)
| |
|
(16
|
)
|
Adjusted net income available to limited partners
| | |
185
| | | |
243
| | | |
808
| | | |
761
| |
Less: Undistributed earnings allocated and distributions to
participating securities (2) | |
|
(1
|
)
| |
|
(1
|
)
| |
|
(5
|
)
| |
|
(3
|
)
|
Adjusted limited partners' net income
| |
$
|
184
|
| |
$
|
242
|
| |
$
|
803
|
| |
$
|
758
|
| | | | | | | | |
|
Diluted weighted average number of limited partner units outstanding
| | |
345
| | | |
331
| | | |
342
| | | |
325
| | | | | | | | | |
|
Diluted adjusted net income per limited partner unit
| |
$
|
0.53
|
| |
$
|
0.73
|
| |
$
|
2.35
|
| |
$
|
2.33
|
| | | | | | | | |
| (1) Certain of our non-GAAP financial measures may not be
impacted by each of the selected items impacting comparability.
| (2) We calculate adjusted net income available to
limited partners based on the distributions pertaining to the
current period's net income. After adjusting for the appropriate
period's distributions, the remaining undistributed earnings or
excess distributions over earnings, if any, are allocated to the
general partner, limited partners and participating securities in
accordance with the contractual terms of the partnership agreement
and as further prescribed under the two-class method.
|
|
| |
| |
| |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES | | | | | | | | | FINANCIAL SUMMARY (unaudited)
|
|
|
|
|
|
|
|
| | | | | | | | |
| FINANCIAL DATA RECONCILIATIONS | | | | | | | | |
(in millions)
| | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2013 | | 2012 | | 2013 | | 2012 | Net Income to Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA") and Excluding Selected Items Impacting
Comparability ("Adjusted EBITDA") Reconciliations | | |
Net Income
| |
$
|
237
| | |
$
|
173
| | |
$
|
1,074
| | |
$
|
797
| |
Add: Interest expense
| | |
72
| | | |
74
| | | |
224
| | | |
214
| |
Add: Income tax expense
| | |
9
| | | |
13
| | | |
79
| | | |
43
| |
Add: Depreciation and amortization
| |
|
93
|
| |
|
210
|
| |
|
265
|
| |
|
356
|
|
EBITDA
| |
$
|
411
| | |
$
|
470
| | |
$
|
1,642
| | |
$
|
1,410
| |
Selected items impacting comparability of EBITDA (1) | |
|
69
|
| |
|
32
|
| |
|
55
|
| |
|
87
|
|
Adjusted EBITDA
| |
$
|
480
|
| |
$
|
502
|
| |
$
|
1,697
|
| |
$
|
1,497
|
| | | | | | | | |
| (1) Certain of our non-GAAP financial measures may not be
impacted by each of the selected items impacting comparability.
| | | | | | | | |
| | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2013 | | 2012 | | 2013 | | 2012 | Adjusted EBITDA to Implied Distributable Cash Flow ("DCF") | | | | | | | | |
Adjusted EBITDA
| |
$
|
480
| | |
$
|
502
| | |
$
|
1,697
| | |
$
|
1,497
| |
Interest expense
| | |
(72
|
)
| | |
(74
|
)
| | |
(224
|
)
| | |
(214
|
)
|
Maintenance capital
| | |
(42
|
)
| | |
(47
|
)
| | |
(124
|
)
| | |
(123
|
)
|
Current income tax expense
| | |
(17
|
)
| | |
(10
|
)
| | |
(69
|
)
| | |
(32
|
)
|
Equity earnings in unconsolidated entities, net of distributions
| | |
(6
|
)
| | |
1
| | | |
(7
|
)
| | |
2
| |
Distributions to noncontrolling interests (1) | |
|
(13
|
)
| |
|
(12
|
)
| |
|
(38
|
)
| |
|
(36
|
)
|
Implied DCF
| |
$
|
330
|
| |
$
|
360
|
| |
$
|
1,235
|
| |
$
|
1,094
|
| | | | | | | | |
| (1) Includes distributions that pertain to the current
period's net income, which are paid in the subsequent period.
| | | | | | | | |
| | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2013 | | 2012 | | 2013 | | 2012 | Cash Flow from Operating Activities Reconciliation | | | | | | | | |
EBITDA
| |
$
|
411
| | |
$
|
470
| | |
$
|
1,642
| | |
$
|
1,410
| |
Current income tax expense
| | |
(17
|
)
| | |
(10
|
)
| | |
(69
|
)
| | |
(32
|
)
|
Interest expense
| | |
(72
|
)
| | |
(74
|
)
| | |
(224
|
)
| | |
(214
|
)
|
Net change in assets and liabilities, net of acquisitions
| | |
(82
|
)
| | |
125
| | | |
149
| | | |
(366
|
)
|
Other items to reconcile to cash flows from operating activities:
| | | | | | | | |
Equity-indexed compensation expense
| |
|
17
|
| |
|
22
|
| |
|
96
|
| |
|
82
|
|
Net cash provided by operating activities
| |
$
|
257
|
| |
$
|
533
|
| |
$
|
1,594
|
| |
$
|
880
|
|
Plains All American Pipeline, L.P. Roy I. Lamoreaux, (713) 646-4222
- (800) 564-3036 Director, Investor Relations or Al
Swanson, (800) 564-3036 Executive Vice President, CFO
|
|